Exam 5: Process Costing and Cost Allocation

Managerial accountants find operation costing useful in cost management because operation costing focuses on control of physical processes,or operations,of a given production system.

(True/False)

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Question 21

The accountant at Magnificent Magic Company reported $180,000 total direct-material cost and 60,000 total direct-material equivalent units.Compute the direct-material cost per equivalent unit.

(Multiple Choice)

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Question 22

In an economy that experiences rising prices,the weighted-average method will decrease taxes because of goods sold will be higher and operating income is lower.

(True/False)

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Question 23

Which of the following is not true about operation-costing systems?

(Multiple Choice)

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Question 24

The method that determines the weights for cost allocation by considering each user of the cost as a separate entity is:

(Multiple Choice)

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Question 25

T-account entries in process-costing systems are similar to T-account entries in job-costing systems for direct materials and conversion costs.

(True/False)

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Question 26

What is the process-costing system for the SG-40 in the assembly department? List the components in each.

(Essay)

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Question 27

There are distinct,identifiable units of a product or service in the:

(Multiple Choice)

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Question 28

What is the second step of process costing?

(Multiple Choice)

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Question 29

A key point in the operation-costing system is that each batch does not move through the same operations as other batches.

(True/False)

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Question 30

Surplus,Inc.is a manufacturer of seat cushions.The company only runs and operates two departments,the assembly department and the completion department.In January 2013,the company incurred $500,000 of direct materials and $450,000 of conversion costs,for a total manufacturing cost of $950,000.The accounting manager reported that there was no beginning inventory on January 1,2013 and during January 2013,400 units were fully completed at the end of the month.Compute the direct material cost per unit,the conversion cost per unit,and the assembly department cost per unit.

(Essay)

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Question 31

The main difference between process costing and job costing is the extent of averaging used to compute the costs of products and services.

(True/False)

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Question 32

Which of the following is the formula to compute the assembly cost per unit?

(Multiple Choice)

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Question 33

The Chief Financial Officer at Ford Motor Company is said to use a hybrid-costing system.Write a short essay and define the hybrid-costing system.Explain the advantages to this company to use this system.

(Essay)

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Question 34

A company that implements process costing with zero beginning and zero ending work-in-process inventory has:

(Multiple Choice)

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Question 35

The weighted-average process-costing method:

(Multiple Choice)

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Question 36

In a - ,any overallocation or underallocation of conversion costs is disposed of in the same way as overallocated or underallocated manufacturing overhead.

(Multiple Choice)

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Question 37

The managerial accountant at the Williamsburg Outlet Shoppe reported the following stand-alone costs: Required: Use the two stand-alone costs to allocate the common cost of $140,000,000 in millions for the Williamsburg Outlet Shoppe using the stand-alone cost-allocation method.

(Multiple Choice)

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Question 38

In a ________-costing system,individual jobs use different quantities of production resources.

(Multiple Choice)

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Question 39

The hybrid-costing system that applies to batches of similar,but not identical products is the:

(Multiple Choice)

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Question 40

Showing 21 - 40 of 86

Managerial accountants find operation costing useful in cost management because operation costing focuses on control of physical processes,or operations,of a given production system.

The accountant at Magnificent Magic Company reported $180,000 total direct-material cost and 60,000 total direct-material equivalent units.Compute the direct-material cost per equivalent unit.

In an economy that experiences rising prices,the weighted-average method will decrease taxes because of goods sold will be higher and operating income is lower.

Which of the following is not true about operation-costing systems?

The method that determines the weights for cost allocation by considering each user of the cost as a separate entity is:

T-account entries in process-costing systems are similar to T-account entries in job-costing systems for direct materials and conversion costs.

What is the process-costing system for the SG-40 in the assembly department? List the components in each.

There are distinct,identifiable units of a product or service in the:

What is the second step of process costing?

A key point in the operation-costing system is that each batch does not move through the same operations as other batches.

The main difference between process costing and job costing is the extent of averaging used to compute the costs of products and services.

Which of the following is the formula to compute the assembly cost per unit?

The Chief Financial Officer at Ford Motor Company is said to use a hybrid-costing system.Write a short essay and define the hybrid-costing system.Explain the advantages to this company to use this system.

A company that implements process costing with zero beginning and zero ending work-in-process inventory has:

The weighted-average process-costing method:

In a - ,any overallocation or underallocation of conversion costs is disposed of in the same way as overallocated or underallocated manufacturing overhead.

The managerial accountant at the Williamsburg Outlet Shoppe reported the following stand-alone costs: Required: Use the two stand-alone costs to allocate the common cost of $140,000,000 in millions for the Williamsburg Outlet Shoppe using the stand-alone cost-allocation method.

In a ________-costing system,individual jobs use different quantities of production resources.

The hybrid-costing system that applies to batches of similar,but not identical products is the:

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Activity-Based Management

Pricing Decisions, customer Profitability, and Cost Management

Determining How Costs Behave

Decision Making and Relevant Information

Quality, inventory Management, and Time

Capital Investments

Master Budget and Responsibility Accounting

Flexible Budgets, cost Variances, and Management Control

Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Transfer Pricing

Performance Measurement and Compensation

Filters

Exam 5: Process Costing and Cost Allocation

Managerial accountants find operation costing useful in cost management because operation costing focuses on control of physical processes,or operations,of a given production system.

The accountant at Magnificent Magic Company reported $180,000 total direct-material cost and 60,000 total direct-material equivalent units.Compute the direct-material cost per equivalent unit.

In an economy that experiences rising prices,the weighted-average method will decrease taxes because of goods sold will be higher and operating income is lower.

Which of the following is not true about operation-costing systems?

The method that determines the weights for cost allocation by considering each user of the cost as a separate entity is:

T-account entries in process-costing systems are similar to T-account entries in job-costing systems for direct materials and conversion costs.

What is the process-costing system for the SG-40 in the assembly department? List the components in each.

There are distinct,identifiable units of a product or service in the:

What is the second step of process costing?

A key point in the operation-costing system is that each batch does not move through the same operations as other batches.

The main difference between process costing and job costing is the extent of averaging used to compute the costs of products and services.

Which of the following is the formula to compute the assembly cost per unit?

The Chief Financial Officer at Ford Motor Company is said to use a hybrid-costing system.Write a short essay and define the hybrid-costing system.Explain the advantages to this company to use this system.

A company that implements process costing with zero beginning and zero ending work-in-process inventory has:

The weighted-average process-costing method:

In a ________-________ ________,any overallocation or underallocation of conversion costs is disposed of in the same way as overallocated or underallocated manufacturing overhead.

The managerial accountant at the Williamsburg Outlet Shoppe reported the following stand-alone costs: Required: Use the two stand-alone costs to allocate the common cost of $140,000,000 in millions for the Williamsburg Outlet Shoppe using the stand-alone cost-allocation method.

In a ________-costing system,individual jobs use different quantities of production resources.

The hybrid-costing system that applies to batches of similar,but not identical products is the:

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Activity-Based Management

Pricing Decisions, customer Profitability, and Cost Management

Determining How Costs Behave

Decision Making and Relevant Information

Quality, inventory Management, and Time

Capital Investments

Master Budget and Responsibility Accounting

Flexible Budgets, cost Variances, and Management Control

Strategy, Balanced Scorecard, and Strategic Profitability Analysis

Transfer Pricing

Performance Measurement and Compensation

Filters

In a - ,any overallocation or underallocation of conversion costs is disposed of in the same way as overallocated or underallocated manufacturing overhead.