Question 1

Chemical and oil companies normally use process costing.

Accepted Answer

A) True 
 B)False

Question 2

In job-order costing,all the costs for a particular product or batch of products are recorded on the ________.

Accepted Answer

A) materials requisition form 
B) labor time ticket 
C) time card 
D) job-cost record 
A) materials requisition form 
B) labor time ticket 
C) time card 
D) job-cost record

Question 3

In job-order costing,the journal entry to record the requisition of direct materials for production would include a debit to Direct Materials Inventory.

Accepted Answer

A) True 
 B)False

Question 4

Blackstein Company manufactures plastic cups in one department.The following information is available:     The units in the ending work-in-process inventory are 100 percent complete with respect to direct materials and 50 percent complete with respect to conversion costs.The total cost of units completed and transferred is ________.

Accepted Answer

A) $90,240 
B) $411,360 
C) $456,000 
D) $488,400 
A) $90,240 
B) $411,360 
C) $456,000 
D) $488,400

Question 5

Process costing can be used for ________ activities.

Accepted Answer

A) manufacturing 
B) nonmanufacturing 
C) manufacturing and nonmanufacturing 
D) none of the above 
A) manufacturing 
B) nonmanufacturing 
C) manufacturing and nonmanufacturing 
D) none of the above

Question 6

Which statement regarding process costing is TRUE?

Accepted Answer

A) Process-costing systems are usually simpler than job-order costing systems. 
B) Individual jobs exist in process costing. 
C) The unit cost for process costing is found by accumulating the costs for all the manufacturing departments and dividing the total by the number of units produced. 
D) The process-costing approach does not distinguish between individual units of product. 
A) Process-costing systems are usually simpler than job-order costing systems. 
B) Individual jobs exist in process costing. 
C) The unit cost for process costing is found by accumulating the costs for all the manufacturing departments and dividing the total by the number of units produced. 
D) The process-costing approach does not distinguish between individual units of product.

Question 7

In job-order costing,the journal entry to record applied overhead costs would include a debit to Work-in-Process Inventory.

Accepted Answer

A) True 
 B)False

Question 8

Under weighted-average process costing,the unit costs used for applying costs to products are based on the total costs incurred to date,regardless of whether those costs were incurred during or before the current period.

Accepted Answer

A) True 
 B)False

Question 9

The most popular inventory system that companies use for process costing with beginning inventories is the weighted-average method.

Accepted Answer

A) True 
 B)False

Question 10

In nonprofit organizations,the challenge is to apply the costs from various departments to different ________.

Accepted Answer

A) service organizations 
B) nonprofit revenue accounts 
C) nonprofit expense accounts 
D) programs 
A) service organizations 
B) nonprofit revenue accounts 
C) nonprofit expense accounts 
D) programs

Question 11

Measures in equivalent units are found only in manufacturing situations.

Accepted Answer

A) True 
 B)False

Question 12

Carnival Company manufactures tape dispensers.The Assembly Department reported the follow data for the past month:     The partially complete units at the end of the month were 100 percent complete with respect to materials and 50 percent complete with respect to conversion costs.The total cost of ending work-in-process inventory is ________.

Accepted Answer

A) $60,000 
B) $76,000 
C) $90,000 
D) $91,600 
A) $60,000 
B) $76,000 
C) $90,000 
D) $91,600

Question 13

Ralph Company uses a job-order costing system and has the following data available:   What is the cost of the ending inventory of Direct Materials?

Accepted Answer

A) $84,000 
B) $90,000 
C) $108,000 
D) $174,000 
A) $84,000 
B) $90,000 
C) $108,000 
D) $174,000

Question 14

A company uses job-order costing.At the end of the year,applied factory overhead costs were $10,000 and actual factory overhead costs were $12,000.The company uses the immediate write-off method to dispose of variances.What journal entry is necessary under the immediate write-off method?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 15

Backflush costing applies costs to products only when production is complete.

Accepted Answer

A) True 
 B)False

Question 16

In nonprofit organizations,the product is usually called a program or a class of service.

Accepted Answer

A) True 
 B)False

Question 17

Which industry does NOT use job-order costing?

Accepted Answer

A) construction 
B) aircraft 
C) printing 
D) lumber 
A) construction 
B) aircraft 
C) printing 
D) lumber

Question 18

Backflush costing has only two categories of costs that include materials and conversion costs.

Accepted Answer

A) True 
 B)False

Question 19

Beverly Bertonelli Company uses a job-order costing system and has the following data available:   The journal entry to record the purchase of direct materials would include a ________.

Accepted Answer

A) debit to Work-in-process Inventory for $82,000 
B) debit to Direct-Materials Inventory for $148,000 
C) credit to Direct-Materials Inventory for $148,000 
D) credit to Work-in-process Inventory for $148,000 
A) debit to Work-in-process Inventory for $82,000 
B) debit to Direct-Materials Inventory for $148,000 
C) credit to Direct-Materials Inventory for $148,000 
D) credit to Work-in-process Inventory for $148,000

Question 20

Seybold manufactures greeting cards.Material is introduced at the beginning of the process in the Printing Department.Conversion costs are applied uniformly throughout the process.The weighted-average method of product costing is used.Data for the Printing Department for the month of September follow: Work-in-process inventory,September 1:
      With regard to the work-in-process inventory on September 30,materials are 100 percent complete and conversion costs are 50 percent complete.The equivalent units for conversion costs are ________.

Accepted Answer

A) 123,000 
B) 132,450 
C) 136,500 
D) 150,000 
A) 123,000 
B) 132,450 
C) 136,500 
D) 150,000

Chemical and oil companies normally use process costing.

In job-order costing,all the costs for a particular product or batch of products are recorded on the ________.

In job-order costing,the journal entry to record the requisition of direct materials for production would include a debit to Direct Materials Inventory.

Process costing can be used for ________ activities.

Which statement regarding process costing is TRUE?

In job-order costing,the journal entry to record applied overhead costs would include a debit to Work-in-Process Inventory.

Under weighted-average process costing,the unit costs used for applying costs to products are based on the total costs incurred to date,regardless of whether those costs were incurred during or before the current period.

The most popular inventory system that companies use for process costing with beginning inventories is the weighted-average method.

In nonprofit organizations,the challenge is to apply the costs from various departments to different ________.

Measures in equivalent units are found only in manufacturing situations.

Ralph Company uses a job-order costing system and has the following data available: What is the cost of the ending inventory of Direct Materials?

A company uses job-order costing.At the end of the year,applied factory overhead costs were $10,000 and actual factory overhead costs were $12,000.The company uses the immediate write-off method to dispose of variances.What journal entry is necessary under the immediate write-off method?

Backflush costing applies costs to products only when production is complete.

In nonprofit organizations,the product is usually called a program or a class of service.

Which industry does NOT use job-order costing?

Backflush costing has only two categories of costs that include materials and conversion costs.

Beverly Bertonelli Company uses a job-order costing system and has the following data available: The journal entry to record the purchase of direct materials would include a ________.

Managerial Accounting, the Business Organization

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus

Relevant Information for Decision Making With a Focus

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Basic Accounting: Concepts, techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

Exam 14: Job-Order Costing and Process-Costing Systems

Chemical and oil companies normally use process costing.

In job-order costing,all the costs for a particular product or batch of products are recorded on the ________.

In job-order costing,the journal entry to record the requisition of direct materials for production would include a debit to Direct Materials Inventory.

Process costing can be used for ________ activities.

Which statement regarding process costing is TRUE?

In job-order costing,the journal entry to record applied overhead costs would include a debit to Work-in-Process Inventory.

Under weighted-average process costing,the unit costs used for applying costs to products are based on the total costs incurred to date,regardless of whether those costs were incurred during or before the current period.

The most popular inventory system that companies use for process costing with beginning inventories is the weighted-average method.

In nonprofit organizations,the challenge is to apply the costs from various departments to different ________.

Measures in equivalent units are found only in manufacturing situations.

Ralph Company uses a job-order costing system and has the following data available: What is the cost of the ending inventory of Direct Materials?

A company uses job-order costing.At the end of the year,applied factory overhead costs were $10,000 and actual factory overhead costs were $12,000.The company uses the immediate write-off method to dispose of variances.What journal entry is necessary under the immediate write-off method?

Backflush costing applies costs to products only when production is complete.

In nonprofit organizations,the product is usually called a program or a class of service.

Which industry does NOT use job-order costing?

Backflush costing has only two categories of costs that include materials and conversion costs.

Beverly Bertonelli Company uses a job-order costing system and has the following data available: The journal entry to record the purchase of direct materials would include a ________.

Managerial Accounting, the Business Organization

Introduction to Cost Behavior and Cost-Volume Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus

Relevant Information for Decision Making With a Focus

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Basic Accounting: Concepts, techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters