b. Actual quantity purchased by the difference between actual price and standard
ID: 2543484 • Letter: B
Question
b. Actual quantity purchased by the difference between actual price and standard price. c. Standard price by the difference between standard quantity purchased and standard quantity used. d. Standard quantity purchased by the difference between actual price and standard price 51. A cost center in a process cost system is a: a. Unit to which costs are accumulated. b. Job. c. Specific product. d. Employee 52. Which of the following firms is least likely to use process costing? a. A yogurt manufacturer. b. A refiner of petroleum products c. A computer manufacturer. d. A manufacturer of concrete products. 53. Process costing techniques should be used in assigning costs to products: a. If the product is manufactured on the basis of each order received. b. In all manufacturing situations. c. When production is only partially completed during the accounting period. d. If the product is composed of mass-produced homogeneous units. An error was made in the computation of the stage of completion of the current year's ending inventory. The error resulted in assigning a lower stage of completion to each componen than actually was the case. What is the resultant effect of this error upo (1) The computation of equivalent units in total? (2) The computation of costs per equivalent unit? (3) Costs assigned to cost of goods completed for the period? a. Understate b. Understate c. Overstate d. Overstate Overstate Understate Understate Overstate Overstate Overstate Understate UnderstateExplanation / Answer
51) A cost center in a process cost system is a
Solution: Unit to which costs are accumulated
Explanation: A cost center is described as a unit within a business to which costs can be allocated
52) Which of the following firms is least likey to use process costing?
Solution: A computer manufacturer
Explanation: Process costing refers to an operation costing which is used to ascertain the cost of a product at each stage or process of manufacturer. This least likely to occurs in the case of computer manufacturer
53) Process costing techniques should be used in assigning costs to products
Solution: if a product is composed of mass-produced homogeneous units
Explanation: Processing cost is applied when nearly identical units are mass produced.
54) An error was made in the computation of the stage of completion of the current year's ending work in process inventory. The error resulted in assigning a lower stage of completion to each component of the inventory than actually was the case. What is the resultant effect of this error upon:
Solution: understate; overstate; overstate
Explanation: computation of equivalent units is likely to be understated; thus as a result the computation of costs per equivalent unit is likely to be overstated; and the costs assigned to cost of goods completed for the period will be overstated too
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.