Process Costing

1. Cost of previous department is a part of
1. transferred-in costs
2. transferred-out costs
3. FIFO costs
4. LIFO costs
2. Total costs incur in a production process, is divided by total number of output units to calculate the
1. unit costs
2. cost of direct material
3. cost of direct labor
4. cost of indirect labor
3. If beginning work in process equivalent units are 2500 units, work done in current period equivalent units are 3800 units and ending work in process equivalent units are 5000, then complete equivalent units in current period are
1. 1500 units
2. 1300 units
3. 1500 units
4. 1800 units
4. A unit cost calculated in costing system, by assigning total costs incurred to many similar units is categorized as
1. job costing system
2. process costing system
3. accounting period costing system
4. none of above
5. If beginning work in process equivalent units is 2500 units, work done in current period equivalent units is 3800 units and units completed in current period are 4000, then ending work in process equivalent units will be
1. 1500 units
2. 10300 units
3. 2300 units
4. 1800 units
6. First step in process costing system is to
1. compute cost for each equivalent unit
2. summarize total costs
3. compute output in units
4. summarize flow of output
7. Costs that are incurred in last department, where product has been processed and will be carried to next department for further processing are called
1. weighted average costs
2. transferred-out costs
3. transferred-in costs
4. partial work costs
8. In process costing method, when work done in current accounting period and beginning inventory before current accounting period, is classified as
1. First-in, first-out method
2. Last-in, first-out method
3. current period inventory method
4. partial inventory costing method
9. Fifth step in process costing system is to
1. assign total cost to completed units
2. compute gross margin
3. allocate joint costs
4. allocate separable costs
10. Forth step in process costing system is to
1. compute output in units
2. summarize flow of output
3. compute cost for each equivalent unit
4. summarize total costs
11. Costing method, which calculates per equivalent unit cost of all production related work done till calculate date is termed as
1. net present value method
2. Gross production method
3. net present value method
4. weighted average method
12. Second step in processing costing system is to
1. compute output in units
2. summarize flow of output
3. compute cost for each equivalent unit
4. summarize total costs
13. Standardized technique that is performed repetitively on different kind of materials to convert them into different finished products is known as
1. operation
2. conversion process
3. hybridization
4. both a and b
14. If total incurred cost in a production process are ₹30000 and number of output units are 5000 units, then units cost will be
1. ₹26
2. ₹6
3. ₹60
4. ₹16
15. If cost incurred for work in process inventory is ₹350000 and total equivalent units completed till date are 3500, then weighted average cost will be
1. ₹1,200
2. ₹1,000
3. ₹100
4. ₹10
16. Third step in process costing system is to
1. compute cost for each equivalent unit
2. summarize total costs
3. compute output in units
4. summarize flow of output
17. Hybrid costing system, which is applied to batches of similar products, but are not identical is classified as
1. operation costing system
2. inventoriable costing system
3. split off costing system
4. incremental costing system
18. Costing system, which classify cost into cost categories in a way when an expense is incurred in process is called
1. job costing system
2. process costing system
3. inventory costing system
4. conversion expense costing system
19. Total cost related to work in process inventory is divided by total units of work done is used to calculate
1. weighted average conversion cost
2. weighted average cost
3. weighted average revenue
4. Gross weighted margin
20. Costing system, which is a combination of process costing and job costing system is classified as
1. double costing system
2. hybrid costing system
3. average costing system
4. weighted costing system