Question 1

Which industry is most likely to use a job-order costing system?

Accepted Answer

A) chemicals 
B) plastics 
C) meat packing 
D) printing 
A) chemicals 
B) plastics 
C) meat packing 
D) printing

Question 2

Gilmore 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 40 percent complete with respect to conversion costs.The unit cost of conversion costs is ________.

Accepted Answer

A) $3.00 
B) $3.24 
C) $3.42 
D) $24.00 
A) $3.00 
B) $3.24 
C) $3.42 
D) $24.00

Question 3

St.Patrick's Hospital uses a job-order costing system for all patients who have surgery.The following information is available:   The cost driver for all indirect costs is nursing hours.The hospital uses a budgeted rate for indirect costs.The budgeted rate for indirect costs for the operating room is ________.

Accepted Answer

A) $21.00 
B) $66.00 
C) $69.75 
D) $80.00 
A) $21.00 
B) $66.00 
C) $69.75 
D) $80.00

Question 4

Choosing direct labor cost rather than direct labor hours as a cost driver for overhead costs implies that ________.

Accepted Answer

A) direct labor cost data is more accurate 
B) direct labor cost data is easier to obtain 
C) higher paid employees use proportionately less overhead support than lower paid employees 
D) higher paid employees use proportionately more overhead support than lower paid employees 
A) direct labor cost data is more accurate 
B) direct labor cost data is easier to obtain 
C) higher paid employees use proportionately less overhead support than lower paid employees 
D) higher paid employees use proportionately more overhead support than lower paid employees

Question 5

When there is beginning work-in-process inventory and process costing,the weighted-average method of inventory costing must be used.

Accepted Answer

A) True 
 B)False

Question 6

In process costing,the journal entry to record factory overhead applied would include a ________.

Accepted Answer

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

Question 7

Aldrich Chemical makes a variety of chemicals.The company uses process costing.Materials are added at the beginning of the process.Conversion costs are added evenly throughout the process.The company has no beginning work-in-process inventory.The Mixing Department had the following data:
     Required: 
A)Compute the equivalent units for materials and conversion costs.
B)Compute the cost per unit for materials and conversion costs.
C)Compute the cost of the goods completed and transferred.
D)Compute the cost of the ending work-in-process inventory.

Accepted Answer

A)Materials 10,500 Conversion

Question 8

SSS Company produces calendars in a one-department process.The following data is available for the past month:     The units in process at the end of the month are 100 percent complete with respect to materials and 60 percent complete with respect to conversion costs.What are the total costs to account for?

Accepted Answer

A) $20,700 
B) $30,000 
C) $50,700 
D) $61,050 
A) $20,700 
B) $30,000 
C) $50,700 
D) $61,050

Question 9

Examples of potential factory overhead activity centers include receiving,testing and packaging.

Accepted Answer

A) True 
 B)False

Question 10

Wheels Company uses a backflush-costing system to account for bicycles.Bicycles are scheduled for production only after orders are received and products are shipped to customers immediately upon completion.No finished goods inventory is maintained and product costs are applied directly to cost of goods sold.The standard cost for materials is $150 per bicycle.The standard cost for conversion costs is $75 per bicycle. During the current month,Wheels Company purchased $6,000 of direct materials and incurred $3,000 in conversion costs to produce 40 bicycles.The journal entry to eliminate the conversion cost variance includes a debit to ________.

Accepted Answer

A) Finished Goods Inventory for $600 
B) Conversion Costs for $600 
C) Cost of Goods Sold for $600 
D) No entry is needed 
A) Finished Goods Inventory for $600 
B) Conversion Costs for $600 
C) Cost of Goods Sold for $600 
D) No entry is needed

Question 11

Job-order costing only applies to specific jobs with a single physical unit.

Accepted Answer

A) True 
 B)False

Question 12

Billy Bob 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 60 percent complete with respect to conversion costs.The cost of one completed unit is ________.

Accepted Answer

A) $4.07 
B) $4.25 
C) $4.42 
D) $5.08 
A) $4.07 
B) $4.25 
C) $4.42 
D) $5.08

Question 13

Sparky Company manufactures aircraft parts.A backflush costing system is used and standard costs for the part follow:
   The parts are scheduled for production only after orders are received.They are shipped immediately upon completion.Product costs are charged directly to Cost of Goods Sold.In July,6,000 parts were produced and shipped.Materials were purchased for cash at a cost of $10,000 and actual conversion costs were $12,000.
Required:
Prepare the necessary journal entries.

