Question 1

In a job-order cost system,as goods are produced,product costs (direct material,direct labor,and overhead)are accumulated in the:

Accepted Answer

A)  Work in Pprocess Inventory account. 
B)  Raw Materials Inventory account. 
C)  Finished Ggoods Inventory account. 
D)  Cost of Ggoods Ssold account. 
A)  Work in Pprocess Inventory account. 
B)  Raw Materials Inventory account. 
C)  Finished Ggoods Inventory account. 
D)  Cost of Ggoods Ssold account.

Question 2

Wetzel Manufacturing Company has two departments,assembly and finishing.The following data for the Assembly Department for June 2014 is provided: $\begin{array}{l|c|c|c|c|c|c|}
\hline&&  \underline {\text {   \% }  }&  \underline {\text {Direct} }&  \underline {\text { Direct} }\
&  \underline {\text {Units }}&  \underline {\text {Complete }}&  \underline {\text {Material }}&  \underline {\text {Labor }}&  \underline {\text {Overhead }}& \underline { \text {Total} }\
\hline \text { Beginuing work in process } & 500 &75\%&&&&\$ \quad 9,500\
\hline \text { Started during the month } & 1,500 \
\hline \text { Completed during the month } & 1,750 \
\hline \text { Ending work in process } & 250 &\%40\
\hline \text { Costs added during month } & & &\$ 18,276 & \$  7,620 & \$ 4,564 & \$ 30,400\
\hline
\end{array}$ Required:
1)Prepare a cost of production report for the Assembly Department.
2)How much cost should be transferred to the Finishing Department?

Accepted Answer

Answers will vary
Feedback: 1)Cost of pr

Question 3

Bacon Manufacturing Company has two departments,Assembly and Finishing.Consider the following data for the Finishing Department for April 2014: $\begin{array}{l|c|c|c|c|c|c|}
\hline&&  \underline {\text {  Transferted-}  }&  \underline {\text {Direct} }&  \underline {\text { Direct} }\
&  \underline {\text {Units }}&  \underline {\text {in}}&  \underline {\text {Material }}&  \underline {\text {Labor }}&  \underline {\text {Overhead }}& \underline { \text {Total} }\
\hline \text { Beginuing work in process } &  &&&&&\$ \quad 35,000\
\hline \text { Started during the month } &  \
\hline \text { Completed during the month } & 18,000 \
\hline \text { Ending work in process } & 12,000\
\hline \text { Costs added during month } & & \$ 300,000 & \$ 100,000 & \$60,000 & \$  40,000 & \$ 500,000\
\hline \text { Cost per equivabent unit } &&&&&&\$ \quad 20.00\
\hline
\end{array}$ Required:
1)Compute the equivalent whole units for the Finishing Department.
2)Compute the number of equivalent whole units for the department's ending inventory.
3)At what state of completion (percentage)are the units in the department's ending inventory? (State your answer in a percentage and round it Round your answer to one decimal place. )(i.e.24.6%).
4)Compute the amount of cost that should be transferred out.
5)Compute the cost that should be assigned to the department's ending inventory.

Accepted Answer

Answers will vary
Feedback: 1)Equivalent

Question 4

Which of the following is not a component of process cost systems?

Accepted Answer

A)  Multiple work in process accounts. 
B)  Cost of production report. 
C)  Job cost sheet. 
D)  None of these. 
A)  Multiple work in process accounts. 
B)  Cost of production report. 
C)  Job cost sheet. 
D)  None of these.

Question 5

Milton Company makes t-shirts.The shirts move through two departments during the production process.First,fabric is cut in the Cutting Department.The fabric pieces are then transferred to the Sewing Department where the shirts are assembled.The shirts are then sold to retail chains such as Wal-Mart and K-Mart.The following transactions apply to the company's operations during the current accounting period,which is its first year of operations,2014:
(a)Issued stock to shareholders for cash,$90,000.
(b)Purchased $30,000 of direct raw materials.
(c)Direct materials issued to the cutting and sewing departments,$10,000 and $2,000,respectively.
(d)Paid labor cost of $24,400.Direct labor usage for the cutting and assembly departments was $14,000 and $8,000,respectively.Indirect labor costs amounted to $2,400.
(e)Paid other overhead costs,$4,000.
(f)Applied overhead to production in both departments using the predetermined overhead rate of $0.30 per direct labor dollar.
(g)Transferred $21,000 of inventory from the Cutting Department to the Sewing Department.
(h)Transferred $30,400 of inventory from the Sewing Department to Finished Goods.
(i)Sold inventory costing $16,000 for $25,000 cash.
(j)Paid selling and administrative expenses,$5,000.
(k)Disposed of any underapplied or over-or-under-applied overhead.
Assume that all transactions are for cash unless otherwise stated.
Required:
1)Record the transactions in the T-accounts provided.
2)Prepare a schedule of cost of goods manufactured and sold.
3)Compute the amount of gross margin that will be reported on the firm's year-end income statement.

Accepted Answer

Answers will vary
Feedback: 1)Posted T-a

Question 6

Factory insurance is an indirect product cost and part of overhead.

Accepted Answer

A) True 
 B)False

Question 7

The entry to record cost of selling a particular job in a job-order costing system would include a:

Accepted Answer

A)  Debit to finished goods inventoryFinished Goods Inventory and a credit to cost of goods soldCost of Goods Sold. 
B)  Debit to cost of goods soldCost of Goods Sold and a credit to finished goods inventoryFinished Goods Inventory. 
C)  Debit to cost of goods soldCost of Goods Sold and a credit to Wwork in Pprocess Inventory.
Capitalize account name
Done.JMF 
D)  Credit to Wwork in Pprocess Inventory and a debit to finished goodsFinished Goods Inventory.
Capitalize account
Done.JMF
Capitalize account name
Done.JMF
Capitalize account
Done.JMF 
A)  Debit to finished goods inventoryFinished Goods Inventory and a credit to cost of goods soldCost of Goods Sold. 
B)  Debit to cost of goods soldCost of Goods Sold and a credit to finished goods inventoryFinished Goods Inventory. 
C)  Debit to cost of goods soldCost of Goods Sold and a credit to Wwork in Pprocess Inventory.
Capitalize account name
Done.JMF 
D)  Credit to Wwork in Pprocess Inventory and a debit to finished goodsFinished Goods Inventory.
Capitalize account
Done.JMF
Capitalize account name
Done.JMF
Capitalize account
Done.JMF

Question 8

Indicate whether each of the following statements is

Accepted Answer

Recognizing depreciation on manufacturin

Question 9

Select the incorrect statement regarding the recognition of depreciation on manufacturing equipment.

Accepted Answer

A)  Recognizing depreciation on manufacturing equipment is an asset exchange event. 
B)  Depreciation on manufacturing equipment is an indirect product cost. 
C)  Recognizing depreciation on manufacturing equipment decreases the equipment's book value and increases the manufacturing overheadManufacturing Overhead account. 
D)  If the equipment was used to work on a job,the amount of depreciation must be entered on the appropriate job cost sheet. 
A)  Recognizing depreciation on manufacturing equipment is an asset exchange event. 
B)  Depreciation on manufacturing equipment is an indirect product cost. 
C)  Recognizing depreciation on manufacturing equipment decreases the equipment's book value and increases the manufacturing overheadManufacturing Overhead account. 
D)  If the equipment was used to work on a job,the amount of depreciation must be entered on the appropriate job cost sheet.

Question 10

Mertz Group is a consulting firm specializing in mergers and acquisitions.In addition to the three partners,the firm employs nine consultants who work directly with clients.The average budgeted compensation for the twelve professionals is $65,000.Each consultant is budgeted at 1,600 billable hours per year.All professional labor costs are included in a single direct cost pool and are traced to jobs on a per-hour basis.All non-professional labor costs are included in a single overhead cost pool and are allocated to jobs using professional labor hours as the allocation base.Budgeted overhead costs total $600,000.During the period the firm worked on the following jobs:
(a)The Smith Account: Consultants booked 100 hours
(b)The Davis account: Consultants booked 175 hours.
Required:
1)Compute the budgeted direct cost rate per hour of professional labor.(Round your answer to three decimal places. )
2)Compute the budgeted overhead cost rate per hour of professional labor.
3)Compute the cost assigned to each job.
4)Compute the fee to be charged to each client assuming the company uses a cost plus pricing approach and marks up cost by 20%.

Accepted Answer

Answers will vary
Feedback: 1)Budgeted d

Question 11

Cooper Manufacturing is currently working on two jobs.The job order cost sheets for Job 101 and Job 102 showed the following information: $\begin{array}{|l|r|r|}
\hline & \text { Job } 101 & {\text { Job } 102} \
\hline \text { Direct Materials } & \$ 12,000 & \$ 15,000 \
\hline \text { Direct Labor } & 24,000 & 45,000 \
\hline
\end{array}$ If overhead is applied to jobs at $0.80 per direct labor dollar,the total manufacturing cost for the two jobs would be:

Accepted Answer

A)  $96,000. 
B)  $55,200. 
C)  $151,200. 
D)  $162,000. 
A)  $96,000. 
B)  $55,200. 
C)  $151,200. 
D)  $162,000.

Question 12

Job-order and process cost systems are used only in the United States.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

The number of equivalent whole units can

Question 14

Indicate whether each of the following statements is

Accepted Answer

Applying overhead costs to a job is an a

Question 15

What are job cost sheets,and how are they used in a job-order cost system?

Accepted Answer

Answers will vary
Feedback: Job cost she

Question 16

For a company using a process cost system,as units are transferred from one department to the next,their costs are transferred along as well.

Accepted Answer

A) True 
 B)False

Question 17

Indicate whether each of the following statements is

Accepted Answer

A process cost system does not use the s

Question 18

In which of the following industries would a job-order cost system most likely be used?

Accepted Answer

A)  Oil refinery 
B)  Small appliances manufacturer 
C)  Construction of cell towers 
D)  Beverage manufacturer 
A)  Oil refinery 
B)  Small appliances manufacturer 
C)  Construction of cell towers 
D)  Beverage manufacturer

Question 19

Which of the following items is provided on a work ticket?

Accepted Answer

A)  Job-number 
B)  Employee identification 
C)  Work description 
D)  All of these. 
A)  Job-number 
B)  Employee identification 
C)  Work description 
D)  All of these.

Question 20

The costs of shipping a job to the buyer are recorded on the job's job cost sheet.

Accepted Answer

A) True 
 B)False

In a job-order cost system,as goods are produced,product costs (direct material,direct labor,and overhead)are accumulated in the:

Which of the following is not a component of process cost systems?

Factory insurance is an indirect product cost and part of overhead.

The entry to record cost of selling a particular job in a job-order costing system would include a:

Indicate whether each of the following statements is

Select the incorrect statement regarding the recognition of depreciation on manufacturing equipment.

Job-order and process cost systems are used only in the United States.

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

Indicate whether each of the following statements is

What are job cost sheets,and how are they used in a job-order cost system?

For a company using a process cost system,as units are transferred from one department to the next,their costs are transferred along as well.

Indicate whether each of the following statements is

In which of the following industries would a job-order cost system most likely be used?

Which of the following items is provided on a work ticket?

The costs of shipping a job to the buyer are recorded on the job's job cost sheet.

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

In a job-order cost system,as goods are produced,product costs (direct material,direct labor,and overhead)are accumulated in the:

Which of the following is not a component of process cost systems?

Factory insurance is an indirect product cost and part of overhead.

The entry to record cost of selling a particular job in a job-order costing system would include a:

Indicate whether each of the following statements is

Select the incorrect statement regarding the recognition of depreciation on manufacturing equipment.

Job-order and process cost systems are used only in the United States.

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

Indicate whether each of the following statements is

What are job cost sheets,and how are they used in a job-order cost system?

For a company using a process cost system,as units are transferred from one department to the next,their costs are transferred along as well.

Indicate whether each of the following statements is

In which of the following industries would a job-order cost system most likely be used?

Which of the following items is provided on a work ticket?

The costs of shipping a job to the buyer are recorded on the job's job cost sheet.

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