ACCOUNTING-Which of the following is not a characteristic of a process costing system

I need the following Assignments Completed so that I may compare them to my current answer. There are multiple sections to this AssignmentSECTION 31. Which of the following is not a characteristic of a process costing system?a. Several Work in Process Inventory accounts are usedb. Product costs are grouped by processes, departments, or work cellsc. More suitable when customized products are manufacturedd. A specific time period is used2. Which of the following cost flow assumptions most closely follows the logical product flow in a process costing environment?a. LIFOb. FIFOc. Averaged. HIFO3. In a process costing system, some of the increases to Department C’s Work in Process Inventory account would come from Department B’sa. Finished Goods Inventory account.b. Work in Process Inventory account.c. Materials Inventory account.d. Cost of Goods Sold account.4. During April, Department A started 400,000 units of product in a particular production process. The beginning work in process inventory was 40,000 units, and the ending inventory was 50,000 units. Direct materials are introduced at the start of processing, and beginning and ending inventories are considered to be 40 percent complete with respect to conversion costs. Department A uses the FIFO costing method.The number of units started and completed in Department A during April wasa. 350,000.b. 360,000.c. 450,000.d. 160,000.5. During April, Department A started 400,000 units of product in a particular production process. The beginning work in process inventory was 40,000 units, and the ending inventory was 50,000 units. Direct materials are introduced at the start of processing, and beginning and ending inventories are considered to be 40 percent complete with respect to conversion costs. Department A uses the FIFO costing method.Units transferred out from Department A during April werea. 410,000.b. 390,000.c. 400,000.d. 490,000.6. Equivalent units of production usually are determined fora. direct materials costs only.b. direct materials and conversion costs.c. direct and indirect materials only.d. conversion costs only.7. A measure of productive output of units for a period of time, expressed in terms of completed whole units, is the definition ofa. ending work in process inventory.b. equivalent unitsc. conversion costs.d. units started and completed.8. Direct materials costs and conversion costs for the current period on a FIFO process cost report are divided by their respective units of equivalent production to arrive at thea. transferred-in cost per unit.b. beginning inventory cost per unit.c. units to be started.d. cost per equivalent unit.9. In a process costing system, unit cost is computeda. for each job worked on.b. on the basis of productive output for a period of time.c. for direct materials costs only.d. only for the last production process.10. Lopez Company uses the FIFO process costing method to determine the product unit cost. The company began the period with 1,800 units in beginning inventory. During the period, 32,000 units were started and completed. There were 4,000 units in ending inventory at the end of the period. If all direct materials are added at the beginning of the process, the number of equivalent units for direct materials for the period isa. 28,000.b. 36,000.c. 29,800.d. 32,000.11. The following unit data were assembled for the heating process of Morgan Processing Inc. for the month of August. Direct materials are added at the beginning of the process. Conversion costs are added uniformly over the production process. The company uses the FIFO process costing method.UnitsBeginning work in process inventory (30 percent complete)5,000Units started in August44,000Ending work in process (60 percent complete)4,500The number of equivalent units produced by Morgan Processing with respect to conversion costs isa. 43,700.b. 48,200.c. 50,200.d. 45,700.12. The following unit data were assembled for the heating process of Morgan Processing Inc. for the month of August. Direct materials are added at the beginning of the process. Conversion costs are added uniformly over the production process. The company uses the FIFO process costing method.UnitsBeginning work in process inventory (30 percent complete)5,000Units started in August44,000Ending work in process (60 percent complete)4,500The number of equivalent units produced by Morgan Processing with respect to direct materials costs isa. 49,000.b. 44,000.c. 48,500.d. 39,500.13. Use the following data provided by Star Inc. to answer the questions below. The company uses a process costing system.Beginning Work in Process Inventory on June 1: 1,000 units—100 percent complete as to direct materials 80 percent complete as to conversion costs Units Started During June: 6,400 units Ending Work in Process Inventory on June 30: 1,200 units—100 percent complete as to direct materials 40 percent complete as to conversion costsThe FIFO costing method is used by the company.Units completed and transferred out of the department of Star Inc. during the month totaleda. 6,600.b. 6,400.c. 5,200.d. 6,200.14. Use the following data provided by Star Inc. to answer the questions below. The company uses a process costing system.Beginning Work in Process Inventory on June 1: 1,000 units—100 percent complete as to direct materials 80 percent complete as to conversion costs Units Started During June: 6,400 units Ending Work in Process Inventory on June 30: 1,200 units—100 percent complete as to direct materials 40 percent complete as to conversion costsThe FIFO costing method is used by the company.Equivalent units for conversion costs of Star Inc. during the month totaleda. 