Question 1

In which of the following industries could job costing be used?

Accepted Answer

A)  Machine shop and specialty manufacturing 
B)  Bread making 
C)  Cement production 
D)  Food processing 
A)  Machine shop and specialty manufacturing 
B)  Bread making 
C)  Cement production 
D)  Food processing

Question 2

The following data apply to Stratford Ltd  
What was the actual manufacturing overhead incurred during the year?

Accepted Answer

A)  $22 000 
B)  $20 000 
C)  $18 000 
D)  $16 000 
A)  $22 000 
B)  $20 000 
C)  $18 000 
D)  $16 000

Question 3

Process costing is normally used when:

Accepted Answer

A)  large numbers of different products are manufactured. 
B)  large numbers of nearly identical products are manufactured. 
C)  small numbers of nearly identical products are manufactured. 
D)  the fixed costs of manufacturing exceed the variable cost of manufacturing. 
A)  large numbers of different products are manufactured. 
B)  large numbers of nearly identical products are manufactured. 
C)  small numbers of nearly identical products are manufactured. 
D)  the fixed costs of manufacturing exceed the variable cost of manufacturing.

Question 4

A predetermined overhead rate is calculated as follows:

Accepted Answer

A)  budgeted manufacturing overhead/budgeted amount of cost driver. 
B)  budgeted amount of cost driver/budgeted manufacturing overhead. 
C)  budgeted manufacturing overhead/budgeted amount of non-manufacturing overhead. 
D)  budgeted manufacturing overhead/ budgeted total expenses. 
A)  budgeted manufacturing overhead/budgeted amount of cost driver. 
B)  budgeted amount of cost driver/budgeted manufacturing overhead. 
C)  budgeted manufacturing overhead/budgeted amount of non-manufacturing overhead. 
D)  budgeted manufacturing overhead/ budgeted total expenses.

Question 5

When products are completed, their product costs are transferred from work in process inventory to the:

Accepted Answer

A)  manufacturing overhead accounts. 
B)  finished goods account. 
C)  cost of goods sold account. 
D)  indirect labour account. 
A)  manufacturing overhead accounts. 
B)  finished goods account. 
C)  cost of goods sold account. 
D)  indirect labour account.

Question 6

Flow of costs
Describe the flow of goods through the manufacturing accounts in order to calculate cost of goods sold.

Accepted Answer

While production is occurring, all parti

Question 7

The following data apply to Brewers Ltd  
Calculate the cost of goods manufactured during the year.

Accepted Answer

A)  $122 000 
B)  $135 000 
C)  $145 000 
D)  $150 000 
A)  $122 000 
B)  $135 000 
C)  $145 000 
D)  $150 000

Question 8

Which of the following about using proration to dispose of underapplied or overapplied overhead is correct?

Accepted Answer

A)  Proration is a less accurate method than closing the account to COGS, because it arbitrarily allocates overhead between the COGS account, WIP account, and finished goods account. 
B)  Proration is a less accurate method than closing the account to COGS, because the process affects three accounts rather than just one account. 
C)  Proration is a more accurate method than closing the account to COGS, because it recognises that over/under estimation of overhead rate affects more than just the COGS account. 
D)  Proration is a more accurate method than closing the account to COGS, because the potential distortion is spread out over three accounts. 
A)  Proration is a less accurate method than closing the account to COGS, because it arbitrarily allocates overhead between the COGS account, WIP account, and finished goods account. 
B)  Proration is a less accurate method than closing the account to COGS, because the process affects three accounts rather than just one account. 
C)  Proration is a more accurate method than closing the account to COGS, because it recognises that over/under estimation of overhead rate affects more than just the COGS account. 
D)  Proration is a more accurate method than closing the account to COGS, because the potential distortion is spread out over three accounts.

In which of the following industries could job costing be used?

The following data apply to Stratford Ltd What was the actual manufacturing overhead incurred during the year?

Process costing is normally used when:

A predetermined overhead rate is calculated as follows:

When products are completed, their product costs are transferred from work in process inventory to the:

Flow of costs Describe the flow of goods through the manufacturing accounts in order to calculate cost of goods sold.

The following data apply to Brewers Ltd Calculate the cost of goods manufactured during the year.

Which of the following about using proration to dispose of underapplied or overapplied overhead is correct?

Management Accounting: Information for Creating Value and Managing Resources

Management Accounting: Cost Terms and Concepts

Cost Behaviour, Cost Drivers and Cost Estimation

Process Costing and Operation Costing

Service Costing

A Closer Look at Overhead Costs

Activity-Based Costing

Budgeting Systems

Standard Costs for Control: Direct Material and Direct Labour

Standard Costs for Control: Flexible Budgets and Manufacturing Overhead

Managing and Reporting Performance

Financial Performance Measures and Incentive Schemes

Strategic Performance Measurement Systems

Managing Suppliers and Customers

Managing Costs and Quality

Sustainability and Management Accounting

Cost Volume Profit Analysis

Information for Decisions: Relevant Costs and Benefits

Pricing and Product Mix Decisions

Information for Capital Expenditure Decisions

Filters

Exam 4: Product Costing Systems

In which of the following industries could job costing be used?

The following data apply to Stratford Ltd What was the actual manufacturing overhead incurred during the year?

Process costing is normally used when:

A predetermined overhead rate is calculated as follows:

When products are completed, their product costs are transferred from work in process inventory to the:

Flow of costs Describe the flow of goods through the manufacturing accounts in order to calculate cost of goods sold.

The following data apply to Brewers Ltd Calculate the cost of goods manufactured during the year.

Which of the following about using proration to dispose of underapplied or overapplied overhead is correct?

Management Accounting: Information for Creating Value and Managing Resources

Management Accounting: Cost Terms and Concepts

Cost Behaviour, Cost Drivers and Cost Estimation

Process Costing and Operation Costing

Service Costing

A Closer Look at Overhead Costs

Activity-Based Costing

Budgeting Systems

Standard Costs for Control: Direct Material and Direct Labour

Standard Costs for Control: Flexible Budgets and Manufacturing Overhead

Managing and Reporting Performance

Financial Performance Measures and Incentive Schemes

Strategic Performance Measurement Systems

Managing Suppliers and Customers

Managing Costs and Quality

Sustainability and Management Accounting

Cost Volume Profit Analysis

Information for Decisions: Relevant Costs and Benefits

Pricing and Product Mix Decisions

Information for Capital Expenditure Decisions

Filters