Question 1

Selected account balances of Howard Company for 2011 are as follows:
   Required:

Accepted Answer

The answer of Selected account balances of Howard Company for...

Question 2

_______________ is the production level the firm expects to attain for the coming year.

Accepted Answer

A)  Expected activity level 
B)  Normal activity level 
C)  Theoretical activity level 
D)  Practical activity level 
A)  Expected activity level 
B)  Normal activity level 
C)  Theoretical activity level 
D)  Practical activity level

Question 3

In a traditional enterprise, the flow of costs through the system is

Accepted Answer

A)  materials inventory, work-in-process inventory, finished goods inventory, cost of goods sold. 
B)  materials inventory, work-in-process inventory, cost of goods sold, finished goods inventory. 
C)  work-in-process inventory, materials inventory, finished goods inventory, cost of goods sold. 
D)  work-in-process inventory, materials inventory, finished goods. 
A)  materials inventory, work-in-process inventory, finished goods inventory, cost of goods sold. 
B)  materials inventory, work-in-process inventory, cost of goods sold, finished goods inventory. 
C)  work-in-process inventory, materials inventory, finished goods inventory, cost of goods sold. 
D)  work-in-process inventory, materials inventory, finished goods.

Question 4

Unit cost information is needed for

Accepted Answer

A)  costing inventory. 
B)  financial reporting requirements. 
C)  decision making. 
D)  all of these. 
A)  costing inventory. 
B)  financial reporting requirements. 
C)  decision making. 
D)  all of these.

Question 5

Which of the following is a pure service?

Accepted Answer

A)  bungee jumping 
B)  beauty salon 
C)  restaurant 
D)  software 
A)  bungee jumping 
B)  beauty salon 
C)  restaurant 
D)  software

Question 6

Which of the following is a manufactured product?

Accepted Answer

A)  bungee jumping 
B)  beauty salon 
C)  restaurant 
D)  automobile 
A)  bungee jumping 
B)  beauty salon 
C)  restaurant 
D)  automobile

Question 7

Russell Company has the following data pertaining to 2011:   Factory overhead rate is 125 percent of direct labor costs.
What is the ending materials inventory balance for Russell in 2011?

Accepted Answer

A)  $50,000 
B)  $62,500 
C)  $12,500 
D)  $37,500 
A)  $50,000 
B)  $62,500 
C)  $12,500 
D)  $37,500

Question 8

A debit to Materials Inventory indicates materials were

Accepted Answer

A)  purchased. 
B)  requisitioned. 
C)  put into production. 
D)  ordered. 
A)  purchased. 
B)  requisitioned. 
C)  put into production. 
D)  ordered.

Question 9

In ____________ a single product is produced on a continuous basis.

Accepted Answer

A)  process production 
B)  job production 
C)  job-order production 
D)  both a and c 
A)  process production 
B)  job production 
C)  job-order production 
D)  both a and c

Question 10

Which of the following firms would make extensive use of a job-order costing?

Accepted Answer

A)  dental and medical services 
B)  canned foods 
C)  discount brokers 
D)  petroleum 
A)  dental and medical services 
B)  canned foods 
C)  discount brokers 
D)  petroleum

Question 11

The collection of all job cost sheets defines a

Accepted Answer

A)  materials file. 
B)  finished goods file. 
C)  cost of goods file. 
D)  work-in-process file. 
A)  materials file. 
B)  finished goods file. 
C)  cost of goods file. 
D)  work-in-process file.

Question 12

Homogeneous products refer to

Accepted Answer

A)  products similar in nature. 
B)  the nonphysical nature of services and opposed to products. 
C)  great variation in the nature products. 
D)  products that can be inventoried. 
A)  products similar in nature. 
B)  the nonphysical nature of services and opposed to products. 
C)  great variation in the nature products. 
D)  products that can be inventoried.

Question 13

Figure 5 - 4 Walter Company uses a job-order costing system to account for product costs.The following information pertains to 2011:
  Factory overhead rate is $18 per direct labor hour.
-
Refer to Figure 5-4.What is the total amount debited to Finished Goods Inventory in 2011?

Accepted Answer

A)  $490,000 
B)  $510,000 
C)  $450,000 
D)  $550,000 
A)  $490,000 
B)  $510,000 
C)  $450,000 
D)  $550,000

Question 14

Carlson Company uses a predetermined rate to apply overhead.At the beginning of the year, Carlson estimated its overhead costs at $240,000, direct labor hours at 40,000, and machine hours at 10,000.Actual overhead costs incurred were $249,280, actual direct labor hours were 41,000, and actual machine hours were 11,000. If the predetermined overhead rate is based on machine hours, what is the total amount credited to the factory overhead account for the year for Carlson?

Accepted Answer

A)  $249,280 
B)  $246,000 
C)  $240,000 
D)  $264,000 
A)  $249,280 
B)  $246,000 
C)  $240,000 
D)  $264,000

Question 15

Smith Company has the following selected debit balance accounts at the end of the current year: Work-in-Process, $25,000; Finished Goods, $12,500; Cost of Goods Sold, $37,500; and Factory Overhead, $6,000.The pro-rated amount charged to Cost of Goods Sold for factory overhead will be

Accepted Answer

A)  $25,000. 
B)  $3,000. 
C)  $37,500. 
D)  $6,000. 
A)  $25,000. 
B)  $3,000. 
C)  $37,500. 
D)  $6,000.

