Question 1

Regardless of the nature of a company's production system, there will always be resources that are shared among different products.

Accepted Answer

A) True 
 B)False

Question 2

Help Company manufactures phones in a two-department process: Assembly and Finishing.Information on the Assembly department follows: $$\begin{array} { l r } 
\text { Direct materials added } & \$ 336,000 \
\text { Direct labor } & 460,800 \
\text { Factory overhead } & 230,200 \
\text { Total costs to account for } & \$ 1,027,200
\end{array}$$ There was no beginning inventory, and of the 80,000 units started in production, 67,200 were completed and transferred to the Finishing department, while 12,800 units were still in process.These units had all materials added but were only 75% complete as far as conversion costs.The cost of a finished unit is _____.

Accepted Answer

A) $12.84 
B) $15.29 
C) $13.20 
D) $17.20 
A) $12.84 
B) $15.29 
C) $13.20 
D) $17.20

Question 3

Entries on the left of the "T" account are always increases.

Accepted Answer

A) True 
 B)False

Question 4

A debit to Direct-Materials Inventory is used to record _____.

Accepted Answer

A) a requisition of direct materials 
B) cost of goods completed 
C) a sale of merchandise 
D) purchase of direct materials 
A) a requisition of direct materials 
B) cost of goods completed 
C) a sale of merchandise 
D) purchase of direct materials

Question 5

Macho Company produces calendars in a one-department process.The following information is available: $\begin{array}{lr}
\text { Direct materials added } & \$ 30,000 \
\text { Direct labor } & \$ 20,700 \
\text { Factory overhead } & \$ 10,350 \
& \
\text { Work-in-process inventory, beginning } & -0- \
\text { Units statted } & 15,000 \
\text { Units completed and transferred out } & 12,000 \
\text { Work-in-process inventory, ending } & 3,000
\end{array}$ The units still in process are 100% complete with respect to direct materials and 50% complete with respect to conversion costs.The equivalent units for conversion costs are _____.

Accepted Answer

A) 3,000 
B) 15,000 
C) 12,000 
D) 13,500 
A) 3,000 
B) 15,000 
C) 12,000 
D) 13,500

Question 6

Soapsy Company manufactures generic greeting cards.Material is introduced at the beginning of the process in the Printing department.Conversion costs are applied uniformly throughout the process.The weighted-average method of product costing is used.Data for the Printing department for the month of September follow: $\begin{array}{lr}\text { Work-in-process inventory, September } 1\\
\text { Units } & 22,500 \text { units } \
\text { Direct materials } 100 \% \text { complete) } & \$ 51,000 \
\text { Conversion costs 30\% complete) } & \$ 20,472\\\text { Units started in September } & 127,500 \text { units } \
\text { Units completed in September } & 125,000 \text { units } \
\text { Work-in-process inventory, September 30 } & 27,000 \text { units }\100 \% \text { complete with regard to materials }\\text { and } 60 \% \text { complete with regard to conversion costs) }\\\text { Direct materials added in September }&\$427,500\\text { Conversion costs added in September }&\$315,000
\end{array}$ The equivalent units for conversion costs are _____.

Accepted Answer

A) 150,000 
B) 136,500 
C) 132,450 
D) 123,000 
A) 150,000 
B) 136,500 
C) 132,450 
D) 123,000

Question 7

Identify which of the following industries is most likely to use a job-order costing system.

Accepted Answer

A) chemicals 
B) plastics 
C) printing 
D) meat packing 
A) chemicals 
B) plastics 
C) printing 
D) meat packing

Question 8

Cliff Company manufactures generic notebooks.Material is introduced at the beginning of the process in the Printing department.Conversion costs are applied uniformly throughout the process.The weighted-average method of product costing is used.Data for the Printing department for the month of June follow: $\text { Work-in-process inventory, June } 1$
$\begin{array}{lr}
\text { Units } & 15,000 \text { units } \
\text { Direct materials } 100 \% \text { complete) } & \$ 34,000 \
\text { Conversion costs } 30 \% \text { complete) } & \$ 14,000\\text { Units started in June } & 65,000 \text { units } \
\text { Units completed in June } & 62,000 \text { units } \
\text { Work-in-process inventory, June 30 } & 18,000 \text { units }
\end{array}$
$ 100 \% $ complete with regard to materials and 
$ 50 \% $ complete with regard to conversion costs)
$\begin{array}{ll}
\text { Direct materials added in June } & \$ 285,000 \
\text { Conversion costs added in June } & \$ 210,000
\end{array}$ The equivalent units for conversion costs are _____.

