ACCT 311 CH 16 TEST QUESTIONS AND ANSWERS ALREADY PASSED LATEST UPDATE 2025-
2026
Process operation is defined as a manufacturing process that includes: - Answers series of
sequential processes
large volumes of similar products
In process operations, costs are accumulated in each process. In the final process, cost are
transferred to: - Answers Finished goods
The cost object in a job order system is the ___ and the cost object in a process costing system
is the ___ - Answers job; process or department
List the four steps involving analysis when accounting for a department's activity, with the first
step listed on top. - Answers 1. Determine the physical flow of units
2. Compute equivalent units of production
3. Compute cost per equivalent unit of production
4. Assign and reconcile costs
Department X started 550 units during the accounting period, completed and transferred out
500 units and had an ending balance of 200 units ___ units were in beginning goods in process
inventory for the department - Answers 150 units
Units started= 550
Transferred units, UT= 500
Ending balance, UE= 200
Beginning balance = units transferred - units started + ending balance: 500-500+200=150 units
The mass production of products in a continuous flow of steps is the definition of: - Answers
Process operations
In a process operation, each process has a separate department which will accumulate costs
for each of the following: - Answers direct materials
overhead
,direct labor
Process and job order operations are similar in that both: (Check all that apply.) - Answers are
used to determine the cost per units of product or service
combine materials, labor, and overhead in producing products
Equivalent units of production refers to the number of units that could have been: - Answers
Started and completed
Department B had a beginning inventory balance of 150 units. During the accounting period, the
department started an additional 950 units, and 975 units were completed and transfered out.
Department B had an ending balance of - Answers 125
Process operations is defined as a manufacturing process that includes: (Check all that apply.) -
Answers large volumes of similar products
series of sequential processes
True or false:
Using the weighted-average method, the computation of EUP separates units into direct
materials and conversion. - Answers True
A company completes 21,000 units this month and has ending goods in process inventory of
3,000 units which are estimated to be 40% complete. Direct materials cost per EUP is $5.00 and
Conversion cost per EUP is $1.50. The cost transferred to Finished Goods Inventory is -
Answers According to the scenario, the given data are as follows:
Complete units = 21,000 units
Direct material cost per EUP = $5.00
So, direct material cost = 21,000 × $5 = $105,000
Conversion cost per EUP = $1.50
So, conversion cost = 21,000 × $1.50 = $31,500
So, we can calculate the cost transferred to finished goods by using the following formula:
The cost transferred to finished goods = Direct material Cost + Conversion Cost
, = $105,000 + $31,500
= $136,500
Hence, the cost transferred to finished goods is $136,500.
A department begins the month with 100 units at a cost of $7,500 in work in process. An
additional 1,000 units are started during the month and additional costs incurred are $12,500. At
the end of the month, there are 200 units still in process which are 50% complete. The ending
balance in Work in Process Inventory is - Answers $2000
Explanation:
For computing the ending balance in Work in Process Inventory , first, we have to calculate the
equivalent unit and the cost per equivalent unit which is shown below:
= Additional units - beginning units + still in process units × completion percentage
= 1,000 units - 100 units + 200 units × 50%
= 900 units + 100 units
= 1,000 units
Now cost per equivalent unit would be
= (Beginning cost + additional cost) ÷ (equivalent units)
= ($7,500 + $12,500) ÷ (1,000 units)
= $20,000 ÷ 1,000 units
= $20
Now the ending inventory equals to
= still in process units × completion percentage × cost per equivalent unit
= 200 units × 50% × $20
= $2,000
Understanding the cost of partially completed goods allows the manufacturer to: - Answers
measure production activity for the period
A process cost report summarizes the following process costing steps: (Check all that apply). -
Answers costs per equivalent unit of production
2026
Process operation is defined as a manufacturing process that includes: - Answers series of
sequential processes
large volumes of similar products
In process operations, costs are accumulated in each process. In the final process, cost are
transferred to: - Answers Finished goods
The cost object in a job order system is the ___ and the cost object in a process costing system
is the ___ - Answers job; process or department
List the four steps involving analysis when accounting for a department's activity, with the first
step listed on top. - Answers 1. Determine the physical flow of units
2. Compute equivalent units of production
3. Compute cost per equivalent unit of production
4. Assign and reconcile costs
Department X started 550 units during the accounting period, completed and transferred out
500 units and had an ending balance of 200 units ___ units were in beginning goods in process
inventory for the department - Answers 150 units
Units started= 550
Transferred units, UT= 500
Ending balance, UE= 200
Beginning balance = units transferred - units started + ending balance: 500-500+200=150 units
The mass production of products in a continuous flow of steps is the definition of: - Answers
Process operations
In a process operation, each process has a separate department which will accumulate costs
for each of the following: - Answers direct materials
overhead
,direct labor
Process and job order operations are similar in that both: (Check all that apply.) - Answers are
used to determine the cost per units of product or service
combine materials, labor, and overhead in producing products
Equivalent units of production refers to the number of units that could have been: - Answers
Started and completed
Department B had a beginning inventory balance of 150 units. During the accounting period, the
department started an additional 950 units, and 975 units were completed and transfered out.
Department B had an ending balance of - Answers 125
Process operations is defined as a manufacturing process that includes: (Check all that apply.) -
Answers large volumes of similar products
series of sequential processes
True or false:
Using the weighted-average method, the computation of EUP separates units into direct
materials and conversion. - Answers True
A company completes 21,000 units this month and has ending goods in process inventory of
3,000 units which are estimated to be 40% complete. Direct materials cost per EUP is $5.00 and
Conversion cost per EUP is $1.50. The cost transferred to Finished Goods Inventory is -
Answers According to the scenario, the given data are as follows:
Complete units = 21,000 units
Direct material cost per EUP = $5.00
So, direct material cost = 21,000 × $5 = $105,000
Conversion cost per EUP = $1.50
So, conversion cost = 21,000 × $1.50 = $31,500
So, we can calculate the cost transferred to finished goods by using the following formula:
The cost transferred to finished goods = Direct material Cost + Conversion Cost
, = $105,000 + $31,500
= $136,500
Hence, the cost transferred to finished goods is $136,500.
A department begins the month with 100 units at a cost of $7,500 in work in process. An
additional 1,000 units are started during the month and additional costs incurred are $12,500. At
the end of the month, there are 200 units still in process which are 50% complete. The ending
balance in Work in Process Inventory is - Answers $2000
Explanation:
For computing the ending balance in Work in Process Inventory , first, we have to calculate the
equivalent unit and the cost per equivalent unit which is shown below:
= Additional units - beginning units + still in process units × completion percentage
= 1,000 units - 100 units + 200 units × 50%
= 900 units + 100 units
= 1,000 units
Now cost per equivalent unit would be
= (Beginning cost + additional cost) ÷ (equivalent units)
= ($7,500 + $12,500) ÷ (1,000 units)
= $20,000 ÷ 1,000 units
= $20
Now the ending inventory equals to
= still in process units × completion percentage × cost per equivalent unit
= 200 units × 50% × $20
= $2,000
Understanding the cost of partially completed goods allows the manufacturer to: - Answers
measure production activity for the period
A process cost report summarizes the following process costing steps: (Check all that apply). -
Answers costs per equivalent unit of production
