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1. Firms should use a process costing system when they produce products that:
2. In process costing, unit product cost is calculated by dividing process cost in each
department by the equivalent units produced:
3. In calculating unit cost in a process costing system, "conversion cost" is defined as the
sum of:
4. The first step in determining process costs is:
5. The fifth and final step in determining process costs is:
6. The weighted-average method of process costing makes no distinction between the cost
incurred prior to the current period and the cost incurred in:
7. The key difference between weighted-average and FIFO process costing methods is the
handling of the partially completed:
8. The advantage of the weighted-average method is its:
9. Which of the statements below is not correct?
10. Process cost systems are used in all of the following industries except:
11. Which one of the following is one of the key steps in determining process costs?
12. Which one of the following process costing methods combines both current and prior
costs in determining cost per equivalent unit?
13. Which one of the following process costing methods includes only current costs in the
calculations of cost per equivalent unit?
14. The sum of the beginning inventory units and the number of units started during the
period determines the:
15. The sum of units transferred out and ending inventory units, assuming no spoilage,
determines the:
16. The journal entry to record the application of factory overhead to work in process would
include a credit to:
17. When using the first-in, first-out (FIFO) method of process costing, equivalent units for
work done during this period is equal to the number of units:
18. The percentage of completion of the beginning work-in-process inventory should be
considered in the computation of the equivalent units for which of the following methods of
process costing?
FIFO Weighted-Average
A) Yes Yes
B) Yes No
C) No Yes
D) No No
19. In a given process costing system, the equivalent units are computed using the weighted-
average method. With respect to conversion costs, the percentage of completion for the current
period is necessary for the calculation of the:
Beginning Work-In-Process Inventory Ending Work-In-Process Inventory
A) Yes Yes
B) Yes No
C) No Yes
D) No No
20. From the industries listed below, which one is most likely to use process costing in
accounting for production costs?
21. Which of the following characteristics applies to process costing but not to job costing?
22. In the computation of manufacturing cost per equivalent unit, the weighted-average
method of process costing considers:
23. In a production cost report using process costing, transferred-in costs are similar to:
24. In a process costing system, the cost of abnormal spoilage should be:
25. Normal spoilage and abnormal spoilage should be classified as:
Normal Abnormal
A) Period cost Period cost
B) Product cost Period cost
C) Period cost Product cost
D) Product cost Product cost
26. In a process costing system which assumes that normal spoilage occurs at the end of a
process, the cost attributable to normal spoilage should be assigned to:
27. East Bay Fisheries Inc. processes king salmon for various distributors. Two departments
are involved — processing and packaging. Data relating to tons of king salmon processed in the
processing department during June 2016 are provided below:
Tons of
King Salmon Percent Completed
Materials Conversion
Work-in-process inventory — June 1
1,500
90
80
Work-in-process inventory— June 30
2,800
60
40
Started processing
during June
7,800
Total equivalent units for materials under the weighted-average method are calculated to be:
28. East Bay Fisheries Inc. processes king salmon for various distributors. Two departments
are involved — processing and packaging. Data relating to tons of king salmon processed in the
processing department during June 2016 are provided below:
Tons of
King Salmon Percent Completed
Materials Conversion
Work-in-process inventory— June 1
1,500
90
80
Work-in-process inventory — June 30
2,800
60
40
Started processing
during June
7,800
Total equivalent units for conversion under the weighted-average method are calculated to be:
29. East Bay Fisheries Inc. processes king salmon for various distributors. Two departments
are involved — processing and packaging. Data relating to tons of king salmon processed in the
processing department during June 2016 are provided below:
Tons of
King Salmon Percent Completed
Materials Conversion
Work-in-process inventory — June 1
1,500
90
80
Work-in-process inventory — June 30
2,800
60
40
Started processing
during June
7,800
Total equivalent units for materials under the FIFO method are calculated to be:
30. East Bay Fisheries Inc. processes king salmon for various distributors. Two departments
are involved — processing and packaging. Data relating to tons of king salmon processed in the
processing department during June 2016 are provided below:
Tons of
King Salmon Percent Completed
Materials Conversion
Work-in-process inventory — June 1
1,500
90
80
Work-in-process inventory — June 30
2,800
60
40
Started processing
during June
7,800
Total equivalent units for conversion under the FIFO method are calculated to be:
31. The journal entry to record requisitioned and usage of direct materials would include a
credit to:
