Question 1

Select the incorrect statement regarding the cost of production report.

Accepted Answer

A)  The report consists of two sections,a units section and a costs section. 
B)  The report is produced monthly by job or batch. 
C)  The cost inputs on the report come from the work in process account. 
D)  The report indicates the cost of units transferred out. 
A)  The report consists of two sections,a units section and a costs section. 
B)  The report is produced monthly by job or batch. 
C)  The cost inputs on the report come from the work in process account. 
D)  The report indicates the cost of units transferred out.

Question 2

Under job-order costing,the actual direct material,actual direct labor,and estimated overhead costs are recorded on the job cost sheet.

Accepted Answer

A) True 
 B)False

Question 3

Both job-order and process costing require cost averaging procedures.

Accepted Answer

A) True 
 B)False

Question 4

O'Hare Company,is a manufacturing firm that uses a job-order cost system to determine the costs of its products.During 2014the current accounting period,O'Hare applied estimated manufacturing overhead costs of $1,550 to job #132.Which of the following statements regarding this transaction is correct?

Accepted Answer

A)  Work in process inventory decreases. 
B)  Net income decreases. 
C)  Manufacturing overhead decreases. 
D)  Total equity increases. 
A)  Work in process inventory decreases. 
B)  Net income decreases. 
C)  Manufacturing overhead decreases. 
D)  Total equity increases.

Question 5

What are materials requisition forms,and how are they used in a job-order cost system?

Accepted Answer

Answers will vary
Feedback: A materials

Question 6

All of the following are asset exchange events except:

Accepted Answer

A)  Purchase of raw materials with cash. 
B)  Use of raw materials in production. 
C)  Cost of shipping goods to customers. 
D)  Payment of production wages. 
A)  Purchase of raw materials with cash. 
B)  Use of raw materials in production. 
C)  Cost of shipping goods to customers. 
D)  Payment of production wages.

Question 7

The purchase of raw materials on account is:

Accepted Answer

A)  An asset use transaction. 
B)  An asset exchange transaction. 
C)  An asset source transaction. 
D)  A claims exchange transaction. 
A)  An asset use transaction. 
B)  An asset exchange transaction. 
C)  An asset source transaction. 
D)  A claims exchange transaction.

Question 8

Indicate whether each of the following statements about process cost systems is

Accepted Answer

Process cost systems use the same genera

Question 9

Link Company uses a process cost system and the weighted average method.During the year Link Companythe company completed 1,300 units of product.Ending inventory consisted of 400 units that were 50% complete.The total dollar cost associated with production of inventory was $90,000.The cost per equivalent whole unit would be which of the following?

Accepted Answer

A)  $54.00 
B)  $69.22 
C)  $60.00 
D)  $83.82 
A)  $54.00 
B)  $69.22 
C)  $60.00 
D)  $83.82

Question 10

If overhead was overapplied during the accounting period by an insignificant amount,the The entry to close the Mdispose of overapplied manufacturing Ooverhead account will include a:

Accepted Answer

A)  Debit to cost of goods soldCost of Goods Sold and a credit to manufacturing overheadManufacturing Overhead. 
B)  Debit to cost of goods soldCost of Goods Sold and a credit to finished goodsFinished Goods Inventory. 
C)  Debit to manufacturing overheadManufacturing Overhead and a credit to cost of goods soldCost of Goods Sold. 
D)  Debit to finished goodsFinished Goods Inventory and a credit to manufacturing overheadManufacturing Overhead. 
A)  Debit to cost of goods soldCost of Goods Sold and a credit to manufacturing overheadManufacturing Overhead. 
B)  Debit to cost of goods soldCost of Goods Sold and a credit to finished goodsFinished Goods Inventory. 
C)  Debit to manufacturing overheadManufacturing Overhead and a credit to cost of goods soldCost of Goods Sold. 
D)  Debit to finished goodsFinished Goods Inventory and a credit to manufacturing overheadManufacturing Overhead.

