Accounting 202 - Chapter 5.3

8 Questions | By Jc173 | Last updated: Mar 22, 2022 | Total Attempts: 122

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Process costing is very different from job costing. While one is the accumulation of dingle costs throughout the process the other is an accumulation of all cost involved for a process. Do you believe you can distinguish the two? Take up the quiz below and find out. All the best!

Questions and Answers

1.

Direct labor costs plus manufacturing overhead costs equal:
- A.
  
  Prime costs.
- B.
  
  Operating costs.
- C.
  
  Equivalent costs.
- D.
  
  Conversion costs.
2.

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
3.

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.
4.

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
5.

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
6.

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
7.

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
8.

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