Question 1

Operation cost is a hybrid of job and process costing,where the materials differ by type of product but

Accepted Answer

A) labor and overhead amounts are different. 
B) labor amounts are the same and overhead amounts are different. 
C) labor and overhead amounts are the same. 
D) labor amounts are different and overhead amounts are the same. 
A) labor and overhead amounts are different. 
B) labor amounts are the same and overhead amounts are different. 
C) labor and overhead amounts are the same. 
D) labor amounts are different and overhead amounts are the same.

Question 2

What method of production eliminates the need for inventories because no production takes place until the firm knows that it will sell the item?

Accepted Answer

A) First-in,last-out methods 
B) Last-in,first-out methods 
C) Just-in-time methods 
D) Next-in,first-out methods 
A) First-in,last-out methods 
B) Last-in,first-out methods 
C) Just-in-time methods 
D) Next-in,first-out methods

Question 3

How does the Work-in-Process account both describe the transformation of inputs into outputs in a company and account for the costs incurred in the process?

Accepted Answer

A key factor in a company's success is h

Question 4

Which of the following is the appropriate procedure to apply overhead to production using normal costing?

Accepted Answer

A) Assign actual direct material and direct labor costs plus an amount representing "normal" manufacturing overhead to products. 
B) Assign "normal" direct material and direct labor costs plus an amount representing "normal" manufacturing overhead to products. 
C) Assign actual direct material and direct labor costs plus an amount representing actual manufacturing overhead to products. 
D) All of the answers are correct. 
A) Assign actual direct material and direct labor costs plus an amount representing "normal" manufacturing overhead to products. 
B) Assign "normal" direct material and direct labor costs plus an amount representing "normal" manufacturing overhead to products. 
C) Assign actual direct material and direct labor costs plus an amount representing actual manufacturing overhead to products. 
D) All of the answers are correct.

Question 5

Compare just-in-time to a traditional accounting system.Clarion,Inc. ,produces GPS units.The company received an order for 8,000 GPS Units.The company purchased and used $600,000 of materials for this order.The company incurred labor costs of $350,000 and overhead costs of $900,000.The company credits all costs to "Wages and Accounts Payable." The accounting period ended before the company completed the order.The firm had 15 percent of the total costs incurred still in Work-in-Process Inventory and 25 percent of the total costs incurred still in Finished Goods Inventory.
Required:
a.Use journal entries to show the flow of costs using backflush costing.
b.Use journal entries to show the flow of costs using a traditional costing system.
(Compare just-in-time to a traditional accounting system. )

Accepted Answer

a.Backflush Costing
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Question 6

Computing equivalent units (Appendix 2.1).The Assembly Department had 90,000 units
75 percent complete in Work-in-Process Inventory at the beginning of April.During
April,the department started and completed 110,000 units.The department started
another 46,000 units and completed 20 percent as of the end of April.
Required: Compute the equivalent units of work performed during April using FIFO.

Accepted Answer

(Computing

Question 7

Susan Johnson Products Company
The Susan Johnson Products Company uses a job costing system.For Year 4,the firm estimated total overhead to be $40,000 and the number of direct labor hours to be 10,000.
Refer to the Susan Johnson Products Company.Job 247 is a special order of 100 special-design tables.The work-in-process inventory account for this job shows raw material costs of $4,600 and direct labor costs of $7,600.The firm has charged 1,200 direct labor hours to the job.What is the total cost of Job 247?

Accepted Answer

The answer of Susan Johnson Products Company
The Susan Johnson Products...

Question 8

Computing product costs with incomplete products (Appendix 2.1).The Assembly Department had 80,000 units 65 percent complete in Work-in-Process Inventory at the beginning of April.During
April,the department started and completed 150,000 units.The department started another 42,000 units and completed 25 percent as of the end of April.Assume that the cost assigned to beginning inventory on April 1 was $84,000 and that the department incurred $276,000 of production costs during April.
Required: Prepare a production cost report like the one shown in Exhibit 2.10 in the text.Assume the department incurred production costs evenly throughout processing.

Accepted Answer

(Computing product c

Question 9

Which is not correct for just-in-time (JIT)methods?

Accepted Answer

A) JIT attempts to obtain materials just in time for production and to provide finished goods just in time for sale. 
B) JIT reduces,or potentially eliminates,inventories and the cost of carrying them. 
C) JIT compels workers to immediately correct a process making defective units. 
D) JIT relies on cheap,low quality materials from multiple suppliers,to meet production objectives. 
A) JIT attempts to obtain materials just in time for production and to provide finished goods just in time for sale. 
B) JIT reduces,or potentially eliminates,inventories and the cost of carrying them. 
C) JIT compels workers to immediately correct a process making defective units. 
D) JIT relies on cheap,low quality materials from multiple suppliers,to meet production objectives.

