Question 1

In what order do cost elements flow through accounts until they are recognized as an expense?

Accepted Answer

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

Question 2

On March 9 of the current year, Job 123 was completed. The job cost sheet showed a total of $4,000 in direct materials and $6,000 in direct labour at a rate of $20 per direct labour hour. Manufacturing overhead is applied at $30 per direct labour hour. Which debit to Finished Goods Inventory records the completion of Job 123?

Accepted Answer

A)  $4,000 
B)  $9,000 
C)  $13,000 
D)  $19,000 
A)  $4,000 
B)  $9,000 
C)  $13,000 
D)  $19,000

Question 3

Match each following terms with their correct description from the items listed below.
-A costing system in which costs are collected and assigned to units of production for each individual job

Accepted Answer

A) Actual cost system 
B) Job-order cost system 
C) Normal cost system 
D) Process-costing system 
A) Actual cost system 
B) Job-order cost system 
C) Normal cost system 
D) Process-costing system

Question 4

Production costs consist only of direct labour and manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 5

Refer to Xtra Company. What is the total amount credited to Raw Materials Inventory in the current year?

Accepted Answer

A)  $110,000 
B)  $160,000 
C)  $170,000 
D)  $480,000 
A)  $110,000 
B)  $160,000 
C)  $170,000 
D)  $480,000

Question 6

Which method assigns support department costs by giving partial recognition to support department interactions?

Accepted Answer

A)  direct method 
B)  reciprocal method 
C)  sequential method 
D)  proportional method 
A)  direct method 
B)  reciprocal method 
C)  sequential method 
D)  proportional method

Question 7

Refer to Rovetti, Inc. What is the predetermined overhead rate?

Accepted Answer

A)  $2.63 per direct labour hour 
B)  $3.00 per direct labour hour 
C)  $3.42 per direct labour hour 
D)  $4.00 per direct labour hour 
A)  $2.63 per direct labour hour 
B)  $3.00 per direct labour hour 
C)  $3.42 per direct labour hour 
D)  $4.00 per direct labour hour

Question 8

What are the characteristics of process costing?

Accepted Answer

A)  homogeneous products 
B)  costs accumulated by job 
C)  wide variety of distinct products 
D)  unit costs computed by dividing total job costs by number of units produced for that job 
A)  homogeneous products 
B)  costs accumulated by job 
C)  wide variety of distinct products 
D)  unit costs computed by dividing total job costs by number of units produced for that job

Question 9

Rally Point Inc.Rally Point Inc. designs and builds volleyball gymnasiums. Each gymnasium is custom-built to an individual customer's specifications. The company uses job-order costing to track its costs. In January, the company worked on three jobs. Data for these jobs are as follows: $\begin{array}{lrrrr}&\text { Job } 100&\text { Job } 200&\text { Job } 300\
\text { Balance 1/1 } & \$ 13,790 & \$  0 & \$0 \
\text { Direct Materials } & 16,200 & 8,500 & 30,500 \
\text { Direct Labour Cost } & 23,300 & 7,600 & 45,000 \
\text { Machine Hours } & 400 & 300 & 2,000
\end{array}$ Overhead is applied to jobs at the rate of $25 per machine hour. By January 31, Job 200 is the only job unfinished. The balance of Finished Goods Inventory on January 1 is $63,290 (consisting of Job 100 only). Jobs 100 and 300 are sold during January. The company sells its product at cost plus 40%.
-Refer to Rally Point, Inc. What is the balance of Finished Goods Inventory at January 31?

Accepted Answer

A)  $0 
B)  $39,500 
C)  $53,290 
D)  $188,790 
A)  $0 
B)  $39,500 
C)  $53,290 
D)  $188,790

Question 10

From an operational perspective, which decision is generally NOT impacted by unit costs?

Accepted Answer

A)  hiring a new CEO 
B)  evaluating performance on an ongoing basis 
C)  establishing a sales price for a product or service 
D)  determining the long-term feasibility of a business strategy 
A)  hiring a new CEO 
B)  evaluating performance on an ongoing basis 
C)  establishing a sales price for a product or service 
D)  determining the long-term feasibility of a business strategy

Question 11

Refer to Company Inc. What is the predetermined overhead rate?

Accepted Answer

A)  $4 per machine hour 
B)  $6 per direct labour hour 
C)  $40,200 
D)  $44,000 
A)  $4 per machine hour 
B)  $6 per direct labour hour 
C)  $40,200 
D)  $44,000

Question 12

What rarely occurs regarding the overhead variance?

