NAME______________________________ TRUE-FALSE STATEMENTS 1. 2. 3. ". $. %. '. (. +. 1.. 11. 12. 13. 1". 1$. 1%. 1'. 1(. 1+.

2.. 21. 22. 23. 2". 2$. 2%. 2'. 2(. 2+. 3.. 31. 32. 33. 3".

DATE: ______________________

Process cost accounting focuses on the process involved in mass-producing products that are very similar in nature. Process cost systems are used to apply costs to a specific job, such as the manufacturing of a specialized machine. A company that produces motion pictures ould li!ely use a process cost system. #n a process cost system, costs are trac!ed through a series of connected manufacturing processes or departments, rather than by individual jobs. #n a process cost system, total costs are determined at the end of a month or year. &eparate or! in process accounts are maintained for each production department or manufacturing process in a process cost system. #n a process cost system, materials, labor and overhead are only added in the first production department. )he assignment of the three manufacturing cost elements to *or! in Process in a process cost system is the same as in a job order cost system. ,e er materials re-uisitions are generally re-uired in a process cost system than in a job order cost system. #n a process cost system, all labor costs incurred ithin a producing department are a cost of processing the ra materials. A primary driver of overhead costs in continuous manufacturing operations is machine time used. /-uivalent units of production are used to determine the cost per unit of completed products. /-uivalent units of production measure the or! done during a period, e0pressed in fully completed units. /-uivalent units of production is the sum of units completed and transferred out plus e-uivalent units of beginning or! in process. )he eighted-average method of computing e-uivalent units is the most idely used method in practice. )here are no units in process at the beginning of the period, 1,... units in process at the end of the period that are ".1 complete, and 1.,... units transferred out during the period. 2ased on this information, there ere +,%.. e-uivalent units of production during the period. )he first step performed in preparing a production cost report is computing the e-uivalent units of production. /-uivalent units of production must be calculated before the unit production costs can be computed. )he physical units in a department are another name for the e-uivalent units of production. 3nit material cost is computed by ta!ing total material costs charged to the department for the period and dividing by the physical units in the process during the period. *hen e-uivalent units of production are different for materials and conversion costs, unit costs are computed for materials, conversion, and total manufacturing. )he total manufacturing cost per unit is used in costing the units completed and transferred during the period. A production cost report is an internal document for management that sho s production -uantity and cost data for a particular job. Production cost reports provide a basis for evaluating the productivity of a department. 4ompanies often use a combination of a process cost and a job order cost system, called operations costing. )he ,#,5 method is easier to understand and use than the eighted-average method. )he ,#,5 method is conceptually superior to the eighted-average method. *hen comparing the ,#,5 ith the eighted-average method, the ,#,5 method provides current cost information. )here are no units in ending or! in process at the end of the period under the ,#,5 method. 4ompanies using the eighted-average method do not complete units left over from the previous accounting periods. )hey start ne units. #n continuous process manufacturing, generally once the production begins, it continues until the finished product emerges. 5ne similarity of process cost accounting ith job order cost accounting is that both determine total manufacturing costs after each job. )he flo of costs in a process costing system re-uires that materials be added in one department, labor added in another department and manufacturing overhead in a third department. *hen finished goods are sold, the entry to record the cost of goods sold is a debit to ,inished 6oods #nventory and a credit to 4ost of 6oods &old.

3$. 3%. 3'.

*hen there is no beginning or! in process and materials are entered at the beginning of the process, e-uivalent units of materials are the same as the units started into production. #n order to compute the physical unit flo , a company must first compute unit production costs. 3nder the ,#,5 method, it is assumed that the beginning or! in process is completed before ne is started. or!

