Exam 4: Product Costing Systems

Leisure Life manufactures a variety of sporting equipment.The firm's predetermined overhead application rate was 150 per cent of direct labour cost.Job 104 included direct material of $20 000 and total costs were $25 000.The manufacturing overhead applied to Job 104 to date is:

A predetermined overhead rate is calculated as follows:

Snoozo Moozo manufactures bed frames and mattresses that are custom-made to a person's heights and weight.It is a publicly listed company and therefore must comply with any applicable Australian accounting standards.Which of the following statements is most correct?

In a company where products undergo a number of separate processes,the process costing system:

Total manufacturing cost includes:

To accumulate costs under job costing:

Valuing inventories using net realisable value method requires managers to:

Product costs may be used for which of the following purposes.i.Valuation of inventories ii.Management decision making iii.Pricing decisions iv.Cost control

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

Which of the following industries are likely to be using process costing? i.Petroleum ii.Computer manufacture iii.Sugar refining iv.Furniture manufacture

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

In the valuation of inventory at the end of an accounting period,the following costs are included:

In calculating its predetermined overhead rate,a firm incorrectly called some items of indirect labour 'direct labour'.Since the firm uses direct labour costs as the basis for application of overhead costs,the effect of this error is to:

Manufacturing costs include direct labour,direct materials and all company-operating costs.

When underapplied or overapplied manufacturing overhead is prorated,to which of the following accounts can amounts be assigned?

When recording inventory in the financial statements,the accounting standards prescribe that the companies use the lower of cost or net realisable value.

Which of the following costs should be considered when managers are making short term profitability analysis decisions?

Which of the following statements is most complete and correct?

Snoozo Moozo manufactures bed frames and mattresses that are custom-made to a person's heights and weight.Last week,Stevie Oslow,a bed frame specialist,reported spending 35 hours working on a number of bed frames,including 5 hours overtime.Barry is paid $20 per hour ordinarily,and $30 per hour when working overtime.Which of the following journal entries are most appropriate in accounting for Barry's wages for the 35 hours?

Which of the following statements about product costing is false?