Question 1

In process costing,the transferred-in costs include only direct materials costs.

Accepted Answer

A) True 
 B)False

Question 2

Help Inc.manufactures phones in a two-department process that involve Assembly and Finishing.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 75 percent complete with respect to conversion costs.The cost of a finished unit is ________.

Accepted Answer

A) $12.84 
B) $13.20 
C) $15.29 
D) $17.20 
A) $12.84 
B) $13.20 
C) $15.29 
D) $17.20

Question 3

Jack Bergman Company uses a job-order costing system and has the following data available:   The journal entry to record the actual factory overhead costs incurred would include a ________.

Accepted Answer

A) debit to Factory Department Overhead Control for $146,000 
B) credit to Factory Department Overhead Control for $169,000 
C) debit to Work-in-process Inventory for $146,000 
D) credit to Work-in-process Inventory for $169,000 
A) debit to Factory Department Overhead Control for $146,000 
B) credit to Factory Department Overhead Control for $169,000 
C) debit to Work-in-process Inventory for $146,000 
D) credit to Work-in-process Inventory for $169,000

Question 4

Job-order costing can be used only in manufacturing environments.

Accepted Answer

A) True 
 B)False

Question 5

Equivalent units are determined by multiplying physical units by the percentage of noncompletion.

Accepted Answer

A) True 
 B)False

Question 6

In job-order costing,the journal entry to record the completion of goods would include a debit to Cost of Goods Sold.

Accepted Answer

A) True 
 B)False

Question 7

Process-costing systems apply costs to like products that are usually mass-produced in continuous fashion through a series of production processes.

Accepted Answer

A) True 
 B)False

Question 8

Job-order costing is used.What account is credited when direct labor costs are incurred?

Accepted Answer

A) Work-in-process Inventory 
B) Finished Goods Inventory 
C) Cost of Goods Sold 
D) Accrued Payroll 
A) Work-in-process Inventory 
B) Finished Goods Inventory 
C) Cost of Goods Sold 
D) Accrued Payroll

Question 9

When public accounting firms apply indirect costs to audit engagements,they use ________ or ________ as the cost driver.

Accepted Answer

A) direct labor cost; equipment usage 
B) direct labor cost; direct labor hours 
C) hours of equipment use; hours of computer use 
D) traveling costs; hours of clerical assistance 
A) direct labor cost; equipment usage 
B) direct labor cost; direct labor hours 
C) hours of equipment use; hours of computer use 
D) traveling costs; hours of clerical assistance

Question 10

A company does not use estimates to determine equivalent units.

Accepted Answer

A) True 
 B)False

Question 11

Equivalent units are computed to assign costs to partially completed units.

Accepted Answer

A) True 
 B)False

Question 12

Forever 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 the ending work-in-process inventory is ________.

Accepted Answer

A) $104,400 
B) $111,996 
C) $122,175 
D) $127,260 
A) $104,400 
B) $111,996 
C) $122,175 
D) $127,260

Question 13

Clumsy Company produces plastic cups 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 50 percent complete with respect to conversion costs.What are the equivalent units for materials for the month?

Accepted Answer

A) 12,000 
B) 30,000 
C) 38,400 
D) 60,000 
A) 12,000 
B) 30,000 
C) 38,400 
D) 60,000

Question 14

In job-order costing,a debit to Finished Goods Inventory is used to record the ________.

Accepted Answer

A) requisition of direct materials 
B) cost of goods completed 
C) sale of merchandise 
D) purchase of direct materials 
A) requisition of direct materials 
B) cost of goods completed 
C) sale of merchandise 
D) purchase of direct materials

Question 15

Three types of costs are accumulated on job-cost records that include direct materials,________ and ________.

Accepted Answer

A) direct labor; actual factory overhead 
B) direct labor; applied factory overhead 
C) variable factory overhead; fixed factory overhead 
D) direct labor; budgeted factory overhead 
A) direct labor; actual factory overhead 
B) direct labor; applied factory overhead 
C) variable factory overhead; fixed factory overhead 
D) direct labor; budgeted factory overhead

Question 16

Training 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,Training Company purchased $6,000 of direct materials and incurred $3,300 in conversion costs to produce 40 bicycles.The journal entry to apply costs to completed goods includes a debit to ________.

Accepted Answer

A) Finished Goods Inventory for $9,300 
B) Work-in-Process Inventory for $9,000 
C) Cost of Goods Sold for $9,300 
D) Cost of Goods Sold for $9,000 
A) Finished Goods Inventory for $9,300 
B) Work-in-Process Inventory for $9,000 
C) Cost of Goods Sold for $9,300 
D) Cost of Goods Sold for $9,000

Question 17

Activity-based costing systems increase product costing accuracy because it focuses on the ________ between the work performed and the consumption of resources.

Accepted Answer

A) link 
B) bond 
C) cause-and-effect relationship 
D) weak relationship 
A) link 
B) bond 
C) cause-and-effect relationship 
D) weak relationship

In process costing,the transferred-in costs include only direct materials costs.

Jack Bergman Company uses a job-order costing system and has the following data available: The journal entry to record the actual factory overhead costs incurred would include a ________.

Job-order costing can be used only in manufacturing environments.

Equivalent units are determined by multiplying physical units by the percentage of noncompletion.

In job-order costing,the journal entry to record the completion of goods would include a debit to Cost of Goods Sold.

Process-costing systems apply costs to like products that are usually mass-produced in continuous fashion through a series of production processes.

Job-order costing is used.What account is credited when direct labor costs are incurred?

When public accounting firms apply indirect costs to audit engagements,they use or as the cost driver.

A company does not use estimates to determine equivalent units.

Equivalent units are computed to assign costs to partially completed units.

In job-order costing,a debit to Finished Goods Inventory is used to record the ________.

Three types of costs are accumulated on job-cost records that include direct materials, and .

Activity-based costing systems increase product costing accuracy because it focuses on the ________ between the work performed and the consumption of resources.

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 process costing,the transferred-in costs include only direct materials costs.

Jack Bergman Company uses a job-order costing system and has the following data available: The journal entry to record the actual factory overhead costs incurred would include a ________.

Job-order costing can be used only in manufacturing environments.

Equivalent units are determined by multiplying physical units by the percentage of noncompletion.

In job-order costing,the journal entry to record the completion of goods would include a debit to Cost of Goods Sold.

Process-costing systems apply costs to like products that are usually mass-produced in continuous fashion through a series of production processes.

Job-order costing is used.What account is credited when direct labor costs are incurred?

When public accounting firms apply indirect costs to audit engagements,they use ________ or ________ as the cost driver.

A company does not use estimates to determine equivalent units.

Equivalent units are computed to assign costs to partially completed units.

In job-order costing,a debit to Finished Goods Inventory is used to record the ________.

Three types of costs are accumulated on job-cost records that include direct materials,________ and ________.

Activity-based costing systems increase product costing accuracy because it focuses on the ________ between the work performed and the consumption of resources.

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

When public accounting firms apply indirect costs to audit engagements,they use or as the cost driver.

Three types of costs are accumulated on job-cost records that include direct materials, and .