Question 1

In process costing, __________ costing can be used to assign shared overhead to processes.

Accepted Answer

The answer of In process costing, __________ costing can be...

Question 2

Jamie Hopen, CPA, prepares tax returns. The production costs and the number of tax returns prepared for the month of September are as follows: $$\begin{array} { l r } 
\text { Direct materials } & \$ 200 \
\text { CPA staff salaries } & 4,000 \
\text { Overhead } & 1,800 \
\text { Total } & \$ 6,000
\end{array}$$ Number of tax returns 300
What is the unit cost per tax return?

Accepted Answer

A) $0.67 
B) $15.00 
C) $20.00 
D) $3.33 
A) $0.67 
B) $15.00 
C) $20.00 
D) $3.33

Question 3

FIFO follows the __________ principle.

Accepted Answer

The answer of FIFO follows the __________ principle....

Question 4

If beginning inventory contained 3,000 units of product that were judged to be 60 percent complete as to labor, the equivalent units of production for labor during the current period under the FIFO method for these 3,000 units are

Accepted Answer

A) 3,000 units. 
B) 1,200 units. 
C) 1,800 units. 
D) 500 units. 
A) 3,000 units. 
B) 1,200 units. 
C) 1,800 units. 
D) 500 units.

Question 5

Outrageous Cups Corp. manufactures cups. The company's manufacturing operations and costs applied to products for April were: $\begin{array}{lrrr} 
& \text { Molding } & \text { Heat-treat } & \text { Finishing } \
\text { Direct labor } & \$ 25,000 & \$ 12,500 & \$ 7,500 \
\text { Factory overhead } & 30,000 & 17,500 & 12,600 \
\hline\text { Total }& \$ 55,000& \$ 30,000 & \$ 20,100\
\end{array}$
$\text { Three types of cups were produced in April. The quantities and direct materials costs were: }$

$\begin{array}{llr}
\text { Type } &\text { Quantity } & \text { Direct Materials }\\hline
\text { Casts } & 5,000 & \$ 15,000 \
\text { Cups } & 7,000 & 22,470 \
\text { Mugs } & 8,000 & 32,500
\end{array}$
Casts are produced in the Molding Department. Cups pass through the Molding and Finishing Departments. Mugs pass through all three departments. An operations costing system is used.
What is Outrageous Cups' total cost per unit for Cups in April?

Accepted Answer

A) $4.09 
B) $7.30 
C) $7.84 
D) $11.05 
A) $4.09 
B) $7.30 
C) $7.84 
D) $11.05

Question 6

JIT manufacturing emphasizes

Accepted Answer

A) continuous improvement. 
B) elimination of waste. 
C) reduction of work-in-process inventories. 
D) all of the above. 
A) continuous improvement. 
B) elimination of waste. 
C) reduction of work-in-process inventories. 
D) all of the above.

Question 7

A cost transferred from a prior process to a subsequent process is referred to as a:

Accepted Answer

A) transferred-out cost. 
B) transferred-in cost. 
C) variable overhead. 
D) direct labor cost. 
A) transferred-out cost. 
B) transferred-in cost. 
C) variable overhead. 
D) direct labor cost.

Question 8

Mannassass Company manufactures chairs. The following information was given for the company: $$\begin{array} { l r } 
\text { units, beginning work in process } & 0 \
\text { units started } & 20,000 \
\text { units completed } & ? \
\text { units, ending work in process } & 5,000 \
\text { cost of direct materials } & \$ 440,000 \
\text { cost of conversion } & \$ 64,000
\end{array}$$ Materials in the ending inventory were 100 percent complete and conversion in the ending inventory was 20 percent complete. What are the equivalent units for materials and conversion respectively?

Accepted Answer

A) 20,000; 20,000 
B) 20,000; 16,000 
C) 15,000; 15,000 
D) 15,000; 14,000 
E) none of the above 
A) 20,000; 20,000 
B) 20,000; 16,000 
C) 15,000; 15,000 
D) 15,000; 14,000 
E) none of the above

Question 9

The weighted average method treats the equivalent output and costs in beginning work-in-process inventories as if they belong to the current period when calculating unit cost.

