Question 1

In activity-based costing systems,budgeted overhead rates for indirect costs are determined.Which department(s)prepare budgeted overhead rates?

Accepted Answer

A) production only 
B) production and distribution only 
C) all value chain functions 
D) production and customer service only 
A) production only 
B) production and distribution only 
C) all value chain functions 
D) production and customer service only

Question 2

Some companies use hybrid costing,which blends the ideas from both job costing and process costing.

Accepted Answer

A) True 
 B)False

Question 3

What journal entry is necessary to apply factory overhead to jobs in job-order costing?

Accepted Answer

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

Question 4

The last step in calculating the production-cost report is to apply unit costs to units completed and to units in the ending work-in-process inventory.

Accepted Answer

A) True 
 B)False

Question 5

Job-order costing is used.When direct materials are requisitioned for production,what account is credited?

Accepted Answer

A) Work-in-process Inventory 
B) Accounts payable 
C) Finished-goods Inventory 
D) Direct-Materials Inventory 
A) Work-in-process Inventory 
B) Accounts payable 
C) Finished-goods Inventory 
D) Direct-Materials Inventory

Question 6

In a production cost report,the total costs accounted for are equal to the cost of units completed and transferred plus the cost of ________.

Accepted Answer

A) beginning work-in-process inventory 
B) the units started and finished 
C) the units completed but unsold 
D) ending work-in-process inventory 
A) beginning work-in-process inventory 
B) the units started and finished 
C) the units completed but unsold 
D) ending work-in-process inventory

Question 7

During the month of May,Masters Clothing transferred 140,000 shirts to Finished Goods Inventory.There was no beginning work-in-process inventory.The company had 40,000 shirts in process at May 31 and the shirts were 50 percent complete with respect to conversion costs.All direct materials are added at the beginning of the production process.The equivalent units for materials for May are ________.

Accepted Answer

A) 90,000 
B) 140,000 
C) 160,000 
D) 180,000 
A) 90,000 
B) 140,000 
C) 160,000 
D) 180,000

Question 8

The centerpiece of a job-order costing system is the balanced scorecard.

Accepted Answer

A) True 
 B)False

Question 9

Referee 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 units completed and transferred is ________.

Accepted Answer

A) $630,000 
B) $644,000 
C) $690,000 
D) $720,000 
A) $630,000 
B) $644,000 
C) $690,000 
D) $720,000

Question 10

The degree of completion for conversion costs depends on what proportion of the total effort needed to complete one unit or one batch has been devoted to units still in process.

Accepted Answer

A) True 
 B)False

Question 11

Hybrid-costing systems use a combination of ________.

Accepted Answer

A) job-order costing and process costing ideas 
B) value-added and nonvalue-added ideas 
C) job-order costing and job-cost sheets 
D) job orders and program orders 
A) job-order costing and process costing ideas 
B) value-added and nonvalue-added ideas 
C) job-order costing and job-cost sheets 
D) job orders and program orders

Question 12

Companies that use job-order costing normally have uniform production steps.

Accepted Answer

A) True 
 B)False

Question 13

Assume a company uses process costing.When goods are transferred from one processing department to another,the journal entry requires a debit to ________.

Accepted Answer

A) Work-in-process Inventory 
B) Finished Goods Inventory 
C) Cost of Goods Sold 
D) Direct Materials Inventory 
A) Work-in-process Inventory 
B) Finished Goods Inventory 
C) Cost of Goods Sold 
D) Direct Materials Inventory

Question 14

The ________ account is supported by a file of job-cost records for completed jobs.

Accepted Answer

A) Direct Materials Inventory 
B) Work-in-process Inventory 
C) Finished Goods Inventory 
D) Factory Overhead Control 
A) Direct Materials Inventory 
B) Work-in-process Inventory 
C) Finished Goods Inventory 
D) Factory Overhead Control

Question 15

Flash Company manufactures phones in a two-department process that includes Assembly and Finishing.Information about the Assembly Department follows:   There was no beginning inventory and 80,000 units were started in the Assembly Department.By the end of the month,67,200 units were completed and transferred to the Finishing Department and 12,800 units were still in process.The partially complete units were 100 percent complete with regard to direct materials but 75 percent complete with regard to conversion costs.The equivalent units for materials for the month for the Assembly Department are ________.

Accepted Answer

A) 12,800 
B) 67,200 
C) 76,800 
D) 80,000 
A) 12,800 
B) 67,200 
C) 76,800 
D) 80,000

Question 16

Source documents used in job-order costing include material requisition forms and time cards.

Accepted Answer

A) True 
 B)False

Question 17

Unlike job-order costing,process costing requires only one work-in-process inventory account.

Accepted Answer

A) True 
 B)False

Question 18

Christian Company manufactures generic notebooks.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 June follow: Work-in-process inventory,June 1:
      With regard to the work-in-process inventory on June 30,materials are 100 percent complete and conversion costs are 60 percent complete.The unit cost for materials is ________.

Accepted Answer

A) $3.54 
B) $3.59 
C) $4.00 
D) $4.91 
A) $3.54 
B) $3.59 
C) $4.00 
D) $4.91

Question 19

In process costing,the journal entry to record direct labor costs incurred would include a ________.

Accepted Answer

A) debit to Accrued Payroll 
B) credit to Factory Overhead 
C) debit to Work-in-Process Inventory,Department Name 
D) credit to Finished Goods Inventory 
A) debit to Accrued Payroll 
B) credit to Factory Overhead 
C) debit to Work-in-Process Inventory,Department Name 
D) credit to Finished Goods Inventory

Question 20

In job-order costing,the journal entry to record actual factory overhead costs incurred would include a credit to Factory Department Overhead Control.

Accepted Answer

A) True 
 B)False

In activity-based costing systems,budgeted overhead rates for indirect costs are determined.Which department(s)prepare budgeted overhead rates?

Some companies use hybrid costing,which blends the ideas from both job costing and process costing.

What journal entry is necessary to apply factory overhead to jobs in job-order costing?

The last step in calculating the production-cost report is to apply unit costs to units completed and to units in the ending work-in-process inventory.

Job-order costing is used.When direct materials are requisitioned for production,what account is credited?

In a production cost report,the total costs accounted for are equal to the cost of units completed and transferred plus the cost of ________.

The centerpiece of a job-order costing system is the balanced scorecard.

The degree of completion for conversion costs depends on what proportion of the total effort needed to complete one unit or one batch has been devoted to units still in process.

Hybrid-costing systems use a combination of ________.

Companies that use job-order costing normally have uniform production steps.

Assume a company uses process costing.When goods are transferred from one processing department to another,the journal entry requires a debit to ________.

The ________ account is supported by a file of job-cost records for completed jobs.

Source documents used in job-order costing include material requisition forms and time cards.

Unlike job-order costing,process costing requires only one work-in-process inventory account.

In process costing,the journal entry to record direct labor costs incurred would include a ________.

In job-order costing,the journal entry to record actual factory overhead costs incurred would include a credit to Factory Department Overhead Control.

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

In activity-based costing systems,budgeted overhead rates for indirect costs are determined.Which department(s)prepare budgeted overhead rates?

Some companies use hybrid costing,which blends the ideas from both job costing and process costing.

What journal entry is necessary to apply factory overhead to jobs in job-order costing?

The last step in calculating the production-cost report is to apply unit costs to units completed and to units in the ending work-in-process inventory.

Job-order costing is used.When direct materials are requisitioned for production,what account is credited?

In a production cost report,the total costs accounted for are equal to the cost of units completed and transferred plus the cost of ________.

The centerpiece of a job-order costing system is the balanced scorecard.

The degree of completion for conversion costs depends on what proportion of the total effort needed to complete one unit or one batch has been devoted to units still in process.

Hybrid-costing systems use a combination of ________.

Companies that use job-order costing normally have uniform production steps.

Assume a company uses process costing.When goods are transferred from one processing department to another,the journal entry requires a debit to ________.

The ________ account is supported by a file of job-cost records for completed jobs.

Source documents used in job-order costing include material requisition forms and time cards.

Unlike job-order costing,process costing requires only one work-in-process inventory account.

In process costing,the journal entry to record direct labor costs incurred would include a ________.

In job-order costing,the journal entry to record actual factory overhead costs incurred would include a credit to Factory Department Overhead Control.

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