Question 1

When a job is completed the total costs are transferred to a __________ inventory file.

Accepted Answer

The answer of When a job is completed the total...

Question 2

The entry that captures the flow of material from the storeroom to work-in-process is called the __________ inventory account.

Accepted Answer

The answer of The entry that captures the flow of...

Question 3

The predetermined overhead rate is usually calculated at the

Accepted Answer

A) end of each month. 
B) beginning of each month. 
C) beginning of the year. 
D) end of the year. 
A) end of each month. 
B) beginning of each month. 
C) beginning of the year. 
D) end of the year.

Question 4

Explain why actual costing systems are rarely used in practice.

Accepted Answer

Actual costing systems are rarely used i

Question 5

Samuelson Company has the following selected debit balance accounts at the end of the current year: Work-in-Process, $25,000; Finished Goods, $12,500; Cost of Goods Sold, $37,500; and Factory Overhead, $6,000. The pro-rated amount charged to Cost of Goods Sold for factory overhead will be

Accepted Answer

A) $25,000. 
B) $3,000. 
C) $37,500. 
D) $6,000. 
A) $25,000. 
B) $3,000. 
C) $37,500. 
D) $6,000.

Question 6

The process where a single product is produced on a continuous basis is called:

Accepted Answer

A) process production 
B) job-order production 
C) job production 
D) both a and c 
A) process production 
B) job-order production 
C) job production 
D) both a and c

Question 7

Process costing would be most applicable for

Accepted Answer

A) custom machining. 
B) an electronics producer. 
C) high rise building construction. 
D) CPA audits. 
A) custom machining. 
B) an electronics producer. 
C) high rise building construction. 
D) CPA audits.

Question 8

What is the most important factor that causes service firms to generally rank lower in customer satisfaction than manufacturing firms?

Accepted Answer

Employees are key to customer services.

Question 9

The following information is available pertaining to the Production Division of Clarkson Enterprises: $\begin{array} { l c c c } & \text { Assembly Dept. } & \text { Finishing Dept. } & \text { Total } \ \text { Overhead costs } & \$ 7,500 & \$ 22,500 & \$ 30,000 \ \text { Direct labor hours } & 7,500 & 2,500 & 10,000 \ \text { Machine hours } & 2,500 & 7,500 & 10,000 \end{array}$
Production information pertaining to Job 4X5:
$\begin{array}{lrrr}
&\text { Assembly Dept. }& \text { Finishing Dept. } &\text { Total }\
\text { Prime costs } & \$ 1,250 & \$ 0 & \$ 1,250 \
\text { Direct labor hours } & 250 & 0 & 250 \
\text { Machine hours } & 0 & 0 & 0\
\text { Units produced }&500&0&500
\end{array}$
Using the plantwide overhead rate based on direct labor hours what is the cost of Job 4X5?

Accepted Answer

A) $1,250 
B) $2,000 
C) $8,750 
D) $31,250 
A) $1,250 
B) $2,000 
C) $8,750 
D) $31,250

Question 10

Which of the following is a manufactured product?

Accepted Answer

A) bungee jumping 
B) beauty salon 
C) automobile 
D) restaurant 
A) bungee jumping 
B) beauty salon 
C) automobile 
D) restaurant

Question 11

The following information is available pertaining to the Production Division of Clarkson Enterprises: $\begin{array} { l c c c } & \text { Assembly Dept. } & \text { Finishing Dept. } & \text { Total } \ \text { Overhead costs } & \$ 7,500 & \$ 22,500 & \$ 30,000 \ \text { Direct labor hours } & 7,500 & 2,500 & 10,000 \ \text { Machine hours } & 2,500 & 7,500 & 10,000 \end{array}$
Production information pertaining to Job 4X5:
$\begin{array}{lrrr}
&\text { Assembly Dept. }& \text { Finishing Dept. } &\text { Total }\
\text { Prime costs } & \$ 1,250 & \$ 0 & \$ 1,250 \
\text { Direct labor hours } & 250 & 0 & 250 \
\text { Machine hours } & 0 & 0 & 0\
\text { Units produced }&500&0&500
\end{array}$
What are the total overhead costs assigned to Job 4X5, assuming the Assembly and Finishing Departments use direct labor hours and machine hours for their bases, respectively?

Accepted Answer

A) $62.50 
B) $250.00 
C) $750.00 
D) $1,500.00 
A) $62.50 
B) $250.00 
C) $750.00 
D) $1,500.00

Question 12

The __________ costing system assigns costs by the job.

Accepted Answer

The answer of The __________ costing system assigns costs by...

Question 13

Abnormal spoilage is charged to the job that caused it.

Accepted Answer

A) True 
 B)False

Question 14

When a job is shipped to a customer, the finished job cost becomes the cost of the __________ sold.

Accepted Answer

The answer of When a job is shipped to a...

Question 15

In an activity-based costing system activity cost is applied to each job by multiplying productivity rate by the job's use of the associated driver.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following costing systems assigns actual costs of materials to inventory?

Accepted Answer

A) actual costing system 
B) normal costing system 
C) standard costing system 
D) both a and b 
A) actual costing system 
B) normal costing system 
C) standard costing system 
D) both a and b

Question 17

Inseparability refers to the

Accepted Answer

A) nonphysical nature of services as opposed to products. 
B) fact that production and consumption are inseparable for services. 
C) greater chances for variation in the performance of services than in the production of products. 
D) fact that services cannot be inventoried but must be consumed when performed. 
A) nonphysical nature of services as opposed to products. 
B) fact that production and consumption are inseparable for services. 
C) greater chances for variation in the performance of services than in the production of products. 
D) fact that services cannot be inventoried but must be consumed when performed.

Question 18

A production process may yield a tangible product or a service and their unique characteristics determine the best approach for developing a cost management system.

Accepted Answer

A) True 
 B)False

Question 19

A __________ inventory file is a file of job-order cost sheets.

Accepted Answer

The answer of A __________ inventory file is a file...

Question 20

Lamour Corporation is a job order costing company that uses activity-based costing to apply overhead to jobs. The following overhead activities were budgeted for the year. $$\begin{array} { | l | c | c | c | } 
\hline \text { Activity } & \text { Cost } & \text { Driver } & \text { Amount of driver } \
\hline \text { setups } & \$ 240,000 & \text { number of setups } & 6,000 \
\hline \text { purchasing } & 160,000 & \text { number of parts } & 20,000 \
\hline \text { other overhead } & 300,000 & \text { direct labor hours } & 80,000 \
\hline
\end{array}$$
The following information about the jobs was given for April.
$$\begin{array} { | l | r | r | r | c | } 
\hline & \text { Job 101 } & \text { Job 102 } & \text { Job 103 } & \text { Job 104 } \
\hline \text { Balance 4/1 } & \$ 64,900 & \$ 40,770 & \$ 30,500 & 0 \
\hline \text { direct materials } & 54,000 & 37,900 & 25,000 & 11,000 \
\hline \text { direct labor } & 80,000 & 38,500 & 43,000 & 21,000 \
\hline \text { number of setups } & 40 & 10 & 30 & 200 \
\hline \text { number of parts } & 300 & 80 & 400 & 500 \
\hline \text { direct labor hours } & 5,000 & 2,400 & 5,200 & 1,200 \
\hline
\end{array}$$
By April 30, Jobs 102 and 103 were completed and sold. The remaining jobs were still in process.
What is the cost of goods manufactured?

Accepted Answer

A) $ 144,400 
B) $ 215,670 
C) $ 178,340 
D) $ 249,610 
A) $ 144,400 
B) $ 215,670 
C) $ 178,340 
D) $ 249,610

When a job is completed the total costs are transferred to a __________ inventory file.

The entry that captures the flow of material from the storeroom to work-in-process is called the __________ inventory account.

The predetermined overhead rate is usually calculated at the

Explain why actual costing systems are rarely used in practice.

Samuelson Company has the following selected debit balance accounts at the end of the current year: Work-in-Process, $25,000; Finished Goods, $12,500; Cost of Goods Sold, $37,500; and Factory Overhead, $6,000. The pro-rated amount charged to Cost of Goods Sold for factory overhead will be

The process where a single product is produced on a continuous basis is called:

Process costing would be most applicable for

What is the most important factor that causes service firms to generally rank lower in customer satisfaction than manufacturing firms?

Which of the following is a manufactured product?

The __________ costing system assigns costs by the job.

Abnormal spoilage is charged to the job that caused it.

When a job is shipped to a customer, the finished job cost becomes the cost of the __________ sold.

In an activity-based costing system activity cost is applied to each job by multiplying productivity rate by the job's use of the associated driver.

Which of the following costing systems assigns actual costs of materials to inventory?

Inseparability refers to the

A production process may yield a tangible product or a service and their unique characteristics determine the best approach for developing a cost management system.

A __________ inventory file is a file of job-order cost sheets.

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

Exam 5: Product and Service Costing: Job-Order System

When a job is completed the total costs are transferred to a __________ inventory file.

The entry that captures the flow of material from the storeroom to work-in-process is called the __________ inventory account.

The predetermined overhead rate is usually calculated at the

Explain why actual costing systems are rarely used in practice.

Samuelson Company has the following selected debit balance accounts at the end of the current year: Work-in-Process, $25,000; Finished Goods, $12,500; Cost of Goods Sold, $37,500; and Factory Overhead, $6,000. The pro-rated amount charged to Cost of Goods Sold for factory overhead will be

The process where a single product is produced on a continuous basis is called:

Process costing would be most applicable for

What is the most important factor that causes service firms to generally rank lower in customer satisfaction than manufacturing firms?

Which of the following is a manufactured product?

The __________ costing system assigns costs by the job.

Abnormal spoilage is charged to the job that caused it.

When a job is shipped to a customer, the finished job cost becomes the cost of the __________ sold.

In an activity-based costing system activity cost is applied to each job by multiplying productivity rate by the job's use of the associated driver.

Which of the following costing systems assigns actual costs of materials to inventory?

Inseparability refers to the

A production process may yield a tangible product or a service and their unique characteristics determine the best approach for developing a cost management system.

A __________ inventory file is a file of job-order cost sheets.

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters