21) The “total costs to account for” is the sum of the costs in beginning WIP inventory plus the manufacturing costs added during the period.
22) To assign costs to the units in ending WIP inventory, the company multiplies the cost per equivalent unit by the number of equivalent units for direct materials and conversion costs separately, and then sums the two amounts.
23) The first step of the 5-step process costing procedure is:
A) compute output in terms of equivalent units.
B) summarize total costs to account for.
C) compute the cost per equivalent unit.
D) summarize the flow of physical units.
24) The last step of the 5-step process costing procedure is:
A) assign total costs to units completed and to units in ending WIP inventory.
B) summarize total costs to account for.
C) compute the cost per equivalent unit.
D) summarize the flow of physical units.
25) The five steps of the process costing procedure are scrambled below:
1. Assign total costs to units completed and to units in ending WIP inventory.
2. Summarize total costs to account for.
3. Compute the cost per equivalent unit.
4. Summarize the flow of physical units.
5. Compute output in terms of equivalent units.
The correct order for these steps is:
A) 4, 5, 2, 3, 1
B) 5, 3, 1, 4, 2
C) 2, 4, 5, 1, 3
D) 3, 1, 4, 2, 5
26) In Step 1 of the process costing procedure, the “total units to account for” is the sum of:
A) the units in beginning WIP plus the units started in production during the month.
B) the units in ending WIP plus the units started in production during the month.
C) the units in beginning WIP plus the units in ending WIP.
D) the units completed and transferred out plus the units started in production during the month.
27) In Step 1 of the process costing procedure, the “total units accounted for” is the sum of:
A) the units in beginning WIP plus the units completed and transferred out.
B) the units in ending WIP plus the units started in production during the month.
C) the units in beginning WIP plus the units in ending WIP.
D) the units completed and transferred out plus the units in ending WIP
28) The cost per equivalent unit is computed as:
A) total costs to account for divided by total equivalent units.
B) total equivalent units divided by total costs to account for.
C) costs in beginning WIP inventory divided by equivalent units in beginning WIP.
D) costs added to production during the month divided by equivalent units in ending WIP.
29) On a production cost report, which item would appear first?
A) Total costs accounted for
B) Cost of goods finished for the month
C) Beginning WIP, if any
D) Total equivalent units
30) On a production cost report, which item would appear last?
A) Total costs accounted for
B) Cost of goods finished for the month
C) Beginning WIP inventory, if any
D) Ending WIP inventory, if any