2) What happens to production costs for a period underprocess costing?○ They are assigned to specific units manufacturedduring the period.○ They are accumulated and then traced to each unitmanufactured during the period.○ They are assigned to specific products manufacturedduring the period.They are accumulated and then averaged over allunits manufactured during the period.

Step 1:Process Costing: Processing costing used where similar units of mass production. It is used…

Answered: 2) What happens to production costs for…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 15MC: Which of the following is the step in which materials, labor, and overhead are detailed? A....

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Which is nor needed to compute equivalent units of production? A. the percentage of completion for inventory still in process B. the number of units transferred out C. the number of units started and completed D. the material cost per unit
The following data show the units in beginning work in process inventory, the number of units started, the number of units transferred, and the percent completion of the ending work in process for conversion. Given that materials are added at the beginning of the process, what are the equivalent units for material and conversion costs for each quarter using the weighted-average method? Assume that the quarters are independent.
Which of the following is a conversion cost? A. raw materials B. direct labor C. sales commissions D. direct material used
The cost behavior patterns below are lettered A through H. The vertical axes of the graphs represent total dollars of expense, and the horizontal axes represent production in units, machine hours, or direct labor hours. In each case, the zero point is at the intersection of the two axes. Each graph may be used no more than once. Required: Select the graph that matches the lettered cost described here. a. Depreciation of equipmentthe amount of depreciation charged is computed based on the number of machine hours that the equipment was operated. b. Electricity billflat fixed charge, plus a variable cost after a certain number of kilowatt hours are used. c. City water billcomputed as follows: d. Depreciation of equipmentthe amount is computed by the straight-line method. e. Rent on a factory building donated by the citythe agreement calls for a fixed fee payment, unless 200,000 labor hours are worked, in which case no rent need be paid. f. Salaries of repair workersone repair worker is needed for every 1,000 machine hours or less (i.e., 0 to 1,000 hours requires one repair worker, 1,001 to 2,000 hours requires two repair workers, etc.).
During production, how are the costs in process costing accumulated? A. to cost of goods sold B. to each individual product C. to manufacturing overhead D. to each individual department
A company has traditionally allocated its overhead based on machine hours but had collected this information to change to activity-based costing: A. How much overhead would be allocated to each unit under the traditional allocation method? B. How much overhead would be allocated to each unit under activity-based costing?
A company has traditionally allocated its overhead based on machine hours but collected this information to change to activity based costing: A. How much overhead would be assigned to each unit under the traditional allocation method? B. How much overhead would be assigned to each unit under activity-based costing?
Which is the correct formula for computing the overhead rate? A. estimated use of the cost driver for production/estimated overhead for the activity B. estimated overhead for the product/estimated use of the cost driver for the activity C. estimated use of the cost driver for production/estimated overhead for the activity D. estimated overhead for the activity/estimated use of the cost driver for the activity
Under what conditions may the unit costs of materials, labor, and overhead be computed by using only one equivalent production figure?
Under either weighted average or FIFO, when materials are added at the beginning of a process, rather than being added uniformly throughout the process, a unit cost should be calculated for the a.materials category only b.labor category only c.materials and conversion categories d.conversion category only
In computing the current period’s manufacturing cost per equivalent unit, the FIFO method of process costing considers current period costs a. Only b. Plus cost of beginning work in process inventory c. Less cost of beginning work in process inventory d. Plus cost of ending work in process inventory
Which of the following statements regarding process costing are true? 1. When computing the cost per equivalent unit of production, it is necessary to consider the percentage of completion of the units in beginning inventory. II. When computing the cost per equivalent unit of production, prior period costs are combined with current period costs. III. When all materials are added at the beginning of the production process, the equivalent units of production for materials is equal to the units completed and transferred out. Statements I and II are true. O Only Statement Il is true. O Only Statement Ill is true. O Statements II and III are true.

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