Question 1

Process costing should be used to assign costs to products when ________.

the units produced are similar
cost reduction is not the primary objective
the units produced are dissimilar
cost reduction is the top most priority

Question 2
Scrap is ________.
units of production whether fully or partially completed, that do not meet the specifications required by customers for good units and are
discarded or sold at reduced prices.
residual material that results from manufacturing a product
units of production that do not meet the specifications required by customers but that are subsequently repaired and sold as good finished units.
products of a joint production process that have low total sales values relative to the total sales value of the main product.

Question 3
If there was no beginning work in process and no ending work in process under the weighted-average process costing method, the number of
equivalent units for direct materials, if direct materials were added at the start of the process, would be ________.
equal to total of units started and units completed during the
period
less than the units completed during the period
equal to the units completed during the period
more than the units started or transferred in during the period

Question 4
Rework refers to ________.
units of production that do not meet the specifications required by customers but that are subsequently repaired and sold as good finished units
units of production whether fully or partially completed, that do not meet the specifications required by customers for good units and are
discarded or sold at reduced prices
residual material that results from manufacturing a product
products of a joint production process that have low total sales values relative to the total sales value of the main product

Question 5
The Swivel Chair Company manufacturers a standard recliner. During February, the firm's Assembly Department started production of 145,000
chairs. During the month, the firm completed 175,000 chairs and transferred them to the Finishing Department. The firm ended the month with
18,000 chairs in ending inventory. All direct materials costs are added at the beginning of the production cycle. Weighted-average costing is
used by Swivel. What were the equivalent units for conversion costs for February if the beginning inventory was 70% complete as to conversion
costs and the ending inventory was 40% complete as to conversion costs?
172,200
182,200
162,200
152,200

Question 6
Costs of normal spoilage are usually accounted for as ________.
a "loss from normal spoilage account" in income statement
a component of the costs of good units manufactured
a liability on a balance sheet
a deduction from the cost of goods sol

Question 7
Which of the following statements is true of conversion costs?
In process costing, they include all the factors of production.
They include all manufacturing costs including direct materials, direct labor, and other direct and indirect manufacturing costs.
In process costing, they are usually considered to be added evenly throughout the production process.
They include only direct materials and excludes all other manufacturing and non-manufacturing costs.

Question 8
Spoilage refers to ________.
products of a joint production process that have low total sales values relative to the total sales value of the main product
residual material that results from manufacturing a product
 units of production whether fully or partially completed, that do not meet the specifications required by customers for good units and are
discarded or sold at reduced prices
units of production that do not meet the specifications required by customers but that are subsequently repaired and sold as good finished
units

Question 9
Spoilage that is not inherent in a particular production process and would not arise under efficient operating conditions is referred to as
________.
abnormal spoilage
indirect spoilage
usual spoilage
incremental spoilage

Question 10
Colil Computer Systems, Inc., manufactures printer circuit cards. All direct materials are added at the inception of the production process.
During January, the accounting department noted that there was no beginning inventory. Direct materials purchases totaled $300,000 during the
month. Work-in-process records revealed that 10,000 card units were started in January, 5,000 card units were complete, and 4,000 card units
were spoiled as expected. Ending work-in-process card units are complete in respect to direct materials costs. Spoilage is not detected until the
process is complete. What is the amount allocated to the work-in-process ending inventory? (Hint: Calculate Cost Per Equivalent Unit, then
assign the cost to Ending WIP)
$75,000
$30,000
$40,000
$50,000

Question 11
The Swivel Chair Company manufacturers a standard recliner. During February, the firm's Assembly Department started production of 145,000 chairs.
During the month, the firm completed 175,000 chairs and transferred them to the Finishing Department. The firm ended the month with 18,000 chairs in
ending inventory. All direct materials costs are added at the beginning of the production cycle. Weighted-average costing is used by Swivel. How many
chairs were in inventory at the beginning of the month? Conversion costs are incurred uniformly over the production cycle.
48,000 chairs
38,000 chairs
8,000 chairs
18,000 chairs

Question 12
The weighted-average process-costing method calculates the equivalent units by ________.
the units started during the current period plus the units in ending inventory
the units started during the current period minus the units in ending inventory
the equivalent units completed during the current period plus the equivalent units in ending inventory
considering only the work done during the current period

Question 13
The Swivel Chair Company manufacturers a standard recliner. During February, the firm's Assembly Department started production of 145,000 chairs.
During the month, the firm completed 175,000 chairs and transferred them to the Finishing Department. The firm ended the month with 18,000 chairs in
ending inventory. All direct materials costs are added at the beginning of the production cycle. Weighted-average costing is used by Swivel. What were the
equivalent units for materials for February?
173,000 chairs
163,000 chairs
153,000 chairs
193,000 chairs

Question 14
Which of the following statements best describes conversion costs?
Conversion costs are all nonmanufacturing costs other than fixed selling and distribution costs.
Conversion costs are all nonmanufacturing costs including marketing costs.
Conversion costs are all manufacturing costs other than direct materials costs.
Conversion costs are all manufacturing and nonmanufacturing cost.

Question 15
Under the weighted-average method, the stage of completion of beginning work in process ________.
is relevant in determining the equivalent units
can almost always be determined with a high degree of precision
is irrelevant in determining the equivalent-unit calculation
must be combined with the work done during the current period to determine the equivalent units