Accepted Answer

A) True 
 B)False

Question 10

FIFO follows the job-order costing principle.

Accepted Answer

A) True 
 B)False

Question 11

Leandro Corp. manufactures wooden desks. Production consists of three processes: cutting, assembly, and finishing. The following costs are given for April: $$\begin{array} { | l | r | r | r | } 
\hline &{ \text { Cutting } } & { \text { Assembly } } & { \text { Finishing } } \
\hline \text { direct materials } & \$ 7,000 & \$ 10,000 & \$ 3,000 \
\hline \text { direct labor } & 3,000 & 14,000 & 2,000 \
\hline \text { applied overhead } & 4,000 & 5,000 & 6,000 \
\hline
\end{array}$$ There were no work in process inventories and 1,000 podiums were produced.
The journal entry to assign costs to the Assembly process would be a.Raw Materials 10,000
Payroll 14,000
Overhead Control 5,000
Work in Process - Assembly 29,000
b. Raw Materials 20,000
Payroll 19,000
Overhead Control 15,000
Work in Process - Assembly 54,000
c. Work in Process - Assembly 29,000
Raw Material s 10,000
Payroll 14,000
Overhead Control 5,000
d. Work in Frocess - Assembly 54,000
Raw Material s 20,000
Payroll 19,000
Overhead Control 15,000
e. none of the above

Accepted Answer

The answer of Leandro Corp. manufactures wooden desks. Production consists...

Question 12

Which is TRUE about services?

Accepted Answer

A) Some services may require that a sequence of uniform processes be performed. 
B) Services can never be homogeneous and repetitively produced. 
C) Services cannot have work-in-process inventories. 
D) All services require job-order costing. 
A) Some services may require that a sequence of uniform processes be performed. 
B) Services can never be homogeneous and repetitively produced. 
C) Services cannot have work-in-process inventories. 
D) All services require job-order costing.

Question 13

The role of activity-based costing for both cellular and independent process manufacturing is to:

Accepted Answer

A) determine the profitability of a department. 
B) compute the unit fixed costs incurred by a firm. 
C) assign overhead shared by processes to individual processes. 
D) separate fixed and variable costs incurred by multiple processes. 
A) determine the profitability of a department. 
B) compute the unit fixed costs incurred by a firm. 
C) assign overhead shared by processes to individual processes. 
D) separate fixed and variable costs incurred by multiple processes.

Question 14

That which determine(s) whether the costs assigned to units transferred out and to units in ending work in process are equal to the costs in beginning work in process, plus the manufacturing costs incurred in the current period is(are) called:

Accepted Answer

A) Equivalent unit of output 
B) Cost reconciliation 
C) Batch production process 
D) Transferred-in costs 
A) Equivalent unit of output 
B) Cost reconciliation 
C) Batch production process 
D) Transferred-in costs

Question 15

Leandro Corp. manufactures wooden desks. Production consists of three processes: cutting, assembly, and finishing. The following costs are given for April: $$\begin{array} { | l | r | r | r | } 
\hline &{ \text { Cutting } } & { \text { Assembly } } & { \text { Finishing } } \
\hline \text { direct materials } & \$ 7,000 & \$ 10,000 & \$ 3,000 \
\hline \text { direct labor } & 3,000 & 14,000 & 2,000 \
\hline \text { applied overhead } & 4,000 & 5,000 & 6,000 \
\hline
\end{array}$$ There were no work in process inventories and 1,000 podiums were produced.
Record the journal entries to record the transfer of goods from process to process. a. Work in Frocess - Assembly 14,000
Work in Frocess - Cutting 14,000
Work in Frocess - Finishing 43,000
Work in Frocess - Assembly 43,000
Finished Goods 54,000
Work in Frocess - Finishing 54,000

b. Work in Frocess - Assembly 29,000
Work in Frocess - Cutting 29,000
Work in Frocess - Finishing 11,000
Work in Frocess - Assembly 11,000
Finished Goods 54,000
Work in Frocess - Finishing 54,000

c. Work in Frocess - Cutting 14,000
Raw Materials 14,000
Work in Frocess - Assembly 29,000
Raw materials 29,000
Work in Frocess - Finishing 11,000
Raw Materials 11,000

$\text { d. none of the above }$

Accepted Answer

The answer of Leandro Corp. manufactures wooden desks. Production consists...

