A process costing system:

Multiple Choice

• uses a separate Work in Process account for each processing department.

• uses a single Work in Process account for the entire company.

• uses a separate Work in Process account for each type of product produced.

• does not use a Work in Process account in any form.

A company should use process costing, rather than job order costing, if:

Multiple Choice

• production is only partially completed during the accounting period.

• the product is manufactured in batches only as orders are received.

• the product is composed of mass-produced homogeneous units.

• the product goes through several steps of production.

Which of the following characteristics applies to process costing, but does not apply to job order costing?

Multiple Choice

• The need for averaging.

• The use of equivalent units of production.

• Separate, identifiable jobs.

• The use of predetermined overhead rates.

Jastak Company uses the weighted-average method in its process costing system. Operating data for the Painting Department for the month of April appear below:

What were the equivalent units for conversion costs in the Painting Department for April?

Multiple Choice

• 106,100

• 91,500

• 98,970

• 106,270

Required information

[The following information applies to the questions displayed below.]

Jumper Company uses the weighted-average method in its process costing system. The following data pertain to operations in the first processing department for a recent month:

How many units were in the ending work in process inventory?

Multiple Choice

• 600 units

• 1,000 units

• 800 units

• 1,400 units

Required information

[The following information applies to the questions displayed below.]

Jumper Company uses the weighted-average method in its process costing system. The following data pertain to operations in the first processing department for a recent month:

What was the cost per equivalent unit for conversion cost?

Multiple Choice

• $5.00

• $12.30

• $8.50

• $14.75

in activity-based costing, the activity rate for an activity cost pool is computed by dividing the total overhead cost in the activity cost pool by:

Multiple Choice

• the direct labor-hours required by the product.

• the machine-hours required by the product.

• the total activity for the activity cost pool.

• the total direct labor-hours for the activity cost pool.

Perl Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs:

Costs:
Wages and salaries	$	360,000
Depreciation		200,000
Occupancy		100,000
Total	$	660,000

The distribution of resource consumption across the three activity cost pools is given below:

	Activity Cost Pools
	Fabricating	Order Processing		Other	Total
Wages and salaries	15%	60%		25%	100%
Depreciation	20%	35%		45%	100%
Occupancy	25%	50%		25%	100%

How much cost, in total, would be allocated in the first-stage allocation to the Order Processing activity cost pool?

Multiple Choice

• $336,000

• $319,000

• $330,000

• $396,000

Diehl Corporation uses an activity-based costing system with three activity cost pools. The company has provided the following data concerning its costs and its activity based costing system:

Costs:
Manufacturing overhead	$	480,000
Selling and administrative expenses		100,000
Total	$	580,000

Distribution of resource consumption:

	Activity Cost Pools
	Order Size	Customer Support		Other	Total
Manufacturing overhead	5%	85%		10%	100%
Selling and administrative expenses	60%	20%		20%	100%

The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs.

You have been asked to complete the first-stage allocation of costs to the activity cost pools.

How much cost, in total, should NOT be allocated to orders and products in the second stage of the allocation process if the activity-based costing system is used for internal decision-making?

Multiple Choice

• $68,000

• $0

• $116,000

• $58,000

Deemer Corporation has an activity-based costing system with three activity cost pools--Processing, Supervising, and Other. In the first stage allocations, costs in the two overhead accounts, equipment expense and indirect labor, are allocated to the three activity cost pools based on resource consumption. Data used in the first stage allocations follow:

Overhead costs:
Equipment expense	$	73,000
Indirect labor	$	6,000

Distribution of Resource Consumption Across Activity Cost Pools:

	Activity Cost Pools
	Processing	Supervising		Other
Equipment expense	0.60	0.20		0.20
Indirect labor	0.40	0.20		0.40

Processing costs are assigned to products using machine-hours (MHs) and Supervising costs are assigned to products using the number of batches. The costs in the Other activity cost pool are not assigned to products. Activity data for the company's two products follow:

Activity:

	MHs (Processing)	Batches (Supervising)
Product F6	1,000	600
Product X0	9,000	400
Total	10,000	1,000

What is the overhead cost assigned to Product X0 under activity-based costing?

Multiple Choice

• $41,580

• $39,500

• $47,900

• $6,320