MULTIPLE CHOICE QUESTIONS: Encircle the correct letter 3(. A process cost accounting system is most appropriate hen a. a variety of different products are produced, each one re-uiring different types of materials, labor, and overhead. b. the focus of attention is on a particular job or order. c. similar products are mass-produced. d. individual products are custom made to the specification of customers. A characteristic of products that are mass-produced in a continuous fashion is that a. the products are identical or very similar in nature. b. they are grouped in batches. c. they are produced at the time an order is received. d. their costs are accumulated on job cost sheets. A process cost system ould be used for all of the follo ing products except a. chemicals. b. computer chips. c. motion pictures. d. soft drin!s. #n a process cost system, a. a *or! in Process account is maintained for each product. b. a materials re-uisition must identify the job on hich the materials ill be used. c. a *or! in Process account is maintained for each process. d. one *or! in Process account is maintained for all the processes, similar to a job order cost system. 7ifferences bet een a job order cost system and a process cost system include all of the follo ing except the a. documents used to trac! costs. b. point at hich costs are totaled. c. unit cost computations. d. flo of costs. *hich of these best reflects a distinguishing factor bet een a job order cost system and a process cost system8 a. )he detail at hich costs are calculated b. )he time period each covers c. )he number of or! in process accounts d. )he manufacturing cost elements included *hich of the follo ing is a true statement about process cost systems8 a. #n process cost systems, costs are accumulated but not assigned. b. A process cost system has one or! in process account for each process. c. #n process cost systems, costs are summarized on job cost sheets. d. 3nit costs are not computed in process cost systems. *hich of the follo ing is correct regarding cost systems8 a. b. c. d. "%. *or! in process account *or! in process account *or! in process account *or! in process account 9ob 5rder several one one several Process one for each process one one for each process one

3+.

".. "1.

"2.

"3.

"".

"$.

#n a process cost system, unit costs are determined using a a. numerator of costs of each job. b. denominator of units produced during the period. c. denominator of units produced for the job. d. denominator of units produced for the day. #n process cost accounting, manufacturing costs are summarized on a a. job order cost sheet. b. process order cost sheet. 2

"'.

c. production cost report. "(.

d. manufacturing cost sheet.

*hich of the follo ing manufacturing cost elements occurs in a process cost system8 a. 7irect materials b. 7irect labor c. :anufacturing overhead d. All of these #n a process cost system, product costs are summarized a. on job cost sheets. b. on production cost reports. c. after each unit is produced. d. hen the products are sold. *hen manufacturing overhead costs are assigned to production in a process cost system, they are debited to a. the ,inished 6oods #nventory account. b. 4ost of 6oods &old. c. a :anufacturing 5verhead account. d. the *or! in Process account. A product re-uires processing in t o departments, 7epartment A and then 7epartment 2, before it is completed. 4osts transferred out of 7epartment A ill be transferred to a. ,inished 6oods #nventory. b. 4ost of 6oods &old. c. *or! in Process;7epartment 2. d. :anufacturing 5verhead. *hich of the follo ing ould not appear as a debit in the *or! in Process account of a second department in a t o stage production process8 a. :aterials used b. 5verhead applied c. <abor assigned d. 4ost of products transferred out :aterials re-uisitions are a. not used in process costing. b. generally used more fre-uently in process costing than job order costing. c. generally used less fre-uently in process costing than job order costing. d. used more fre-uently by latter stage production departments. A primary driver of overhead costs in continuous manufacturing operations is a. direct labor pesos. b. direct labor hours. c. machine hours. d. machine maintenance pesos. Price :anufacturing assigns overhead based on machine hours. 7epartment A logs 1,2.. machine hours and 7epartment 2 sho s 2,... machine hours for the period. #f the overhead rate is P$ per machine hour, the entry to assign overhead ill sho a a. debit to :anufacturing 5verhead for P1%,.... b. credit to *or! in Process;7epartment 2 for P1.,.... c. debit to *or! in Process for P1.,.... d. credit to :anufacturing 5verhead for P1%,.... 2arnes and :iller :anufacturing is trying to determine the e-uivalent units for conversion costs ith 3,... units of ending or! in process at (.1 completion and 1",... physical units. )here are no beginning units in the department. 4onversion costs occur evenly throughout the entire production period. *hat are the e-uivalent units for conversion costs for the current period8 a. 1',... b. 1%,(.. c. 2,".. d. 13,".. ',... units in a process that are '.1 complete are referred to as a. ',... e-uivalent units of production. b. 2,1.. e-uivalent units of production. c. ",+.. e-uivalent units of production. d. 2,1.. une-uivalent units of production. A process ith no beginning or! in process, completed and transferred out "$,... units during a period and had 3.,... units in the ending or! in process inventory that ere 3.1 complete. )he e-uivalent units of production for the period ere a. "$,... e-uivalent units. b. '$,... e-uivalent units. c. $",... e-uivalent units. d. 22,$.. e-uivalent units.

