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| 1.
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Which of the following is not a feature of a process production system? |
| | A) | Repetitive production |
| | B) | High production volume |
| | C) | Low product flexibility |
| | D) | Heterogeneous products |
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| 2.
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Which of the following is most likely to use a process cost accounting system? |
| | A) | Construction company |
| | B) | Print shop |
| | C) | Ship builder |
| | D) | Sugar refiner |
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| 3.
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Which of the following is not true regarding job order cost accounting and process cost accounting systems? |
| | A) | Both assign costs by process |
| | B) | Both classify materials as direct and/or indirect |
| | C) | Both classify labour as direct and/or indirect |
| | D) | Direct materials under one system might be indirect in the other |
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| 4.
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Which of the following shows the raw materials issued to a department during a period and substitutes for materials requisitions? |
| | A) | Cost of production report |
| | B) | Equivalent units processing cost report |
| | C) | Process cost summary |
| | D) | Materials consumption report |
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| 5.
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On May 1, the production department had 6,000 units 50% complete as to labour and overhead; materials are added at the beginning of the process. During May, 30,000 units were started into process. At the end of May, the ending goods in process of 8,000 units were 80% complete as to labour and overhead. The number of units transferred to the next department were: |
| | A) | 33,400 |
| | B) | 28,000 |
| | C) | 26,600 |
| | D) | 31,000 |
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| 6.
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The beginning goods in process were 3,000 units, which were 40% complete as to labour and overhead. During the accounting period, 15,000 units were completed and transferred to finished goods. Five hundred units remain in process and are 60% completed. The number of units started during the accounting period were: |
| | A) | 15,500 |
| | B) | 18,500 |
| | C) | 12,000 |
| | D) | 12,500 |
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| 7.
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In the process cost accounting system presented in the chapter, the flow of goods in process inventories is assumed to be: |
| | A) | first-in, first-out (FIFO) |
| | B) | last-In, first-out (LIFO) |
| | C) | weighted average |
| | D) | specific invoice price |
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| 8.
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The total costs to process the beginning 5,000 units in process was $20,000. Thirty thousand units were started and completed. There were no ending units in process. Costs added during the period were: materials, $63,000, and labour and overhead, $28,500 each. The net change in the per unit cost of the units started and completed and the beginning units completed is: |
| | A) | $.00 no change |
| | B) | $.10 increase |
| | C) | $.05 decrease |
| | D) | $.15 decrease |
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| 9.
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Direct materials cost $8 per unit, direct labour is $6 per unit, and overhead is applied at 150% of direct labour cost. The 5,000 units of beginning goods in process were 100% complete as to materials, and 30% complete as to labour and overhead. The total cost to process the beginning units: |
| | A) | cannot be determined from the information provided |
| | B) | is $100,000 |
| | C) | is $ 92,500 |
| | D) | is $115,000 |
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| 10.
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Direct materials cost $8 per unit, direct labour is $6 per unit, and overhead is applied at 150% of direct labour cost. The 5,000 units of beginning goods in process were 100% complete as to materials, and 30% complete as to labour and overhead. The total production costs of the current time period assigned to the beginning units: |
| | A) | cannot be determined from the information provided |
| | B) | is $52,500 |
| | C) | is $92,500 |
| | D) | is $31,500 |
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| 11.
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Beginning inventory of goods in process was 3,000 units that were 40% complete as to labour and overhead. Fifteen thousand units were added to production. Five hundred units remained in process, each 60% complete. The equivalent units for labour and overhead were: |
| | A) | 16,600 |
| | B) | 17,100 |
| | C) | 16,500 |
| | D) | 18,900 |
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| 12.
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On a process cost summary, the total costs to be accounted for and the total costs accounted for are |
| | A) | different in amount by the amount of underapplied overhead |
| | B) | different in amount by the amount of overapplied overhead |
| | C) | seldom the same, because of spoiled units |
| | D) | should be the same |
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| 13.
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The section of the process cost summary in which the details for the calculation of the unit processing costs for materials, labour, and overhead are shown is the: |
| | A) | Costs charged to the department |
| | B) | Assignment of costs to the output of the department |
| | C) | Equivalent unit processing costs |
| | D) | Total costs to be accounted for |
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| 14.
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Which of the following is CORRECT regarding the purpose of process cost summary? |
| | A) | To help managers control their departments |
| | B) | To help factory managers evaluate department managers’ performance |
| | C) | To provide cost information for the financial statements. |
| | D) | All of the above. |
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| 15.
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Which one of the following is NOT a characteristic of a process production system? |
| | A) | Repetitive Operation |
| | B) | High flexibility |
| | C) | High output volume |
| | D) | Homogenous offerings |
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| 16.
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Which of the following statements is NOT CORRECT in comparing process cost accounting and job order cost accounting systems? |
| | A) | Both accounting systems combine materials, labour, and other manufacturing overhead items in the process of producing products. |
| | B) | The procedure of allocating overapplied and underapplied overhead are the same in both accounting systems. |
| | C) | Both accounting systems need to determine the equivalent unit of production. |
| | D) | The focus in a job order costing system is the job or batch. The focus in a process costing system is the production department and equivalent units. |
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