Accepted Answer

The answer of Sparky Company manufactures aircraft parts.A backflush costing...

Question 14

Happy 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 60 percent complete with respect to conversion costs.The unit cost of direct materials is ________.

Accepted Answer

A) $1.67 
B) $3.32 
C) $6.86 
D) $7.00 
A) $1.67 
B) $3.32 
C) $6.86 
D) $7.00

Question 15

A home builder just completed the construction of a new home.The home builder uses job-order costing.Costs of $200,000 were incurred to construct the home.The home is ready for sale and is listed with a real estate broker.What journal entry is necessary when the home is completed?

Accepted Answer

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

Question 16

In process costing,goods are moved from the Assembly Department to the Packaging Department.Costs incurred in the Assembly Department for the goods received by the Packaging Department are called ________ by the Packaging Department.

Accepted Answer

A) equivalent units 
B) finished goods 
C) transferred-in costs 
D) factory overhead applied 
A) equivalent units 
B) finished goods 
C) transferred-in costs 
D) factory overhead applied

Question 17

In backflush costing,any remaining balance in the conversion costs account at the end of the accounting period is charged to ________.

Accepted Answer

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

Question 18

Clifford 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 50 percent complete.What are the equivalent units for conversion costs for June?

Accepted Answer

A) 62,000 
B) 68,300 
C) 71,000 
D) 80,000 
A) 62,000 
B) 68,300 
C) 71,000 
D) 80,000

Question 19

Harry 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 total cost of goods transferred out of the Printing Department is ________.

Accepted Answer

A) $420,825 
B) $434,000 
C) $495,000 
D) $543,000 
A) $420,825 
B) $434,000 
C) $495,000 
D) $543,000

Question 20

Which of the following statements concerning job-order costing is TRUE?

Accepted Answer

A) Job-order costing deals with great masses of similar items. 
B) Job-order costing is used by the chemical industry. 
C) Job-order costing is not a common system used in product costing. 
D) Job-order costing applies costs to specific jobs which may consist of a single unit or a few similar units. 
A) Job-order costing deals with great masses of similar items. 
B) Job-order costing is used by the chemical industry. 
C) Job-order costing is not a common system used in product costing. 
D) Job-order costing applies costs to specific jobs which may consist of a single unit or a few similar units.

Which industry is most likely to use a job-order costing system?

Choosing direct labor cost rather than direct labor hours as a cost driver for overhead costs implies that ________.

When there is beginning work-in-process inventory and process costing,the weighted-average method of inventory costing must be used.

In process costing,the journal entry to record factory overhead applied would include a ________.

Examples of potential factory overhead activity centers include receiving,testing and packaging.

Job-order costing only applies to specific jobs with a single physical unit.

A home builder just completed the construction of a new home.The home builder uses job-order costing.Costs of $200,000 were incurred to construct the home.The home is ready for sale and is listed with a real estate broker.What journal entry is necessary when the home is completed?

In process costing,goods are moved from the Assembly Department to the Packaging Department.Costs incurred in the Assembly Department for the goods received by the Packaging Department are called ________ by the Packaging Department.

In backflush costing,any remaining balance in the conversion costs account at the end of the accounting period is charged to ________.

Which of the following statements concerning job-order costing is TRUE?

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

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

Which industry is most likely to use a job-order costing system?

Choosing direct labor cost rather than direct labor hours as a cost driver for overhead costs implies that ________.

When there is beginning work-in-process inventory and process costing,the weighted-average method of inventory costing must be used.

In process costing,the journal entry to record factory overhead applied would include a ________.

Examples of potential factory overhead activity centers include receiving,testing and packaging.

Job-order costing only applies to specific jobs with a single physical unit.

A home builder just completed the construction of a new home.The home builder uses job-order costing.Costs of $200,000 were incurred to construct the home.The home is ready for sale and is listed with a real estate broker.What journal entry is necessary when the home is completed?

In process costing,goods are moved from the Assembly Department to the Packaging Department.Costs incurred in the Assembly Department for the goods received by the Packaging Department are called ________ by the Packaging Department.

In backflush costing,any remaining balance in the conversion costs account at the end of the accounting period is charged to ________.

Which of the following statements concerning job-order costing is TRUE?

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