Process Costing MCQs (11-20)

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

Correct! Wrong!

12. Which of the following is a characteristic of process cost accounting system?

(a) Material, Labor and Overheads are accumulated by orders

(b) Companies use this system if they process custom orders

(c) Only Closing stock of work in process is restated in terms of completed units

(d) Opening and Closing stock of work in process are related in terms of completed units

Correct! Wrong!

13. A cost incurred in one processing department that is transferred to the next processing department is called a?

(a) Transferred-in cost

(b) Split cost

(c) Carry-over cost

(d) Conversion cost

Correct! Wrong!

14. If the beginning balance in the Raw Materials Inventory account for the month was Rs. 25,000, the ending balance of Rs. 22,000 and material used during the month was Rs. 130,000, what is the amount of materials purchased during the month?

(a) Rs. 177,000

(b) Rs. 130,000

(c) Rs. 127,000

(d) Rs. 133,000

Correct! Wrong!

15. 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 car repair business

(d) A food manufacturer

Correct! Wrong!

16. If the beginning balance in Raw Materials Inventory is Rs. 5,000, the ending balance is Rs. 3,500, and Rs. 60,000 was purchased, what is the amount of materials transferred to Work in Process Inventory during the period?

(a) Rs. 58,500

(b) Rs. 60,000

(c) Rs. 61,500

(d) Rs. 68,500

Correct! Wrong!

17. The Blending Department began the period with 20,000 units. During the period the department received another 80,000 units from the prior department and at the end of the period 30,000 units remained which were 40% complete. How much are equivalent units in The Blending Department’s work in process inventory at the end of the period?

(a) 12,000

(b) 28,000

(c) 40,000

(d) 52,000

Correct! Wrong!

18. A process costing system?

(a) Cannot use standard costs

(b) Restates Work in Process Inventory in terms of completed units

(c) Accumulates costs by job rather than by department

(d) Assigns direct labor and manufacturing overhead costs separately to units of production

Correct! Wrong!

19. In a process costing system, when items are sold, the cost of the items is moved from?

(a) Work in Process to Finished Goods

(b) Work in Process to Cost of Goods Sold

(c) Cost of Goods Sold to Finished Goods

(d) Finished Goods to Cost of Goods Sold

Correct! Wrong!

20. When partially completed units are converted to a comparable number of completed units, they are referred to as?

(a) Converted units

(b) Split-off units

(c) Equivalent units

(d) Equitable units

Correct! Wrong!

11. A process costing system is used by a company that?

12. Which of the following is a characteristic of process cost accounting system?

13. A cost incurred in one processing department that is transferred to the next processing department is called a?

14. If the beginning balance in the Raw Materials Inventory account for the month was Rs. 25,000, the ending balance of Rs. 22,000 and material used during the month was Rs. 130,000, what is the amount of materials purchased during the month?

15. Which of the following companies is most likely to use a process costing system?

16. If the beginning balance in Raw Materials Inventory is Rs. 5,000, the ending balance is Rs. 3,500, and Rs. 60,000 was purchased, what is the amount of materials transferred to Work in Process Inventory during the period?

18. A process costing system?

19. In a process costing system, when items are sold, the cost of the items is moved from?

20. When partially completed units are converted to a comparable number of completed units, they are referred to as?

Search