Question 1

An example of a source document in a job costing system is a materials requisition form.

Accepted Answer

A) True 
 B)False

Question 2

Inventoriable product costs consist of the direct and indirect costs of producing goods.

Accepted Answer

A) True 
 B)False

Question 3

When ending inventories are high, inaccurate measurement of percentage of completion:

Accepted Answer

A)  does not affect cost reports 
B)  distorts cost reports in this period. 
C)  distorts cost reports in this period and next period. 
D)  causes higher spoilage costs this period and next period 
A)  does not affect cost reports 
B)  distorts cost reports in this period. 
C)  distorts cost reports in this period and next period. 
D)  causes higher spoilage costs this period and next period

Question 4

One reason why actual volume might be different than planned is unexpected demand for the company's product.

Accepted Answer

A) True 
 B)False

Question 5

Direct labour is grouped with overhead in process costing because all units consume labour resources in the same pattern.

Accepted Answer

A) True 
 B)False

Question 6

In a job costing system the accounting entry to record the use of raw materials is:

Accepted Answer

A)  debit to raw materials inventory; credit to work in process 
B)  debit to accounts payable, credit to raw materials inventory; 
C)  debit to work in process; credit to raw materials inventory 
D)  debit to work in process; credit to accounts payable 
A)  debit to raw materials inventory; credit to work in process 
B)  debit to accounts payable, credit to raw materials inventory; 
C)  debit to work in process; credit to raw materials inventory 
D)  debit to work in process; credit to accounts payable

Question 7

Job costing provides a cost estimate for individual jobs while process costing provides an average cost estimate for an individual unit of product.

Accepted Answer

A) True 
 B)False

Question 8

In a takeaway coffee bar which of the following are variable costs?

Accepted Answer

A)  takeaway coffee cups 
B)  coffee granules 
C)  cleaner's wages 
D)  a and b 
A)  takeaway coffee cups 
B)  coffee granules 
C)  cleaner's wages 
D)  a and b

Question 9

Under the FIFO method of process costing, the total manufacturing costs of units started and completed within a period will be the costs incurred in the current period to complete them less the prior period costs attached to beginning inventory.

Accepted Answer

A) True 
 B)False

Question 10

Job costing systems provide information for understanding the work profiles of individuals.

Accepted Answer

A) True 
 B)False

Question 11

The cost of a partially complete spoiled unit is treated as though the unit had been completed.

Accepted Answer

A) True 
 B)False

Question 12

Bright n Breezy Ltd employs a process costing system. Direct materials are added at the beginning of the process. Relevant information about July's activities follows: $\begin{array}{|c|l|}
\hline \text { 1. July } & \begin{array}{l}
\text { Beginning Inventory 1,500units (60\% complete) } \
\text { DM Cost } \$ 5,925 \
\text { CC Cost } \$ 4,095
\end{array} \
\hline \text { During July } & \begin{array}{l}
15,000 \text { units started } \
\text { DM added } \$ 150,000 \
\text { CC added } \$ 83,520
\end{array} \
\hline \text { 31 July } & \text { Ending Inventory 3,000 units }(40 \%) \
\hline
\end{array}$
 Using the FIFO method, the number of units started and completed in July was:

Accepted Answer

A)  15,000 
B)  12,000 
C)  13,500 
D)  16,500 
A)  15,000 
B)  12,000 
C)  13,500 
D)  16,500

Question 13

A job can be an individual product or a batch of products.

Accepted Answer

A) True 
 B)False

Question 14

Forthefunofit Ltd uses a process costing system. Direct materials are added at the beginning of the process. During January, Department A had a beginning inventory of 2,000 units, 50% complete for conversion costs. During the month 14,000 units were started and there were 1,000 units in ending inventory, 40% complete for conversion costs. Using weighted average process costing, the equivalent units for conversion costs for the month were:

Accepted Answer

A)  14,100 
B)  15,000 
C)  16,000 
D)  15,400 
A)  14,100 
B)  15,000 
C)  16,000 
D)  15,400

Question 15

Job costing is the process of assigning costs to custom products where the cost object is the individual job.

Accepted Answer

A) True 
 B)False

Question 16

Forthefunofit Ltd uses a process costing system. Direct materials are added at the beginning of the process. During January, Department A had a beginning inventory of 2,000 units, 50% complete for conversion costs. During the month 14,000 units were started and there were 1,000 units in ending inventory, 40% complete for conversion costs. Using FIFO process costing, the equivalent units for conversion costs for the month were:

Accepted Answer

A)  14,400 
B)  15,400 
C)  16,000 
D)  14,100 
A)  14,400 
B)  15,400 
C)  16,000 
D)  14,100

Question 17

All of the following are likely to use job costing except:

Accepted Answer

A)  Chartered accountant 
B)  House builder 
C)  Printing shop 
D)  Oil refinery 
A)  Chartered accountant 
B)  House builder 
C)  Printing shop 
D)  Oil refinery

Question 18

A period cost is expensed directly to the statement of profit or loss in the period in which they occur.

