Studs 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 materials are _____.

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

Matthew Company manufactures phones in a two-department process: Assembly and Finishing.Information on the Assembly department follows: \[\begin{array} { l r } \text { Direct materials added } & \$ 336,000 \\ \text { Direct labor } & 460,000 \\ \text { Factory overhead } & 204,000 \\ \text { Total costs to account for } & \$ 1,027,200 \end{array}\] 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 unit cost of conversion costs is:

A) $6.00 B) $3.00 C) $8.65 D) $9.00 A) $6.00 B) $3.00 C) $8.65 D) $9.00

Exam 14: Job-Costing and Process-Costing Systems

Scott Clothing had 40,000 shirts in process at May 31 75% convert?ed).All direct materials are added at the beginning of the production process.During the month 140,000 shirts were transferred to Finished Goods Inventory.There was no beginning inventory.The equivalent units for conversion costs for May are _____shirts.

(Multiple Choice)

4.7/5

(85)

Question 121

Budgeted overhead application rate = total actual factory overhead / total budgeted amount of the cost driver.

(True/False)

4.7/5

(81)

Question 122

The entry to record the sale of goods would include a debit to Cost of Goods Sold.

(True/False)

4.7/5

(81)

Question 123

Job costing only applies to specific jobs with a single physical unit.

(True/False)

4.9/5

(77)

Question 124

The entry to record the completion of units in process would include a debit to Finished Goods Inventory.

(True/False)

4.9/5

(81)

Question 125

Transferred-in costs include only direct materials.

(True/False)

4.8/5

(61)

Question 126

A document that shows all costs for a particular product, service, or batch of products

(Short Answer)

4.9/5

(89)

Question 127

The overhead application rate is lower when an activity-based-costing approach is used than when a traditional approach is used because _____.

(Multiple Choice)

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Question 128

_________________________ is not a step in process costing.

(Multiple Choice)

4.9/5

(74)

Question 129

Sometimes companies ignore work in process and assign all production costs to units completed and transferred out.

(True/False)

4.7/5

(80)

Question 130

A debit to WIP Inventory is used to record _____.

(Multiple Choice)

5.0/5

(67)

Question 131

Hybrid-costing systems are blends of ideas from both job costing and process costing.

(True/False)

4.9/5

(85)

Question 132

Equivalent units are determined by multiplying physical units by the percentage of noncompletion.

(True/False)

4.8/5

(90)

Question 133

In job-order costing, the denominator is small when arriving at a unit cost.

(True/False)

4.9/5

(82)

Question 134

This cost accounting system uses averaging to determine costs per unit of production

(Short Answer)

4.8/5

(84)

Question 135

Hybrid-costing systems use a combination of _____.

(Multiple Choice)

4.8/5

(63)

Question 136

An accounting system that applies costs to products only when the production is complete

(Short Answer)

4.8/5

(68)

Question 137

Studs Company produces calendars in a one-department process.The following information is available: Direct materials added \ 30,000 Direct labor \ 20,700 Factory overhead \ 10,350 Work-in-process inventory, beginning -0- Units statted 15,000 Units completed and transferred out 12,000 Work-in-process inventory, ending 3,000 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 _____.

(Multiple Choice)

4.8/5

(83)

Question 138

Managers need to know product costs to make ongoing decisions such as which products to emphasize or deemphasize and the pricing of products.

(True/False)

4.7/5

(88)

Question 139

Matthew Company manufactures phones in a two-department process: Assembly and Finishing.Information on the Assembly department follows: Direct materials added \ 336,000 Direct labor 460,000 Factory overhead 204,000 Total costs to account for \ 1,027,200 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 unit cost of conversion costs is:

(Multiple Choice)

4.9/5

(87)

Question 140

Showing 121 - 140 of 157

Budgeted overhead application rate = total actual factory overhead / total budgeted amount of the cost driver.

The entry to record the sale of goods would include a debit to Cost of Goods Sold.

Job costing only applies to specific jobs with a single physical unit.

The entry to record the completion of units in process would include a debit to Finished Goods Inventory.

Transferred-in costs include only direct materials.

A document that shows all costs for a particular product, service, or batch of products

The overhead application rate is lower when an activity-based-costing approach is used than when a traditional approach is used because _____.

_________________________ is not a step in process costing.

Sometimes companies ignore work in process and assign all production costs to units completed and transferred out.

A debit to WIP Inventory is used to record _____.

Hybrid-costing systems are blends of ideas from both job costing and process costing.

Equivalent units are determined by multiplying physical units by the percentage of noncompletion.

In job-order costing, the denominator is small when arriving at a unit cost.

This cost accounting system uses averaging to determine costs per unit of production

Hybrid-costing systems use a combination of _____.

An accounting system that applies costs to products only when the production is complete

Managers need to know product costs to make ongoing decisions such as which products to emphasize or deemphasize and the pricing of products.

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

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