Accepted Answer

A)  overhead is overapplied 
B)  overhead is underapplied 
C)  overhead is a very small amount 
D)  actual overhead equals applied overhead 
A)  overhead is overapplied 
B)  overhead is underapplied 
C)  overhead is a very small amount 
D)  actual overhead equals applied overhead

Question 13

Which cost poses the most problems when using an actual cost system?

Accepted Answer

A)  overhead 
B)  direct labour 
C)  direct materials 
D)  direct materials and direct labour 
A)  overhead 
B)  direct labour 
C)  direct materials 
D)  direct materials and direct labour

Question 14

Quillen
Quillen Company manufactures a product in a factory that has two producing departments, Cutting and Sewing, and two support departments, S1 and S2. The activity driver for S1 is number of employees, and the activity driver for S2 is number of maintenance hours. The following data pertain to the company: $\begin{array}{lcccc}&\text { Support Departments } & \text { Producing Departments } \
&\text { S1 } & \mathrm{S} 2 & \text { Cutting }&\text { Sewing }\
\text { Direct Costs } & \$ 180,000 & \$ 150,000 & \$ 122,000 & \$ 90,500 \
\text { Normal Activity: }  & & & \
\text { \# of employees }  & -& 30 & 63 & 147 \
\text { Maintenance hours } & 1,200& - & 16,000 & 4,000
\end{array}$
-Refer to Quillen Company. Allocating S1 costs first, how much of the support department costs will be allocated from Department S1 to the Cutting Department?

Accepted Answer

A)  $22,500 
B)  $47,250 
C)  $90,000 
D)  $110,250 
A)  $22,500 
B)  $47,250 
C)  $90,000 
D)  $110,250

Question 15

Quillen
Quillen Company manufactures a product in a factory that has two producing departments, Cutting and Sewing, and two support departments, S1 and S2. The activity driver for S1 is number of employees, and the activity driver for S2 is number of maintenance hours. The following data pertain to the company: $\begin{array}{lcccc}&\text { Support Departments } & \text { Producing Departments } \
&\text { S1 } & \mathrm{S} 2 & \text { Cutting }&\text { Sewing }\
\text { Direct Costs } & \$ 180,000 & \$ 150,000 & \$ 122,000 & \$ 90,500 \
\text { Normal Activity: }  & & & \
\text { \# of employees }  & -& 30 & 63 & 147 \
\text { Maintenance hours } & 1,200& - & 16,000 & 4,000
\end{array}$
-Refer to Quillen Company. Using the direct method, how much of the support department costs will be allocated from Department S1 to the Cutting Department?

Accepted Answer

A)  $30,000 
B)  $54,000 
C)  $120,000 
D)  $126,000 
A)  $30,000 
B)  $54,000 
C)  $120,000 
D)  $126,000

In what order do cost elements flow through accounts until they are recognized as an expense?

Match each following terms with their correct description from the items listed below. -A costing system in which costs are collected and assigned to units of production for each individual job

Production costs consist only of direct labour and manufacturing overhead.

Refer to Xtra Company. What is the total amount credited to Raw Materials Inventory in the current year?

Which method assigns support department costs by giving partial recognition to support department interactions?

Refer to Rovetti, Inc. What is the predetermined overhead rate?

What are the characteristics of process costing?

From an operational perspective, which decision is generally NOT impacted by unit costs?

Refer to Company Inc. What is the predetermined overhead rate?

What rarely occurs regarding the overhead variance?

Which cost poses the most problems when using an actual cost system?

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behaviour

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Budgeting, Production, Cash, and Master Budget

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Filters

Exam 5: Job-Order Costing

In what order do cost elements flow through accounts until they are recognized as an expense?

Match each following terms with their correct description from the items listed below. -A costing system in which costs are collected and assigned to units of production for each individual job

Production costs consist only of direct labour and manufacturing overhead.

Refer to Xtra Company. What is the total amount credited to Raw Materials Inventory in the current year?

Which method assigns support department costs by giving partial recognition to support department interactions?

Refer to Rovetti, Inc. What is the predetermined overhead rate?

What are the characteristics of process costing?

From an operational perspective, which decision is generally NOT impacted by unit costs?

Refer to Company Inc. What is the predetermined overhead rate?

What rarely occurs regarding the overhead variance?

Which cost poses the most problems when using an actual cost system?

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behaviour

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Budgeting, Production, Cash, and Master Budget

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Filters