Name: __________________________________________________ Schedule:________________________

Instruction: Write the letter of your choice on the Yellow paper along with your other assignment. 1. A disadvantage of the weighted average method compared to the FIFO process costing method is that: a. The information it provides about changes in unit prices from one period to the next is less useful than the information provided by FIFO. b. When unit cost per input prices fluctuate markedly from month to month, its per unit cost is representative than FIFO c. FIFO provides better management information for planning and control purposes d. FIFO is computationally simpler. 2. An assumption of the FIFO process costing method is that a. No calculation of conversion is possible b. Ending inventory will always be completed in the next accounting period c. the units in beginning inventory are assumed to be completed first d. the units in beginning inventory are not necessarily assumed to be completed by the end of the period 3. On occasion, the FIFO and the weighted average method of process costing will result in the same peso amount of costs being transferred to the next department. Which of the following scenarios would have the result? a. When there is no beginning inventory b. When there is no ending inventory c. When the beginning and ending inventories are equal in terms of unit numbers d. When the beginning and ending inventories are equal in terms of percentage of completion. 4. A distinct feature of FIFO process costing method is the a. FIFO process costing method is only minimally different from the weighted average process costing method b. Work done on ending inventory is kept separate from the work done during the current period in the calculation of equivalent units and is usually not included in the calculation. c. Work done on beginning inventory before the current period is kept separate from the work done during the current period in the calculation of equivalent units. d. Work done on beginning inventory before the current period is blended with the work done during the current period in the calculation of equivalent units. 5. Under the weighted average method, the stage of completion of beginning work in process a. Can almost always be determined with a degree of precision b. Is irrelevant in determining the equivalent unit calculation c. Must be combined with the work done during the current period to determine the equivalent units d. Is relevant in determining the equivalent units 6. If there was no beginning and ending WIP under the weighted average process costing method, the number of equivalent units for direct materials, if direct materials were added at the start of the process will be: a. Equal to the units completed b. Equal to the units started and completed c. Less than the units completed

d. Both a and b are correct 7. In a process costing system, the calculation of equivalent units is used for calculating: a. The peso amount of ending inventory b. The peso amount of the cost of goods sold for the accounting period c. The peso cost of a particular job d. Both a and b are correct 8. Which of the following business is most likely to use process costing? a. Manufacturers of fine furniture b. Dentists office c. Architectural firm d. Chemical plant 9. The cost of units finished at the last department will flow from work in process to a. Accounts receivable b. Cost of good sold c. Finished goods d. Raw materials 10.Which of the following best describes sequential processing? a. Subcomponents can be worked on simultaneously in different process and then brought together in a final process for completion. b. Only one process can be applied to a product in each department c. Several sequences of production are applied to product in the department d. Units must pass through one process before they can be worked on in the next process 11.Which of the following best describes parallel processing? a. Units must pass through one process before they can be worked on in the next process b. Partially completed units can be worked on simultaneously in different processes and then brought together in a final process for completion. c. Units typically pass through a series of manufacturing or producing departments. d. A large number of similar products pass through an identical set of processes. 12.Which is the best description of the production report? a. The production report is the document that summarizes the manufacturing activity that takes place in a process department for a given period of time. b. The report provides information about the physical units processed by the department c. The production report provides information about the manufacturing costs incurred by the department. d. None of these 13.Process accounting can be appropriate for a. Traditional manufacturing firms b. Manufacturing firms with JIT orientation c. Service firms d. All of these 14.A cost transferred from a prior process to a subsequent process is referred to as a. Cost added in b. Transferred in costs c. Beginning work in process d. Work in process transfer 15.Which of the following methods uses costs and work of beginning work in process?

a. Both the weighted average and FIFO method can be used b. Sequential processing method c. FIFO method d. Weighted average method 16.Which statement best describes the concept of equivalent units of production a. Equivalent units are the number of units completed at the end of last process b. Equivalent units are the total of the units produced by all departments c. Equivalent units are the units completed in a department d. Equivalent units are the measure of a periods output 17.What is the major advantage of the weighted average cost method? a. It i the preferred method b. It is the required method c. Accuracy d. Simplicity 18.If the company uses two different unit cost figures to cost transfers from one department to another under a process costing system, then it is reasonable to assume that: a. The weighted cost method is being used. b. The FIFO cost method is being used c. Processing centres are arranged in a sequential pattern d. There was no beginning work in process 19.All production costs have been steadily rising in the AB Company for several periods. The company maintains large work in process inventories. AB Companys cost per equivalent unit computed using FIFO method would be: a. Lower than, the same as, or higher than that computed under the weighted average method. b. Lower than that computed under the weighted average method c. Higher than the computed under the weighted average method d. the same as that computed under the weighted average method 20.All of the following are correct in referring to a production report except: a. The total of the units to be accounted for will equal the total of the units accounted for b. The equivalent units in the ending work in process inventory will be different if the weighted average is used that it is if the FIFO method is used. c. 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 d. The quantity schedule deals with whole units.