Question 1

Prepare journal entries to record the following production activities for Sherman Manufacturing.
a.Incurred overhead costs of $79,000 (paid in cash).
b.Applied overhead at 110% of direct labor costs which are $93,900.
c.Transferred completed products with a cost of $258,200 to finished goods inventory.
d.Sold $602,000 of product on credit.Cost is $271,000.

Accepted Answer

The answer of Prepare journal entries to record the following...

Question 2

In a process costing system,when manufacturing overhead costs are applied to the cost of production,they are debited to:

Accepted Answer

A)  the Finished Goods Inventory account.
B)  the Cost of Goods Sold account.
C)  the Goods in Process Inventory account.
D)  the Manufacturing Overhead account.
E)  the Raw Materials Inventory account.F) All of the above
G) None of the above

Question 3

Heesacker,Inc.uses a process cost accounting system.The following operating and cost data occurred during October:
  Materials are added at the beginning of the process.Direct labor and overhead are incurred evenly throughout the process.Prepare the October process cost summary assuming the weighted average method of inventory costing.

Accepted Answer

The answer of Heesacker,Inc.uses a process cost accounting system.The following...

Question 4

Embark produces mulch for landscaping use.The following information summarizes production operations for June.The journal entry to record June production activities for direct material usage is:

Accepted Answer

A)  Debit Raw Materials Inventory $87,000; credit Accounts Payable $87,000.
B)  Debit Raw Materials Inventory $87,000; credit Finished Goods Inventory $87,000.
C)  Debit Cost of Goods Sold $87,000; credit Finished Goods Inventory $87,000.
D)  Debit Goods in Process Inventory $87,000; credit Raw Materials Inventory $87,000.
E)  Debit Goods in Process Inventory $87,000; credit Cost of Goods Sold $87,000.F) A) and B)
G) C) and E)

Question 5

During March,the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods.Of the units transferred,25,000 were in process at the beginning of March and 110,000 were started and completed in March.March's beginning inventory units were 100% complete with respect to materials and 55% complete with respect to labor.At the end of March,30,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to labor.Compute the number of equivalent units with respect to both materials and direct labor respectively for March using the weighted-average method.

Accepted Answer

A)  165,000; 165,000.
B)  135,000; 119,000.
C)  140,000; 130,250.
D)  165,000; 144,000.
E)  144,000; 144,000.F) A) and E)
G) D) and E)

Question 6

Which of the following characteristics does not usually apply to process manufacturing systems?

Accepted Answer

A)  Each unit of product is separately identifiable.
B)  Partially completed products are transferred between processes.
C)  Different managers are responsible for different processes.
D)  The output of all processes except the final process is an input to the next process.
E)  All of the choices include characteristics of process manufacturing systems.F) A) and E)
G) B) and E)

Question 7

Refer to the following information about the Painting Department in the Richardson Factory for the month of June.Richardson Factory uses the weighted-average method of inventory costing.
Beginning goods in process inventory:
  Compute the total cost of all units that were completed and transferred to finished goods during June.Compute the total cost of the ending goods in process inventory.

Accepted Answer

The answer of Refer to the following information about the...

Question 8

In a process cost accounting system,a department's production should be measured in terms of equivalent units when its beginning or ending inventory includes goods in process.

Accepted Answer

A) True 
 B)False

Question 9

The following data is available for Osman Corp.for the current year:
Beginning inventory of goods in process 12,000 units,60% completed
Ending inventory of goods in process 18,000 units,30% completed
Units completed and transferred to
finished goods during the year 144,000 units
Calculate the equivalent units of production for the year using the weighted average method.

Accepted Answer

The answer of The following data is available for Osman...

Question 10

A company uses a process cost accounting system.Its Assembly Department's beginning inventory consisted of 50,000 units,3/4 complete with respect to direct labor and overhead.The department completed and transferred out 127,500 units this period.The ending inventory consists of 40,000 units that are 1/4 complete with respect to direct labor and overhead.All direct materials are added at the beginning of the process.The department incurred direct labor costs of $24,000 and overhead costs of $32,000 for the period.Assuming the weighted average method,the direct labor cost per equivalent unit (rounded to the nearest cent) is:

Accepted Answer

A)  $0.14.
B)  $0.16.
C)  $0.17.
D)  $0.30.
E)  $0.37.F) All of the above
G) D) and E)

Question 11

The FIFO method separates prior period costs from costs incurred during the current period.

Accepted Answer

A) True 
 B)False

Question 12

A process cost accounting system records all factory overhead costs directly in the Goods in Process Inventory accounts.

Accepted Answer

A) True 
 B)False

Question 13

Medina Corp.uses the weighted average method for inventory costs and had the following information available for the year.Equivalent units of production for the year are:
Beginning inventory of goods in process (40% complete,$1,100) ………..200 units
Ending inventory of goods in process (80% complete) ……….. 400 units
Total units started during the year……………… 3,200 units

Accepted Answer

A)  3,200 units.
B)  3,320 units.
C)  3,240 units.
D)  3,520 units.
E)  3,800 units.F) All of the above
G) B) and E)

Question 14

Equivalent units of production need to be determined only if a processing department adds materials and labor to its products at different rates.

