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web.groovymark@gmail.com
- December 8, 2024
Question 41
Which statement accurately describes the cost of goods transferred out?
a) The cost of goods transferred out to finished goods is the sum of the goods in only one process but not in all periods
b) The cost of goods transferred out to finished goods is the sum of the costs to make the finished goods in all processes, both in the current or prior period
c) The cost of goods transferred out to finished goods is the sum of the costs to make the finished goods in all processes only in the prior periods
d) The cost of goods transferred out to finished goods is the sum of the costs to make the finished goods in all processes only in the current period
Answer: b) The cost of goods transferred out to finished goods is the sum of the costs to make the finished goods in all processes, both in the current or prior period
Explanation: All costs incurred in making the finished goods, whether in the current or prior periods, are included in the cost of goods transferred out.
Question 42
Which of the following statements summarizes how the cost of the ending work-in-process inventory should be calculated?
a) The sum of the material costs for only the unfinished units
b) The sum of the material costs plus the conversion costs for the units in beginning work-in-process inventory
c) The sum of the material costs plus the conversion costs for the unfinished units
d) The sum of the material costs plus the conversion costs for the finished units
Answer: c) The sum of the material costs plus the conversion costs for the unfinished units
Explanation: The cost of ending work-in-process inventory is calculated by adding the material costs and conversion costs of the unfinished units.
Question 43
Which statement calculates the material’s costs in the ending work-in-process inventory at the end of the current period?
a) The sum of the materials and the conversion cost per equivalent units during the current period multiplied by the material’s equivalent units in the ending work-in-process inventory
b) The sum of the materials and the conversion cost per equivalent units during the prior period multiplied by the material’s equivalent units in the ending work-in-process inventory
c) The materials cost per equivalent unit during the current period multiplied by the material’s equivalent units in the ending work-in-process inventory
d) The materials cost per equivalent unit during the prior period multiplied by the material’s equivalent units in the ending work-in-process inventory
Answer: c) The materials cost per equivalent unit during the current period multiplied by the material's equivalent units in the ending work-in-process inventory
Explanation: Material costs are calculated by multiplying the materials cost per equivalent unit during the current period by the number of equivalent units in the ending work-in-process inventory.
Question 44
Which statement determines the conversion costs in the ending work-in-process inventory at the end of a current period?
a) The sum of the materials and the conversion cost per equivalent unit during the current period multiplied by the conversion equivalent units in the ending work-in-process inventory
b) The conversion cost per equivalent unit during the current period multiplied by the conversion equivalent units in the ending work-in-process inventory
c) The sum of the materials and the conversion cost per equivalent unit during the prior period multiplied by the conversion equivalent units in the ending work-in-process inventory
d) The conversion cost per equivalent unit during the prior period multiplied by the conversion equivalent units in the ending work-in-process inventory
Answer: b) The conversion cost per equivalent unit during the current period multiplied by the conversion equivalent units in the ending work-in-process inventory
Explanation: Conversion costs for ending work-in-process inventory are calculated by multiplying the conversion cost per equivalent unit for the current period by the number of equivalent units.
Question 45
The conversion cost of ending work-in-process inventory is equal to which of the following?
a) The conversion cost per equivalent unit this period multiplied by the direct materials cost number of equivalent units
b) The conversion cost per actual units in beginning inventory multiplied by the conversion cost number of equivalent units
c) The conversion cost per equivalent unit this period multiplied by the conversion cost number of equivalent units
d) The conversion cost per actual units transferred out multiplied by the conversion cost number of equivalent units
Answer: c) The conversion cost per equivalent unit this period multiplied by the conversion cost number of equivalent units
Explanation: The conversion cost of ending work-in-process inventory is determined by multiplying the conversion cost per equivalent unit by the number of equivalent units for conversion costs.
Question 46
The costs of ending work-in-process inventory are calculated by which of the following formulas?
a) Cost per unit for conversion costs times the number of equivalent units for conversion costs
b) Cost per unit of direct materials times equivalent units for materials plus conversion costs per unit times the number of equivalent units for conversion costs
c) Cost per unit for direct materials times equivalent units for materials minus conversion costs per unit times the number of equivalent units for conversion costs
d) Cost for direct materials per unit times the number of equivalent units for direct materials
Answer: b) Cost per unit of direct materials times equivalent units for materials plus conversion costs per unit times the number of equivalent units for conversion costs
Explanation: The formula to calculate the costs of ending work-in-process inventory includes both direct materials and conversion costs per unit.
Question 47
What is the number of equivalent units for direct materials equal to?
a) The sum of equivalent units for units started and completed and equivalent units for ending inventory
b) The sum of equivalent units for beginning work-in-process inventory and ending work-in-process inventory
c) The sum of the equivalent units for beginning work-in-process inventory and units started and completed during the current period
d) The equivalent units for beginning work-in-process inventory plus the equivalent units for units started and completed plus the equivalent units for ending work-in-process inventory
Answer: d) The equivalent units for beginning work-in-process inventory plus the equivalent units for units started and completed plus the equivalent units for ending work-in-process inventory
Explanation: The total number of equivalent units for direct materials is the sum of the equivalent units from beginning inventory, units started and completed, and ending inventory.
Question 48
When determining the cost per unit of units produced in a processing center, which statement is true?
a) Separate costs are not calculated per unit for direct materials or conversion costs for either beginning work-in-process inventory or current period costs
b) Separate costs are only calculated per unit for direct materials and conversion costs for the current period costs
c) Separate costs are only calculated per unit for direct materials and conversion costs for the beginning work-in-process inventory
d) Separate costs are calculated per unit for direct materials and conversion costs for both beginning work-in-process inventory and current period costs
Answer: d) Separate costs are calculated per unit for direct materials and conversion costs for both beginning work-in-process inventory and current period costs
Explanation: In process costing, separate unit costs are calculated for direct materials and conversion costs for both beginning inventory and current period production.
Question 49
What are the total processing dollars spent during a period in a process center equal to?
a) The sum of the cost of goods transferred out and the cost of ending work-in-process inventory
b) Only the cost of goods transferred out
c) The sum of costs in beginning inventory, the cost of goods transferred out, and the cost of ending work-in-process inventory
d) Only the cost of ending work-in-process
Answer: a) The sum of the cost of goods transferred out and the cost of ending work-in-process inventory
Explanation: The total processing costs for a period are the sum of the cost of goods transferred out and the cost of the ending work-in-process inventory.
Question 50
When computing the costs transferred out of a department or processing center, which of the following is true?
a) Only the costs to complete direct materials and the costs to complete conversion of the beginning work-in-process inventory are added to the direct materials costs of the started and completed units
b) Only the costs to complete direct materials and the costs to complete conversion of the beginning work-in-process inventory are added to the conversion costs of the started and completed units
c) The costs to complete direct materials in beginning work-in-process inventory are added to the costs to complete conversion of the beginning work-in-process, and the total is added to the costs of the started and completed inventory for the period
d) Only the conversion cost of the beginning inventory is added to all costs of the started and completed units to determine the total costs transferred out of the processing center
Answer: a) Only the costs to complete direct materials and the costs to complete conversion of the beginning work-in-process inventory are added to the direct materials costs of the started and completed units
Explanation: The direct materials and conversion costs associated with the beginning work-in-process inventory are added to the total costs of the started and completed units to determine the costs transferred out.
