This quiz works best with JavaScript enabled. Home > Cost Accounting > Process Costing > Process Costing – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Process Costing Quiz 3 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The entry to record the use of direct materials in production would include a: A) Debit to WIP inventory. B) Debit to raw materials inventory. C) Debit to finished goods inventory. D) Credit to finished goods inventory. Show Answer Correct Answer: A) Debit to WIP inventory. 2. In a process cost system, a production cost report is prepared A) Only for the first processing department. B) For all departments in the aggregate. C) For each processing department. D) Only for the last processing department. Show Answer Correct Answer: C) For each processing department. 3. A production cost report A) Used to record the costs chargeable to a specific job. B) Shows only cost data for a production department. C) Provides a basis for evaluating the productivity of a department. D) Combines process cost and job order costing systems costs. Show Answer Correct Answer: C) Provides a basis for evaluating the productivity of a department. 4. The following are the benefits of variable costing, except: A) Determination of the cost of the product. B) Long term profit planning. C) Cost control. D) None of above. Show Answer Correct Answer: B) Long term profit planning. 5. Which of the following methods considers the percentage of completion of beginning work-in-process? A) FIFO. B) Weighted average. C) Both weighted average and FIFO. D) Neither FIFO nor weighted average. Show Answer Correct Answer: A) FIFO. 6. In process costing system, when partially completed units are expressed in terms of fully completed units they are known as: A) Completed units. B) Equivalent units. C) Unfinished units. D) Transferred units. Show Answer Correct Answer: B) Equivalent units. 7. The process costing system is best suited for: A) Service industries only. B) Industries where different types of products are manufactured. C) Industries where homogeneous products are manufactured on continuous basis. D) All of the above. Show Answer Correct Answer: C) Industries where homogeneous products are manufactured on continuous basis. 8. Which of the following companies is most likely to use a process costing system? A) A law office. B) A custom home builder. C) A food manufacturer. D) A car repair business. Show Answer Correct Answer: C) A food manufacturer. 9. Normal Output is calculated as ..... A) Input less Abnormal Loss. B) Input less Normal Loss. C) Input less Abnormal Gain. D) Input add Abnormal Loss. Show Answer Correct Answer: B) Input less Normal Loss. 10. A processing system dedicated to having the right amount of materials, parts, or products arrive as they are needed, thereby reducing the amount of inventory. A) Just in time processing. B) Activity based costing. C) Period costing. D) None of these. Show Answer Correct Answer: A) Just in time processing. 11. A process costing system is used by a company that? A) Produces heterogeneous products. B) Produces items by special request of customers. C) Produces homogeneous products. D) Accumulates costs by job. Show Answer Correct Answer: C) Produces homogeneous products. 12. Similarities between job order costing and process costing include all of the following except: A) One WIP account. B) Three manufacturing costs. C) Flow of costs. D) All of these are the same in both job order and process costing. Show Answer Correct Answer: A) One WIP account. 13. Included in variable costs are: A) Raw material costs. B) Manager's salary. C) Machine depreciation costs. D) None of above. Show Answer Correct Answer: A) Raw material costs. 14. There are two approaches for dealing with the prior-period output and prior-period costs found in beginning work in process:the weighted average method and the FIFO method. A) False. B) True. C) Is it?. D) Not so sure. Show Answer Correct Answer: B) True. 15. The journal entry that assigns raw materials costs in a process costing system includes A) Debit to raw materials. B) Credit to raw materials. C) Debit to Accounts Payable. D) Credit to Work in Process. Show Answer Correct Answer: B) Credit to raw materials. 16. If the beginning work in process equivalent units is 2500 units, work done in current period equivalent units is 3800 units and units completed in current period are 4000, then ending work in process equivalent units will be A) 1800. B) 2300. C) 10300. D) 1500. Show Answer Correct Answer: B) 2300. 17. The cost of a department's transferred-in goods is the cost of A) Its materials, labor, and overhead. B) He goods transferred out as computed in the prior department. C) Its materials and conversion costs. D) None of these. Show Answer Correct Answer: B) He goods transferred out as computed in the prior department. 18. Completed units and Transferred out from first department will become ..... for the second department. A) Equivalent Unit. B) Started Unit. C) Unit cost. D) Beginning Work In Process. Show Answer Correct Answer: B) Started Unit. 19. There are 1, 000 units in process at the end of the period. They are 40% complete with respect to conversation. Direct materials are added at the end of the process. How many EUP for conversion costs? A) 0. B) 400. C) 600. D) 1, 000 $ 1, 000\times40%=400$. Show Answer Correct Answer: B) 400. 20. BONUS!!!When was Ko Hadi born? A) 18 November 1999. B) 21 Years ago. C) 20 Years ago. D) 17 November 1999. Show Answer Correct Answer: C) 20 Years ago. ← PreviousNext →Related QuizzesCost Accounting QuizzesProcess Costing Quiz 1Process Costing Quiz 2Process Costing Quiz 4Process Costing Quiz 5Process Costing Quiz 6 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books