Question 1

All of the following transactions lead to an entry on the job cost sheet except:

Accepted Answer

A)  Indirect material used on the job. 
B)  A materials requisition for material used on a job. 
C)  Work ticket for direct labor incurred on the job. 
D)  Application of estimated overhead to the job. 
A)  Indirect material used on the job. 
B)  A materials requisition for material used on a job. 
C)  Work ticket for direct labor incurred on the job. 
D)  Application of estimated overhead to the job.

Question 2

The 10,000 units in Department B that are 30% complete are equivalent to 3,000 whole units.

Accepted Answer

A) True 
 B)False

Question 3

When manufacturing overhead is applied to production in a job order cost system,the accounting records would reflect an increase in which of the following accounts?

Accepted Answer

A)  Work in Pprocess Inventory 
B)  Cost of Ggoods Ssold 
C)  Finished Ggoods Inventoryinventory 
D)  Raw Mmaterials inventory Inventory 
A)  Work in Pprocess Inventory 
B)  Cost of Ggoods Ssold 
C)  Finished Ggoods Inventoryinventory 
D)  Raw Mmaterials inventory Inventory

Question 4

How should a company choose between a job-order cost system and a process cost system?

Accepted Answer

Answers will vary
Feedback: This decisio

Question 5

Carter Manufacturing Company has two departments,Assembly and Finishing.Consider the following data for the Finishing Department for December 2014: $\begin{array}{l|c|c|c|c|c|c|}
\hline&&  \underline {\text {  Transferted-}  }&  \underline {\text {Direct} }&  \underline {\text { Direct} }\
&  \underline {\text {Units }}&  \underline {\text {in}}&  \underline {\text {Material }}&  \underline {\text {Labor }}&  \underline {\text {Overhead }}& \underline { \text {Total} }\
\hline \text { Beginuing work in process } & 2,500 &&&&&\$ \quad 35,200\
\hline \text { Started during the month } & 7,500 \
\hline \text { Completed during the month } & 8,000 \
\hline \text { Ending work in process } & 2,000\
\hline \text { Costs added during month } & & \$ 375,000 & \$ 134,000 & \$36,600 & \$  24,400 & \$ 560,000\
\hline
\end{array}$ Required:
1)Prepare a cost of production report for the Finishing Department.
2)How much cost should be transferred to Finished Goods?

Accepted Answer

Answers will vary
Feedback: 1)Cost of pr

Question 6

Which event results in the transfer of product costs from the balance sheet to the income statement?

Accepted Answer

A)  Purchase of materials 
B)  Sale of goods 
C)  Production of goods 
D)  Application of estimated manufacturing overhead to job 
A)  Purchase of materials 
B)  Sale of goods 
C)  Production of goods 
D)  Application of estimated manufacturing overhead to job

Question 7

The application of estimated manufacturing overhead to jobs 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.

Question 8

A process cost system would be appropriate for all of the following except:

Accepted Answer

A)  Production of gasoline. 
B)  Manufacture of smart phones. 
C)  Services provided by public accounting firm. 
D)  Manufacture of granola bars. 
A)  Production of gasoline. 
B)  Manufacture of smart phones. 
C)  Services provided by public accounting firm. 
D)  Manufacture of granola bars.

Question 9

In a job-order cost system,the inventory accounts generally are maintained on a perpetual basis.

Accepted Answer

A) True 
 B)False

Question 10

Indicate whether each of the following statements about cost systems is

Accepted Answer

Job-order cost systems accumulate produc

Question 11

Which of the following statements regarding a process cost system is

Accepted Answer

A)  Use of a process cost system would be appropriate for a company that manufactures luxury yachts. 
B)  Unit costs are computed for each department. 
C)  The number of equivalent whole units for a period takes into account the stage of completion of ending work in process inventory. 
D)  Unit cost is determined for a designated period of time. 
A)  Use of a process cost system would be appropriate for a company that manufactures luxury yachts. 
B)  Unit costs are computed for each department. 
C)  The number of equivalent whole units for a period takes into account the stage of completion of ending work in process inventory. 
D)  Unit cost is determined for a designated period of time.

Question 12

Kidd Company uses a process cost system and the weighted average method.The company had 800 units of product in its work in process inventory at the beginning of the period.During the period 3,000 additional units of product were started.At the end of the period there were 1,500 units of product in the work in process account.The ending work in process inventory was estimated to be 30% complete.The beginning work in process inventory had a balance of $4,000.Product costs totalingThere were $84,000 of product costs were added to work in process during the period.The amount of cost in ending work in process inventory is:

Accepted Answer

A)  $33,600. 
B)  $48,000. 
C)  $14,400. 
D)  $8,400. 
A)  $33,600. 
B)  $48,000. 
C)  $14,400. 
D)  $8,400.

Question 13

In a job-order cost system a separate job cost sheet is maintained for each job to facilitate costing.

Accepted Answer

A) True 
 B)False

Question 14

Drummond Company provides customized computer training to employees of large corporations.What kind of costing system should Drummond use?

Accepted Answer

A)  Standard costing 
B)  Process costing 
C)  Job-order costing 
D)  None of these. 
A)  Standard costing 
B)  Process costing 
C)  Job-order costing 
D)  None of these.