7,680.b. 5,880.c. 6,880.d. 7,920.15. The Taylor Company uses a process costing system. Assume that direct materials are added at the beginning of the period and that direct labor and overhead are added continuously throughout the process. The company uses the FIFO costing method. The following data are available for one of its accounting periodsUnitsBeginning work in process26,000(70 percent complete for conversion costs)Units started180,000Units transferred out191,000Ending work in process15,000(60 percent complete for conversion costs)Assume that you have calculated a direct materials cost per unit of $4 and a conversion cost per unit of $7. Under this assumption, the ending balance for Work in Process Inventory of Taylor Company would bea. $82,000.b. $165,000.c. $123,000.d. $99,000.16. The Taylor Company uses a process costing system. Assume that direct materials are added at the beginning of the period and that direct labor and overhead are added continuously throughout the process. The company uses the FIFO costing method. The following data are available for one of its accounting periodsUnitsBeginning work in process26,000(70 percent complete for conversion costs)Units started180,000Units transferred out191,000Ending work in process15,000(60 percent complete for conversion costs)Equivalent units for conversion costs of Taylor Company area. 181,800.b. 200,000.c. 207,800.d. 192,200.17. During October, Department A of Answer Inc. started 320,000 units of product in a particular manufacturing process. The beginning work in process inventory was 50,000 units, and the ending inventory was 30,000 units. Direct materials are introduced at the start of processing, and beginning and ending inventories are considered to be 50 percent complete with respect to conversion costs. Department A uses the FIFO costing method.Units transferred out of Department A of Answer during October werea. 325,000.b. 335,000.c. 370,000.d. 340,000.18. Nader Inc. has the following information available:Costs from Beginning InventoryCosts from Current PeriodDirect materials$2,300$ 21,252Conversion costs6,200150,536At the beginning of the period, there were 500 units in process that were 40 percent complete as to conversion costs and 100 percent complete as to direct materials costs. During the current period, 4,300 units were started and completed. Ending inventory contained 320 units that were 80 percent complete as to conversion costs and 100 percent complete as to direct materials costs. (Assume that the company uses the FIFO costing method.)The equivalent units of production for direct materials and conversion costs, respectively, of Nader Inc. werea. 4,120 for direct materials and 4,056 for conversion costs.b. 4,620 for direct materials and 4,856 for conversion costs.c. 4,480 for direct materials and 4,544 for conversion costs.d. 5,120 for direct materials and 5,056 for conversion costs.19. Natasha Corporation’s Shaping Department had no beginning inventory and completed and transferred to finished goods 920 units during May. Ending inventory for May contained 80 units that were 30 percent complete as to conversion costs and 100 percent complete as to direct materials costs. The charges to the Shaping Department during May were $3,776 for conversion costs and $2,500 for direct materials costs. Compute the cost of work transferred out if Natasha Corporation uses the FIFO costing method.a. $6,180b. $5,774c. $6,118d. $5,98020. The Bakersfield Company has the following information available:CostsBeginning InventoryCurrent PeriodDirect materials$3,650$ 31,620Conversion costs9,120143,100At the beginning of the period, there were 800 units in process that were 60 percent complete as to conversion costs and 100 percent complete as to direct materials costs. During the current period, 5,800 units were started and completed. Ending inventory contained 400 units that were 60 percent complete as to conversion costs and 100 percent complete as to direct materials costs. (Assume that the company uses the FIFO process costing method.)The cost of completing a unit of Bakersfield during the current period wasa. $28.18.b. $30.12.c. $27.60.d. $24.96.21. Information for the current month for the Polishing Department is shown below.Direct MaterialsConversion CostsBeginning work in process inventory$ 8,100$10,525Current month’s costs$31,240$56,240Equivalent units based on the FIFO costing method71,00074,000Units completed—69,000Units in ending work in process inventory—6,000Direct materials are added at the beginning of the process. Beginning work in process is 30 percent complete as to conversion costs; ending work in process inventory is 80 percent complete. Determine the cost of ending work in process inventory.a. $6,288b. $5,760c. $7,200d. $3,55222. Weston Company uses the FIFO method in its process costing system. The first processing department, the Welding Department, started the month with 18,000 units in its beginning work in process inventory that were 50 percent complete with respect to conversion costs. The conversion costs in the beginning work in process inventory were $52,200. An additional 55,000 units were started into production during the month. There