Question 1

Process costing systems are suitable for firms that produce customized products in small amounts.

Accepted Answer

A) True 
 B)False

Question 2

An advantage of standard process costing is that it is cost effective and relatively simple to compute standard costs.

Accepted Answer

A) True 
 B)False

Question 3

Suppose Hill Manufacturing began production in January with zero units in process.During January, Hill started production of 18,000 units and completed 15,500 units by January 31.Manufacturing costs totaled $68,800 ($43,200 for materials and $25,600 for labor and overhead) .How much cost is allocated to WIP ending inventory?

Accepted Answer

A)  $59,245
B)  $19,600
C)  $9,555
D)  $68,800
E)  None of the above.F) B) and C)
G) None of the above

Question 4

The need to distribute the cost of making the batch of units that are still in process and to units that have been completed during the period is central to process costing.

Accepted Answer

A) True 
 B)False

Question 5

One difference in job costing and process costing is that we do not need to allocate costs between completed and in-process units in a job-costing system.

Accepted Answer

A) True 
 B)False

Question 6

Most process costing systems use weighted average process costs.Which of the following is a characteristic of weighted average process costs systems?

Accepted Answer

A)  These systems account only for costs incurred during the current period.
B)  These systems are not appropriate for environments that involve mass production.
C)  The weighted average process cost system is required by GAAP.
D)  These systems do not distinguish between the costs from the prior period and costs incurred during the current period.
E)  None of the above is a characteristic of weighted average process costs systems.F) A) and B)
G) A) and C)

Question 7

Conversion cost includes both direct material and indirect material.

Accepted Answer

A) True 
 B)False

Exam 15: Process-Costing Systems

Most process costing systems use weighted average process costs.Which of the following is a characteristic of weighted average process costs systems?

Correct Answer
verified

The need to distribute the cost of making the batch of units that are still in process and to units that have been completed during the period is central to process costing.

Correct Answer
verified

Process costing systems are suitable for firms that produce customized products in small amounts.

Correct Answer
verified

Correct Answer
verified

An advantage of standard process costing is that it is cost effective and relatively simple to compute standard costs.

Correct Answer
verified

Conversion cost includes both direct material and indirect material.

Correct Answer
verified

One difference in job costing and process costing is that we do not need to allocate costs between completed and in-process units in a job-costing system.

Correct Answer
verified

Exam 15: Process-Costing Systems

Most process costing systems use weighted average process costs.Which of the following is a characteristic of weighted average process costs systems?

Correct AnswerverifiedShow Answer

The need to distribute the cost of making the batch of units that are still in process and to units that have been completed during the period is central to process costing.

Correct AnswerverifiedShow Answer

Process costing systems are suitable for firms that produce customized products in small amounts.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An advantage of standard process costing is that it is cost effective and relatively simple to compute standard costs.

Correct AnswerverifiedShow Answer

Conversion cost includes both direct material and indirect material.

Correct AnswerverifiedShow Answer

One difference in job costing and process costing is that we do not need to allocate costs between completed and in-process units in a job-costing system.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified