Question

QUESTION 1

All are types of spoilage in a Process costing system except for.......?

	A.	Normal discrete losses
	B.	Abnormal losses
	C.	Normal shrinkage and continuous losses
	D.	Absymal losses

  

QUESTION 2

In February, the Wakefield Widget Shop had 50,000 in WIP Inventory on February 1.  During the month, the company started 250,000 units. Also in February, 275,000 units were completed and transferred out. The remaining WIP inventory were 40 percent complete at the end of the month. What were the Equivalent Units of Production for the month of February?

	A.	300,000
	B.	250,000
	C.	275,000
	D.	285,000

QUESTION 3

In computing Equivalent Units of Production (EUP) all the following types of units are included except for....?

	A.	Started last period and finished this period
	B.	Started last period and finished last period
	C.	Started and finished this period
	D.	Started this period and not finished

QUESTION 4

All of the following are steps in a Process Costing system except for...?

	A.	Calculate cost per Equivalent Unit of Production (EUP) by cost component.
	B.	Assign costs to units transferred out and to ending inventory.
	C.	Calculate physical units to account for.
	D.	Calculate total cost to account for by product.

QUESTION 5

Using the FIFO (First In, First Out) method computes a current period cost per unit.

True

False

Answer 1

Question 1

D. Absymal cost

Reason : All other costs are related to process costing except absymal cost.

Question 3

B. Started in last period and finished in last period

Reason : This units are not included because they are not related to current production.

Question 4.

C. Calculate the physical units to account for

Reason : This is not a part of process costing.

Question 5.

False.

Reason : Because in FIFO method units arrived first will be taken first, so units of previous period are taken first whose cost is already included in previous period and not in current period.