Question 1

Which of the following is an example of an organization that would use job-order accounting?

Accepted Answer

A) a custom construction company. 
B) an oil refinery. 
C) a cereal processor. 
D) None of the answers is correct. 
A) a custom construction company. 
B) an oil refinery. 
C) a cereal processor. 
D) None of the answers is correct. A

Question 2

Analyzing costs in an engineering company.On June 1,XEON Engineering,which oversees the
cleanup of asbestos condemned buildings,had two jobs in process with the following costs incurred to date:
   
In addition,overhead is applied to these jobs at the rate of 100 percent of direct labor costs.
As of June 1,XEON had incurred direct materials costs as shown in the table,mostly for laboratory testing materials.
During June,XEON completed both jobs and recorded them as Cost of Goods Sold.
The University A job required no more direct materials in June,but it did require $1,200 of direct labor to complete.The Muldoon Community Center Project job required $400 of direct materials and $2,000 of direct labor to complete.
XEON started a new job,Sea Breeze Elementary Project,during June and put $1,600 of direct labor costs into this job and $400 of direct materials.The Sea Breeze Project has not been completed as of the end of June.
Required: Provide the cost of direct materials,direct labor,and overhead (at 150 percent of direct labor cost)for the three jobs.

Accepted Answer

The answer of Analyzing costs in an engineering company.On June...

Question 3

Use this information to answer the following question(s):
   
Refer to the above information;determine the cost of goods manufactured during the period.

Accepted Answer

$198 (29 + 80 + 67 + 53 - 31)

Question 4

Briefly explain the concepts of customer costing and profitability analysis.

Accepted Answer

Companies often track revenues

Question 5

A company manager intentionally commits fraud by overstating the ending balance of inventory in order to improve his current period's performance evaluation and resulting bonus.Which of the following statements is true?

Accepted Answer

A) All accounting frauds do not require repeated misrepresentation period after period and the overstatement of income in one period does not cause a lower income in a subsequent period. 
B) All accounting frauds do not require repeated misrepresentation period after period and the manager will most likely escape detection if internal controls are poor. 
C) All accounting frauds require repeated misrepresentation period after period or else the overstatement of income in one period causes a lower income in a subsequent period. 
D) According to Generally Accepted Auditing Standards,the independent auditors must report all accounting frauds,regardless of amount,directly to the Securities and Exchange Commission within 3 days of discovery. 
A) All accounting frauds do not require repeated misrepresentation period after period and the overstatement of income in one period does not cause a lower income in a subsequent period. 
B) All accounting frauds do not require repeated misrepresentation period after period and the manager will most likely escape detection if internal controls are poor. 
C) All accounting frauds require repeated misrepresentation period after period or else the overstatement of income in one period causes a lower income in a subsequent period. 
D) According to Generally Accepted Auditing Standards,the independent auditors must report all accounting frauds,regardless of amount,directly to the Securities and Exchange Commission within 3 days of discovery.

Question 6

Which of the following statements is true concerning a normalized overhead rate?

Accepted Answer

A) A normalized overhead rate should be used whenever the firm does not prepare a master budget. 
B) A normalized overhead rate is employed so that wide fluctuations and variations in the level of production will not influence unit costs. 
C) A normalized overhead rate is used by firms that have a normal production schedule. 
D) A normalized overhead rate results in distorting the income figures of the firm. 
A) A normalized overhead rate should be used whenever the firm does not prepare a master budget. 
B) A normalized overhead rate is employed so that wide fluctuations and variations in the level of production will not influence unit costs. 
C) A normalized overhead rate is used by firms that have a normal production schedule. 
D) A normalized overhead rate results in distorting the income figures of the firm.

Question 7

Actual costs and normal costs.Barefoot Bay Company uses a predetermined rate for applying overhead to production using normal costing.The rates for Year 1 follow: variable,150 percent of direct labor dollars;fixed,250 percent of direct labor dollars.Actual overhead costs incurred follow: variable,$22,000;fixed,$25,000.Actual direct materials costs were $7,500,and actual direct labor costs were $12,000.Canyon Ridge produced one job in Year 1.
Required:
a.Calculate actual costs of the job.
b.Calculate normal costs of the job using predetermined overhead rates.
(Barefoot Bay Company;actual costs and normal costs. )

Accepted Answer

a.Actual Costs
 @#IMG-DLM&_TB2

Question 8

Compare and contrast normal costing and actual costing.

Accepted Answer

Actual costing measures product costs us

Question 9

Accounting in a JIT environment charges all costs directly to Cost of Goods Sold and charges them to Inventory accounts when needed using which of the following costing methods?

Accepted Answer

A) job order costing. 
B) process costing. 
C) hybrid costing. 
D) backflush costing. 
A) job order costing. 
B) process costing. 
C) hybrid costing. 
D) backflush costing.

