Quick Test | AccountingCoach

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Note: Some of the following test questions may not have been covered in the Explanation or Practice Quiz for this topic. For more insight regarding a specific question, use the search box at the top of the page.

1. If the units produced vary significantly from each other, a __________ costing system may be more advantageous than the process costing system.
2. Because some units of products are at various stages of completion at the end of a month, __________ units of production are used for assigning a department’s manufacturing costs to products.
3. Conversion costs consist of direct __________ and manufacturing overhead.
4. The units completed by Department A and sent to Department B for further processing are referred to as __________–__________ units by Department A.
5. Department A’s costs for the units it sent to Department B are referred to as __________–__________ costs by Department B.
6. The cost per equivalent unit is used to assign costs to units finished and to the units in the ending __________–__________–__________ inventory.
7. In a process costing system, costs are typically collected or accumulated in __________ before being assigned to products.
8. In a process costing system, a __________ cost report is used to account for the units and costs in a department.
9. The method in which the units in beginning inventory are treated as if they were started and completed in the current period is __________.
10. Under which method are the units in beginning inventory treated separately from the units that were started and completed in the current period?
11. In a process costing system, the units are more likely to be produced for __________.
Use the following information for answering Questions 12 - 13:
At the beginning of May, a department's beginning work-in-process consisted of 6,000 units. During May, it started 40,000 units. At the end of May its work-in-process contained 7,000 units.
12. The total number of units to be accounted for in May was __________ units.
13. Assuming no spoilage, the number of units that were transferred out of the department during May was __________ units.
Use the following information for answering Questions 14 - 16:
In August, a manufacturing department had 1) no beginning inventory, 2) started 30,000 units of product, and 3) had 2,000 units of product in work-in-process inventory at the end of August. The ending work-in-process inventory was 100% complete for materials and 30% complete for conversion costs.
14. The department’s number of equivalent units for materials for the month of August was __________.
15. The department’s number of equivalent units for conversion costs for the month of August was __________ under the weighted average method.
16. The department’s number of equivalent units for conversion costs for the month of August was __________ under the FIFO method.
Use the following information for answering Questions 17 - 18:
During July a department has 1) completed the conversion costs on the 1,000 units of product that were 20% complete at the end of the previous month, 2) started and completed 8,000 units, and 3) started 600 units but completed only 40% of the conversion costs.
17. The number of equivalent units for the conversion costs under the weighted average method is __________.
18. The number of equivalent units for the conversion costs under the FIFO method is __________.
Use the following information for answering Questions 19 - 25:
A department began the month of July with its beginning work-in-process inventory consisting of 10,000 units which were 100% complete for materials and 40% complete for conversion costs. The costs associated with the beginning inventory are $30,000 for materials and $80,000 for conversion costs.

During July, the department also started an additional 200,000 units. Its ending work-in-process inventory on July 31 consisted of 20,000 units which were 100% complete for materials and 20% complete for conversion costs.

During July, the department requisitioned and used materials having a cost of $581,100 and incurred conversion costs of $2,306,200.
19. Under the weighted average method, the cost of materials per equivalent unit for July was $__________.
20. Under the weighted average method, the conversion costs per equivalent unit for July was $__________.
21. Under the weighted average method, the total cost of the units transferred out of the department was $__________ (consisting of $__________ of materials cost, and $__________ for conversion costs).
22. Under the weighted average method, the total cost of the units in the July 31 ending work-in-process inventory was $__________ (consisting of $__________ of materials cost and $__________ for conversion costs).
23. Under the FIFO method, the conversion costs per equivalent unit for July was $__________. (Rounded to the nearest cent.)
24. Under the FIFO method, the materials costs per equivalent unit for July was $__________. (Rounded to the nearest cent.)
25. Using the answer in Question 24 rounded to the nearest cent, the total amount of materials costs in the July 31 ending work-in-process inventory under the FIFO method will be $__________.

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Process Costing(Quick Test)

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