Question 1

Backflush costing provides reasonably accurate product costs if materials inventories are ________.

Accepted Answer

A)  high and production cycle times are short 
B)  high and production cycle times are long 
C)  low and production cycle times are short 
D)  low and production cycle times are long 
A)  high and production cycle times are short 
B)  high and production cycle times are long 
C)  low and production cycle times are short 
D)  low and production cycle times are long

Question 2

Jorgensen 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 process costing is used.Data for the Printing Department for the month of June follow:
Work-In-Process Inventory,June 1:
$\begin{array} { l  }
 \text {Units }&15,000\
 \text {Direct materials ( $ 100 \% $ complete) }&\$34,000 \
 \text {Conversion costs ( $ 30 \% $ complete) }&\$ 14,000\
\end{array}$

$\begin{array} { l  }
 \text {Units started in June }&65,000\
 \text { Units completed in June}&62,000\
 \text {Work-In-Process Inventory, June } 30&18,000\
\end{array}$

$\begin{array} { l  }
 \text {Direct materials added in June }&\$ 285,000\
 \text {Conversion costs added in June }&\$210,000 \
\end{array}$

With regard to the Work-In-Process Inventory on June 30,materials are 100 percent complete and conversion costs are 60 percent complete.What are the equivalent units for materials for June?

Accepted Answer

A)  62,000 
B)  77,000 
C)  80,000 
D)  83,000 
A)  62,000 
B)  77,000 
C)  80,000 
D)  83,000

Question 3

In job-order costing,a debit to Work-In-Process Inventory is used to record ________.

Accepted Answer

A)  a requisition of direct materials for a job 
B)  the cost of labor used by a job 
C)  factory overhead applied to a job 
D)  all of the above 
A)  a requisition of direct materials for a job 
B)  the cost of labor used by a job 
C)  factory overhead applied to a job 
D)  all of the above

Question 4

In process costing,the journal entry to record factory overhead applied to units in a department 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 5

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 6

Each job has its own job-cost record in a job-costing system.

Accepted Answer

A) True 
 B)False

Question 7

Williams Company manufactures tape dispensers.The Assembly Department reported the follow data for the past month:
$\begin{array} { l  }
 \text {Units started and completed }&70,000\
 \text {Units started and not complete }&10,000\
 \text {Units in beginning inventory }&0\
\end{array}$

$\begin{array} { l  }
 \text {Direct materials costs }&\$480,000 \
\text { Conversion costs}&\$240,000 \
\end{array}$

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 8

In process costing,each department computes the product cost of ________.

Accepted Answer

A)  completed goods transferred out of the department only 
B)  completed goods waiting to be sold only 
C)  uncompleted goods in the department only 
D)  uncompleted goods in the department and completed goods transferred out of the department 
A)  completed goods transferred out of the department only 
B)  completed goods waiting to be sold only 
C)  uncompleted goods in the department only 
D)  uncompleted goods in the department and completed goods transferred out of the department

Question 9

Some backflush costing systems eliminate the Finished Goods Inventory account.

Accepted Answer

A) True 
 B)False

Question 10

In process costing,how many Work-In-Process Inventory accounts are used?

Accepted Answer

A)  none 
B)  only one 
C)  one for each processing department 
D)  at least two for each processing department 
A)  none 
B)  only one 
C)  one for each processing department 
D)  at least two for each processing department

Question 11

Flajovich Company manufactures tape dispensers.The Assembly Department reported the follow data for the past month:
$\begin{array} { l  }
 \text {Units started and completed }&70,000\
 \text {Units started and not complete }&10,000\
 \text {Units in beginning inventory }&0\
\end{array}$

$\begin{array} { l  }
 \text {Direct materials costs }&\$480,000 \
\text { Conversion costs}&\$240,000 \
\end{array}$

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 12

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 13

Durante Company produces plastic cups in a one-department process.The following data is available for the past month:
$\begin{array} { l  }
 \text {Work-in-process inventory, beginning }&0 \
 \text {Units started }& 60,000\
 \text {Units completed and transferred }&48,000 \
 \text {Work-in-process inventory, ending }&12,000 \
\end{array}$

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 conversion costs for the month?

Accepted Answer

A)  12,000 
B)  30,000 
C)  54,000 
D)  60,000 
A)  12,000 
B)  30,000 
C)  54,000 
D)  60,000

Question 14

Brankovich Company uses a job-order costing system and has the following data available:
$\begin{array}{ll}
\text { Beginning Direct Materials Inventory } & \$ 26,000 \
\text { Beginning Work-In-Process Inventory } & \$ 64,000 \
\text { Beginning Finished Goods Inventory } & \$ 58,000\
 \text {Direct materials purchased on account }&\$148,000 \
 \text { Direct materials requisitioned}&\$90,000 \
 \text {Direct labor cost incurred }&\$130,000 \
 \text {Factory overhead incurred }&\$ 146,000\
 \text {Cost of goods completed }&\$292,000 \
 \text {Cost of Goods Sold }&\$ 256,000\
 \text { Overhead application rate (based on direct labor cost)}&125\%\
\end{array}$
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 15

Managers need to know program costs to make ongoing decisions such as which programs to emphasize or deemphasize and the pricing of programs.

Accepted Answer

A) True 
 B)False

Question 16

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 17

Backflush costing has no Work-In-Process Inventory account.

Accepted Answer

A) True 
 B)False

Question 18

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

Question 19

West Allis Bike Shop 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,West Allis Bike Shop purchased $6,000 of direct materials and incurred $3,000 in conversion costs to produce 40 bicycles.The journal entry to record the purchase of materials includes a Debit to ________.

Accepted Answer

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

Question 20

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

Backflush costing provides reasonably accurate product costs if materials inventories are ________.

In job-order costing,a debit to Work-In-Process Inventory is used to record ________.

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

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

Each job has its own job-cost record in a job-costing system.

In process costing,each department computes the product cost of ________.

Some backflush costing systems eliminate the Finished Goods Inventory account.

In process costing,how many Work-In-Process Inventory accounts are used?

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

Managers need to know program costs to make ongoing decisions such as which programs to emphasize or deemphasize and the pricing of programs.

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

Backflush costing has no Work-In-Process Inventory account.

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

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

Managerial Accounting,the Business Organization,and Professional Ethics

Introduction to Cost Behavior and Cost Volume Profit Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus on Pricing Decisions

Relevant Information for Decision Making With a Focus on Operational Decisions

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

Backflush costing provides reasonably accurate product costs if materials inventories are ________.

In job-order costing,a debit to Work-In-Process Inventory is used to record ________.

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

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

Each job has its own job-cost record in a job-costing system.

In process costing,each department computes the product cost of ________.

Some backflush costing systems eliminate the Finished Goods Inventory account.

In process costing,how many Work-In-Process Inventory accounts are used?

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

Managers need to know program costs to make ongoing decisions such as which programs to emphasize or deemphasize and the pricing of programs.

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

Backflush costing has no Work-In-Process Inventory account.

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

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

Managerial Accounting,the Business Organization,and Professional Ethics

Introduction to Cost Behavior and Cost Volume Profit Relationships

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus on Pricing Decisions

Relevant Information for Decision Making With a Focus on Operational Decisions

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