Question 10

Little League Baseball Manufacturer
The Little League Baseball Manufacturer purchases materials for the production of customized little league baseball bats,hires workers to convert the materials to customized finished baseball bats,and then offers the customized baseball bats for sale to little league teams and the general public.
Refer to Little League Baseball Manufacturer.
Manufacturing costs such as depreciation and insurance for the factory building,as well as heat,light,power,and similar expenses incurred to keep the factory operating,fall into which of the following categories?

Accepted Answer

A) direct material costs. 
B) direct labor costs. 
C) manufacturing overhead costs. 
D) opportunity costs. 
A) direct material costs. 
B) direct labor costs. 
C) manufacturing overhead costs. 
D) opportunity costs.

Question 11

Which costing system is generally used by companies who mass-produce homogeneous products,such as a petroleum refining company?

Accepted Answer

A) process costing system. 
B) variable costing system. 
C) job costing system. 
D) direct costing system. 
A) process costing system. 
B) variable costing system. 
C) job costing system. 
D) direct costing system.

Question 12

Leon Manufacturing Company
Leon Manufacturing Company uses a normal costing system.During the current year,the following events took place:
   
Refer to Leon Manufacturing Company.Calculate the work-in-process ending inventory (there was no beginning work-in-process inventory).

Accepted Answer

The answer of Leon Manufacturing Company
Leon Manufacturing Company uses a...

Question 13

Which of the following is false regarding normal costing?

Accepted Answer

A) Normal costing assigns to products actual direct material and direct labor costs plus an amount representing "normal" manufacturing overhead. 
B) Under normal costing,a firm derives a rate for applying overhead to units produced before the production period begins. 
C) Under normal costing,a firm uses a predetermined overhead rate in applying overhead to each unit as the firm produces it throughout the year. 
D) Under normal costing,a firm uses the actual overhead costs incurred because this is the "normal" procedure in the United States. 
A) Normal costing assigns to products actual direct material and direct labor costs plus an amount representing "normal" manufacturing overhead. 
B) Under normal costing,a firm derives a rate for applying overhead to units produced before the production period begins. 
C) Under normal costing,a firm uses a predetermined overhead rate in applying overhead to each unit as the firm produces it throughout the year. 
D) Under normal costing,a firm uses the actual overhead costs incurred because this is the "normal" procedure in the United States.

Question 14

In a normal costing system,how is the predetermined overhead rate calculated?

Accepted Answer

A) Divide actual manufacturing overhead by the normal (or estimated)activity level. 
B) Divide estimated manufacturing overhead by the actual activity level. 
C) Divide estimated manufacturing overhead by the normal (or estimated)activity level. 
D) Divide actual manufacturing overhead by the actual activity level. 
A) Divide actual manufacturing overhead by the normal (or estimated)activity level. 
B) Divide estimated manufacturing overhead by the actual activity level. 
C) Divide estimated manufacturing overhead by the normal (or estimated)activity level. 
D) Divide actual manufacturing overhead by the actual activity level.

Question 15

Which of the following represents a reason management would use JIT methods?

Accepted Answer

A) To keep large amounts of materials on hand for production. 
B) To provide finished goods just in time for sale. 
C) To hide defective units. 
D) To prevent laying off workers during slow times. 
A) To keep large amounts of materials on hand for production. 
B) To provide finished goods just in time for sale. 
C) To hide defective units. 
D) To prevent laying off workers during slow times.

Question 16

Compare and contrast job costing and process costing.Provide specific examples of the types of companies that might use one over the other.

Accepted Answer

In job costing,firms collect costs for e

Question 17

In a normal costing system,how is the predetermined fixed manufacturing overhead rate calculated?

Accepted Answer

A) Divide actual fixed manufacturing overhead by the normal (or estimated)activity level. 
B) Divide estimated fixed manufacturing overhead by the actual activity level. 
C) Divide estimated fixed manufacturing overhead by the normal (or estimated)activity level. 
D) Divide actual fixed manufacturing overhead by the actual activity level. 
A) Divide actual fixed manufacturing overhead by the normal (or estimated)activity level. 
B) Divide estimated fixed manufacturing overhead by the actual activity level. 
C) Divide estimated fixed manufacturing overhead by the normal (or estimated)activity level. 
D) Divide actual fixed manufacturing overhead by the actual activity level.

Question 18

Which costing system would be most appropriate for use by a soft drink bottling company?

Accepted Answer

A) process costing system. 
B) variable costing system. 
C) job costing system. 
D) direct costing system. 
A) process costing system. 
B) variable costing system. 
C) job costing system. 
D) direct costing system.

Question 19

In a service organization,accounting charges overhead to jobs based on hours worked on the job.Actual overhead incurred is $15,000.Actual hours worked for client A is 200 hours,for client B is 100 hours,and unbillable is 100 hours.Calculate the overhead rate.

