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Process costing system Multiple choice questions (MCQs) quiz
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ABOUT THIS QUIZ:
- Chapter: Process costing system
- Quiz Type: Multiple choice questions (MCQs) quiz
- Number of MCQs: 26
- Total Points: 26
- Approximate Time Required: 10 – 15 minutes
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Question 1 of 26
1. Question
The process costing system is best suited for:
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Question 2 of 26
2. Question
Which of the following businesses is likely to adopt a process costing system?
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Question 3 of 26
3. Question
Materials, labor and overhead costs are traced to processing departments rather than individual products or jobs. This statement is true for:
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Question 4 of 26
4. Question
In process costing system, the materials can be added in
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Question 5 of 26
5. Question
Which of the following is not relevant to a process costing system?
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Question 6 of 26
6. Question
Which of the following is not correct about process costing and job order costing?
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Question 7 of 26
7. Question
On June 1, Department A had 3,000 units 50% complete with respect to direct labor and factory overhead; materials are added at the beginning of the process. During June, 15,000 units were started into process in Department A. At the end of June, the ending goods in process of 4,000 units were 80% complete with respect to direct labor and factory overhead. There was no normal and/or abnormal loss of units in Department A during the month of June. The number of units transferred to Department B were:
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Question 8 of 26
8. Question
The following data belongs to Department Y of Abraham Company:
- WIP beginning inventory: 6,000 units – 40% complete as to labor and overhead
- Completed and transferred to finished goods store room: 30,000 units
- WIP ending inventory: 1,000 units – 60% compete as to labor and overhead
The number of units started in department Y during the period were:
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Question 9 of 26
9. Question
In process costing system, when partially completed units are expressed in terms of fully completed units they are known as:
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Question 10 of 26
10. Question
Consider the following data of Department Z:
- Work in process on January 1, 2020: 800 units – all materials, 40% converted
- Processed and transferred out: 20,000 units
- Work in process on January 31, 2020: 1,000 units – all materials, 60% converted
Under weighted average method, the equivalent units of production of Department Z for January are:
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Question 11 of 26
11. Question
Consider the following data of Department Z:
- Work in process on January 1, 2020: 800 units – all materials, 40% converted
- Processed and transferred out: 20,000 units
- Work in process on January 31, 2020: 1,000 units – all materials, 60% converted
Under FIFO method, the equivalent units of production of Department Z for January are:
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Question 12 of 26
12. Question
The direct materials costing $4,000 has been used in Mixing Department. The correct journal entry would be:
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Question 13 of 26
13. Question
In a process costing system, the manufacturing overhead (or factory overhead) is usually applied using:
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Question 14 of 26
14. Question
In process costing system, the predetermined overhead rate is computed
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Question 15 of 26
15. Question
Where the normal loss in a department is identified at the end of process, its cost is:
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Question 16 of 26
16. Question
While preparing the cost of production report (CPR) of a processing department, the per unit cost from preceding department needs to be adjusted when the:
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Question 17 of 26
17. Question
The following data has been taken from the 2nd department of Albari Company:
- Cost from proceeding department: $9,675
- Cost added by the department (Materials + Conversion): $6,500
- Units received from preceding department: 5,625
- Units transferred to finished goods store room: 5,000
- Units still in process (1/3 complete as to conversion costs): 375
- Units lost in process: 250
Based on the above data, the adjustment for lost units in second department should be:
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Question 18 of 26
18. Question
The normal or standard loss in processing departments is generally considered:
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Question 19 of 26
19. Question
A loss in processing departments which can be avoided under normal and efficient working conditions is generally known as:
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Question 20 of 26
20. Question
In process costing, the abnormal loss occurred in a production department is:
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Question 21 of 26
21. Question
Which of the following characteristics is relevant to process costing but not to job order costing?
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Question 22 of 26
22. Question
Which of the following types of spoilage should not affect the recorded cost of inventories?
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Question 23 of 26
23. Question
The work in process inventory at the beginning of the period is 25% complete as to conversion cost. Materials are added at the beginning of the process. If FIFO method is used, the equivalent units for materials are equal to the:
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Question 24 of 26
24. Question
The completed units are transferred from Department 3 (the last department) to the finished goods store room. The journal entry for this transfer would be:
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Question 25 of 26
25. Question
When completed units are sold to a customer, the cost of units sold is transferred from Finished Goods Inventory Account to Cost of Goods Sold Account. Which one of the following is a correct journal to record this transfer of cost?
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Question 26 of 26
26. Question
A section of the cost of production report (CPR) which shows the physical flow of units through various producing departments is usually labeled as:
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