Accepted Answer

A) True 
 B)False

Question 19

If the percentage of completion is over estimated in ending work in process this will affect the cost per equivalent unit for this period and next period.

Accepted Answer

A) True 
 B)False

Question 20

In the weighted average method, cost per equivalent unit is often calculated separately for materials costs and conversion costs.

Accepted Answer

A) True 
 B)False

An example of a source document in a job costing system is a materials requisition form.

Inventoriable product costs consist of the direct and indirect costs of producing goods.

When ending inventories are high, inaccurate measurement of percentage of completion:

One reason why actual volume might be different than planned is unexpected demand for the company's product.

Direct labour is grouped with overhead in process costing because all units consume labour resources in the same pattern.

In a job costing system the accounting entry to record the use of raw materials is:

Job costing provides a cost estimate for individual jobs while process costing provides an average cost estimate for an individual unit of product.

In a takeaway coffee bar which of the following are variable costs?

Under the FIFO method of process costing, the total manufacturing costs of units started and completed within a period will be the costs incurred in the current period to complete them less the prior period costs attached to beginning inventory.

Job costing systems provide information for understanding the work profiles of individuals.

The cost of a partially complete spoiled unit is treated as though the unit had been completed.

A job can be an individual product or a batch of products.

Job costing is the process of assigning costs to custom products where the cost object is the individual job.

All of the following are likely to use job costing except:

A period cost is expensed directly to the statement of profit or loss in the period in which they occur.

If the percentage of completion is over estimated in ending work in process this will affect the cost per equivalent unit for this period and next period.

In the weighted average method, cost per equivalent unit is often calculated separately for materials costs and conversion costs.

The Role of Accounting Information in Management Decision Making

Cost Concepts, Behaviour and Estimation

A Costing Framework and Cost Allocation

Costvolumeprofit Cvp Analysis

Planning Budgeting and Behaviour

Operational Budgets

Flexible Budgets, Standard Costs and Variance Analysis

Variance Analysis: Revenue and Cost

Activity Analysis: Costing and Management

Relevant Costs for Decision Making

Strategy and Control

Capital Budgeting and Strategic Investment Decisions

The Strategic Management of Costs and Revenues

Strategic Management Control: a Lean Perspective

Responsibility Accounting, Performance Evaluation and Transfer Pricing

The Balanced Scorecard and Strategy Maps

Rewards, Incentives and Risk Management

Sustainability Management Accounting

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Exam 7: Job and Process Costing Systems

An example of a source document in a job costing system is a materials requisition form.

Inventoriable product costs consist of the direct and indirect costs of producing goods.

When ending inventories are high, inaccurate measurement of percentage of completion:

One reason why actual volume might be different than planned is unexpected demand for the company's product.

Direct labour is grouped with overhead in process costing because all units consume labour resources in the same pattern.

In a job costing system the accounting entry to record the use of raw materials is:

Job costing provides a cost estimate for individual jobs while process costing provides an average cost estimate for an individual unit of product.

In a takeaway coffee bar which of the following are variable costs?

Under the FIFO method of process costing, the total manufacturing costs of units started and completed within a period will be the costs incurred in the current period to complete them less the prior period costs attached to beginning inventory.

Job costing systems provide information for understanding the work profiles of individuals.

The cost of a partially complete spoiled unit is treated as though the unit had been completed.

A job can be an individual product or a batch of products.

Job costing is the process of assigning costs to custom products where the cost object is the individual job.

All of the following are likely to use job costing except:

A period cost is expensed directly to the statement of profit or loss in the period in which they occur.

If the percentage of completion is over estimated in ending work in process this will affect the cost per equivalent unit for this period and next period.

In the weighted average method, cost per equivalent unit is often calculated separately for materials costs and conversion costs.

The Role of Accounting Information in Management Decision Making

Cost Concepts, Behaviour and Estimation

A Costing Framework and Cost Allocation

Costvolumeprofit Cvp Analysis

Planning Budgeting and Behaviour

Operational Budgets

Flexible Budgets, Standard Costs and Variance Analysis

Variance Analysis: Revenue and Cost

Activity Analysis: Costing and Management

Relevant Costs for Decision Making

Strategy and Control

Capital Budgeting and Strategic Investment Decisions

The Strategic Management of Costs and Revenues

Strategic Management Control: a Lean Perspective

Responsibility Accounting, Performance Evaluation and Transfer Pricing

The Balanced Scorecard and Strategy Maps

Rewards, Incentives and Risk Management

Sustainability Management Accounting

Filters