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Process Cost System in Accounting Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. John's company has a cost of $125 per batch in transferred-in costs. These costs reflect the transfer of goods from _____ to _____.

Question 2 2. What example BEST demonstrates the most cost being incurred during the last phase of production?

Question 3 3. John's office furniture cost of goods sold for last month was $2,000. The per unit production price was $5.00. How many units did he produce last month?

Question 4 4. John has cut enough boards to make 100,000 units of furniture. Assume that ending work in process is 25 percent complete for all components of production (material, labor, and overhead). He has a beginning inventory cost of $50,000, and production costs of $80,000 were also incurred during the month. Compute the cost per equivalent unit.

Question 5 5. Items transferred out would be shown as _____ on a production report.

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Question 6 6. A manufacturing company has _____ units in progress that are half complete. The equivalent units for the WIP is 1,500.

Question 7 7. What is the BEST way to identify a cost driver?

Question 8 8. Which of the following is NOT a section on the production cost report?

Question 9 9. Which of the following is a parameter used to calculate total equivalent units?

Question 10 10. Which method is the simplest method to assign costs to an equivalent unit of production?

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Question 11 11. The cost of goods sold information tells you what?

Question 12 12. The job order cost flow method lists the cost of goods sold as part of what?

Question 13 13.

In this journal entry, which account is increasing in funds?

Date Account Debit Credit
5-13-2016 Inventory $210
Accounts Payable $210

Question 14 14. How do you find how many equivalent units something is?

Question 15 15. What numbers should match on a Production Cost Report?

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Question 16 16. How many steps are in the Production Cost Report?

Question 17 17. In a manufacturing company, which method of costing assigns costs to a mass quantity of a product?

Question 18 18. In the business accounting process, what account name is used to classify a product during the manufacturing process?

Question 19 19. In a manufacturing company, as a product moves from department to department, all of the manufacturing costs are added together in a department and passed along to the next department. This is called _____.

Question 20 20. What level of a company uses production cost reports for manufacturing?

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Question 21 21. In a production cost report, which two steps concern themselves with inventory exclusively?

Question 22 22. Which two steps of the production cost report help us account for costs?

Question 23 23. The units that are currently in production multiplied by the percentage of those units that are complete or those that are in progress is called what?

Question 24 24. How do you compute the cost per equivalent unit?

Question 25 25. Do you need the equivalent units to prepare the production cost report?

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Question 26 26. What is an overhead cost?

Question 27 27. Which is an example of an overhead cost?

Question 28 28. What would be an overhead cost driver for a financial firm?

Question 29 29. Per unit cost of a product is calculated by dividing total manufacturing costs by _____.

Question 30 30. If you need to move amounts from any account to another, all you have to do is _____.

Process Cost System in Accounting Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Accounting 303: Cost Accounting  /  Business Courses
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