"+.

$..

$1.

$2.

$3.

$".

$$.

$%.

$'.

$(.

Use the following information for questions 5960.

A department adds ra materials to a process at the beginning of the process and incurs conversion costs uniformly throughout the process. ,or the month of 9anuary, there ere no units in the beginning or! in process inventory= (.,... units ere started into production in 9anuary= and there complete in the ending or! in process inventory at the end of 9anuary. $+. ere 2.,... units that ere ".1

*hat ere the e-uivalent units of production for materials for the month of 9anuary8 a. ((,... e-uivalent units b. '2,... e-uivalent units c. %.,... e-uivalent units d. (.,... e-uivalent units *hat ere the e-uivalent units of production for conversion costs for the month of 9anuary8 a. %.,... e-uivalent units b. '2,... e-uivalent units c. %(,... e-uivalent units d. (.,... e-uivalent units /-uivalent units are calculated by a. multiplying the percentage of or! done by the e-uivalent units of output. b. dividing physical units by the percentage of or! done. c. multiplying the percentage of or! done by the physical units. d. dividing e-uivalent units by the percentage of or! done. :inor 4ompany had the follo ing department data> *or! in process, 9uly 1 4ompleted and transferred out *or! in process, 9uly 31 Physical 3nits 1%,... '2,... 2",...

%..

%1.

%2.

:aterials are added at the beginning of the process. *hat is the total number of e-uivalent units for materials in 9uly8 a. '2,... b. (.,... c. 112,... d. +%,... %3. 4orsi 4ompany had the follo ing department data> *or! in process, beginning 4ompleted and transferred out *or! in process, ending Physical 3nits -.'.,... ',...

:aterials are added at the beginning of the process. *hat is the total number of e-uivalent units for materials during the period8 a. '.,... b. ',... c. '',... d. %3,... %". 6antner 4ompany had the follo ing department information about physical units and percentage of completion> Physical 3nits *or! in process, :ay 1 ?%.1@ 3%,... 4ompleted and transferred out +.,... *or! in process, :ay 31 ?".1@ 3.,... #f materials are added at the beginning of the production process, units for materials during :ay8 a. 12%,... b. 12.,... c. 11%,".. %$. hat is the total number of e-uivalent d. 1.2,...

#t is necessary to calculate e-uivalent units of production in a department because a. a physical count of units is impossible. b. some units or!ed on in the department are not fully complete. c. the physical units in the department are al ays 1..1 complete. d. at times a department may use a job order cost system and then s itch to a process cost system.

Use the following information for questions 6668. #n the month of 9une, a department had 1.,... units in beginning or! in process that ere '.1 complete. 7uring 9une, ".,... units ere transferred into production from another department. At the end of 9une there ere $,... units in ending or! in process that ere ".1 complete. :aterials are added at the beginning of the process, hile conversion costs are incurred uniformly throughout the process.

%%. %'.