Accepted Answer

A) 80,000 
B) 71,000 
C) 68,300 
D) 62,000 
A) 80,000 
B) 71,000 
C) 68,300 
D) 62,000

Question 9

The equivalent of a job order in a nonprofit organization

Accepted Answer

Program or

Question 10

Organizations using JIT production systems always have no inventories.

Accepted Answer

A) True 
 B)False

Question 11

Sidney Company produces plastic cups in a one-department process.The following information is available: $$\begin{array} { l r } 
\text { Work-in-process inventory, beginning } & 0 \
\text { Units started } & 60,000 \
\text { Units complete and transferred out } & 48,000 \
\text { Work-in-process inventory, ending } & 12,000 \
& \
\text { Direct materials added } & \$ 240,000 \
\text { Direct labor } & \$ 165,600 \
\text { Factory overhead } & \$ 82,800
\end{array}$$ The units still in process are 100% complete with respect to direct materials and 60% complete with respect to conversion costs.The cost of one completed unit is _____.

Accepted Answer

A) $8.50 
B) $8.14 
C) $8.84 
D) $10.18 
A) $8.50 
B) $8.14 
C) $8.84 
D) $10.18

Question 12

The method of allocating costs to products that are readily identified by individual units or batches, each of which requires varying degrees of attention and skill

Accepted Answer

Job-order

Question 13

In process costing, the costs incurred in a previous department for items that have been received by a subsequent department

Accepted Answer

Transferre

Question 14

_____ is the system that applies costs to like products that are usually mass-produced in continuous fashion through a series of production processes.

Accepted Answer

A) Process costing 
B) Variable costing 
C) Job?order costing 
D) JIT costing 
A) Process costing 
B) Variable costing 
C) Job?order costing 
D) JIT costing

Question 15

The first step in calculating the cost of goods transferred and cost of goods remaining in ending work-in-process inventory is to calculate unit cost.

Accepted Answer

A) True 
 B)False

Question 16

Clumsy Company produces plastic cups in a one-department process.The following information is available: 
Work-in-process inventory, beginning $ \quad-0 $ -
Units started $ \quad 60,000 $
Units completed and transferred out $ \quad 48,000 $
Work-in-process inventory, ending $ \quad 12,000 $ The units still in process are 100% complete with respect to direct materials and 50% complete with respect to conversion costs.The equivalent units for materials are _____.

Accepted Answer

A) 60,000 
B) 30,000 
C) 38,400 
D) 12,000 
A) 60,000 
B) 30,000 
C) 38,400 
D) 12,000

Question 17

_____ units are the number of completed units that could have been produced from the inputs applied.

Accepted Answer

A) Equivalent 
B) Physical 
C) Partial 
D) Conversion 
A) Equivalent 
B) Physical 
C) Partial 
D) Conversion

Question 18

Identify which of the following industries is most likely not to use a job?order costing system.

Accepted Answer

A) construction 
B) lumber 
C) aircraft 
D) printing 
A) construction 
B) lumber 
C) aircraft 
D) printing

Question 19

Training Company uses a backflush-costing system to produce bicycles.Bicycles are scheduled for production only after orders are recorded, and products are shipped to customers immediately upon completion.No finished goods inventory is maintained and product costs are applied directly to cost of goods sold.Standard cost for materials and conversion is $150 and $75, respectively. During the current month, Training Company purchased $6,000 of direct materials and incurred $3,300 in conversion cost to produce 40 units.The entry to apply cost to completed goods includes a debit to _____.

