Strayer ACC 499 Quiz MCQs Test Bank

1. Which cost accumulation procedure is most applicable in continuous mass-production manufacturing environments? (Points: 1)
        standard
        actual
        process
        job order

2. Process costing is used in companies that _______. (Points: 1)
        engage in road and bridge construction
        produce sailboats made to customer specifications
        produce bricks for sale to the public
        construct houses according to customer plans

3. A producer of ____ would not use a process costing system. (Points: 1)
        gasoline
        potato chips
        blank videotapes
        stained glass windows

4. Equivalent units of production are equal to the _______. (Points: 1)
        units completed by a production department in the period
        number of units worked on during the period by a production department
        number of whole units that could have been completed if all work of the period had been used to produce whole units
        identifiable units existing at the end of the period in a production department

5. In a process costing system using the weighted average method, cost per equivalent unit for a given cost component is found by dividing which of the following by EUP? (Points: 1)
        only current period cost
        current period cost plus the cost of beginning inventory
        current period cost less the cost of beginning inventory
        current period cost plus the cost of ending inventory

6. The difference between EUP calculated using FIFO and EUP calculated using weighted average is the equivalent units _______. (Points: 1)
        started and completed during the period
        residing in beginning Work in Process Inventory
        residing in ending Work in Process Inventory
        uncompleted in Work in Process Inventory

7. In a FIFO process costing system, which of the following are assumed to be completed first in the current period? (Points: 1)
        units started this period
        units started last period
        units transferred out
        units still in process

8. The primary difference between the FIFO and weighted average methods of process costing is _______. (Points: 1)
        in the treatment of beginning Work in Process Inventory
        in the treatment of current period production costs
        in the treatment of spoiled units
        none of the above

9. In a cost of production report using process costing, transferred-in costs are similar to the ______. (Points: 1)
        cost of material added at the beginning of production
        conversion cost added during the period
        cost transferred out to the next department
        cost included in beginning inventory

10. In a process costing system, the journal entry to record the transfer of goods from Department #2 to Finished Goods Inventory is a _______. (Points: 1)
        debit Work in Process Inventory #2, credit Finished Goods Inventory
        debit Finished Goods Inventory, credit Work in Process Inventory #1
        debit Finished Goods Inventory, credit Work in Process Inventory #2
        debit Cost of Goods Sold, credit Work in Process Inventory #2

11. Transferred-in cost represents the cost from _______. (Points: 1)
        the last department only
        the last production cycle
        all prior departments
        the current period only

12. A hybrid costing system combines characteristics of _______. (Points: 1)
        job order and standard costing systems
        job order and process costing systems
        process and standard costing systems
        job order and normal costing systems

13. When standard costs are used in process costing, _______. (Points: 1)
        variances can be measured during the production period
        total costs rather than current production and current costs are used
        process costing calculations are made simpler
        the weighted average method of calculating EUPs makes computing transferred-out costs easier

14. The cost of abnormal continuous losses is _______. (Points: 1)
        considered a product cost
        absorbed by all units in ending inventory and transferred out on an equivalent unit basis
        written off as a loss on an equivalent unit basis
        absorbed by all units past the inspection point

15. Normal spoilage units resulting from a continuous process _______. (Points: 1)
        are extended to the EUP schedule
        result in a higher unit cost for the good units produced
        result in a loss being incurred
        cause estimated overhead to increase

16.  Listed below are the steps to assign costs to ending inventory using the weighted average method process costing method.
A.    Assign the costs to the inventory accounts
B.    Calculate the physical units accounted for
C.    Calculate the physical units to account for
D.    Calculate the equivalent units of production
E.     Calculate the total costs to account for
F.     Calculate the cost per equivalent units
(Points: 1)
        abcdef
        cebafd
        bcdefa       
        fabdce

17. Units started and completed during the period equals (Points: 1)
        units started plus beginning inventory
        units started minus beginning inventory
        units completed plus beginning inventory
        units completed minus beginning inventory

18. In process costing systems, unit costs are found by dividing total costs incurred by (Points: 1)
        ending work in process
        beginning work in process
        equivalent units of production
        units transferred to finished goods

19. Equivalent units of production using the weighted average method of costing are found using which of the following formulas: (Points: 1)
        units completed and transferred + units in ending WIP inventory
        beginning WIP physical units + units started and completed + (ending WIP x percent complete)
        beginning WIP in physical units + units started and completed
        (beginning WIP physical units x percent complete) + units started and completed + (ending WIP x percent complete)

20. Total costs to account for is: (Points: 1)
        the number of units finished during the period
        equal to the dollar value offending work in process inventory
        is the sum of the beginning WIP balance plus all current product costs
        is the sum of the beginning WIP balance plus the ending WIP balance