Question 16

Figure 5 - 3 Olson Corporation constructs new homes.Assume that Olson uses a job costing system.During May 2011, the following transactions occurred:
Olson purchased $4,500 of lumber on account.
Olson used $3,750 of lumber in production and incurred 50 hours of direct labor hours at $15 per hour.
Depreciation of $1,500 on equipment used to build new houses was recorded.
A house that was completed last period at a cost of $150,000 was sold for $180,000 in cash.
-
Refer to Figure 5-3.The journal entry to record labor for Olson would include a

Accepted Answer

A)  debit to Finished Goods of $750. 
B)  debit to Wages Payable of $750. 
C)  credit to Finished Goods of $750. 
D)  debit to Work-in-Process of $750. 
A)  debit to Finished Goods of $750. 
B)  debit to Wages Payable of $750. 
C)  credit to Finished Goods of $750. 
D)  debit to Work-in-Process of $750.

Question 17

_______________ is the average activity that a firm experiences in the long term (more than one year).

Accepted Answer

A)  Expected activity level 
B)  Normal activity level 
C)  Theoretical activity level 
D)  Practical activity level 
A)  Expected activity level 
B)  Normal activity level 
C)  Theoretical activity level 
D)  Practical activity level

Question 18

Perishability refers to the

Accepted Answer

A)  nonphysical nature of services as opposed to products. 
B)  fact that production and consumption are inseparable for services. 
C)  greater chances for variation in the performance of services than in the production of products. 
D)  fact that services cannot be inventoried but must be consumed when performed. 
A)  nonphysical nature of services as opposed to products. 
B)  fact that production and consumption are inseparable for services. 
C)  greater chances for variation in the performance of services than in the production of products. 
D)  fact that services cannot be inventoried but must be consumed when performed.

Question 19

Figure 5 - 1 The King Corporation manufactures custom-made furniture.The following data pertains to Job X4A:
  Factory overhead rate is $22.50 per machine hour.Job X4A consists of 500 units.
-
Refer to Figure 5-1.One-half of Job X4A was sold for $10,000.What is the total amount of costs assigned to Job X4A?

Accepted Answer

A)  $9,000 
B)  $20,250 
C)  $13,500 
D)  $15,750 
A)  $9,000 
B)  $20,250 
C)  $13,500 
D)  $15,750

Question 20

_______________ assign(s) costs by the job.

Accepted Answer

A)  The process costing system 
B)  The job-order costing system 
C)  The project costing system 
D)  Both a and c 
A)  The process costing system 
B)  The job-order costing system 
C)  The project costing system 
D)  Both a and c

Selected account balances of Howard Company for 2011 are as follows: Required:

_______________ is the production level the firm expects to attain for the coming year.

In a traditional enterprise, the flow of costs through the system is

Unit cost information is needed for

Which of the following is a pure service?

Which of the following is a manufactured product?

Russell Company has the following data pertaining to 2011: Factory overhead rate is 125 percent of direct labor costs. What is the ending materials inventory balance for Russell in 2011?

A debit to Materials Inventory indicates materials were

In ____________ a single product is produced on a continuous basis.

Which of the following firms would make extensive use of a job-order costing?

The collection of all job cost sheets defines a

Homogeneous products refer to

Figure 5 - 4 Walter Company uses a job-order costing system to account for product costs.The following information pertains to 2011: Factory overhead rate is $18 per direct labor hour. - Refer to Figure 5-4.What is the total amount debited to Finished Goods Inventory in 2011?

Smith Company has the following selected debit balance accounts at the end of the current year: Work-in-Process, $25,000; Finished Goods, $12,500; Cost of Goods Sold, $37,500; and Factory Overhead, $6,000.The pro-rated amount charged to Cost of Goods Sold for factory overhead will be

_______________ is the average activity that a firm experiences in the long term (more than one year).

Perishability refers to the

_______________ assign(s) costs by the job.

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

Exam 5: Product and Service Costing: Job-Order System

Selected account balances of Howard Company for 2011 are as follows: Required:

_______________ is the production level the firm expects to attain for the coming year.

In a traditional enterprise, the flow of costs through the system is

Unit cost information is needed for

Which of the following is a pure service?

Which of the following is a manufactured product?

Russell Company has the following data pertaining to 2011: Factory overhead rate is 125 percent of direct labor costs. What is the ending materials inventory balance for Russell in 2011?

A debit to Materials Inventory indicates materials were

In ____________ a single product is produced on a continuous basis.

Which of the following firms would make extensive use of a job-order costing?

The collection of all job cost sheets defines a

Homogeneous products refer to

Figure 5 - 4 Walter Company uses a job-order costing system to account for product costs.The following information pertains to 2011: Factory overhead rate is $18 per direct labor hour. - Refer to Figure 5-4.What is the total amount debited to Finished Goods Inventory in 2011?

Smith Company has the following selected debit balance accounts at the end of the current year: Work-in-Process, $25,000; Finished Goods, $12,500; Cost of Goods Sold, $37,500; and Factory Overhead, $6,000.The pro-rated amount charged to Cost of Goods Sold for factory overhead will be

_______________ is the average activity that a firm experiences in the long term (more than one year).

Perishability refers to the

_______________ assign(s) costs by the job.

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters