Question 1

Under FIFO, to calculate the number of equivalent units, ask yourself: What did we do during the ________ period to get beginning inventory from x% to y% complete and what did we do during the _______ period to get ending inventory to z% complete?

Accepted Answer

A)   current, current
B)   current, prior
C)   prior, current
D)   prior, priorE) C) and D)
F) All of the above

Question 2

The journal entry to record the purchase of direct materials includes:

Accepted Answer

A)   a debit to Raw Materials Inventory.
B)   a debit to Finished Goods Inventory.
C)   a debit to Work in Process Inventory.
D)   a debit to Cash.E) A) and B)
F) None of the above

Question 3

Braden Corp. uses a process costing system. Beginning inventory for January consisted of 1,300 units that were 60% completed. 13,000 units were started into the process during January. During January, 12,000 units were completed. How many units were in ending inventory on January 31?

Accepted Answer

A)   1,950
B)   1,300
C)   650
D)   2,300E) None of the above
F) A) and B)

Question 4

Which of the following statements is incorrect regarding the production costing report?

Accepted Answer

A)   A separate production report is prepared for each major production process on an annual basis.
B)   The production report provides information about the number of units and manufacturing costs that flow through a production process during an accounting period.
C)   The production report is used to determine how much manufacturing cost to transfer out of Work in Process Inventory and into the next processing department or finished goods if it is the last production process.
D)   The production report is used to value any units that are in process at the end of the accounting perioD.The production report provides information about the number of units and manufacturing costs that flow through a production process during an accounting perioD.It is used to determine how much manufacturing cost to transfer out of Work in Process Inventory and into the next processing department (or Finished Goods Inventory if it is the last production process)  and to value any units that are in process at the end of the accounting perioD.A separate production report is prepared for each major production process on either a monthly or quarterly basis.E) A) and B)
F) B) and D)

Question 5

Complete the following chart by reconciling the number of physical units for each department.

Accepted Answer

The answer of Complete the following chart by reconciling the...

Question 6

Prepare the journal entries to record the following transactions for Viking Co., a company that produces Viking helmets for sale to tourists.
a. Purchased $80,000 of steel (8,000 tons) in cash.
b. Issued $75,000 of steel (7,500 tons) into production.
c. Paid $15,000 cash in production labor costs.
d. Applied overhead at the predetermined rate of $5 per ton of steel.
e. Incurred $40,000 of actual overhead costs, paid in cash. (Assume any difference between actual and applied overhead costs is adjusted directly to cost of goods sold.)
f. Completed 25,000 helmets. (Approximately $27,500 of inventory remains in process, so the cost of each helmet is approximately $______.)
g. Sold 22,000 helmets at $24.00 per unit. (All proceeds were collected in cash.)
h. Disposed of any over- or under-applied overhead cost.

Accepted Answer

The answer of Prepare the journal entries to record the...

Question 7

Equivalent units for materials may differ from the equivalent units for conversion costs

Accepted Answer

A) True 
 B)False

Question 8

Brody Corp. uses a process costing system. Beginning inventory for January consisted of 1,300 units that were 40% completed. 13,000 units were started during January. On January 31, the inventory consisted of 650 units that were 70% completed. How many units were completed during the period?

Accepted Answer

A)   12,350
B)   13,650
C)   14,300
D)   14,950E) A) and B)
F) B) and C)

Exam 3: Process Costing

Equivalent units for materials may differ from the equivalent units for conversion costs

Correct Answer
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Braden Corp. uses a process costing system. Beginning inventory for January consisted of 1,300 units that were 60% completed. 13,000 units were started into the process during January. During January, 12,000 units were completed. How many units were in ending inventory on January 31?

Correct Answer
verified

The journal entry to record the purchase of direct materials includes:

Correct Answer
verified

Which of the following statements is incorrect regarding the production costing report?

Correct Answer
verified

Brody Corp. uses a process costing system. Beginning inventory for January consisted of 1,300 units that were 40% completed. 13,000 units were started during January. On January 31, the inventory consisted of 650 units that were 70% completed. How many units were completed during the period?

Correct Answer
verified

Complete the following chart by reconciling the number of physical units for each department.

Correct Answer
verified

Correct Answer
verified

Under FIFO, to calculate the number of equivalent units, ask yourself: What did we do during the __ period to get beginning inventory from x% to y% complete and what did we do during the _ period to get ending inventory to z% complete?

Correct Answer
verified

Exam 3: Process Costing

Equivalent units for materials may differ from the equivalent units for conversion costs

Correct AnswerverifiedShow Answer

Braden Corp. uses a process costing system. Beginning inventory for January consisted of 1,300 units that were 60% completed. 13,000 units were started into the process during January. During January, 12,000 units were completed. How many units were in ending inventory on January 31?

Correct AnswerverifiedShow Answer

The journal entry to record the purchase of direct materials includes:

Correct AnswerverifiedShow Answer

Which of the following statements is incorrect regarding the production costing report?

Correct AnswerverifiedShow Answer

Brody Corp. uses a process costing system. Beginning inventory for January consisted of 1,300 units that were 40% completed. 13,000 units were started during January. On January 31, the inventory consisted of 650 units that were 70% completed. How many units were completed during the period?

Correct AnswerverifiedShow Answer

Complete the following chart by reconciling the number of physical units for each department.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Under FIFO, to calculate the number of equivalent units, ask yourself: What did we do during the ________ period to get beginning inventory from x% to y% complete and what did we do during the _______ period to get ending inventory to z% complete?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Under FIFO, to calculate the number of equivalent units, ask yourself: What did we do during the __ period to get beginning inventory from x% to y% complete and what did we do during the _ period to get ending inventory to z% complete?

Correct Answer
verified