Question 16

Mountainside Industries manufactures specialized plastic boxes in two processes: Molding and Packaging. In the Packaging Department, materials are added at the end of the process. The following data are given: $$\begin{array}{l}
\begin{array} { l r r r r r } 
&&&\text { Costs }\
& \text { Units } & \text { Trans.-in } & \text { Materials } & \text { Conv. } \
\text { Work in process, July 1 } & 30 & \$ 1,590 & \$  0 & \$ 513 \
\text { Transferred in during July } & ? & & & & \
\text { Completed during July } & 105 & & & & \
\text { Work in process, July 31 } & 15 & & & & \
\text { Costs added during July } & & \$ 4,410 & \$ 1,050 & \$ 1,767
\end{array}
\end{array}$$ The conversion process on the beginning inventory is 70 percent completed and the ending inventory is 60 percent completed. Mountainside's equivalent units for transferred-in units using FIFO would be

Accepted Answer

A) 15. 
B) 90. 
C) 105. 
D) 120. 
A) 15. 
B) 90. 
C) 105. 
D) 120.

Question 17

Jamie Hopen, CPA, prepares tax returns. The production costs and the number of tax returns prepared for the month of September are as follows: $$\begin{array} { l r } 
\text { Direct materials } & \$ 200 \
\text { CPA staff salaries } & 4,000 \
\text { Overhead } & 1,800 \
\text { Total } & \$ 6,000
\end{array}$$ Number of tax returns 300
What is the cost of services sold?

Accepted Answer

A) $1,800 
B) $4,000 
C) $200 
D) $6,000 
A) $1,800 
B) $4,000 
C) $200 
D) $6,000

Question 18

The Round Table Company makes carpenter's squares and uses a process costing system. There is no spoilage. Manufacturing goes through three departments: Forming, Finishing, and Packing. Unit data for these departments are given below: $\begin{array}{lrrr}&\text { Forming } & \text { Finishing } & \text { Packing }\
\text { Beginning inventory units } & & & \
(80 \% \text { complete) } & 1,000 & 2,000 & 3,000 \
\text { Units started } & 8,000 & ? & ? \
\text { Ending inventory units } & & & \
(20 \% \text { complete) } & 3,000 & 4,000 & 1,000
\end{array}$

The Finishing Department adds materials at the point where processing is 50 percent complete. The equivalent units for materi al s in the Finishing Department is
$\begin{array}{cr}
\text { Weighted Average } & \text { FIFO } \
\text { a. } 4,000 & 2,000 \
\text { b. } 4,800 & 3,200 \
\text { c. } 6,000 & 3,000 \
\text { d. } 8,000 & 8,000
\end{array}$
E)none of the above

Accepted Answer

The answer of The Round Table Company makes carpenter's squares...

Question 19

The following information is available from the records of Diamond Cut, Inc.: $$\begin{array} { l c } 
\text { Direct Materials-Assembly Department } & \$ 10,000 \
\text { Direct Materials-Finishing Department } & 15,000 \
\text { Direct Labor-Assembly Department } & 11,000 \
\text { Direct Labor-Finishing Department } & 20,000 \
\text { Applied Overhead-Assembly Department } & 11,000 \
\text { Applied Overhead-Finishing Department } & 20,000 \
\text { Actual Overhead-Assembly Department } & 12,500 \
\text { Actual Overhead-Finishing Department } & 17,500
\end{array}$$ What are the "total costs to account for" in the Assembly Department?

Accepted Answer

A) $32,000 
B) $44,500 
C) $21,000 
D) $10,000 
A) $32,000 
B) $44,500 
C) $21,000 
D) $10,000

Question 20

Golden Ring Company produces two types of product: Large and Larger. Two work orders for two batches of the products are shown below, along with some additional cost information: $\begin{array} { l  }
&\text { Large } & \text { Larger } \
&\text { Work Order } 10 & \text { Work Order } 11\
\text {Direct materials (actual costs) }&\$45,000&\$75,000\
\text { Applied conversion costs:}\
\text {Mixing }&?&?\
\text { Cooking } & \$ 12,000 & \$ 12,000 \
\text { Bottling } & \$ 10,000 & \$ 15,000 \\
\text { Batch size (bottles) } & 5,000 & 5,000
\end{array}$
 In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for the department for the year were $50,000 for labor and $125,000 for overhead. Budgeted direct labor hours were 2,500. It takes three minutes to mix the ingredients needed for each bottle.
Large (Work Order 10) and Larger (Work Order 11) flow through the Mixing Department first, then through the Cooking and Bottling departments.
What is Golden Ring Company's amount transferred from the Bottling Department to Finished Goods for Work Order 10?

Accepted Answer

A) $45,000 
B) $39,500 
C) $84,500 
D) $67,000 
A) $45,000 
B) $39,500 
C) $84,500 
D) $67,000

In process costing, __________ costing can be used to assign shared overhead to processes.

Jamie Hopen, CPA, prepares tax returns. The production costs and the number of tax returns prepared for the month of September are as follows: Direct materials \ 200 CPA staff salaries 4,000 Overhead 1,800 Total \ 6,000 Number of tax returns 300 What is the unit cost per tax return?

FIFO follows the __________ principle.

If beginning inventory contained 3,000 units of product that were judged to be 60 percent complete as to labor, the equivalent units of production for labor during the current period under the FIFO method for these 3,000 units are

JIT manufacturing emphasizes

A cost transferred from a prior process to a subsequent process is referred to as a:

The weighted average method treats the equivalent output and costs in beginning work-in-process inventories as if they belong to the current period when calculating unit cost.

FIFO follows the job-order costing principle.

Which is TRUE about services?

The role of activity-based costing for both cellular and independent process manufacturing is to:

That which determine(s) whether the costs assigned to units transferred out and to units in ending work in process are equal to the costs in beginning work in process, plus the manufacturing costs incurred in the current period is(are) called:

Jamie Hopen, CPA, prepares tax returns. The production costs and the number of tax returns prepared for the month of September are as follows: Direct materials \ 200 CPA staff salaries 4,000 Overhead 1,800 Total \ 6,000 Number of tax returns 300 What is the cost of services sold?

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

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 6: Process Costing

In process costing, __________ costing can be used to assign shared overhead to processes.

Jamie Hopen, CPA, prepares tax returns. The production costs and the number of tax returns prepared for the month of September are as follows: Direct materials \ 200 CPA staff salaries 4,000 Overhead 1,800 Total \ 6,000 Number of tax returns 300 What is the unit cost per tax return?

FIFO follows the __________ principle.

If beginning inventory contained 3,000 units of product that were judged to be 60 percent complete as to labor, the equivalent units of production for labor during the current period under the FIFO method for these 3,000 units are

JIT manufacturing emphasizes

A cost transferred from a prior process to a subsequent process is referred to as a:

The weighted average method treats the equivalent output and costs in beginning work-in-process inventories as if they belong to the current period when calculating unit cost.

FIFO follows the job-order costing principle.

Which is TRUE about services?

The role of activity-based costing for both cellular and independent process manufacturing is to:

That which determine(s) whether the costs assigned to units transferred out and to units in ending work in process are equal to the costs in beginning work in process, plus the manufacturing costs incurred in the current period is(are) called:

Jamie Hopen, CPA, prepares tax returns. The production costs and the number of tax returns prepared for the month of September are as follows: Direct materials \ 200 CPA staff salaries 4,000 Overhead 1,800 Total \ 6,000 Number of tax returns 300 What is the cost of services sold?

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

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