Accepted Answer

A) Finished-Goods Inventory for $9,300 
B) Work-in-Process Inventory for $9,000 
C) Cost of Goods Sold for $9,300 
D) Cost of Goods Sold for $9,000 
A) Finished-Goods Inventory for $9,300 
B) Work-in-Process Inventory for $9,000 
C) Cost of Goods Sold for $9,300 
D) Cost of Goods Sold for $9,000

Question 20

Muscle Hospital uses a job-cost system for all patients who have surgery.In January, the pre-operating room PRE-OP) and operating room OR) had budgeted alloca?tion bases of 2,000 nursing hours and 1,000 nursing hours, respectively.The budgeted nursing-overhead charges for each department for the month were $84,000 and $66,000, respective?ly.The hospital floor for surgery patients had budgeted overhead costs of $600,000 and 7,500 nursing hours for the month.For patient Sam Malone, actual hours incurred were eight and four hours, respectively, in the PRE-OP and OR rooms.Sam Malone was in the hospital for 4 days 96 hours).Other costs related to Sam Malone were: $$\begin{array} { l c c c } 
& \begin{array} { c } 
\text { PRE-OP } \
\text { Cost }
\end{array} & \begin{array} { c } 
\text { OR } \
\text { Cost }
\end{array} & \begin{array} { c } 
\text { In-room } \
\text { Cost }
\end{array} \
\text { Patient medicine } & \$ 100 & \$ 250 & \$ 1,200 \
\text { Direct nursing time } & 2,400 & 3,500 & 5,400
\end{array}$$ The hospital uses a budgeted overhead rate for applying overhead to patient stays.The total cost of the stay of patient Sam Malone is _____.

Accepted Answer

A) $1,550 
B) $11,300 
C) $8,280 
D) $21,130 
A) $1,550 
B) $11,300 
C) $8,280 
D) $21,130

Regardless of the nature of a company's production system, there will always be resources that are shared among different products.

Entries on the left of the "T" account are always increases.

A debit to Direct-Materials Inventory is used to record _____.

Identify which of the following industries is most likely to use a job-order costing system.

The equivalent of a job order in a nonprofit organization

Organizations using JIT production systems always have no inventories.

The method of allocating costs to products that are readily identified by individual units or batches, each of which requires varying degrees of attention and skill

In process costing, the costs incurred in a previous department for items that have been received by a subsequent department

_____ is the system that applies costs to like products that are usually mass-produced in continuous fashion through a series of production processes.

The first step in calculating the cost of goods transferred and cost of goods remaining in ending work-in-process inventory is to calculate unit cost.

_____ units are the number of completed units that could have been produced from the inputs applied.

Identify which of the following industries is most likely not to use a job?order costing system.

Managerial Accounting, the Business Organization, and Professional Ethics

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and an Introduction to Activity-Based Costing

Relevant Information and Decision Making With a Focus on Pricing Decisions

Relevant Information and Decision Making: Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Basic Accounting: Concepts, Techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

Exam 14: Job-Costing and Process-Costing Systems

Regardless of the nature of a company's production system, there will always be resources that are shared among different products.

Entries on the left of the "T" account are always increases.

A debit to Direct-Materials Inventory is used to record _____.

Identify which of the following industries is most likely to use a job-order costing system.

The equivalent of a job order in a nonprofit organization

Organizations using JIT production systems always have no inventories.

The method of allocating costs to products that are readily identified by individual units or batches, each of which requires varying degrees of attention and skill

In process costing, the costs incurred in a previous department for items that have been received by a subsequent department

_____ is the system that applies costs to like products that are usually mass-produced in continuous fashion through a series of production processes.

The first step in calculating the cost of goods transferred and cost of goods remaining in ending work-in-process inventory is to calculate unit cost.

_____ units are the number of completed units that could have been produced from the inputs applied.

Identify which of the following industries is most likely not to use a job?order costing system.

Managerial Accounting, the Business Organization, and Professional Ethics

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and an Introduction to Activity-Based Costing

Relevant Information and Decision Making With a Focus on Pricing Decisions

Relevant Information and Decision Making: Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Basic Accounting: Concepts, Techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters