Question 1

A company using the periodic inventory system records cost of goods sold when products are sold.

Accepted Answer

A) True 
 B)False

Question 2

Process costing is applicable to production operations that

Accepted Answer

A) utilize several processes,departments,or work cells in a series. 
B) do not assign overhead costs to operations. 
C) produce products that are made to order. 
D) produce unique products. 
A) utilize several processes,departments,or work cells in a series. 
B) do not assign overhead costs to operations. 
C) produce products that are made to order. 
D) produce unique products.

Question 3

Which of the following will help mangers set reasonable selling prices?

Accepted Answer

A) Previous year net income of the company 
B) Number of employees in the company 
C) Unit cost knowledge of the product 
D) Previous year's income tax variance 
A) Previous year net income of the company 
B) Number of employees in the company 
C) Unit cost knowledge of the product 
D) Previous year's income tax variance

Question 4

Logan Company uses a job order costing system.A predetermined overhead rate of $7 per machine hour in Department A and 220 percent per direct labor dollar in Department B has been established based upon the following information at the beginning of the year:
 
Job 19 for 100 units is started in Department A and completed in Department B.Determine the total cost of Job 19 and complete the job cost card based on the following information:

Accepted Answer

The answer of Logan Company uses a job order costing...

Question 5

Which of the following firms would most likely use a process costing system?

Accepted Answer

A) Firm providing legal services 
B) Firm manufacturing papers 
C) Firm providing advertising services 
D) Firm printing wedding invitations 
A) Firm providing legal services 
B) Firm manufacturing papers 
C) Firm providing advertising services 
D) Firm printing wedding invitations

Question 6

Service organizations use unit costs of services to determine inventory balances.

Accepted Answer

A) True 
 B)False

Question 7

Quickwork Company uses a job order costing system.On March 1,Quickwork Company's Work in Process Inventory account shows a beginning balance of $170,000.Production activity for March was as follows: Materials costing $85,000,along with operating supplies of $20,000,were requisitioned into production.Quickwork Company's total payroll was $350,000,of which $75,000 was indirect labor.Overhead is applied at a rate of 125 percent of direct labor cost.Quickwork's Cost of Goods Sold for the month of May was $692,000.Finished Goods Inventory was $71,500 on March 1 and $84,000 on March 31.(Quickwork does not close out overhead accounts until year-end. )
a.Calculate Quickwork's cost of goods completed for March.
b.Calculate Quickwork's work in process ending inventory (March 31).
c.One of the jobs that was started in March,Job 208,was completed in April.Job 208 was 250 special-order decorative lamps.The following costs had been applied to Job 208 as of April 1: direct materials,$1,500;direct labor,$2,000;overhead,$2,500.In April,$580 in direct materials cost and $900 of direct labor cost were added to complete Job 208.What was the cost per unit for Job 208? (Show your computations. )

Accepted Answer

The answer of Quickwork Company uses a job order costing...

Question 8

Overhead applied is calculated by multiplying predetermined activity rate and actual cost driver activity.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following products would probably be produced by a company using a process costing system?

Accepted Answer

A) House 
B) Wedding gowns 
C) Bags 
D) Movie 
A) House 
B) Wedding gowns 
C) Bags 
D) Movie

Question 10

Bear Country produces hand-carved wooden bears and uses a job order costing system.The following are data on the three jobs worked on in the company's first month of operations:
  Overhead cost is applied to job orders on the basis of direct labor hours at a predetermined rate of $10 per hour.The Smokey and Rocky bears were completed during the month,and the Curious bears remained in work in process at the end of the month.
a.Compute the cost transferred to finished goods during the month.
b.Compute the unit cost for a Rocky bear.

Accepted Answer

a.Jobs com

Question 11

The Work in Process Inventory account for Clinton Company for the month ended September 30 appears below.
  Overhead is applied based on direct labor dollars.Direct material costs for the one job remaining in work in process on September 30 was $12,300.
a.What was the overhead rate used to apply overhead to jobs?
b.Determine the amount of direct labor charged to the one remaining job.Round you answers to nearest dollars.

Accepted Answer

The answer of The Work in Process Inventory account for...

Question 12

Which of the following is a document prepared every period for each process?

Accepted Answer

A) Process cost card 
B) Process cost report 
C) Process cost control sheet 
D) Process cost recognition card 
A) Process cost card 
B) Process cost report 
C) Process cost control sheet 
D) Process cost recognition card

Question 13

The balances on the job cost sheets of uncompleted jobs will be equal to the balance in the

Accepted Answer

A) Finished Goods Inventory account. 
B) Cost of Goods Sold account. 
C) Work in Process Inventory account. 
D) Overhead account. 
A) Finished Goods Inventory account. 
B) Cost of Goods Sold account. 
C) Work in Process Inventory account. 
D) Overhead account.

Question 14

A zero balance in Work in Process Inventory at the start of the period means all previously completed products have been shipped.

Accepted Answer

A) True 
 B)False

Question 15

Cardsheet Company The following partially completed T accounts summarize the transactions of Cardsheet Company for last year:
 
-The applied overhead is

Accepted Answer

A) $31,000. 
B) $30,000. 
C) $18,000. 
D) $62,300. 
A) $31,000. 
B) $30,000. 
C) $18,000. 
D) $62,300.

Question 16

If the actual overhead costs are more than applied overhead costs,the difference represents overapplied overhead costs.

Accepted Answer

A) True 
 B)False

Question 17

Jackson,CPA,entered into a cost-plus contract with Ivory Computer Services for software installation and Internet interfacing in her accounting practice.The following is Ivory Computer Services' job cost card for this job.Ivory's profit factor is 25 percent of total costs.Complete the following card,as indicated:

Accepted Answer

The answer of Jackson,CPA,entered into a cost-plus contract with Ivory...

Question 18

A process costing system first assigns the costs to the products manufactured by the departments,and then traces the costs of direct materials,direct labor,and overhead to departments.

Accepted Answer

A) True 
 B)False

Question 19

The _________ provides the most direct means of calculating unit costs for a job.

Accepted Answer

A) job order cost card 
B) Finished Goods Inventory account 
C) general ledger 
D) Materials Inventory account 
A) job order cost card 
B) Finished Goods Inventory account 
C) general ledger 
D) Materials Inventory account

Question 20

The process of assigning a collection of indirect costs is termed as cost pooling.

Accepted Answer

A) True 
 B)False

A company using the periodic inventory system records cost of goods sold when products are sold.

Process costing is applicable to production operations that

Which of the following will help mangers set reasonable selling prices?

Which of the following firms would most likely use a process costing system?

Service organizations use unit costs of services to determine inventory balances.

Overhead applied is calculated by multiplying predetermined activity rate and actual cost driver activity.

Which of the following products would probably be produced by a company using a process costing system?

Which of the following is a document prepared every period for each process?

The balances on the job cost sheets of uncompleted jobs will be equal to the balance in the

A zero balance in Work in Process Inventory at the start of the period means all previously completed products have been shipped.

Cardsheet Company The following partially completed T accounts summarize the transactions of Cardsheet Company for last year: -The applied overhead is

If the actual overhead costs are more than applied overhead costs,the difference represents overapplied overhead costs.

A process costing system first assigns the costs to the products manufactured by the departments,and then traces the costs of direct materials,direct labor,and overhead to departments.

The _________ provides the most direct means of calculating unit costs for a job.

The process of assigning a collection of indirect costs is termed as cost pooling.

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Adjusting the Accounts

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long -Term Assets

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting and Cost Concepts

Costing Systems Process Costing

Value-Based Systems: Activity-Based Costing and Lean Accounting

Cost-Volume-Profit Analysis

The Budgeting Process

Flexible Budgets and Performance Analysis

Standard Costing and Variance Analysis

Short-Run Decision Analysis and Capital Budgeting

Filters

Exam 18: Costing Systems: Job Order Costing

A company using the periodic inventory system records cost of goods sold when products are sold.

Process costing is applicable to production operations that

Which of the following will help mangers set reasonable selling prices?

Which of the following firms would most likely use a process costing system?

Service organizations use unit costs of services to determine inventory balances.

Overhead applied is calculated by multiplying predetermined activity rate and actual cost driver activity.

Which of the following products would probably be produced by a company using a process costing system?

Which of the following is a document prepared every period for each process?

The balances on the job cost sheets of uncompleted jobs will be equal to the balance in the

A zero balance in Work in Process Inventory at the start of the period means all previously completed products have been shipped.

Cardsheet Company The following partially completed T accounts summarize the transactions of Cardsheet Company for last year: -The applied overhead is

If the actual overhead costs are more than applied overhead costs,the difference represents overapplied overhead costs.

A process costing system first assigns the costs to the products manufactured by the departments,and then traces the costs of direct materials,direct labor,and overhead to departments.

The _________ provides the most direct means of calculating unit costs for a job.

The process of assigning a collection of indirect costs is termed as cost pooling.

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Adjusting the Accounts

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long -Term Assets

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting and Cost Concepts

Costing Systems Process Costing

Value-Based Systems: Activity-Based Costing and Lean Accounting

Cost-Volume-Profit Analysis

The Budgeting Process

Flexible Budgets and Performance Analysis

Standard Costing and Variance Analysis

Short-Run Decision Analysis and Capital Budgeting

Filters