Accounting 202 - Chapter 5.1

14 Questions

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Accounting Quizzes & Trivia

Do you feel confident that what we covered in the previous class on processes costing is now well understood? Take up the quiz and let the score show if you are ready to dive deeper into what process costing is all about. All the best of luck as you tackle it.


Questions and Answers
  • 1. 
    When units are moved from one processing department to the next, the cost associated with those units must also be moved from one WIP account to the next.   These costs are called: 
    • A. 

      Transported costs.

    • B. 

      Transmitted costs.

    • C. 

      Conveyed costs.

    • D. 

      Transferred costs.

  • 2. 
    Hallow Company produces ping pong balls using a three-step sequential process that includes molding, coloring and finishing.  When the balls are completely finished, out of which account should their cost be transferred?
    • A. 

      Finished goods inventory

    • B. 

      WIP inventory─finishing

    • C. 

      WIP inventory─coloring

    • D. 

      WIP inventory─molding

  • 3. 
    The product costing system normally used to assign costs to goods that are mass produced is:
    • A. 

      Fixed costing

    • B. 

      Job costing

    • C. 

      LIFO costing

    • D. 

      Process costing

  • 4. 
    Direct labor costs plus manufacturing overhead costs equal:
    • A. 

      Prime costs.

    • B. 

      Operating costs.

    • C. 

      Equivalent costs.

    • D. 

      Conversion costs.

  • 5. 
    The costing system used by a company producing custom window treatments would be:
    • A. 

      Job costing.

    • B. 

      Process costing.

    • C. 

      Equivalent units costing.

    • D. 

      Conversion cost costing.

  • 6. 
    The costing system used by a company making computer chips would be:
    • A. 

      Job costing.

    • B. 

      Process costing.

    • C. 

      Equivalent units costing.

    • D. 

      Conversion cost costing.

  • 7. 
    A system for assigning costsfor products made in a continuous processis:
    • A. 

      Job costing

    • B. 

      Process costing

    • C. 

      Equivalent units costing

    • D. 

      Conversion cost costing

  • 8. 
    In a process costing system, manufacturing costs are usually combined into two categories:
    • A. 

      Direct materials and conversion costs.

    • B. 

      Direct labor and conversion costs.

    • C. 

      Manufacturing overhead and conversion costs.

    • D. 

      Direct materials and direct labor.

  • 9. 
    If all direct materials are added at the end of the production process, and the units have made it 50% of the way through the production process, then the percentage completion for direct materials is:
    • A. 

      0%

    • B. 

      100%.

    • C. 

      50%

    • D. 

      None of the above.

  • 10. 
    If all direct materials are added at the beginning of the production process, and the units have made it 50% of the way through the production process, then the percentage completion for direct materials is:
    • A. 

      0%

    • B. 

      100%

    • C. 

      50%

    • D. 

      None of the above

  • 11. 
    If conversion costs are added evenly throughout the production process, and the units have made it 50% of the way through the production process, then the percentage completion for direct material is:
    • A. 

      0%

    • B. 

      100%

    • C. 

      50%

    • D. 

      None of the above

  • 12. 
    If conversion costs are added evenly throughout the production process, and the units have made it 50% of the way through the production process, then the percentage completion for conversion costs is:
    • A. 

      0%

    • B. 

      100%

    • C. 

      50%

    • D. 

      None of the above

  • 13. 
    In a process system, direct labor and manufacturing overhead are normally:
    • A. 

      Incurred at the end of the process.

    • B. 

      Incurred in full at the beginning of the process.

    • C. 

      Incurred evenly throughout the process.

    • D. 

      Not recorded.

  • 14. 
    A measure of the amount of work done, expressed in complete units of output is:
    • A. 

      Job costing

    • B. 

      Process costing

    • C. 

      Equivalent units

    • D. 

      Conversion costs