Accepted Answer

A) $30 per hour. 
B) $40 per hour. 
C) $50 per hour. 
D) $60 per hour. 
A) $30 per hour. 
B) $40 per hour. 
C) $50 per hour. 
D) $60 per hour.

Question 20

Which of the following represents an example of an organization that would use continuous flow processing methods?

Accepted Answer

A) a chemical manufacturer. 
B) a custom home builder. 
C) a hospital. 
D) a custom jeweler. 
A) a chemical manufacturer. 
B) a custom home builder. 
C) a hospital. 
D) a custom jeweler.

Which of the following is an example of an organization that would use job-order accounting?

Use this information to answer the following question(s): Refer to the above information;determine the cost of goods manufactured during the period.

Briefly explain the concepts of customer costing and profitability analysis.

A company manager intentionally commits fraud by overstating the ending balance of inventory in order to improve his current period's performance evaluation and resulting bonus.Which of the following statements is true?

Which of the following statements is true concerning a normalized overhead rate?

Compare and contrast normal costing and actual costing.

Accounting in a JIT environment charges all costs directly to Cost of Goods Sold and charges them to Inventory accounts when needed using which of the following costing methods?

Which costing system is generally used by companies who mass-produce homogeneous products,such as a petroleum refining company?

Leon Manufacturing Company Leon Manufacturing Company uses a normal costing system.During the current year,the following events took place: Refer to Leon Manufacturing Company.Calculate the work-in-process ending inventory (there was no beginning work-in-process inventory).

Which of the following is false regarding normal costing?

In a normal costing system,how is the predetermined overhead rate calculated?

Which of the following represents a reason management would use JIT methods?

Compare and contrast job costing and process costing.Provide specific examples of the types of companies that might use one over the other.

In a normal costing system,how is the predetermined fixed manufacturing overhead rate calculated?

Which costing system would be most appropriate for use by a soft drink bottling company?

In a service organization,accounting charges overhead to jobs based on hours worked on the job.Actual overhead incurred is $15,000.Actual hours worked for client A is 200 hours,for client B is 100 hours,and unbillable is 100 hours.Calculate the overhead rate.

Which of the following represents an example of an organization that would use continuous flow processing methods?

Fundamental Concepts

Activity-Based Management

Strategic Management of Costs,quality,and Time

Cost Drivers and Cost Behavior

Financial Modeling for Short-Term Decision Making

Differential Cost Analysis for Operating Decisions

Capital Expenditure Decisions

Profit Planning and Budgeting

Profit and Cost Center Performance Evaluation

Investment Center Performance Evaluation

Incentive Issues

Allocating Costs to Responsibility Centers

Filters

Exam 2: Measuring Product Costs

Which of the following is an example of an organization that would use job-order accounting?

Use this information to answer the following question(s): Refer to the above information;determine the cost of goods manufactured during the period.

Briefly explain the concepts of customer costing and profitability analysis.

A company manager intentionally commits fraud by overstating the ending balance of inventory in order to improve his current period's performance evaluation and resulting bonus.Which of the following statements is true?

Which of the following statements is true concerning a normalized overhead rate?

Compare and contrast normal costing and actual costing.

Accounting in a JIT environment charges all costs directly to Cost of Goods Sold and charges them to Inventory accounts when needed using which of the following costing methods?

Which costing system is generally used by companies who mass-produce homogeneous products,such as a petroleum refining company?

Leon Manufacturing Company Leon Manufacturing Company uses a normal costing system.During the current year,the following events took place: Refer to Leon Manufacturing Company.Calculate the work-in-process ending inventory (there was no beginning work-in-process inventory).

Which of the following is false regarding normal costing?

In a normal costing system,how is the predetermined overhead rate calculated?

Which of the following represents a reason management would use JIT methods?

Compare and contrast job costing and process costing.Provide specific examples of the types of companies that might use one over the other.

In a normal costing system,how is the predetermined fixed manufacturing overhead rate calculated?

Which costing system would be most appropriate for use by a soft drink bottling company?

In a service organization,accounting charges overhead to jobs based on hours worked on the job.Actual overhead incurred is $15,000.Actual hours worked for client A is 200 hours,for client B is 100 hours,and unbillable is 100 hours.Calculate the overhead rate.

Which of the following represents an example of an organization that would use continuous flow processing methods?

Fundamental Concepts

Activity-Based Management

Strategic Management of Costs,quality,and Time

Cost Drivers and Cost Behavior

Financial Modeling for Short-Term Decision Making

Differential Cost Analysis for Operating Decisions

Capital Expenditure Decisions

Profit Planning and Budgeting

Profit and Cost Center Performance Evaluation

Investment Center Performance Evaluation

Incentive Issues

Allocating Costs to Responsibility Centers

Filters