Question 11

Indicate whether each of the following statements about process costing systems is

Accepted Answer

The use of a predetermined overhead rate

Question 12

Ling Company has two departments,assembly and finishing.Consider the following data for the Assembly Department: $\begin{array}{|l|c|c|c|c|c|c|}
\hline &&  \underline { \text {  \%   } }&  \underline { \text {  Direct   } }&  \underline { \text { Direct    } }  \
&  \underline { \text {Units } }&  \underline { \text { Complete } }&  \underline { \text {  Material } }&  \underline { \text { Labor} }&  \underline { \text {Overhead } }&  \underline { \text { Total } }\
\hline \text { Begining work in process } & 2,000&\%90 &&&&\$2475\
\hline \text { Started during the month } & 18,000 \
\hline \text { Completed during the month } & 15,000 \
\hline \text { Ending work in process } & 5,000 &\%60\
\hline \text { Costs added during month } &&&\$  11,700 & \$ 6,750 & \$  4,050 & \$ 22,500\
\hline
\end{array}$ Required:
1)Compute the number of total equivalent whole units for the Assembly Department.
2)Calculate the cost per equivalent whole unit.(Round your answer to 4 four decimal places. )
3)Compute the amount of costs that should be transferred to the Finishing Department.(Round your answer to the nearest cent. )
4)Compute the amount of costs that should be assigned to the 2,500 units in ending inventory.(Round your answer to the nearest cent. )
Do you want to use "whole"?
See wording change.JMF

Accepted Answer

Answers will vary
Feedback: 1)Equivalent

Question 13

In a job-order cost system,the subsidiary accounts for the work in processWork in Process Inventory account are the:

Accepted Answer

A)  Standard cost cards. 
B)  Job cost sheets. 
C)  Individual accounts payable accounts. 
D)  Cost of production report. 
A)  Standard cost cards. 
B)  Job cost sheets. 
C)  Individual accounts payable accounts. 
D)  Cost of production report.

Question 14

Langdon Company experienced an accounting event that affected its financial statements as indicated below: $\begin{array}{|c|c|c|c|c|c|c|c|c|c|}
\hline \text { Assets } & = & \text { Liab. } & + & \text { Equity } & \text { Rev. } & - & \text { Exp. } & = & \text { Net Inc. } \
\hline(250) & = & \mathbf{n} / \mathbf{a} & + & (250) & \mathbf{n} / \mathbf{a} & - & 250 & = & (250) \
\hline
\end{array}$ Which of the following transactions could have caused the indicated effects on the company's accounting equation?

Accepted Answer

A)  Goods transferred from work in process to finished goods. 
B)  Allocation of underapplied overhead to cost of goods sold. 
C)  Collection of account receivable. 
D)  Allocation of overapplied overhead to cost of goods sold. 
A)  Goods transferred from work in process to finished goods. 
B)  Allocation of underapplied overhead to cost of goods sold. 
C)  Collection of account receivable. 
D)  Allocation of overapplied overhead to cost of goods sold.

Question 15

Needham Company uses a job order cost system.During the month of September,the company worked on three jobs.The job order cost sheets for the three jobs contained the following information at the end of September: $\begin{array}{|l|r|r|r|}
\hline & {\text { Job A }} & {\text { Job B }} &{\text { Job C }} \
\hline \text { Beginning Balances } & \$ 4,000 & \$ 3,000 & \$ 6,000 \
\hline \text { Direct Materials } & 1,000 & 1,600 & 2,000 \
\hline \text { Direct Labor } & 2,400 & 4,600 & 1,800 \
\hline
\end{array}$ The company applies overhead at 120% of direct labor cost. During September Job B was completed,and it was sold in October.At the end of September the total cost in work in process was:

Accepted Answer

A)  $36,960. 
B)  $22,240. 
C)  $26,400. 
D)  None of these. 
A)  $36,960. 
B)  $22,240. 
C)  $26,400. 
D)  None of these.

Question 16

In a process cost system,a transferred-in cost is the same thing as raw materials cost.

Accepted Answer

A) True 
 B)False

Question 17

In a process cost system,costs are accumulated by department.

