This quiz works best with JavaScript enabled. Home > Accounting > Cost Accounting > Process Costing > Process Costing – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Process Costing Quiz 1 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In a FIFO process costing system, which of the following are assumed to be completed first in the current period? A) Units started this period. B) Units still in process. C) Units transferred out. D) Units started last period. Show Answer Correct Answer: D) Units started last period. 2. Which of the following would not appear as a debit in the Work in Process Inventory account of a second department in a two stage production process? A) Labour assigned. B) Cost of products transferred out. C) Direct materials used. D) Overhead applied. Show Answer Correct Answer: B) Cost of products transferred out. 3. Department 1 of a two department production process shows: Units Beginning Work in Process 10, 000Ending Work in Process 50, 000Total units to be accounted for 180, 000How many units were transferred out to Department 2? A) 50, 000. B) 180, 000. C) 170, 000. D) 130, 000. Show Answer Correct Answer: D) 130, 000. 4. Under process costing, the costs incurred in each department are reported in: A) Cost of Goods Sold account. B) Production cost report. C) Finished Goods Inventory account. D) Job cost sheet. Show Answer Correct Answer: B) Production cost report. 5. Known: 150,000 units went into production and there were no units in beginning inventory. At the end of the period there are 50,000 units in final process, how many units were completed for the period? A) 150.000. B) 50.000. C) 100.000. D) None of above. Show Answer Correct Answer: C) 100.000. 6. Conversion costs are the sum of: A) Fixed and variable overhead costs. B) Labour costs and overhead costs. C) Direct material costs and overhead costs. D) Direct labour and indirect labour costs. Show Answer Correct Answer: B) Labour costs and overhead costs. 7. Units put into production are 8, 000, ending units are 3, 000, units completed and transferred out are 10, 000. Beginning units are ..... ? A) 7, 000. B) 2, 000. C) 0. D) 5, 000. Show Answer Correct Answer: D) 5, 000. 8. A PROCESS COSTING system would be used for all of the following products except ..... A) Motion pictures. B) Chemicals. C) Computer chips. D) Soft drinks. Show Answer Correct Answer: A) Motion pictures. 9. FIFO assumes that units in beginning work in process are completed last A) True. B) False. C) Have no idea. D) None of above. Show Answer Correct Answer: B) False. 10. If 150, 000 units are started into production there was no beginning work in process, and 50, 000 units are in process at the end of the period, how many units were completed and transferred out? A) 100, 000. B) 200, 000. C) 150, 000. D) 50, 000. Show Answer Correct Answer: A) 100, 000. 11. If beginning work in process is 2, 000 units, ending work in process is 1, 000 units, and the units accounted for equals 5, 000 units, what are the units completed and transferred out? A) 2000. B) 7000. C) 6000. D) 4000. Show Answer Correct Answer: D) 4000. 12. In a process cost system, the flow of cost is: A) Work in process, cost of goods sold, finished goods. B) Finished goods, cost of goods sold, work in process. C) Finished goods, work in process, cost of goods sold. D) Work in process, finished goods, cost of goods sold. Show Answer Correct Answer: D) Work in process, finished goods, cost of goods sold. 13. Scrap value of ..... is credited to process A/c. A) Abnormal loss. B) Normal loss. C) Abnormal gain. D) Normal gain. Show Answer Correct Answer: B) Normal loss. 14. A unit cost calculated in costing system, by assigning total costs incurred to many similar units is categorized as ..... A) Accounting period costing system. B) Job costing system. C) Process costing system. D) None of above. Show Answer Correct Answer: C) Process costing system. 15. Completed and transferred-out cost from previous department will become ..... cost for current department. A) Production. B) Ending Work In Process. C) Transferred-in. D) Beginning Work In Process. Show Answer Correct Answer: C) Transferred-in. 16. ..... is the excess of actual output over normal output. A) Normal Loss. B) Abnormal Loss. C) Actual output. D) Abnormal Gain. Show Answer Correct Answer: D) Abnormal Gain. 17. In process costing, the cost of units finished in the last department will be transferred from work in process to A) Sales. B) Completed processes. C) Cost of goods sold. D) Finished goods. Show Answer Correct Answer: D) Finished goods. 18. Which of the following statements is/are correct? (i) A by-product is a product produced at the same time as other products which has a relatively low volume compared with the other products A) (i) and (ii). B) (i) and (iii). C) (ii) and (iii). D) (iii) only. Show Answer Correct Answer: D) (iii) only. 19. Which of the following methods uses costs and work of beginning work in process? A) Weighted average method. B) FIFO method. C) Sequential processing method. D) Both the weighted average and FIFO methods. Show Answer Correct Answer: D) Both the weighted average and FIFO methods. 20. In process costing questions, you will need to: A) Identify the losses and output. B) Calculate the cost of good output, losses and WIP. C) Use the costs you have calculated to assign values to the good output, losses and WIP. D) ALL. Show Answer Correct Answer: D) ALL. 21. Which of the following is not a necessary step in preparing a production cost report? A) Compute the physical unit flow. B) Compute the equivalent units of production. C) Prepare the job order cost sheet. D) Prepare a cost reconciliation schedule. Show Answer Correct Answer: C) Prepare the job order cost sheet. 22. A process cost system would be used for all of the following products except A) Soft drinks. B) Motion pictures. C) Chemicals. D) Computer chips. Show Answer Correct Answer: B) Motion pictures. 23. BONUS!!!Where was Ko Hadi born? A) Pontianak. B) Hospital. C) Maternity Home. D) Above Earth. Show Answer Correct Answer: D) Above Earth. 24. What is the difference between calculating equivalent units using the FIFO method and the weighted average method? A) Treatment of inventory at the end of the period. B) Treatment of inventory at the beginning of the period. C) Journal account used. D) None of above. Show Answer Correct Answer: B) Treatment of inventory at the beginning of the period. 25. Beginning inventory:200 units300 units transferred in150 units transferred outHow many units to account for? A) 200. B) 300. C) 350. D) 500. Show Answer Correct Answer: D) 500. 26. The costs transferred from a prior process to a subsequent process are referred to as transferred-in costs. A) Is it?. B) Have no idea. C) False. D) True. Show Answer Correct Answer: D) True. 27. Conversion cost includes cost of converting ..... into ..... A) WIP, Finished goods. B) Raw material, WIP. C) Finished goods, Saleable goods. D) Raw material, Finished goods. Show Answer Correct Answer: D) Raw material, Finished goods. 28. Litres of a chemical were manufactured in a period. There is a normal loss of 25% of the material input into the process. What is the expected litres of output? A) 350 litres. B) 100 litres. C) 300 litres. D) 200 litres. Show Answer Correct Answer: C) 300 litres. 29. What are conversion costs? A) Direct labor + manufacturing overhead. B) Cost to convert finished goods to sales. C) Cost for direct and indirect materials. D) Direct material + direct labor + manufacturing overhead. Show Answer Correct Answer: A) Direct labor + manufacturing overhead. 30. In a process costing system, which account shows the overhead assigned to the department? A) Raw material inventory. B) Cost of goods sold. C) Work in process inventory. D) Finished goods inventory. Show Answer Correct Answer: C) Work in process inventory. Next →Related QuizzesCost Accounting QuizzesAccounting QuizzesProcess Costing Quiz 2Process Costing Quiz 3Process Costing Quiz 4 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books