Question 1

The amount of under or over applied overhead must be removed with an adjusting entry at the end of the accounting period.

Accepted Answer

A) True 
 B)False

Question 2

Production costs during the current period are kept separate from that of the previous period in the:

Accepted Answer

A)  Job costing method 
B)  FIFO method 
C)  Just-in-time method 
D)  Weighted average method 
A)  Job costing method 
B)  FIFO method 
C)  Just-in-time method 
D)  Weighted average method

Question 3

An architect is a business which is likely to use job costing.

Accepted Answer

A) True 
 B)False

Question 4

Equivalent units of production:

Accepted Answer

A)  Are the number of whole units produced in a batch. 
B)  Are calculated by converting all units to a common denominator. 
C)  Compares the number of units that should have been completed with that actually produced 
D)  Are equal to the number of physical units. 
A)  Are the number of whole units produced in a batch. 
B)  Are calculated by converting all units to a common denominator. 
C)  Compares the number of units that should have been completed with that actually produced 
D)  Are equal to the number of physical units.

Question 5

The statement concerning job costing that is untrue is:

Accepted Answer

A)  Actual job costs will almost certainly be different from estimated job costs 
B)  Under normal costing overhead is allocated to jobs using the estimated overhead allocation rate 
C)  Under normal costing overhead is allocated to jobs using the estimated volume of usage of the allocation base 
D)  Managers monitor operations by comparing actual job costs to the original estimate 
A)  Actual job costs will almost certainly be different from estimated job costs 
B)  Under normal costing overhead is allocated to jobs using the estimated overhead allocation rate 
C)  Under normal costing overhead is allocated to jobs using the estimated volume of usage of the allocation base 
D)  Managers monitor operations by comparing actual job costs to the original estimate

Question 6

The opportunity costs of spoilage are generally not measured.

Accepted Answer

A) True 
 B)False

Question 7

The costs associated with abnormal spoilage is excluded from product costs and treated as a separate loss.

Accepted Answer

A) True 
 B)False

Question 8

Actual overhead is debited to the overhead control account.

Accepted Answer

A) True 
 B)False

Question 9

Brianna's Dancewear Ltd manufactures a specialty line of leotards using a job costing system. During June, the following costs were incurred in completing job BB201 : direct materials $14, 700; direct labour $6,300; non-factory administrative costs $1,200; and selling costs $5,600. Factory overhead was applied at the rate of $20.00 per machine hour and Job BB201 required 100 machine hours. If Job BB201 resulted in 2300 good leotards, the cost of goods sold per unit would be:

Accepted Answer

A)  $12.43 
B)  $12.96 
C)  $10.00 
D)  $10.52 
A)  $12.43 
B)  $12.96 
C)  $10.00 
D)  $10.52

Question 10

The way the spoilage cost is treated in the accounting records depends on whether the spoilage is considered normal or abnormal.

Accepted Answer

A) True 
 B)False

Question 11

There are two categories of costs in process costing; direct materials and direct overhead.

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 weighted average method, the cost per equivalent unit for conversion costs was:

Accepted Answer

A)  $5.68 
B)  $5.96 
C)  $6.49 
D)  $6.10 
A)  $5.68 
B)  $5.96 
C)  $6.49 
D)  $6.10

Question 13

Under a job costing system the raw materials ledger account is what type of account?

Accepted Answer

A)  asset 
B)  liability 
C)  revenue 
D)  expense 
A)  asset 
B)  liability 
C)  revenue 
D)  expense

Question 14

A costing system that determines an average cost for all units of product in a particular time period is a:

Accepted Answer

A)  Job costing system 
B)  Process costing system 
C)  Batch costing system 
D)  Activity costing system 
A)  Job costing system 
B)  Process costing system 
C)  Batch costing system 
D)  Activity costing system

The amount of under or over applied overhead must be removed with an adjusting entry at the end of the accounting period.

Production costs during the current period are kept separate from that of the previous period in the:

An architect is a business which is likely to use job costing.

Equivalent units of production:

The statement concerning job costing that is untrue is:

The opportunity costs of spoilage are generally not measured.

The costs associated with abnormal spoilage is excluded from product costs and treated as a separate loss.

Actual overhead is debited to the overhead control account.

The way the spoilage cost is treated in the accounting records depends on whether the spoilage is considered normal or abnormal.

There are two categories of costs in process costing; direct materials and direct overhead.

Under a job costing system the raw materials ledger account is what type of account?

A costing system that determines an average cost for all units of product in a particular time period is a:

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

The amount of under or over applied overhead must be removed with an adjusting entry at the end of the accounting period.

Production costs during the current period are kept separate from that of the previous period in the:

An architect is a business which is likely to use job costing.

Equivalent units of production:

The statement concerning job costing that is untrue is:

The opportunity costs of spoilage are generally not measured.

The costs associated with abnormal spoilage is excluded from product costs and treated as a separate loss.

Actual overhead is debited to the overhead control account.

The way the spoilage cost is treated in the accounting records depends on whether the spoilage is considered normal or abnormal.

There are two categories of costs in process costing; direct materials and direct overhead.

Under a job costing system the raw materials ledger account is what type of account?

A costing system that determines an average cost for all units of product in a particular time period is a:

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