Quiz - Recap on Process Costing

True or False: Process costing is used when products are unique and produced in small batches.

• True

• False

Which of the following companies is most likely to use process costing?

• SMDC

• Rapide

• Coca Cola

• EY Philippines

Which statement about FIFO vs weighted-average is true?

• FIFO uses only current-period costs

• Both use beginning inventory costs only

• FIFO blends current and past costs

• Weighted-average method separates periods

From the list below, which cost is not included in the calculation of conversion costs?

• Factory supervisor’s salary

• Factory utilities

• Factory rent

• Direct materials

How is manufacturing overhead applied in a process costing system?

• Based on actual cost

• Using predetermined overhead rates

• Only at year-end

• Based on direct labor hours only

From the given data, what is the units completed and transferred to the next Department

• 37,500

• 40,500

• 34,500

• 34,700

What is the cost per equivalent unit for conversion?

Conversion cost incurred = ₱6,600 ; Completed units = 3,000

• Ending WIP = 600 units, 50% complete for conversion

• $2.0 per unit

• $1.83 per unit

• $2.2 per unit

• $2.14 per unit

TRUE or FALSE. The weighted-average method combines the units completed in the prior and current months when calculating the equivalent units of production, whereas the FIFO method only includes the units completed in the prior month when calculating the equivalent units of production

• TRUE

• FALSE

Where are costs transferred after the last processing department?

• To the sales department

• To warehouse for storing

• To raw materials

• To finished goods

In process costing, labor costs are traced to:

• the product produced

• Jobs

• Departments

• Customer