1.Which statement concerning process cost accounting is correct?

a.The summarization of manufacturing costs is performed on job cost sheets.

b.The focus of process accounting is on the individual job.

c.The system is used by companies that manufacture customized products.

d.Individual work in process accounts are maintained for each production department or manufacturing process.

2.Andy's Candy makes custom chocolates for specific clients based on client specifications. Andy's is contemplating changing over to mass production of chocolates for sale on the general market. If Andy's makes this switch, which of the following aspects of its cost system will change?

a.Accumulation of materials, labor, and overhead

b.Flow of costs

c.Unit cost computation

d.Manufacturing cost elements

3.AllWeather makes umbrellas and uses a process cost system. Each day, AllWeather produces 640 umbrellas; each period, AllWeather produces 18,200 umbrellas; each year, All Weather produces 72,000 umbrellas. In addition, AllWeather does about 100 production runs per year. At what point should AllWeather determine its total manufacturing costs?

a.At the end of each year

b.At the end of each period

c.At the end of each production run

d.At the end of each day

4.Ahrens Incorporated recently changed from a process cost system to a jobcost system. Which of the following will be a result of this change to the costing system?

a.Ahrens' unit cost computation will divide total manufacturing costs by the equivalent units produced during the period.

b.Ahrens' total manufacturing costs will be determined at the end of each period.

c.Ahrens' number of Work in Process accounts will decrease.

d.Ahrens' costs will be summarized using a production cost report.

5.Julio is an accountant whose company recently switched from process costing to job order costing. He is preparing to assign costs to Work in Process. What changes must Julio make to his assignment process as a result of the costing system change?

a.He must assign half of Work in Process to different departmental accounts and half to a single job account rather than assigning all of it to different departmental accounts.

b.He must assign portions of Work in Process to different departmental accounts rather than assigning all of it to a single job account.

c.He must assign all Work in Process to a single job account rather than assigning portions of it to different departmental accounts.

d.He must assign half of Work in Process to different departmental accounts and half to a single job account rather than assigning all of it to a single job account.

6.Differences between a job order cost and a process cost system include the

a.accumulation of the costs of materials, labor, and overhead.

b.manufacturing cost elements.

c.documents used to track costs.

d.flow of costs.

7.A similarity between a job order cost and a process cost system is the

a.computation used to determine unit cost.

b.point at which costs are totaled.

c.number of work in process accounts used.

d.flow of costs.

8.Kuhn Industries transferred $18,200 worth of goods from the Work in ProcessPolishing account to the Work in ProcessAssembly account. How should this transfer of goods be journalized?

a.An $18,200 debit should be made to Work in ProcessPolishing and an $18,200 debit should be made to Work in ProcessAssembly.

b.An $18,200 credit should be made to Work in ProcessPolishing and an $18,200 debit should be made to Work in ProcessAssembly.

c.An $18,200 debit should be made to Work in ProcessPolishing and an $18,200 credit should be made to Work in ProcessAssembly.

d.An $18,200 credit should be made to Work in ProcessPolishing and an $18,200 credit should be made to Work in ProcessAssembly.

9.Lacy Technology transferred $12,600 worth of goods from the Assembly Department to the Finished Goods Inventory at the end of the period. Which of the following journal entries correctly reflects this sale?

a.

b.

c.

d.

10.Betty's Bakery makes cookies in a three-step process. Ingredients are blended during the first step. The blended ingredients are baked during the second step. The finished cookies are packed in cardboard boxes during the third step. Which of the following assumptions can you make about material cost assignment based on this information?

a.Material costs are assigned to the second step only.

b.Material costs are assigned to all three steps.

c.Material costs are assigned to the first and third step only.

d.Material costs are assigned to the second and third step only.

11.Nelson Industries makes widgets using a two-step process that involves machining first and assembly second. During the period, the Machining Department has an output of 8,600 widgets that are 85% complete. What are the equivalent units of production for Machining? Use the weighted-average method.

a.7,310 widgets

b.6,880 widgets

c.8,020 widgets

d.7,740 widgets

12.Sutton Enterprises makes gadgets using a two-step process that involves machining first and assembly second. During the period, the Assembly Department completes 10,200 gadgets and transfers them out. It also has 2,600 units in process that are 65% complete. What are the equivalent units of production for Assembly? Use the weighted-average method.

a.9,490 gadgets

b.9,230 gadgets

c.11,630 gadgets

d.11,890 gadgets

13.Under which of the following circumstances is it necessary to compute separate unit costs for materials and conversion costs?

a.when one type of cost occurs at 100% and the other occurs at a lower percentage

b.when a company uses process costing rather than job order costing

c.when a manufacturing process is neither the first nor the last step in the process

d.when the two types of costs do not occur in the process at the same time

14.Wilson Tech's production cost data for the current period is:

Beginning Work in Process: 0 units

Units Transferred Out: 9,800 units

Ending Work in Process: 6,200 units

Materials are entered at the beginning of the process. The ending work in process units are 40% complete as to conversion costs. What are the equivalent units of production for materials?

a.3,600 units

b.6,200 units

c.16,000 units

d.9,800 units

15.Wilson Tech's production cost data for the current period is:

Beginning Work in Process: 0 units

Units Transferred Out: 9,800 units

Ending Work in Process: 6,200 units

Materials are entered at the beginning of the process. The ending work in process units are 40% complete as to conversion costs. What are the equivalent units of production for conversion costs?

a.13,720 units

b.12,280 units

c.12,080 units

d.13,520 units

16.What are total physical units to be accounted for equal to?

a.units started (or transferred) into production plus the units in beginning work in process

b.units started (or transferred) into production

c.units started (or transferred) into production less the units in beginning work in process

d.units completed and transferred out

17.Equivalent units of production are a measure of

a.units in ending work in process

b.units transferred out

c.units completed and transferred out

d.the work done during the period expressed in fully completed units

18.The Assembly Department at Saint-Simon, Inc. started 6,000 units and completed 7,000 units. The beginning work in process was 3,000 units. The number of units in the ending work in process is

a.4,000.

b.1,000.

c.2,000.

d.0.

19.The Cutting Department at the Blanc Company had beginning work in process of 4,000 units, transferred out 9,000 units, and an ending work in process of 2,000 units. The number of units started by Blanc during the month is

a.9,000.

b.11,000.

c.7,000.

d.6,000.

20.The Cambia Company enters materials at the beginning of the process. If there is no beginning work in process, but there is an ending work in process inventory, what will be the number of equivalent units for material costs?

a.less than the units completed

b.less than the units started

c.the same as the units completed

d.the same as the units started