Ao many units ere transferred out of the process in 9une8 a. ".,... units b. 3$,... units c. "$,... units

d. $.,... units

)he e-uivalent units of production for materials for 9une ere a. "$,... e-uivalent units. b. $.,... e-uivalent units. c. $2,... e-uivalent units. d. ".,... e-uivalent units. )he e-uivalent units of production for conversion costs for 9une ere a. ".,... e-uivalent units. b. "',... e-uivalent units. c. "$,... e-uivalent units. d. $.,... e-uivalent units. A process ith no beginning or! in process, completed and transferred out 1.,... units during a period and had $,... units in the ending or! in process that ere $.1 complete. Ao much is e-uivalent units of production for the period for conversion costs8 a. 12,$.. e-uivalent units b. 1$,... e-uivalent units c. 1',$.. e-uivalent units d. ',$.. e-uivalent units A process ith (.. units of beginning or! in process, completed and transferred out 1.,... units during a period. )here ere $,... units in the ending or! in process that ere $.1 complete as to conversion costs. :aterials are added (.1 at the beginning of the process and 2.1 hen the units are +.1 complete. Ao much is e-uivalent units of production for the period for material costs8 a. 12,... e-uivalent units b. 1$,... e-uivalent units c. 11,... e-uivalent units d. 1",... e-uivalent units Aan!er 4ompany had the follo ing department data on physical units> *or! in process, beginning 4ompleted and transferred out *or! in process, ending 1,... ",... (..

%(.

%+.

'..

'1.

:aterials are added at the beginning of the process. *hat is the total number of e-uivalent units for materials during the period8 a. ",2.. b. (.. c. ",(.. d. 3,... '2. &uper-)ech #ndustries had the follo ing department information about physical units and percentage of completion> Physical 3nits *or! in process, 9une 1 ?'$1@ 2,... 4ompleted and transferred out ",$.. *or! in process, 9une 3. ?$.1@ 3,... #f materials are added at the beginning of the production process, units for materials during 9une8 a. 3,'$. b. ',$.. c. (,... '3. hat is the total number of e-uivalent d. %,...

6loria 4ompany had no beginning or! in process. 7uring the period, $,... units ere completed, and there ere $.. units of ending or! in process. Ao many units ere started into production8 a. $,$.. b. $,... c. ",$.. d. $.. 4ohen :anufacturing is trying to determine the e-uivalent units for conversion costs ith 2,... units of ending or! in process at (.1 completion and 1",... physical units that are 1..1 completed. )here are no beginning units in the department. :aterials are added at the beginning of the process, and conversion costs occur evenly throughout the entire production period. *hat is the e-uivalent units for conversion costs for the current period8 a. 1%,... b. 1$,%.. c. 1,%.. d. 13,%.. #f beginning or! in process is 2,... units, ending or! in process is 1,... units, and the units accounted for e-uals $,... units, hat must units started into production be8 a. ',... b. %,... c. 3,... d. ",... 4inder 4ompany had the follo ing department information for the month> )otal materials costs /-uivalent units of materials P (.,... 1.,...

'".

'$.

'%.

)otal conversion costs /-uivalent units of conversion costs

P12.,... 2.,...

Ao much is the total manufacturing cost per unit8 a. P1"... b. P%.%' c. P%...

d. P(...

Use the following information for questions 7778. :aterials costs of P2..,... and conversion costs of P21",2.. ere charged to a processing department in the month of &eptember. :aterials are added at the beginning of the process, hile conversion costs are incurred uniformly throughout the process. )here ere no units in beginning or! in process, 1..,... units ere started into production in &eptember, and there ere (,... units in ending or! in process that ere ".1 complete at the end of &eptember. ''. *hat as the total amount of manufacturing costs assigned to those units that ere completed and transferred out of the process in &eptember8 a. P1(",... b. P3+1,... c. P"1",2.. d. P"2$,2.. *hat as the total amount of manufacturing costs assigned to the (,... units in the ending process8 a. P1%,... b. P',2.. c. P13,%.. d. P23,2.. or! in

'(.

'+.

