Question 1

Indicate whether each of the following statements about job-order cost systems is

Accepted Answer

In a job-order cost system,the costs of

Question 2

Process cost systems do not distinguish the cost of one unit of product from another.

Accepted Answer

A) True 
 B)False

Question 3

Cameron Company uses a process cost system and the weighted average method to account for its production.The following information was available for August: $\begin{array}{|l|r|l|}
\hline & \text { Units } & \text { Costs } \
\hline \text { Work in Process, August 1 } & 100 & \$ 2,990 \
\hline \text { Work in Process, August 31 } & 200 & (\mathrm{~A}) \
\hline
\end{array}$ During the month,800 units were started into production,and $5,000 in costs were incurred.Ending inventory was 50% complete.The cost of the units transferred out would be (Do not round your intermediate calculations.Round your final answer to the nearest dollar):

Accepted Answer

A)  $6,392. 
B)  $5,000. 
C)  $5,085. 
D)  None of these. 
A)  $6,392. 
B)  $5,000. 
C)  $5,085. 
D)  None of these.

Question 4

A job's budgeted costs for materials,labor,and overhead are inserted on the job cost sheet when production is completed.

Accepted Answer

A) True 
 B)False

Question 5

Pepperdine Company paid factory rent of $10,000.At the time this transaction occurred,it did not affect total assets or net income.

Accepted Answer

A) True 
 B)False

Question 6

A hybrid cost system is one that combines features of both process and job-order inventory systems.

Accepted Answer

A) True 
 B)False

Question 7

What are hybrid cost systems? Under what circumstances might a company use a hybrid system?

Accepted Answer

Answers will vary
Feedback: A hybrid cos

Question 8

Select the correct formula for computing equivalent whole units for the period under the weighted average approach.

Accepted Answer

A)  Equivalent whole units = Uunits transferred 
B)  Equivalent whole units = Uunits transferred + (Eending inventory units × Ppercentage complete) 
C)  Equivalent whole units = Uunits transferred + Eending inventory units 
D)  Equivalent whole units = (Uunits transferred + Eending inventory units)× Ppercentage complete 
A)  Equivalent whole units = Uunits transferred 
B)  Equivalent whole units = Uunits transferred + (Eending inventory units × Ppercentage complete) 
C)  Equivalent whole units = Uunits transferred + Eending inventory units 
D)  Equivalent whole units = (Uunits transferred + Eending inventory units)× Ppercentage complete

Question 9

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 paid $2,100 to production employees who worked on job #132.The entry to record these wages would include an increase to which :of the following accounts? Which of
This is how it reads in final view.No change needed.JMF

Accepted Answer

A)  Cost of Ggoods Ssold. 
B)  Work in Pprocess Iinventory. 
C)  Finished Ggoods Iinventory. 
D)  Wage Eexpense.
Which of
This is how it reads in final view.No change needed.JMF 
A)  Cost of Ggoods Ssold. 
B)  Work in Pprocess Iinventory. 
C)  Finished Ggoods Iinventory. 
D)  Wage Eexpense.
Which of
This is how it reads in final view.No change needed.JMF

Question 10

Indicate whether each of the following statements is

Accepted Answer

The purchase of raw materials for cash i

Question 11

Describe how accumulation of costs in a job-order cost system parallels the manufacturing process.

Accepted Answer

Answers will vary
Feedback: A job-order

Question 12

Indicate whether each of the following statements about job-order cost systems is

Accepted Answer

A company using a job-order cost system

Question 13

The Purina Company would use a job-order costing system to account for the costs of making its premium dog food.

Accepted Answer

A) True 
 B)False

Question 14

In process cost systems,product costs flow through the same accounts as in a job-order cost system.

Accepted Answer

A) True 
 B)False

Question 15

Why does a company that uses a process cost system need to calculate equivalent whole units?

Accepted Answer

Answers will vary
Feedback: The company

Question 16

Job-order cost systems are used by many service businesses;process cost systems are not applicable to service businesses.

