This quiz works best with JavaScript enabled. Home > Cost Accounting > Process Costing > Process Costing – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Process Costing Quiz 1 (20 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 started last period. C) Units transferred out. D) Units still in process. Show Answer Correct Answer: B) 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) Direct materials used. B) Overhead applied. C) Labour assigned. D) Cost of products transferred out. Show Answer Correct Answer: D) 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) 130, 000. C) 180, 000. D) 170, 000. Show Answer Correct Answer: B) 130, 000. 4. Under process costing, the costs incurred in each department are reported in: A) Cost of Goods Sold account. B) Finished Goods Inventory account. C) Job cost sheet. D) Production cost report. Show Answer Correct Answer: D) 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) 0. B) 7, 000. C) 5, 000. D) 2, 000. Show Answer Correct Answer: C) 5, 000. 8. A PROCESS COSTING system would be used for all of the following products except ..... A) Chemicals. B) Computer chips. C) Soft drinks. D) Motion pictures. Show Answer Correct Answer: D) 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) 150, 000. B) 50, 000. C) 100, 000. D) 200, 000. Show Answer Correct Answer: C) 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) 7000. B) 6000. C) 4000. D) 2000. Show Answer Correct Answer: C) 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, work in process, cost of goods sold. C) Finished goods, cost of goods sold, work in process. 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) Normal loss. B) Abnormal loss. C) Normal gain. D) Abnormal gain. Show Answer Correct Answer: A) 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) Beginning Work In Process. C) Transferred-in. D) Ending Work In Process. Show Answer Correct Answer: C) Transferred-in. 16. ..... is the excess of actual output over normal output. A) Actual output. B) Abnormal Loss. C) Normal Loss. 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) Cost of goods sold. B) Completed processes. C) Finished goods. D) Sales. Show Answer Correct Answer: C) 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. 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