4harley 4ompanyBs Assembly 7epartment has materials cost at P3 per unit and conversion cost at P% per unit. )here are +,... units in ending or! in process, all of hich are '.1 complete as to conversion costs. Ao much are total costs to be assigned to inventory8 a. P3',(.. b. P%",(.. c. P$%,'.. d. P(1,... 2yrd :anufacturing decided to analyze certain costs for 9une of the current year. 3nits started into production e-ualed 1",... and ending or! in process e-ualed 2,... units. *ith no beginning or! in process inventory, ho much is the conversion cost per unit if ending or! in process as 2$1 complete and total conversion costs e-ualed P$.,...8 a. P3.13 b. P12.$. c. P"... d. P2... Ceed :anufacturing has recently tried to improve its analysis for its manufacturing process. 3nits started into production e-ualed %,... and ending or! in process e-ualed ".. units. Ceed had no beginning or! in process inventory. 4onversion costs are applied e-ually throughout production, and materials are applied at the beginning of the process. Ao much is the materials cost per unit if ending or! in process as 2$1 complete and total materials costs e-ualed P%.,...8 a. P1.... b. P1..$3 c. P3'.$. d. P+.3( 4onversion cost per unit e-uals P%.... )otal materials costs are P".,.... /-uivalent units are 2.,.... Ao much is the total manufacturing cost per unit8 a. P(... b. P%... c. P1.... d. P2... Physical units are ".,.... )otal conversion costs are P1+',$... )here are 1,... units in ending inventory hich are $.1 complete as to conversion costs. Ao much are conversion costs per unit8 a. P$... b. P".+3 c. P+.(( d. P".(2 :adison #ndustries has e-uivalent units of 2,... for materials and for conversion costs. )otal manufacturing costs are P2..,.... )otal materials costs are P1$.,.... Ao much is the conversion cost per unit8 a. P1.... b. P2$... c. P1..... d. P2.... /-uivalent units for materials total 1$,.... )here ere 12,... units completed and transferred out. /-uivalent units for conversion costs e-uals 13,$... Ao much are the physical units for conversion costs if ending or! in process is $.1 complete8 a. 1",... b. 1$,... c. ",... d. 12,... #f e-uivalent units are %,... for conversion costs and units transferred out e-uals ",..., completion should the ending or! in process be for the (,... units remaining8 a. '$1 b. 2$1 c. 1.1 d. 2.1 hat stage of

(..

(1.

(2.

(3.

(".

($.

(%.

Use the following information for questions 8788. #n the month of April, a department had $.. units in the beginning or! in process inventory that ere %.1 complete. )hese units had P2.,... of materials costs and P1$,... of conversion costs. :aterials are added at the beginning of the process and conversion costs are added uniformly throughout the process. 7uring April, 1.,... units ere completed and transferred to the finished goods inventory and there ere 2,... units that ere 2$1 complete in the ending or! in process inventory on April 3.. 7uring April, manufacturing costs charged to the department ere> :aterials P"%.,...= 4onversion costs P$1.,.... ('. ((. (+. )he cost assigned to the units transferred to finished goods during April as a. P+..,.... b. P+.$,.... c. P+".,.... d. P(+$,.... )he cost assigned to the units in the ending or! in process inventory on April 3. as a. P1(.,.... b. P1.$,.... c. P(.,.... d. P1"$,.... Dibba 4ompany enters materials at the beginning of the process. #n 9anuary, there as no beginning or! in process, but there ere 1.. units in the ending or! in process inventory. )he number of units completed e-uals the number of a. units started. b. units started less 1... c. units started plus 1... d. e-uivalent units. #f there are no units in process at the beginning of the period, then a. the company must be using a job order cost system. b. only one computation of e-uivalent units of production ill be necessary. c. the units started into production ill e-ual the number of units transferred out. d. the units to be accounted for ill e-ual the units transferred out and the units in process at the end of the period. *hich of the follo ing is not a necessary step in preparing a production cost report8 a. 4ompute the e-uivalent units of production b. 4ompute the physical unit flo c. Prepare the job order cost sheet d. Prepare a cost reconciliation schedule Aonrad 4ompanyEs Assembly 7epartment has materials cost at P" per unit and conversion cost at P( per unit. )here are +,... units in ending or! in process, all of hich are '.1 complete as to conversion costs. Ao much are total costs to be assigned to inventory8 a. P$.,".. b. P(%,".. c. P'$,%.. d. P1.(,... #n a process cost system, units to be accounted for in a department are e-ual to the a. number of units started or transferred into the department. b. number of units transferred out of the department. c. units in the beginning inventory plus the units started or transferred into the department. d. ending inventory plus the units started or transferred into the department. )he total units accounted for e-uals units in a. beginning or! in process F units transferred out. b. beginning or! in process G ending or! in process. c. ending or! in process G units transferred out. d. ending or! in process F units started into production.

+..

+1.

+2.

+3.

+".

Use the following information for questions 9596. 7epartment 1 of a t o department production process sho s> 2eginning *or! in Process /nding *or! in Process )otal units to be accounted for +$. +%. 3nits 1.,... $.,... 12.,... d. 11.,... d. 11.,...

Ao many units ere started into production in 7epartment 18 a. $.,... b. '.,... c. 12.,... Ao many units ere transferred out to 7epartment 28 a. $.,... b. '.,... c. 12.,...

+'.

)he Assembly 7epartment sho s the follo ing information> 2eginning *or! in Process /nding *or! in Process 3nits )ransferred 5ut 3nits 2.,... $.,... +.,...

Ao many total units are to be accounted for by the Assembly 7epartment8 a. 1".,... b. $.,... c. '.,... d. 12.,... +(. )he last department in a production process sho s the follo ing information at the end of the period> 3nits 2eginning *or! in Process 1$,... &tarted into Production 1.$,... /nding *or! in Process 3.,... Ao many units have been transferred out to finished goods during the period8 a. 1.$,... b. 12.,... c. 13$,... d. +.,... ++. A process began the month ith 3,... units in the beginning or! in process inventory and ended the month ith 2,... units in the ending or! in process. #f +,... units ere completed and transferred out of the process during the month, ho many units ere started into production during the month8 a. (,... b. 1.,... c. +,... d. ',... #f '$,... units are started into production and 3.,... units are in process at the end of the period, ho many units ere completed and transferred out8 a. '$,... b. 3.,... c. "$,... d. 1.$,... )otal units to be accounted for less units in beginning or! in process e-uals a. total units accounted for. b. units transferred out. c. units started into production. d. e-uivalent units. #f (.,... units are transferred out of a department and there are 1%,... units still in process at the end of a period, the number of units that ere started into production during the period is a. +%,.... b. (.,.... c. %",.... d. 1%,.... A department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process. ,or the month of 9uly, there as no beginning or! in process= 2.,... units ere completed and transferred out= and there ere 1.,... units in the ending or! in process that ere ".1 complete. 7uring 9uly, P'2,... materials costs and P%3,... conversion costs ere charged to the department. )he unit production costs for materials and conversion costs for 9uly as a. b. c. d. 1.". :aterials P2.". P2.". P3... P3.%. 4onversion 4osts P2.1. P2.%3 P2.1. P3.1$

1...

1.1.

1.2.

1.3.

4onversion cost per unit e-uals P%.... )otal materials costs e-ual P%.,.... /-uivalent units for materials are 2.,.... Ao much is the total manufacturing cost per unit8 a. P+... b. P%... c. P12... d. P3... )he follo ing department data are available> )otal materials costs /-uivalent units of materials )otal conversion costs /-uivalent units of conversion costs *hat is the total manufacturing cost per unit8 a. P2... b. P2.33 P12.,... %.,... P'.,... 3.,... c. P".33 d. P2.11 8

1.$.

1.%.

2yers 4ompany had the follo ing department information for the month> )otal materials costs /-uivalent units of materials )otal conversion costs /-uivalent units of conversion costs *hat is the total manufacturing cost per unit8 a. P$.3" b. P$... P3.,... $,... P$.,... 1.,... c. P%... d. P11...

1.'.

Physical units are (.,.... )otal conversion costs are P1+',$... )here are 2,... units in ending inventory hich are $.1 complete as to conversion costs. Ao much is the conversion cost per unit8 a. P2.$. b. P2."' c. P2."" d. P2."1 A department had the follo ing information for the month> )otal materials costs 4onversion cost per unit )otal manufacturing cost per unit P12.,... H3... H$... d. 4annot be determined

1.(.

