This quiz works best with JavaScript enabled. Home > Cost Accounting > Process Costing > Process Costing – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Process Costing Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of the following is not a necessary step in preparing a production cost report? A) Compute the equivalent units of production. B) Compute the physical unit flow. C) Prepare the job order cost sheet. D) Prepare a cost reconciliation schedule. Show Answer Correct Answer: C) Prepare the job order cost sheet. 2. A process cost system would be used for all of the following products except A) Chemicals. B) Computer chips. C) Motion pictures. D) Soft drinks. Show Answer Correct Answer: C) Motion pictures. 3. BONUS!!!Where was Ko Hadi born? A) Pontianak. B) Hospital. C) Maternity Home. D) Above Earth. Show Answer Correct Answer: D) Above Earth. 4. 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. 5. Beginning inventory:200 units300 units transferred in150 units transferred outHow many units to account for? A) 500. B) 300. C) 350. D) 200. Show Answer Correct Answer: A) 500. 6. The costs transferred from a prior process to a subsequent process are referred to as transferred-in costs. A) True. B) False. C) Is it?. D) Have no idea. Show Answer Correct Answer: A) True. 7. Conversion cost includes cost of converting ..... into ..... A) Raw material, WIP. B) Raw material, Finished goods. C) WIP, Finished goods. D) Finished goods, Saleable goods. Show Answer Correct Answer: B) Raw material, Finished goods. 8. 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) 300 litres. B) 100 litres. C) 200 litres. D) 350 litres. Show Answer Correct Answer: A) 300 litres. 9. 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. 10. In a process costing system, which account shows the overhead assigned to the department? A) Cost of goods sold. B) Finished goods inventory. C) Raw material inventory. D) Work in process inventory. Show Answer Correct Answer: D) Work in process inventory. 11. The total units accounted for equals units in A) Beginning work in process-units transferred out. B) Beginning work in process + ending work in process. C) Ending work in process + units transferred out. D) Ending work in process-units started into production. Show Answer Correct Answer: C) Ending work in process + units transferred out. 12. Under process costing, the # of units to account for MUST ..... the # of units accounted for A) Be greater than. B) Equal. C) Be less than. D) Be double. Show Answer Correct Answer: B) Equal. 13. Expected Output is equal to A) Input-Abnormal Loss. B) Input-Normal Loss. C) Input-Abnormal Gain. D) NONE. Show Answer Correct Answer: B) Input-Normal Loss. 14. Conversion Costs include A) Direct material and direct labor. B) Direct material and manufacturing overhead. C) Direct labor and manufacturing overhead. D) Indirect material and direct material. Show Answer Correct Answer: C) Direct labor and manufacturing overhead. 15. Which of the following manufacturing cost elements occurs in a PROCESS COSTING system? A) Direct materials. B) Direct labour. C) Manufacturing overhead. D) All of these. Show Answer Correct Answer: D) All of these. 16. Which industry would more likely to use a PROCESS COSTING system? A) Travel & Tours Agencies. B) Entertainment & Documentary Production. C) Canned Food Manufacturing. D) Business Consultation Company. Show Answer Correct Answer: C) Canned Food Manufacturing. 17. In a process costing system, manufacturing overhead is assigned to work in process by A) Department based on actual overhead costs incurred. B) Department based on predetermined overhead rates. C) Job based on actual overhead costs incurred. D) Job based on predetermined overhead rates. Show Answer Correct Answer: B) Department based on predetermined overhead rates. 18. ..... is treated as cost of production. A) Normal Loss. B) Abnormal Loss. C) Abnormal Gain. D) Cost of Asset. Show Answer Correct Answer: A) Normal Loss. 19. In process cost accounting, manufacturing costs are summarized on a ..... A) Job order cost sheet. B) Process order cost sheet. C) Production cost report. D) Manufacturing cost sheet. Show Answer Correct Answer: C) Production cost report. 20. In a PROCESS COSTING system, product costs are summarized: ..... A) On Job Cost Sheets. B) On Production Cost Reports. C) After each unit is produced. D) When the products are sold. Show Answer Correct Answer: B) On Production Cost Reports. ← PreviousNext →Related QuizzesCost Accounting QuizzesProcess Costing Quiz 1Process Costing Quiz 3Process Costing Quiz 4Process Costing Quiz 5Process Costing Quiz 6 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books