Question 1

Backflush costing applies costs to products only when production is complete.

Accepted Answer

A) True 
 B)False

Question 2

The_____ system is better suited for a single physical unit or a few like units.

Accepted Answer

A) process-costing 
B) period-costing 
C) product-costing 
D) job?order-costing 
A) process-costing 
B) period-costing 
C) product-costing 
D) job?order-costing

Question 3

Whiplash Company manufactures tape dispensers.Its Assembly department had the following output and costs: Units started and completed $\quad 70,000$
$\begin{array} { l l } \text { Started and in process } & 10,000 \end{array}$ These units had all materials added but were only 50% complete as far as conversion costs.Direct materials costs were $480,000; conversion costs were $240,000.The cost of one completed unit in the Assembly department is _____.

Accepted Answer

A) $ 9.00 
B) $10.29 
C) $ 9.47 
D) $ 9.20 
A) $ 9.00 
B) $10.29 
C) $ 9.47 
D) $ 9.20

Question 4

The entry to record applied overhead would include a debit to Work-in-Process Inventory.

Accepted Answer

A) True 
 B)False

Question 5

When there is beginning work-in-process inventory, the weighted-average method of process costing must be used.

Accepted Answer

A) True 
 B)False

Question 6

Identify which of the following statements regarding job-order costing is true.

Accepted Answer

A) Job-order costing deals with great masses of like units. 
B) Job-order costing is an averaging process. 
C) In job-order costing, the measure of production is small, whereas in process costing the measure of production is large. 
D) Job-order costing is not one of the two common systems of product costing. 
A) Job-order costing deals with great masses of like units. 
B) Job-order costing is an averaging process. 
C) In job-order costing, the measure of production is small, whereas in process costing the measure of production is large. 
D) Job-order costing is not one of the two common systems of product costing.

Question 7

For external reporting purposes, the costs incurred in the production and distribution phases of the value chain are _____.

Accepted Answer

A) product costs 
B) period costs 
C) period cost and product cost, respectively 
D) product cost and period cost, respectively 
A) product costs 
B) period costs 
C) period cost and product cost, respectively 
D) product cost and period cost, respectively

Question 8

Jack Company uses a job-order-cost system and had the following data available: $$\begin{array} { l r } 
\text { Beginning direct-materials inventory } & \$ 26,000 \
\text { Beginning WIP inventory } & 64,000 \
\text { Beginning finished-goods inventory } & 58,000 \
\text { Direct materials purchased on account } & 148,000 \
\text { Direct materials requisitioned } & 82,000 \
\text { Direct-labor cost incurred } & 130,000 \
\text { Factory overhead incurred } & 146,000 \
\text { Cost of goods completed } & 292,000 \
\text { Cost of goods sold } & 256,000 \
\text { Overhead application rate } & 130 \% \
\quad \text { as a percent of direct-labor cost) } &
\end{array}$$ The journal entry to record the factory overhead costs incurred would include a _____.

Accepted Answer

A) debit to Factory Department Overhead Control for $146,000 
B) credit to Factory Department Overhead Control for $169,000 
C) debit to WIP Inventory for $146,000 
D) credit to WIP Inventory for $169,000 
A) debit to Factory Department Overhead Control for $146,000 
B) credit to Factory Department Overhead Control for $169,000 
C) debit to WIP Inventory for $146,000 
D) credit to WIP Inventory for $169,000

Question 9

In process costing, the journal entry to record factory overhead applied would include a _____.

Accepted Answer

A) debit to Factory Overhead 
B) debit to Work-in-Process Inventory, Department Name 
C) credit to Cost of Goods Sold 
D) credit to Finished Goods 
A) debit to Factory Overhead 
B) debit to Work-in-Process Inventory, Department Name 
C) credit to Cost of Goods Sold 
D) credit to Finished Goods

Question 10

A debit to Cost of Goods Sold 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 11

Harry 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: $\begin{array}{lr}\text { Work-in-process inventory, June } 1\\
\text { Units } & 15,000 \text { units } \
\text { Direct materials } 100 \% \text { complete) } & \$ 34,000 \
\text { Conversion costs 30\% complete) } & \$ 14,000\\\text { Units started in June } & 65,000  \text { units } \
\text { Units completed in June } & 62,000  \text { units } \
\text { Work-in-process inventory, June 30 } & 20,000 \text { units }\100 \% \text { complete with regard to materials }\\text { and } 60 \% \text { complete with regard to conversi on costs) }\\\text { Direct material s added in June } & \$ 285,000 \
\text { Conversion costs added in June } & \$ 210,000
\end{array}$ The total cost of goods transferred out of the Printing department is _____.

Accepted Answer

A) $543,000 
B) $438,340 
C) $420,825 
D) $495,000 
A) $543,000 
B) $438,340 
C) $420,825 
D) $495,000

Question 12

The chemical and glass industries normally use job costing.

Accepted Answer

A) True 
 B)False

Question 13

Firms that use activity-based costing shift costs classified from overhead to direct costs.

Accepted Answer

A) True 
 B)False

Question 14

Referee Company manufactures tape dispensers.Its Assembly department had the following output and costs: Units started and completed $\quad 70,000$
$\begin{array} { l l } \text { Started and in process } & 10,000 \end{array}$ These units had all materials added but were only 60% completed for conversion costs.Direct materials costs were $480,000; conversion costs were $240,000.The total cost of units completed and transferred to Finishing is _____.

Accepted Answer

A) $690,000 
B) $720,000 
C) $641,200 
D) $630,000 
A) $690,000 
B) $720,000 
C) $641,200 
D) $630,000

Question 15

Temporary overhead account

Accepted Answer

Factory De

Question 16

Chapin 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: $\begin{array}{lr}\text { Work-in-process inventory, June } 1\\
\text { Units } & 15,000 \text { units } \
\text { Direct materials } 100 \% \text { complete) } & \$ 34,000 \
\text { Conversion costs 30\% complete) } & \$ 14,000\\\text { Units started in June } & 65,000  \text { units } \
\text { Units completed in June } & 62,000  \text { units } \
\text { Work-in-process inventory, June 30 } & 18,000 \text { units }\100 \% \text { complete with regard to materials }\\text { and } 50 \% \text { complete with regard to conversi on costs) }\\\text { Direct material s added in June } & \$ 285,000 \
\text { Conversion costs added in June } & \$ 210,000
\end{array}$ The unit cost for conversion costs is _____.

Accepted Answer

A) $2.62 
B) $2.88 
C) $2.80 
D) $3.15 
A) $2.62 
B) $2.88 
C) $2.80 
D) $3.15

Question 17

Choosing direct-labor cost rather than direct-labor hours as a cost driver for overhead implies that _____.

Accepted Answer

A) higher paid employees use proportionally more support cost 
B) higher paid employees use proportionally less support cost 
C) direct labor cost data is easier to obtain 
D) direct labor hour data is easier to obtain 
A) higher paid employees use proportionally more support cost 
B) higher paid employees use proportionally less support cost 
C) direct labor cost data is easier to obtain 
D) direct labor hour data is easier to obtain

Backflush costing applies costs to products only when production is complete.

The_____ system is better suited for a single physical unit or a few like units.

The entry to record applied overhead would include a debit to Work-in-Process Inventory.

When there is beginning work-in-process inventory, the weighted-average method of process costing must be used.

Identify which of the following statements regarding job-order costing is true.

For external reporting purposes, the costs incurred in the production and distribution phases of the value chain are _____.

In process costing, the journal entry to record factory overhead applied would include a _____.

A debit to Cost of Goods Sold is used to record _____.

The chemical and glass industries normally use job costing.

Firms that use activity-based costing shift costs classified from overhead to direct costs.

Temporary overhead account

Choosing direct-labor cost rather than direct-labor hours as a cost driver for overhead implies that _____.

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

Backflush costing applies costs to products only when production is complete.

The_____ system is better suited for a single physical unit or a few like units.

The entry to record applied overhead would include a debit to Work-in-Process Inventory.

When there is beginning work-in-process inventory, the weighted-average method of process costing must be used.

Identify which of the following statements regarding job-order costing is true.

For external reporting purposes, the costs incurred in the production and distribution phases of the value chain are _____.

In process costing, the journal entry to record factory overhead applied would include a _____.

A debit to Cost of Goods Sold is used to record _____.

The chemical and glass industries normally use job costing.

Firms that use activity-based costing shift costs classified from overhead to direct costs.

Temporary overhead account

Choosing direct-labor cost rather than direct-labor hours as a cost driver for overhead implies that _____.

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