*hat are the e-uivalent units of production for materials8 a. %.,... b. ".,... c. 2",... 1.+.

:aisley :anufacturing decided to analyze certain costs for 9une of the current year. 3nits started into production e-ualed 2(,... and ending or! in process e-ualed ",.... *ith no beginning or! in process inventory, ho much is the conversion cost per unit if ending or! in process as 2$1 complete and total conversion costs e-ualed P$.,...8 a. P1.$' b. P%.2$ c. P2... d. P1...

Use the following information for questions 110111. :aterials costs of P"..,... and conversion costs of P$1.,... ere charged to a processing department in the month of &eptember. :aterials are added at the beginning of the process, hile conversion costs are incurred uniformly throughout the process. )here ere no units in beginning or! in process, 2.,... units ere started into production in &eptember, and there ere $,... units in ending or! in process that ere ".1 complete at the end of &eptember. 11.. *hat as the total amount of manufacturing costs assigned to those units that ere completed and transferred out of the process in &eptember8 a. P'$.,... b. P1,...,... c. P(.3,2$. d. P%(2,$.. *hat as the total amount of manufacturing costs assigned to the $,... units in the ending process8 a. P22',$.. b. P2$.,... c. P1%.,... d. P1..,... or! in

111.

112.

&nead :anufacturing has recently tried to improve its analysis for its manufacturing process. 3nits started into production e-ualed +,... and ending or! in process e-ualed %.. units. &nead had no beginning or! in process inventory. 4onversion costs are applied e-ually throughout production, and materials are applied at the beginning of the process. Ao much is the materials cost per unit if ending or! in process as 2$1 complete and total materials costs e-ualed P%.,...8 a. P%.%' b. P'..2 c. P2$... d. P%.2$ :adison #ndustries has e-uivalent units of ",... for materials and for conversion costs. )otal manufacturing costs are P2..,.... )otal materials costs are P1$.,.... Ao much is the conversion cost per unit8 a. P3'.$. b. P12.$. c. P$.... d. P1.... #n a process cost system, a production cost report is prepared a. only for the first processing department. b. for all departments in the aggregate. c. for each processing department. d. only for the last processing department. A production cost report

113.

11".

11$.

a. is prepared for each product. b. is prepared from a job cost sheet. c. ill sho -uantity and cost data for a production department. d. ill not identify a specific department if more than one department is involved in the production process. 11%. #n the production cost report, the total a. physical units accounted for e-uals the costs accounted for. b. physical units accounted for e-uals the units to be accounted for. c. costs charged e-uals the units to be accounted for. d. costs accounted for e-uals the costs of the units started into production. )he 4utting 7epartmentBs output during the period consists of 12,... units completed and transferred out, and 3,... units in ending or! in process that ere 2$1 complete as to materials and conversion costs. 2eginning inventory as 1,$.. units that ere 2$1 complete as to materials and conversion costs. 3nder the ,#,5 method, hat are the e-uivalent units of production for materials8 a. 13,'2$ b. 12,3'$ c. 1","'$ d. 13,$.. )he *rapping 7epartmentBs output during the period consists of 1.,... units completed and transferred out, and %.. units in ending or! in process that ere '$1 complete as to materials and conversion costs. 2eginning inventory as (.. units that ere 3.1 complete as to materials and conversion costs. 3nder the ,#,5 method, hat are the e-uivalent units of production for materials8 a. 1.,%+. b. 11,.1. c. 1.,"$. d. 1.,21.

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Use the following information to answer questions 119120. 4hicotti 4ompany has 3,... units in beginning or! in process, 3.1 complete as to conversion costs, 2$,... units transferred out to finished goods, and 1,... units in ending or! in process 2.1 complete as to conversion costs. )he beginning and ending inventory is fully complete as to materials costs. 11+. 12.. 121. Ao much are e-uivalent units for conversion costs if the ,#,5 method is used8 a. 2$,2.. b. 2',3.. c. 23,... d. 2",3.. Ao much are e-uivalent units for materials if the ,#,5 method is used8 a. 2$,2.. b. 2%,... c. 23,... d. 2+,... &chiller 4ompany has unit costs of P$ for materials and P1$ for conversion costs. )here are ",2.. units in ending or! in process hich are 2$1 complete as to conversion costs, and fully complete as to materials cost. Ao much is the total cost assignable to the ending or! in process inventory if the ,#,5 method is used8 a. 3%,'$. b. (",... c. 21,... d. 1$,'$. &olis 4ompany uses the ,#,5 method to compute e-uivalent units. #t has 2,... units in beginning or! in process, 2.1 complete as to conversion costs and $.1 complete as to materials costs, 2$,... units started, and 3,... units in ending or! in process, 3.1 complete as to conversion costs, and (.1 complete as to materials cost. Ao much are the e-uivalent units for materials under the ,#,5 method8 a. 2$,".. b. 2$,... c. 2%,".. d. 2',... &pecial 4ompany had the follo ing department information about physical units and percentage of completion> Physical 3nits *or! in process, :ay 1 ?%.1@ 1",".. 4ompleted and transferred out 2%,... *or! in process, :ay 31 ?$.1@ 12,... :aterials are added at the beginning of the production process. 4onversion costs are added e-ually throughout production. *hat is the total number of e-uivalent units during :ay for conversion costs if the ,#,5 method is used8 a. $2,".. b. 32,... c. 23,3%. d. "3,'%. 12". Aan!er 4ompany had the follo ing department data on physical units> 10

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:aterials are added at the beginning of the process. *hat is the total number of e-uivalent units for materials if the ,#,5 method is used8 a. ",2.. b. 3,(.. c. ",(.. d. 3,... 12$. A process cost system ould be used by all of the follo ing except a?n@ a. chemical company. b. advertising company. c. oil company. d. computer chip company. *hich of the follo ing is considered a difference bet een a job order cost and a process cost system8 a. )he manufacturing cost elements b. 7ocuments used to trac! costs c. )he accumulation of the costs of materials, labor, and overhead d. )he flo of costs )he basic similarities bet een job order cost and process cost systems include all of the follo ing except the a. manufacturing cost elements. b. flo of costs. c. point at hich costs are totaled. d. accumulation of the costs of materials, labor, and overhead. /-uivalent units of production are a measure of a. units completed and transferred out. b. units transferred out. c. units in ending or! in process. d. the or! done in a period e0pressed in fully completed units. )otal physical units to be accounted for are e-ual to the units a. started ?or transferred@ into production. b. started ?or transferred@ into production plus the units in beginning or! in process. c. started ?or transferred@ into production less the units in beginning or! in process. d. completed and transferred out. #n computing e-uivalent units, IIIIIIIIIII is not part of the e-uivalent units of production formula. a. units transferred out b. beginning or! in process c. ending or! in process d. Jone of these is correct. #n &aint-&imon, #nc., the Assembly 7epartment started 12,... units and completed 1",... units. #f beginning or! in process as %,... units, ho many units are in ending or! in process8 a. . b. 2,... c. ",... d. (,... )he total units to be accounted for is computed by adding a. beginning units in process to units transferred out. b. ending units in process to units started into production. c. beginning units in process to units started into production. d. ending units in process to total units accounted for. #n the 4amria 4ompany, materials are entered at the beginning of the process. #f there is no beginning or! in process, but there is an ending or! in process inventory, the number of e-uivalent units as to materials costs ill be a. the same as the units started. b. the same as the units completed. c. less than the units started. d. less than the units completed. ,or the Assembly 7epartment, unit materials cost is H( and unit conversion cost is P12. #f there are %,... units in ending or! in process '$1 complete as to conversion costs, the costs to be assigned to the inventory are a. P12.,.... b. P1.2,.... c. P+.,.... d. P1.(,....

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