Question 1

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 2

Salmon Company manufactures greeting cards.Special glittery material is added at the end 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 September follow:
Work-In-Process Inventory,September 1:
$\begin{array} { l  }
 \text {Units }&22,500\
 \text {Direct materials ( $ 0 \% $ complete) }&\$0 \
 \text {Conversion costs ( $ 30 \% $ complete) }&\$20,472 \
\end{array}$

$\begin{array} { l  }
 \text { Units started in September}&127,500 \
 \text {Units completed in September }& 123,000\
 \text { Work-In-Process Inventory, September 30}&27,000 \
\end{array}$

$\begin{array} { l  }
 \text { Direct materials added in September }&\$ 427,000\
 \text { Conversion costs added in September}&\$315,000 \
\end{array}$

With regard to the Work-In-Process Inventory on September 30,materials are 0 percent complete and conversion costs are 60 percent complete.The total cost of the ending Work-In-Process Inventory is ________.

Accepted Answer

A)  $39,042 
B)  $90,720 
C)  $128,520 
D)  $151,200 
A)  $39,042 
B)  $90,720 
C)  $128,520 
D)  $151,200

Question 3

In nonprofit organizations,a program is defined as a(n)________.

Accepted Answer

A)  identifiable group of activities that produces outputs in the form of consumable products 
B)  identifiable group of activities that produces outputs in the form of services 
C)  class of products 
D)  none of the above 
A)  identifiable group of activities that produces outputs in the form of consumable products 
B)  identifiable group of activities that produces outputs in the form of services 
C)  class of products 
D)  none of the above

Question 4

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 5

The chemical and glass industries normally use job costing.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements regarding process costing is TRUE?

Accepted Answer

A)  Process-costing systems use a single Work-In-Process Inventory account. 
B)  Process costing is used for products that are easily separated and individually identifiable. 
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 use a single Work-In-Process Inventory account. 
B)  Process costing is used for products that are easily separated and individually identifiable. 
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 process costing,the transferred-in costs include only direct materials costs.

Accepted Answer

A) True 
 B)False

Question 8

Regardless of the nature of a company's production system,there will always be resources that are shared among different products.

Accepted Answer

A) True 
 B)False

Question 9

Hybrid-costing systems use a combination of ________.

Accepted Answer

A)  job-order costing and process costing ideas 
B)  activity-based costing and absorption costing 
C)  job-order costing and activity-based costing 
D)  job-order costing and costing for service organizations 
A)  job-order costing and process costing ideas 
B)  activity-based costing and absorption costing 
C)  job-order costing and activity-based costing 
D)  job-order costing and costing for service organizations

Question 10

One of the primary purposes of an activity-based costing system is to ________.

Accepted Answer

A)  focus on quality improvements in the production process 
B)  focus on cost reduction in the production process 
C)  eliminate all overhead costs for manufactured products 
D)  increase the accuracy of product costs so managers can make better decisions 
A)  focus on quality improvements in the production process 
B)  focus on cost reduction in the production process 
C)  eliminate all overhead costs for manufactured products 
D)  increase the accuracy of product costs so managers can make better decisions

Question 11

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 12

Unlike job-order costing,process costing requires only one Work-In-Process Inventory account.

Accepted Answer

A) True 
 B)False

Question 13

Job-order costing is used.When direct materials are requisitioned for production,which of the following accounts 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 14

St.Matthew's Hospital uses a job-order costing system for all patients who have surgery.The following information is available:
$\begin{array} { l  }
 \text { Budgeted indirect costs-pre-operating room}&\$84,000 \
 \text {udgeted indirect costs-operating room}&\$ 66,000\
 \text {Budgeted indirect costs-surgery recovery floor }&\$ 600,000\
 \text { Budgeted nursing hours-pre-operating roo}&4,000 \
 \text {Budgeted nursing hours-operating room }&1,000 \
 \text {Budgeted nursing hours - sur gery recovery floor }&7,500 \
\end{array}$

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 pre-operating room is ________.

Accepted Answer

A)  $21.00 
B)  $43.25 
C)  $66.00 
D)  $80.00 
A)  $21.00 
B)  $43.25 
C)  $66.00 
D)  $80.00

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

In nonprofit organizations,a program is defined as a(n)________.

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

The chemical and glass industries normally use job costing.

Which of the following statements regarding process costing is TRUE?

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

Regardless of the nature of a company's production system,there will always be resources that are shared among different products.

Hybrid-costing systems use a combination of ________.

One of the primary purposes of an activity-based costing system is to ________.

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.

Unlike job-order costing,process costing requires only one Work-In-Process Inventory account.

Job-order costing is used.When direct materials are requisitioned for production,which of the following accounts is credited?

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

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

In nonprofit organizations,a program is defined as a(n)________.

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

The chemical and glass industries normally use job costing.

Which of the following statements regarding process costing is TRUE?

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

Regardless of the nature of a company's production system,there will always be resources that are shared among different products.

Hybrid-costing systems use a combination of ________.

One of the primary purposes of an activity-based costing system is to ________.

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.

Unlike job-order costing,process costing requires only one Work-In-Process Inventory account.

Job-order costing is used.When direct materials are requisitioned for production,which of the following accounts is credited?

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