Accepted Answer

A) True 
 B)False

Question 18

Company N manufactures machines to customer order.Why would the use of a process cost system not be appropriate for N?

Accepted Answer

Answers will vary
Feedback: A process co

Question 19

The source document used to record the amount of time worked by an employee on a job is called the:

Accepted Answer

A)  Requisition sheet. 
B)  Pay stub. 
C)  Job cost sheet. 
D)  Work ticket. 
A)  Requisition sheet. 
B)  Pay stub. 
C)  Job cost sheet. 
D)  Work ticket.

Question 20

Recognition of revenue from sale of finished goods is:

Accepted Answer

A)  An asset use transaction. 
B)  An asset exchange transaction. 
C)  An asset source transaction. 
D)  A claims exchange transaction. 
A)  An asset use transaction. 
B)  An asset exchange transaction. 
C)  An asset source transaction. 
D)  A claims exchange transaction.

Select the incorrect statement regarding the cost of production report.

Under job-order costing,the actual direct material,actual direct labor,and estimated overhead costs are recorded on the job cost sheet.

Both job-order and process costing require cost averaging procedures.

What are materials requisition forms,and how are they used in a job-order cost system?

All of the following are asset exchange events except:

The purchase of raw materials on account is:

Indicate whether each of the following statements about process cost systems is

If overhead was overapplied during the accounting period by an insignificant amount,the The entry to close the Mdispose of overapplied manufacturing Ooverhead account will include a:

Indicate whether each of the following statements about process costing systems is

In a job-order cost system,the subsidiary accounts for the work in processWork in Process Inventory account are the:

In a process cost system,a transferred-in cost is the same thing as raw materials cost.

In a process cost system,costs are accumulated by department.

Company N manufactures machines to customer order.Why would the use of a process cost system not be appropriate for N?

The source document used to record the amount of time worked by an employee on a job is called the:

Recognition of revenue from sale of finished goods is:

Management Accounting and Corporate Governance

Cost Behavior, Operating Leverage, and Profitability Analysis

Analysis of Cost,Volume,and Pricing to Increase Profitability

Cost Accumulation,Tracing,and Allocation

Cost Management in an Automated Business Environment: ABC, ABM, and TQM

Relevant Information for Special Decisions

Planning for Profit and Cost Control

Performance Evaluation

Responsibility Accounting

Planning for Capital Investments

Product Costing in Service and Manufacturing Entities

Financial Statement Analysis

Statement of Cash Flows

Filters

Exam 12: Job-Order, Process, and Hybrid Costing Systems

Select the incorrect statement regarding the cost of production report.

Under job-order costing,the actual direct material,actual direct labor,and estimated overhead costs are recorded on the job cost sheet.

Both job-order and process costing require cost averaging procedures.

What are materials requisition forms,and how are they used in a job-order cost system?

All of the following are asset exchange events except:

The purchase of raw materials on account is:

Indicate whether each of the following statements about process cost systems is

If overhead was overapplied during the accounting period by an insignificant amount,the The entry to close the Mdispose of overapplied manufacturing Ooverhead account will include a:

Indicate whether each of the following statements about process costing systems is

In a job-order cost system,the subsidiary accounts for the work in processWork in Process Inventory account are the:

In a process cost system,a transferred-in cost is the same thing as raw materials cost.

In a process cost system,costs are accumulated by department.

Company N manufactures machines to customer order.Why would the use of a process cost system not be appropriate for N?

The source document used to record the amount of time worked by an employee on a job is called the:

Recognition of revenue from sale of finished goods is:

Management Accounting and Corporate Governance

Cost Behavior, Operating Leverage, and Profitability Analysis

Analysis of Cost,Volume,and Pricing to Increase Profitability

Cost Accumulation,Tracing,and Allocation

Cost Management in an Automated Business Environment: ABC, ABM, and TQM

Relevant Information for Special Decisions

Planning for Profit and Cost Control

Performance Evaluation

Responsibility Accounting

Planning for Capital Investments

Product Costing in Service and Manufacturing Entities

Financial Statement Analysis

Statement of Cash Flows

Filters