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US CMA Part 1 Process Costing — practice questions

Explore 10 free Process Costing questions in US CMA Part 1 Management Accounting. Open each question or exercise to read its content, reference answers and available explanation.

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Process Costing questions and exercises with answers

Showing questions 1–10 of 10.

Order the production departmentsRead the answer and worked solution →Which amount is bigger?Read the answer and worked solution →Complete the equivalent unit countRead the answer and worked solution →Match the stage to what happens thereRead the answer and worked solution →Job order or process costing?Read the answer and worked solution →Process costing is used for which kind of manufacturing?Read the answer and worked solution →How is a batch defined in a process costing system?Read the answer and worked solution →In process costing, the costs of a manufactured item are grouped into which two categories?Read the answer and worked solution →Materials costing $599,427 were added in May for the 44,700 units started that month. What is the materials cost per unit started?Read the answer and worked solution →Eight one gallon buckets are left outside in the rain and each ends up three quarters full. How many completely full buckets does that water equal?Read the answer and worked solution →

Worked practice questions

Order the production departments

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Steps
  1. Mixing
  2. Baking
  3. Packaging
  4. Finished Goods
Instructions
Tap the stages in the order a batch moves through them.
_Source: Jonick, Principles of Managerial Accounting, section 3.1 Introduction_

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Which amount is bigger?

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Questions
  1. A
    Batch cost after Mixing
    B
    Batch cost after Baking
    Higher value
    Batch cost after Baking
  2. A
    Batch cost after Packaging
    B
    Batch cost after Baking
    Higher value
    Batch cost after Packaging
  3. A
    Debits to Baking WIP
    B
    Debits to Mixing WIP
    Higher value
    Debits to Baking WIP
  4. A
    Mixing indirect materials
    B
    Mixing direct materials
    Higher value
    Mixing direct materials
Instructions
Tap the side you think holds the larger figure.
_Source: Jonick, Principles of Managerial Accounting, section 3.2 Process Costing Transactions for a Manufacturing Company_

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Complete the equivalent unit count

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Missing parts
  1. Answer
    80
    Choices
    1. 20
    2. 100
    3. 80
  2. Answer
    4,720
    Choices
    1. 4,720
    2. 1,180
    3. 5,900
  3. Answer
    2,190
    Choices
    1. 5,110
    2. 2,190
    3. 7,300
Complete the statement
Units 20% complete on May 1 still need {0}% of their conversion in May, so 5,900 whole units count as {1} equivalent units. The 7,300 units left 30% complete on May 31 count as {2} equivalent units.
Instructions
Tap the value that belongs in each gap.
_Source: Jonick, Principles of Managerial Accounting, section 3.3 Process Costing Calculations for a Department in a Manufacturing Company_

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More Management Accounting topics

Activity-Based CostingResponsibility AccountingBudgetingManagerial Accounting ConceptsJob Order Costing