Accounting 202 - Chapter 5.3

8 Questions | Total Attempts: 73

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Accounting Quizzes & Trivia

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