Accepted Answer

A) True 
 B)False

Question 17

Preston Manufacturing is working on two housing projects.Overhead is applied on the basis of direct labor hours.At the beginning of the year,the company estimated that overhead would be $64,000 and 10,000 direct labor hours would be worked.Both projects were started and completed in the current accounting period.The following transactions were completed during the period: (a)Used $10,000 of direct material on Project I and $6,800 of direct material on Project II.
(b)Labor costs for the two jobs amounted to the following: Project I,$24,000 (2,000 hours);Project II,$44,000 (6,000 hours).
(c)Project II was sold during the period for $120,000.
The amount of estimated overhead applied to work in process inventoryWork in Process Inventory for the period equals: (Do not round your intermediate calculation. ):

Accepted Answer

A)  $51,200. 
B)  $64,000. 
C)  $54,400. 
D)  $44,000. 
A)  $51,200. 
B)  $64,000. 
C)  $54,400. 
D)  $44,000.

Question 18

Which of the following is not an approach to compute equivalent whole units?

Accepted Answer

A)  Weighted average. 
B)  Last-in-first-out. 
C)  First-in-first-out. 
D)  All of these can be used. 
A)  Weighted average. 
B)  Last-in-first-out. 
C)  First-in-first-out. 
D)  All of these can be used.

Question 19

Which of the following accounts is reported on the balance sheet?

Accepted Answer

A)  Raw materials inventoryRaw Materials Inventory. 
B)  Work in Pprocess Iinventory. 
C)  Finished Ggoods Iinventory. 
D)  All of these. 
A)  Raw materials inventoryRaw Materials Inventory. 
B)  Work in Pprocess Iinventory. 
C)  Finished Ggoods Iinventory. 
D)  All of these.

Question 20

Payment of cash for production workers' wages is:

Accepted Answer

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

Indicate whether each of the following statements about job-order cost systems is

Process cost systems do not distinguish the cost of one unit of product from another.

A job's budgeted costs for materials,labor,and overhead are inserted on the job cost sheet when production is completed.

Pepperdine Company paid factory rent of $10,000.At the time this transaction occurred,it did not affect total assets or net income.

A hybrid cost system is one that combines features of both process and job-order inventory systems.

What are hybrid cost systems? Under what circumstances might a company use a hybrid system?

Select the correct formula for computing equivalent whole units for the period under the weighted average approach.

Indicate whether each of the following statements is

Describe how accumulation of costs in a job-order cost system parallels the manufacturing process.

Indicate whether each of the following statements about job-order cost systems is

The Purina Company would use a job-order costing system to account for the costs of making its premium dog food.

In process cost systems,product costs flow through the same accounts as in a job-order cost system.

Why does a company that uses a process cost system need to calculate equivalent whole units?

Job-order cost systems are used by many service businesses;process cost systems are not applicable to service businesses.

Which of the following is not an approach to compute equivalent whole units?

Which of the following accounts is reported on the balance sheet?

Payment of cash for production workers' wages 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

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

Indicate whether each of the following statements about job-order cost systems is

Process cost systems do not distinguish the cost of one unit of product from another.

A job's budgeted costs for materials,labor,and overhead are inserted on the job cost sheet when production is completed.

Pepperdine Company paid factory rent of $10,000.At the time this transaction occurred,it did not affect total assets or net income.

A hybrid cost system is one that combines features of both process and job-order inventory systems.

What are hybrid cost systems? Under what circumstances might a company use a hybrid system?

Select the correct formula for computing equivalent whole units for the period under the weighted average approach.

Indicate whether each of the following statements is

Describe how accumulation of costs in a job-order cost system parallels the manufacturing process.

Indicate whether each of the following statements about job-order cost systems is

The Purina Company would use a job-order costing system to account for the costs of making its premium dog food.

In process cost systems,product costs flow through the same accounts as in a job-order cost system.

Why does a company that uses a process cost system need to calculate equivalent whole units?

Job-order cost systems are used by many service businesses;process cost systems are not applicable to service businesses.

Which of the following is not an approach to compute equivalent whole units?

Which of the following accounts is reported on the balance sheet?

Payment of cash for production workers' wages 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