Accepted Answer

A) True 
 B)False

Question 15

The use of process costing is of little benefit to a service type of operation.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is the best explanation for why it is necessary to calculate equivalent units of production in a process costing environment?

Accepted Answer

A)  In most manufacturing environments, it is not possible to conduct a physical count of units.
B)  Companies often use a combination of a process costing and job order costing systems.
C)  In most process costing systems, direct materials are added at the beginning of the process while conversion costs are added evenly throughout the manufacturing process.
D)  All of the work to make a unit 100% complete and ready to move to the next stage of production or to finished goods inventory may not have been completed in a single time period.
E)  In most cases, there is no difference between physical units and equivalent units of production.F) C) and E)
G) A) and B)

Question 17

When the completed goods are sold,the cost of the completed goods are transferred to ____________________ .

Accepted Answer

The answer of When the completed goods are sold,the cost...

Question 18

Embark produces mulch for landscaping use.The following information summarizes production operations and sales activities for June.The journal entry to record June sales is:

Accepted Answer

A)  Debit Accounts Receivable $810,000; credit Cost of Goods Sold $810,000.
B)  Debit Accounts Receivable $810,000; credit Sales $366,000; credit Finished Goods Inventory $444,000.
C)  Debit Cost of Goods Sold $444,000; credit Sales $444,000.
D)  Debit Finished Goods Inventory $444,000; debit Sales $810,000; credit Accounts Receivable $810,000; credit Cost of Goods Sold $444,000.
E)  Debit Accounts Receivable $810,000; credit Sales $810,000; debit Cost of Goods Sold $444,000; credit Finished Goods Inventory $444,000.F) D) and E)
G) All of the above

Question 19

Process manufacturing usually reflects a manufacturer that produces large quantities of identical products.

Accepted Answer

A) True 
 B)False

Question 20

Process cost accounting systems consider direct costs to include those costs that can be readily identified with a particular process.

Accepted Answer

A) True 
 B)False

Exam 20: Process Costing

Correct Answer
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In a process costing system,when manufacturing overhead costs are applied to the cost of production,they are debited to:

Correct Answer
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Correct Answer
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Embark produces mulch for landscaping use.The following information summarizes production operations for June.The journal entry to record June production activities for direct material usage is:

Correct Answer
verified

The use of process costing is of little benefit to a service type of operation.

Correct Answer
verified

Equivalent units of production need to be determined only if a processing department adds materials and labor to its products at different rates.

Correct Answer
verified

Which of the following is the best explanation for why it is necessary to calculate equivalent units of production in a process costing environment?

Correct Answer
verified

When the completed goods are sold,the cost of the completed goods are transferred to ____________________ .

Correct Answer
verified

A process cost accounting system records all factory overhead costs directly in the Goods in Process Inventory accounts.

Correct Answer
verified

The FIFO method separates prior period costs from costs incurred during the current period.

Correct Answer
verified

Embark produces mulch for landscaping use.The following information summarizes production operations and sales activities for June.The journal entry to record June sales is:

Correct Answer
verified

Correct Answer
verified

Which of the following characteristics does not usually apply to process manufacturing systems?

Correct Answer
verified

Process cost accounting systems consider direct costs to include those costs that can be readily identified with a particular process.

Correct Answer
verified

In a process cost accounting system,a department's production should be measured in terms of equivalent units when its beginning or ending inventory includes goods in process.

Correct Answer
verified

Process manufacturing usually reflects a manufacturer that produces large quantities of identical products.

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Exam 20: Process Costing

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In a process costing system,when manufacturing overhead costs are applied to the cost of production,they are debited to:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Embark produces mulch for landscaping use.The following information summarizes production operations for June.The journal entry to record June production activities for direct material usage is:

Correct AnswerverifiedShow Answer

The use of process costing is of little benefit to a service type of operation.

Correct AnswerverifiedShow Answer

Equivalent units of production need to be determined only if a processing department adds materials and labor to its products at different rates.

Correct AnswerverifiedShow Answer

Which of the following is the best explanation for why it is necessary to calculate equivalent units of production in a process costing environment?

Correct AnswerverifiedShow Answer

When the completed goods are sold,the cost of the completed goods are transferred to ____________________ .

Correct AnswerverifiedShow Answer

A process cost accounting system records all factory overhead costs directly in the Goods in Process Inventory accounts.

Correct AnswerverifiedShow Answer

The FIFO method separates prior period costs from costs incurred during the current period.

Correct AnswerverifiedShow Answer

Embark produces mulch for landscaping use.The following information summarizes production operations and sales activities for June.The journal entry to record June sales is:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following characteristics does not usually apply to process manufacturing systems?

Correct AnswerverifiedShow Answer

Process cost accounting systems consider direct costs to include those costs that can be readily identified with a particular process.

Correct AnswerverifiedShow Answer

In a process cost accounting system,a department's production should be measured in terms of equivalent units when its beginning or ending inventory includes goods in process.

Correct AnswerverifiedShow Answer

Process manufacturing usually reflects a manufacturer that produces large quantities of identical products.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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