Question 15

In a job-order cost system,each department has a work in process account.

Accepted Answer

A) True 
 B)False

Question 16

Two methods of computing equivalent whole units are the LIFO and the weighted average methods.

Accepted Answer

A) True 
 B)False

Question 17

A process cost system and a job order cost system both use a predetermined overhead rate to apply estimated manufacturing overhead costs to work in process.

Accepted Answer

A) True 
 B)False

Question 18

Trenton Company is a manufacturing company with several processing departments.The company uses a process cost system.When goods are complete,the product cost transferred to finished goods inventory includes the sum of product costs from all the processing departments.

Accepted Answer

A) True 
 B)False

Question 19

A process cost system is used when:

Accepted Answer

A)  Homogenous items are produced in a continuous flow production process. 
B)  Batches of identical inventory items are produced. 
C)  A company produces unique,one-of-a-kind inventory items. 
D)  All of these. 
A)  Homogenous items are produced in a continuous flow production process. 
B)  Batches of identical inventory items are produced. 
C)  A company produces unique,one-of-a-kind inventory items. 
D)  All of these.

Question 20

Bruce Company experienced an event that affected its financial statements as indicated below: $\begin{array}{|c|c|c|c|c|c|c|c|c|c|c|c|}
\hline  & \text { Assets }&&= & \text { Liab. } & + & \text { Equity } & \text { Rev. } & - & \text { Exp. } & = & \text { Net Inc. } \
\hline \text { Mfg. } & + & \text { WIP } & & & & & & & & \
\text { Mixing  }&  &\text { Packing }\
\hline (10,500)& + & (10,500) &= & \text { NA } & +&\text { NA } &\text { NA } & -&\text { NA }& = & \text { NA }\
\hline
\end{array}$ What type of product costing system is being used by this company?

Accepted Answer

A)  Job-order cost system 
B)  Hybrid cost system 
C)  Process cost system 
D)  None of these. 
A)  Job-order cost system 
B)  Hybrid cost system 
C)  Process cost system 
D)  None of these.

All of the following transactions lead to an entry on the job cost sheet except:

The 10,000 units in Department B that are 30% complete are equivalent to 3,000 whole units.

When manufacturing overhead is applied to production in a job order cost system,the accounting records would reflect an increase in which of the following accounts?

How should a company choose between a job-order cost system and a process cost system?

Which event results in the transfer of product costs from the balance sheet to the income statement?

The application of estimated manufacturing overhead to jobs is:

A process cost system would be appropriate for all of the following except:

In a job-order cost system,the inventory accounts generally are maintained on a perpetual basis.

Indicate whether each of the following statements about cost systems is

Which of the following statements regarding a process cost system is

In a job-order cost system a separate job cost sheet is maintained for each job to facilitate costing.

Drummond Company provides customized computer training to employees of large corporations.What kind of costing system should Drummond use?

In a job-order cost system,each department has a work in process account.

Two methods of computing equivalent whole units are the LIFO and the weighted average methods.

A process cost system and a job order cost system both use a predetermined overhead rate to apply estimated manufacturing overhead costs to work in process.

Trenton Company is a manufacturing company with several processing departments.The company uses a process cost system.When goods are complete,the product cost transferred to finished goods inventory includes the sum of product costs from all the processing departments.

A process cost system is used when:

Bruce Company experienced an event that affected its financial statements as indicated below: Assets = Liab. + Equity Rev. - Exp. = Net Inc. Mfg. + WIP Mixing Packing (10,500) + (10,500) = NA + NA NA - NA = NA What type of product costing system is being used by this company?

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

All of the following transactions lead to an entry on the job cost sheet except:

The 10,000 units in Department B that are 30% complete are equivalent to 3,000 whole units.

When manufacturing overhead is applied to production in a job order cost system,the accounting records would reflect an increase in which of the following accounts?

How should a company choose between a job-order cost system and a process cost system?

Which event results in the transfer of product costs from the balance sheet to the income statement?

The application of estimated manufacturing overhead to jobs is:

A process cost system would be appropriate for all of the following except:

In a job-order cost system,the inventory accounts generally are maintained on a perpetual basis.

Indicate whether each of the following statements about cost systems is

Which of the following statements regarding a process cost system is

In a job-order cost system a separate job cost sheet is maintained for each job to facilitate costing.

Drummond Company provides customized computer training to employees of large corporations.What kind of costing system should Drummond use?

In a job-order cost system,each department has a work in process account.

Two methods of computing equivalent whole units are the LIFO and the weighted average methods.

A process cost system and a job order cost system both use a predetermined overhead rate to apply estimated manufacturing overhead costs to work in process.

Trenton Company is a manufacturing company with several processing departments.The company uses a process cost system.When goods are complete,the product cost transferred to finished goods inventory includes the sum of product costs from all the processing departments.

A process cost system is used when:

Bruce Company experienced an event that affected its financial statements as indicated below: Assets = Liab. + Equity Rev. - Exp. = Net Inc. Mfg. + WIP Mixing Packing (10,500) + (10,500) = NA + NA NA - NA = NA What type of product costing system is being used by this company?

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