ACCT 2230-Chapter+04+Systems+Design

1. (Appendix 4A) Which of the following statements referring to a production report is not correct? A. The quantity schedule deals with physical units, not whole units. B. The total "Costs to be accounted for" must equal the total cost of the units completed and transferred out, plus the cost of the ending work-in-process inventory. C. The equivalent units in the ending work-in-process inventory will be different if the weighted- average method is used than it will be if the FIFO method is used. D. The total of the "Units to be accounted for" will equal the total of the "Units accounted for." 2. Assume that there is no beginning work-in-process inventory, and the ending work-in-process inventory is 50% complete with respect to conversion costs. What would be the number of equivalent units of production with respect to conversion costs under the weighted-average method? A. The same as the units completed. B. The same as the units started during the period. C. Less than the units completed. D. Less than the units started during the period. 3. (Appendix 4A) All production costs have been steadily rising in the Donner Company for several periods, and the company maintains large work-in-process inventories. What is the Donner Company's cost per equivalent unit, as computed using the FIFO method? A. The same as that computed under the weighted-average method. B. Higher than that computed under the weighted-average method. C. Lower than that computed under the weighted-average method. D. It could be the lower than, the same as, or higher than that computed under the weighted- average method. 4. (Appendix 4A) If a company uses two different unit cost figures to cost transfers from one department to another under a process costing system, then which of the following statements is reasonable to assume? A. There was no beginning work-in-process inventory. B. Processing centres are arranged in a sequential pattern. C. The FIFO cost method is being used. D. The weighted-average cost method is being used. 5. For which of the following industries would it NOT be appropriate to use process costing? ................................Continued.............................