Accounting 202 - Chapter 5.2

14 Questions

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Accounting Quizzes & Trivia

Calculating costs involves during manufacturing can help a company not where most of the money in the process goes to. How improved are your skills of calculating these costs? The quiz below is designed to answer just that. Give it a try and see how much you score. All the best!


Questions and Answers
  • 1. 
    The full-time employees at Percy Enterprises work 8 hours per day, while the part-time employees work 4 hours per day.  Percy has 2,000 full-time employees and 800 part-time employees.   What is the number of full-time equivalent employees?
    • A. 

      2,000

    • B. 

      1,400

    • C. 

      2,400

    • D. 

      2,800

  • 2. 
    Green Paints has 4,000 gallons of paint WIP inventory, with all materials already added.  What are the equivalent units in ending WIP inventory for materials if the paint is 80% through the process?
    • A. 

      0

    • B. 

      800

    • C. 

      3,200

    • D. 

      4,000

  • 3. 
    Green Paints has 4,000 gallons of paint WIP inventory, with all materials already added.  The paint is 80% through the process,  Assuming all conversion costs are added evenly throughout the process, What are the equivalent units for conversion costs
    • A. 

      800

    • B. 

      0

    • C. 

      3,200

    • D. 

      4,000

  • 4. 
    Requisition of materials to molding includes a:
    • A. 

      Debit to raw materials inventory

    • B. 

      Credit to raw materials inventory

    • C. 

      Debit to manufacturing overhead

    • D. 

      Credit to finished goods inventory

  • 5. 
    The cost per equivalent unit is computed as
    • A. 

      Total costs to account for divided by total equivalent units

    • B. 

      Total equivalent units divided by total costs to account for

    • C. 

      Costs in beginning WIP inventory divided by equivalent units in beginning WIP

    • D. 

      Costs added to production during the month divided by equivalent units in ending WIP

  • 6. 
    For which of the following do we prepare calculations for equivalent units?
    • A. 

      Both direct labor and manufacturing overhead

    • B. 

      Both direct labor and direct materials

    • C. 

      Both direct materials and conversion costs

    • D. 

      Neither direct materials nor conversion costs

  • 7. 
    What are the ending inventory equivalent for materials if 12,000 units are completed and transferred out and 3,000 remain in ending WIP at 40% complete
    • A. 

      1,520

    • B. 

      3,800

    • C. 

      3,480

    • D. 

      5,000

  • 8. 
    A transfer of $24,000 from the assembly department to the packaging department would require the entry of a:
    • A. 

      Debit to finished goods inventory

    • B. 

      Debit to WIP inventory-assembly

    • C. 

      Credit to raw materials inventory

    • D. 

      Credit to WIP inventory-assembly

  • 9. 
    The entry to record actual manufacturing overhead costs incurred in a process department would include a:
    • A. 

      Debit to manufacturing overhead

    • B. 

      Debit to WIP inventory

    • C. 

      Credit to manufacturing overhead

    • D. 

      Credit WIP inventory

  • 10. 
    The entry to record the use of direct materials in production would include a:
    • A. 

      Debit to WIP inventory

    • B. 

      Debit to raw materials inventory

    • C. 

      Debit to finished goods inventory

    • D. 

      Credit to finished goods inventory

  • 11. 
    In a process costing system, the number of WIP inventories:
    • A. 

      Equals the number of products produced

    • B. 

      Equals the number of production departments

    • C. 

      Equals the number used in a job cost system

    • D. 

      Cannot equal the number of parts used in the product

  • 12. 
    In a process system with multiple processes, the cost of units completed in department one is transferred to:
    • A. 

      WIP in department two

    • B. 

      Finished goods

    • C. 

      Cost of goods sold

    • D. 

      Overhead

  • 13. 
    On a production cost report, which item would appear first?
    • A. 

      Cost of goods finished for the month

    • B. 

      Total costs accounted for

    • C. 

      Beginning WIP, if any

    • D. 

      Total equivalent units

  • 14. 
    On a production cost report, which item would appear last?
    • A. 

      Total costs accounted for

    • B. 

      Cost of goods finished for the month

    • C. 

      Beginning WIP inventory, if any

    • D. 

      Ending WIP inventory, if any