Question 1

Payment of cash for sales staff salaries is an asset exchange transaction.

Accepted Answer

A) True 
 B)False

Question 2

What are materials requisition forms,and how are they used in a job-order costing system?

Accepted Answer

A materials requisition form represents

Question 3

All of the following transactions lead to an entry on the job cost sheet except:

Accepted Answer

A)  Indirect material used on the job. 
B)  A materials requisition for material used on a job. 
C)  Work ticket for direct labor incurred on the job. 
D)  Application of estimated overhead to the job. 
A)  Indirect material used on the job. 
B)  A materials requisition for material used on a job. 
C)  Work ticket for direct labor incurred on the job. 
D)  Application of estimated overhead to the job.

Question 4

Indicate whether each of the following statements about costing systems is true or false.
Job-order costing systems accumulate product costs by department.______
Job-order costing systems are used by many companies to determine the cost of services provided to customers.______
Companies use job-order costing systems when they need to determine the cost of individual batches of products.______
Job-order costing systems allocate costs to homogeneous products.______
With a process costing system,the cost per unit of product is calculated by dividing total product cost by number of units produced in a batch.______

Accepted Answer

Job-order costing systems accumulate pro

Question 5

In a process costing system,a transferred-in cost is the same thing as raw materials cost.

Accepted Answer

A) True 
 B)False

Question 6

A process costing system is used when:

Accepted Answer

A)  Homogeneous items are produced in a continuous-flow production process. 
B)  Batches of identical inventory items are produced. 
C)  A company produces unique, one-of-a-kind inventory items. 
D)  All of these answers are correct. 
A)  Homogeneous items are produced in a continuous-flow production process. 
B)  Batches of identical inventory items are produced. 
C)  A company produces unique, one-of-a-kind inventory items. 
D)  All of these answers are correct.

Question 7

Marion Company uses process costing and the weighted average method.The following information was available for April: $$\begin{array} { l r r } 
& \text { units } & \text { Costs } \
\text { Wark in Process, April 1 } & 100 & \$ 3,000 \
\text { Work in Process, April } 30 & 200 & \text { (A) }
\end{array}$$ During April,1,000 units were started,and costs incurred during the month were $37,000.Ending inventory was 50% complete.Based on the information given,(A)above would equal what amount?

Accepted Answer

A)  $8,000 
B)  $3,000 
C)  $4,000 
D)  $3,300 
A)  $8,000 
B)  $3,000 
C)  $4,000 
D)  $3,300

Question 8

Link Company uses a process costing system and the weighted average method.During the year the company completed 1,300 units of product.Ending inventory consisted of 400 units that were 50% complete.The total dollar cost associated with production of inventory was $90,000.The cost per equivalent unit would be which of the following?

Accepted Answer

A)  $54.00 
B)  $69.22 
C)  $60.00 
D)  $83.82 
A)  $54.00 
B)  $69.22 
C)  $60.00 
D)  $83.82

Question 9

Process costing is used for products produced in mass quantities through a continuous process that provides similar inputs to each unit produced.

Accepted Answer

A) True 
 B)False

Question 10

Under job-order costing,the actual direct materials,actual direct labor,and estimated overhead costs are recorded on the job cost sheet.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is not an approach to compute equivalent units?

Accepted Answer

A)  Weighted average. 
B)  Last-in, first-out. 
C)  First-in, first-out. 
D)  All of these approaches can be used. 
A)  Weighted average. 
B)  Last-in, first-out. 
C)  First-in, first-out. 
D)  All of these approaches can be used.

Question 12

Pepperdine Company paid factory rent of $10,000.At the time this transaction occurred,it did not affect total assets or net income.

Accepted Answer

A) True 
 B)False

Question 13

What source documents would be used in preparing a job cost sheet?

Accepted Answer

Materials requisition forms an

Question 14

In a process costing system,costs are accumulated by department.

Accepted Answer

A) True 
 B)False

Question 15

What are hybrid costing systems? Under what circumstances might a company use a hybrid system?

Accepted Answer

A hybrid costing system combines aspects

Question 16

Which of the following statements regarding a process costing system is false?

Accepted Answer

A)  Use of a process costing system would be appropriate for a company that manufactures luxury yachts. 
B)  Unit costs are computed for each department. 
C)  The number of equivalent units for a period takes into account the stage of completion of ending work in process inventory. 
D)  Unit cost is determined for a designated period of time. 
A)  Use of a process costing system would be appropriate for a company that manufactures luxury yachts. 
B)  Unit costs are computed for each department. 
C)  The number of equivalent units for a period takes into account the stage of completion of ending work in process inventory. 
D)  Unit cost is determined for a designated period of time.

Question 17

Ringgold Company experienced an event that affected its financial statements as indicated below:   Which of the following accounting events caused the indicated effects on the company's accounting equation?

Accepted Answer

A)  Actual overhead cost was incurred 
B)  Underapplied overhead was written off 
C)  Estimated overhead was charged to production 
D)  None of these answers are correct. 
A)  Actual overhead cost was incurred 
B)  Underapplied overhead was written off 
C)  Estimated overhead was charged to production 
D)  None of these answers are correct.

Question 18

The two most common types of costing systems are:

Accepted Answer

A)  Process and transfer costing systems. 
B)  Job-order and process costing systems. 
C)  Job-order and direct costing systems. 
D)  Process and standard costing systems. 
A)  Process and transfer costing systems. 
B)  Job-order and process costing systems. 
C)  Job-order and direct costing systems. 
D)  Process and standard costing systems.

Question 19

Which event results in the transfer of product costs from the balance sheet to the income statement?

Accepted Answer

A)  Purchase of materials 
B)  Sale of goods 
C)  Production of goods 
D)  Application of estimated manufacturing overhead to job 
A)  Purchase of materials 
B)  Sale of goods 
C)  Production of goods 
D)  Application of estimated manufacturing overhead to job

Question 20

Bacon Manufacturing Company has two departments,Assembly and Finishing.Consider the following data for the Finishing Department for April:
 $\begin{array}{|l|c|c|c|c|c|c|}
\hline&&\text { Transferred- }&\text { Direct}&\text {  Direct }\
&\text { Units }&\text { in }&\text { Material }&\text { Labor}&\text {  Overhead}&\text {  Total }\
\hline \text { Beginning work in process } & & & &&&  \$ 35,000 \
\hline \text { Started during the month } & & & &  \
\hline \text { Completed during the month } & 18,000 & & &  \
\hline \text { Ending work in process ( } ? \% \text { complete) } & 12,000 & &   \
\hline \text { Costs added during month } & & \$ 300,000 & \$ 100000 & \$60,600 & \$ 40,000 & \text { \$ } 500,000 \
\hline\text { Cost per equivakent unit }&&&&&&\$20,000\
\hline
\end{array}$

Required:
1)Compute the equivalent units for the Finishing Department using the weighted average method.
2)Compute the number of equivalent units for the department's ending inventory.
3)At what state of completion (percentage)are the units in the department's ending inventory? (State your answer in a percentage and round it to one decimal place.)
4)Compute the amount of cost that should be transferred out.
5)Compute the cost that should be assigned to the department's ending inventory.

Accepted Answer

1)Equivalent units = ($35,000 + $500,000

Payment of cash for sales staff salaries is an asset exchange transaction.

What are materials requisition forms,and how are they used in a job-order costing system?

All of the following transactions lead to an entry on the job cost sheet except:

In a process costing system,a transferred-in cost is the same thing as raw materials cost.

A process costing system is used when:

Process costing is used for products produced in mass quantities through a continuous process that provides similar inputs to each unit produced.

Under job-order costing,the actual direct materials,actual direct labor,and estimated overhead costs are recorded on the job cost sheet.

Which of the following is not an approach to compute equivalent units?

Pepperdine Company paid factory rent of $10,000.At the time this transaction occurred,it did not affect total assets or net income.

What source documents would be used in preparing a job cost sheet?

In a process costing system,costs are accumulated by department.

What are hybrid costing systems? Under what circumstances might a company use a hybrid system?

Which of the following statements regarding a process costing system is false?

Ringgold Company experienced an event that affected its financial statements as indicated below: Which of the following accounting events caused the indicated effects on the company's accounting equation?

The two most common types of costing systems are:

Which event results in the transfer of product costs from the balance sheet to the income statement?

Management Accounting and Corporate Governance

Cost Behavior, operating Leverage, and Profitability Analysis

Analysis of Cost, volume, and Pricing to Increase Profitability

Cost Accumulation,tracing,and Allocation

Cost Management in an Automated Business Environment: ABC, ABM, and TQM

Relevant Information for Special Decisions

Planning for Profit and Cost Control

Performance Evaluation

Responsibility Accounting

Planning for Capital Investments

Product Costing in Service and Manufacturing Entities

Financial Statement Analysis

Statement of Cash Flows

Filters

Exam 12: Job-Order, process, and Hybrid Costing Systems

Payment of cash for sales staff salaries is an asset exchange transaction.

What are materials requisition forms,and how are they used in a job-order costing system?

All of the following transactions lead to an entry on the job cost sheet except:

In a process costing system,a transferred-in cost is the same thing as raw materials cost.

A process costing system is used when:

Process costing is used for products produced in mass quantities through a continuous process that provides similar inputs to each unit produced.

Under job-order costing,the actual direct materials,actual direct labor,and estimated overhead costs are recorded on the job cost sheet.

Which of the following is not an approach to compute equivalent units?

Pepperdine Company paid factory rent of $10,000.At the time this transaction occurred,it did not affect total assets or net income.

What source documents would be used in preparing a job cost sheet?

In a process costing system,costs are accumulated by department.

What are hybrid costing systems? Under what circumstances might a company use a hybrid system?

Which of the following statements regarding a process costing system is false?

Ringgold Company experienced an event that affected its financial statements as indicated below: Which of the following accounting events caused the indicated effects on the company's accounting equation?

The two most common types of costing systems are:

Which event results in the transfer of product costs from the balance sheet to the income statement?

Management Accounting and Corporate Governance

Cost Behavior, operating Leverage, and Profitability Analysis

Analysis of Cost, volume, and Pricing to Increase Profitability

Cost Accumulation,tracing,and Allocation

Cost Management in an Automated Business Environment: ABC, ABM, and TQM

Relevant Information for Special Decisions

Planning for Profit and Cost Control

Performance Evaluation

Responsibility Accounting

Planning for Capital Investments

Product Costing in Service and Manufacturing Entities

Financial Statement Analysis

Statement of Cash Flows

Filters