were 16,000 units in the ending work in process inventory of the Welding Department that were 20 percent complete with respect to conversion costs. A total of $284,160 in conversion costs were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for the month on the department’s process cost report? (Round to three decimal places.)a. $5.800b. $5.167c. $5.550d. $4.60823. The Finishing Department of White Light Company has the following information available for 2014:UnitsCompleteBeginning work in process inventory6,00040 percentEnding work in process inventory3,50080 percentUnits completed during 201445,000100 percentAssuming that the Company uses the FIFO process costing method, what are the equivalent units for conversion costs for 2014?a. 51,400b. 45,000c. 48,200d. 45,40024. Which of the following costing methods combines the cost of units in beginning inventory with the current period costs to determine the unit production cost?a. Average costb. FIFOc. Directd. LIFO25. Cloud Nine International uses a process costing system. Assume that direct materials are added at the beginning of the period and that direct labor and overhead are added continuously throughout the process. The company uses the average costing method. The following data are available for one of its accounting periods:UnitsBeginning work in process26,000(70 percent complete for conversion costs)Units started180,000Units transferred out191,000Ending work in process15,000(60 percent complete for conversion costs)Assume that you have calculated a direct materials cost per unit of $5 and a conversion cost per unit of $8. Under this assumption, the ending balance for Work in Process Inventory of Cloud Nine International would bea. $195,000.b. $123,000.c. $165,000.d. $147,000.SECTION 51. Costs are not affected by the changes in the volume of production.a. Trueb. False2. Cost behavior analysis is not useful to a service business.a. Trueb. False3. Unit variable costs vary with changes in productive output, whereas total variable costs remain constant.a. Trueb. False4. Unit fixed costs vary inversely with activity or volume.a. Trueb. False5. An organization’s practical capacity is its theoretical or ideal capacity reduced by normal and anticipated work stoppages, such as machine breakdowns.a. Trueb. False6. Costs that change, in total, in direct proportion to changes in productive output, or activity, are called variable costs.a. Trueb. False7. Depreciation calculated using the straight-line method is an example of a fixed cost.a. Trueb. False8. Electric power charges are an example of a mixed cost.a. Trueb. False9. The high-low method allows managers to differentiate between fixed and variable costs when dealing with mixed costs.a. Trueb. False10. All variable costs except manufacturing costs are subtracted from sales to determine the total contribution margin.a. Trueb. False11. The contribution margin income statement divides costs into variable and fixed costs.a. Trueb. False12. Gross margin and contribution margin are always equal.a. Trueb. False13. A scatter diagram helps to determine if a linear relationship exists between a cost item and its related activity measure.a. Trueb. False14. The engineering method of separating costs is sometimes called a regression analysis.a. Trueb. False15. Cost-volume-profit analysis assumes a constant sales mix.a. Trueb. False16. An increase in the unit sales price will increase unit variable price.a. Trueb. False17. Cost-volume-profit analysis assumes costs and revenues have a close linear approximation.a. Trueb. False18. If fixed costs are $24,000, variable costs are $25 per unit, and the product sells for $45, the total contribution margin at the breakeven point is $24,000.a. Trueb. False19. In a breakeven scatter diagram, the loss area continues till the total costs line is below total revenues line.a. Trueb. False20. If fixed costs are $180,000, variable costs are $38 per unit, and the product sells for $70, the breakeven point in sales dollars is $5,625.a. Trueb. False21. Adding a desired profit level to breakeven computations will lower the number of units required to be sold.a. Trueb. False22. In cost-volume-profit analysis, sales revenue is computed by multiplying units sold by the selling price per unit, and the targeted profit is projected by management.a. Trueb. False23. One of the assumptions of CVP analysis assumes production and sales to be approximately equal.a. Trueb. False24. If direct materials costs are increased, the breakeven point will decrease.a. Trueb. False25. If fixed costs are increased, then a breakeven analysis with an adjustment for profit will yield an increase in targeted sales units.a. Trueb. FalseSECTION 61. All operating budgets should contain revenue and expense components.a. Trueb. False2. Evaluating the value chain and capacity issues are not part of the budgeting process.a. Trueb. False3. A budget can contain only financial information.a. Trueb. False4. Budgets are plans of action based on forecasted transactions, activities, and events.a. Trueb. False5. Budgets assign resources and the responsibility to use them wisely to managers who are held accountable for their results.a. Trueb. False6. Operating budgets are plans used in daily operations.a. Trueb. False7. A master budget consists of a set of operating budgets and a set of financial budgets for a specific accounting period.a. Trueb. False8. Operating budgets are limited to service organizations.a. Trueb. False9. Managers do not need to know why a budget is being prepared, as these are prepared by higher authorities.a. Trueb. False10. The budgeting function begins with the preparation of a production budget.a. Trueb. False11. The direct labor budget is needed to prepare the production budget.a. Trueb. False12. The selling and administrative expense budget is typically separated into variable and fixed cost components.a. Trueb. False13. The cost of goods manufactured budget is an operating budget.a. Trueb. False14. A sales forecast for a retail organization is based on purchases and cost of goods sold budgets.a. Trueb. False15. It is necessary to know the budgeted number of unit sales to prepare production budget.a. Trueb. False16. Each period’s ending cash balance becomes the beginning cash balance for the next period.a. Trueb. False17. Receipt of stock dividends, depreciation, and amortization expense will not be recorded in the cash budget prepared by an organization.a. Trueb. False18. Once cash receipts and cash payments have been established, the cash increase or decrease is added to the period’s beginning balance to arrive at a projected cash balance at period end.a. Trueb. False19. A continuous budget is a 12-month forward-rolling budget that summarizes budgets for the next 12 months.a. Trueb. False20. Zero-based budgeting requires the preparation of budget from scratch.a. Trueb. False21. The budget committee oversees each stage in the preparation of a master budget.a. Trueb. False22. Only the lowest levels of management can be evaluated using budgets.a. Trueb. False23. Budgets identify potential constraints before they become problems.a. Trueb. False24. Responsibility accounting authorizes managers to take control of and be held accountable for the revenues and expenses in their budgets.a. Trueb. False25. Static budgets are prepared on quarterly basis and require frequent change during the annual budget period.a. Trueb. FalseSECTION 71. A performance management and evaluation system is mainly utilized to account for and report on financial performance.a. Trueb. False2. While measuring performance, managers must be able to distinguish between what is being measured and the actual measures used to monitor performance and compare results.a. Trueb. False3. Performance measurement is the use of quantitative tools to gauge an organization’s performance in relation to a specific goal or an expected outcome.a. Trueb. False4. All organizations use same performance measures in their day-to-day business operations.a. Trueb. False5. Managers at all levels are evaluated in terms of their ability to manage their areas of responsibility in keeping with organizational goals.a. Trueb. False6. Responsibility accounting is of least help to manufacturing companies.a. Trueb. False7. A responsibility center whose manager is held accountable for both revenues and costs and for the resulting operating income is called a revenue center.a. Trueb. False8. An organization chart assists in management control.a. Trueb. False9. A report for a responsibility center includes costs and revenues that are not controlled by a manager.a. Trueb. False10. Performance reports allow comparisons between actual performance and budget expectations.a. Trueb. False11. If a performance report contains items that are in a manager’s control, the entire responsibility accounting system can be called into question.a. Trueb. False12. Flexible budgeting is utilized to evaluate a cost center’s performance.a. Trueb. False13. A flexible budget is derived by dividing actual unit costs by the standard unit costs.a. Trueb. False14. One of the drawback of the return on investment performance measure is that it considers both operating and nonoperating income.a. Trueb. False15. When calculating ROI, assets invested represent the average of the beginning and ending asset balances for a given period.a. Trueb. False16. For residual income figures to be comparable on a companywide basis, all investment centers must have equal access to resources and similar asset investment bases.a. Trueb. False17. The economic value added performance measure focuses on long-term financial performance.a. Trueb. False18. Variable costing is a method of reporting that deals only with a manager’s controllable costs, variable costs.a. Trueb. False19. A variable costing income statement is also called a traditional income statement.a. Trueb. False20. The balanced scorecard links the perspectives of an organization’s stakeholders with the organization’s mission and vision, performance measures, strategic plan, and resources.a. Trueb. False21. An organization’s four basic stakeholder groups include investors, employees, internal business processes, and customers.a. Trueb. False22. The alignment of an organization’s strategy with all the perspectives of the balanced scorecard results in performance objectives that benefit all stakeholders.a. Trueb. False23. It is necessary for managers to fully understand the causal relationship between their actions and the organization’s overall performance to get results.a. Trueb. False24. Cash bonuses are usually given to encourage short-term performance.a. Trueb. False25. How effective a performance management and evaluation system is depends on how well the goals of individual responsibility centers, the entire company, and managers are coordinated.a. Trueb. False

 

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