QUESTION 1

The Assembly Department of GigaGo, Inc., manufacturer of computers, had 4500 units of beginning inventory in September, and 3000 units were transferred to it by the Production Department. The Assembly Department completed 1500 units during the month and transferred them to the Packaging Department. Calculate the total number of units accounted for by the Assembly Department if it had 6000 units in ending inventory. The weighted-average method is used.

1. 6000 units
2. 4500 units
3. 3000 units
4. 7500 units

QUESTION 2

In process costing, factory rent and utilities are debited to the ________.

1. Manufacturing Overhead account
2. Cost of Goods Sold account
3. Work-in-Process Inventory account
4. Finished Goods Inventory account

QUESTION 3

Companies that manufacture identical items through a series of uniform production steps use ________ to determine the cost per unit produced.

1. a process costing system
2. a job order costing system
3. both of the above systems
4. neither of the above systems

QUESTION 4

The journal entry for adjustment of overallocated manufacturing overhead includes a ________.

1. credit to Finished Goods Inventory
2. debit to Work-in-Process Inventory
3. credit to Cost of Goods Sold
4. credit to Manufacturing Overhead

QUESTION 5

The Refining Department of SweetBeet, Inc. had 79,000 tons of sugar to account for in July. Of the 79,000 tons, 49,000 tons were completed and transferred to the Boiling Department, and the remaining 30,000 tons were 50% complete. The materials required for production are added at the beginning of the process. Conversion costs are added evenly throughout the refining process. The weighted-average method is used. Calculate the total equivalent units of production for direct materials.

1. 79,000 units
2. 15,000 units
3. 49,000 units
4. 64,000 units

QUESTION 6

Which of the following best describes the term equivalent units?

1. different types of units that have same selling price
2. partially completed units of output that will be sold as is
3. partially completed units expressed in terms of fully completed units
4. substitute of units that are partially completed