ACCOUNTING 6375 MA Quiz chapter 5
The departmental production report replaces the job cost
sheet used by production departments.
Select one:
True
False
In which of the following ways is normal spoilage
accounted for?
Select one:
a. Expensed in the period in which it occurred
b. Included as part of the unit cost of output
c. Written off to cost of goods sold
d. Included in inventory valuation until year-end and then
written off
Eldervale Winery produces premium wine in the Hunter
Valley. During the bottling process, small amount of
spillage is often unavoidable. How should the costs
associated with the spillage be treated?
Select one:
a. It should be included in the work in progress.
b. It should be expensed in the period the cost is incurred.
c. It should be ignored in the work in progress account and
reported only in the internal production reports.
d. It should be expensed immediately under the FIFO
method, but included in the work in progress in the
weighted average method.
Conversion costs are generally added at specific points
throughout a process.
Select one:
True
False
To calculate equivalent units, multiply the partially
completed physical units in the process by the percentage
of completion.
Select one:
True
False
Raphael's Refining uses a weighted average process
, ACCOUNTING 6375 MA Quiz chapter 5
costing system. For a particular period, its opening
inventory consisted of 100 items (60 per cent complete
as to conversion costs) whose costs were $1600 made up
of material $300 and conversion cost $1300. During the
month, 1000 items were started and 950 were completed.
Ending inventory of WIP was one-third complete. There
was no spoilage. Costs placed in process during the
month were materials $1600 and conversion costs $13
700.
Materials are added at the halfway point. What is the
amount of cost that would be allocated to goods
completed in the period?
Select one:
a. $14 615
b. $16 513
c. $16 900
d. $16 150
Assume material is added at the beginning of a process,
and the beginning WIP inventory is 30 per cent complete
as to conversion costs. Using the FIFO method of costing,
the total equivalent units for material for this process
during this period is equal to
Select one:
a. units started this period in this process.
b. units started this period in this process plus 70 per cent
of beginning inventory.
c. beginning inventory this period for the process.
d. units started this period in this process plus the
beginning inventory.
Assume material is added at the beginning of a process,
and the beginning WIP inventory is 30 per cent complete
as to conversion costs. Using the weighted average
method of costing, the total equivalent units for material
for this process during this period is equal to
Select one:
a. units started this period in this process.
b. units started this period in this process plus 70 per cent
of beginning inventory.
c. beginning inventory this period for the process.
d. units started this period in this process plus the
beginning inventory.
, ACCOUNTING 6375 MA Quiz chapter 5
Assuming that there was no beginning work in process
inventory and the ending work in process inventory is
50 per cent complete as to conversion costs, the number
of equivalent units as to conversion costs would be
Select one:
a. the same as the units completed.
b. the same as the units placed in process.
c. less than the units completed.
d. less than the units placed in process.
Operation costing is just another name for process costing
as both systems trace all production costs to processes or
departments.
Select one:
True
False
Process costing and operation costing are consistent with
the concepts of responsibility accounting.
Select one:
True
False
Process costing is only suitable for products that are
Select one:
a. heterogeneous.
b. homogeneous.
c. harmonious.
d. None of the given answers
When accounting for the costs of abnormal spoilage at the
end of the period, the costs of abnormal spoilage are
Select one:
a. included as part of the cost of unit completed.
b. expensed as loss on abnormal spoilage in the current
period.
c. included in the cost of finished goods.
d. expensed as closing work in process in the
current period.
The departmental production report replaces the job cost
sheet used by production departments.
Select one:
True
False
In which of the following ways is normal spoilage
accounted for?
Select one:
a. Expensed in the period in which it occurred
b. Included as part of the unit cost of output
c. Written off to cost of goods sold
d. Included in inventory valuation until year-end and then
written off
Eldervale Winery produces premium wine in the Hunter
Valley. During the bottling process, small amount of
spillage is often unavoidable. How should the costs
associated with the spillage be treated?
Select one:
a. It should be included in the work in progress.
b. It should be expensed in the period the cost is incurred.
c. It should be ignored in the work in progress account and
reported only in the internal production reports.
d. It should be expensed immediately under the FIFO
method, but included in the work in progress in the
weighted average method.
Conversion costs are generally added at specific points
throughout a process.
Select one:
True
False
To calculate equivalent units, multiply the partially
completed physical units in the process by the percentage
of completion.
Select one:
True
False
Raphael's Refining uses a weighted average process
, ACCOUNTING 6375 MA Quiz chapter 5
costing system. For a particular period, its opening
inventory consisted of 100 items (60 per cent complete
as to conversion costs) whose costs were $1600 made up
of material $300 and conversion cost $1300. During the
month, 1000 items were started and 950 were completed.
Ending inventory of WIP was one-third complete. There
was no spoilage. Costs placed in process during the
month were materials $1600 and conversion costs $13
700.
Materials are added at the halfway point. What is the
amount of cost that would be allocated to goods
completed in the period?
Select one:
a. $14 615
b. $16 513
c. $16 900
d. $16 150
Assume material is added at the beginning of a process,
and the beginning WIP inventory is 30 per cent complete
as to conversion costs. Using the FIFO method of costing,
the total equivalent units for material for this process
during this period is equal to
Select one:
a. units started this period in this process.
b. units started this period in this process plus 70 per cent
of beginning inventory.
c. beginning inventory this period for the process.
d. units started this period in this process plus the
beginning inventory.
Assume material is added at the beginning of a process,
and the beginning WIP inventory is 30 per cent complete
as to conversion costs. Using the weighted average
method of costing, the total equivalent units for material
for this process during this period is equal to
Select one:
a. units started this period in this process.
b. units started this period in this process plus 70 per cent
of beginning inventory.
c. beginning inventory this period for the process.
d. units started this period in this process plus the
beginning inventory.
, ACCOUNTING 6375 MA Quiz chapter 5
Assuming that there was no beginning work in process
inventory and the ending work in process inventory is
50 per cent complete as to conversion costs, the number
of equivalent units as to conversion costs would be
Select one:
a. the same as the units completed.
b. the same as the units placed in process.
c. less than the units completed.
d. less than the units placed in process.
Operation costing is just another name for process costing
as both systems trace all production costs to processes or
departments.
Select one:
True
False
Process costing and operation costing are consistent with
the concepts of responsibility accounting.
Select one:
True
False
Process costing is only suitable for products that are
Select one:
a. heterogeneous.
b. homogeneous.
c. harmonious.
d. None of the given answers
When accounting for the costs of abnormal spoilage at the
end of the period, the costs of abnormal spoilage are
Select one:
a. included as part of the cost of unit completed.
b. expensed as loss on abnormal spoilage in the current
period.
c. included in the cost of finished goods.
d. expensed as closing work in process in the
current period.