Question 10

Which costing methodology derives a rate for applying overhead to units produced before the production period,then uses this "predetermined rate" in applying overhead to each unit as they produces it?

Accepted Answer

A) Normal costing 
B) Actual costing 
C) Predetermined costing 
D) Imputed production costing 
A) Normal costing 
B) Actual costing 
C) Predetermined costing 
D) Imputed production costing

Question 11

The basic cost flow equation is used by

Accepted Answer

A) independent auditors to perform reasonableness checks on the data they receive from clients. 
B) companies to check that the amount of inventory recorded on the books matches the physical count of inventory. 
C) independent auditors and companies to check for thefts or financial fraud. 
D) All of the answers are correct. 
A) independent auditors to perform reasonableness checks on the data they receive from clients. 
B) companies to check that the amount of inventory recorded on the books matches the physical count of inventory. 
C) independent auditors and companies to check for thefts or financial fraud. 
D) All of the answers are correct.

Question 12

Which of the following statements is true if a company overstates the ending balance of inventory?

Accepted Answer

A) Cost of Goods Sold and profits will be overstated and Gross Margin will be understated. 
B) Cost of Goods Sold,Gross Margin,and profits will be understated. 
C) Cost of Goods Sold,Gross Margin,and profits will be overstated. 
D) Cost of Goods Sold will be understated,Gross Margin and profits will be overstated. 
A) Cost of Goods Sold and profits will be overstated and Gross Margin will be understated. 
B) Cost of Goods Sold,Gross Margin,and profits will be understated. 
C) Cost of Goods Sold,Gross Margin,and profits will be overstated. 
D) Cost of Goods Sold will be understated,Gross Margin and profits will be overstated.

Question 13

Explain the importance of product cost information for managers.

Accepted Answer

Product cost information is he

Question 14

Which of the following accounts does not appear on the balance sheet?

Accepted Answer

A) Raw Materials Inventory 
B) Work in Process Inventory 
C) Cost of Goods Sold 
D) Finished Goods Inventory 
A) Raw Materials Inventory 
B) Work in Process Inventory 
C) Cost of Goods Sold 
D) Finished Goods Inventory

Question 15

Assume a normal costing system.Calculate the predetermined overhead rate based on the following assumptions:

Accepted Answer

A) $9.00 per machine hour 
B) $10.00 per machine hour 
C) $9.375 per machine hour 
D) $10.42 per machine hour 
A) $9.00 per machine hour 
B) $10.00 per machine hour 
C) $9.375 per machine hour 
D) $10.42 per machine hour

Question 16

In process costing,what is the equation for determining average unit cost?

Accepted Answer

A) Total Manufacturing Cost Incurred during the Period divided by Total Units Produced during the period. 
B) Average Manufacturing Cost Incurred during the Period divided by Total Units Produced during the period. 
C) Total Manufacturing Cost Incurred during the Period divided by Average Units Produced during the period. 
D) Average Manufacturing Cost Incurred during the Period divided by Average Units Produced during the period. 
A) Total Manufacturing Cost Incurred during the Period divided by Total Units Produced during the period. 
B) Average Manufacturing Cost Incurred during the Period divided by Total Units Produced during the period. 
C) Total Manufacturing Cost Incurred during the Period divided by Average Units Produced during the period. 
D) Average Manufacturing Cost Incurred during the Period divided by Average Units Produced during the period.

Question 17

What is the method of costing used by companies that use a combination of job and process costing?

Accepted Answer

A) hybrid costing. 
B) standard costing. 
C) sunk costing. 
D) combination costing 
A) hybrid costing. 
B) standard costing. 
C) sunk costing. 
D) combination costing

Question 18

Which of the following isnot a component of just-in-time (JIT)production methods?

Accepted Answer

A) Management uses JIT methods to obtain materials just in time for production. 
B) Management provides finished goods just in time for sale. 
C) JIT requires that workers immediately correct a process making defective unit. 
D) Workers and supervisors can hide defective units in inventory. 
A) Management uses JIT methods to obtain materials just in time for production. 
B) Management provides finished goods just in time for sale. 
C) JIT requires that workers immediately correct a process making defective unit. 
D) Workers and supervisors can hide defective units in inventory.

Question 19

Which of the following costing system has characteristics of both job and process costing?

Accepted Answer

A) normal costing. 
B) actual costing 
C) operation costing. 
D) standard costing. 
A) normal costing. 
B) actual costing 
C) operation costing. 
D) standard costing.

Question 20

Fisher Products Company
The Fisher Products Company uses a job costing system.The company estimated its annual overhead to be $100,000,and the number of direct labor hours for the year to be 20,000 hours.In the first month,the following jobs were completed:
   
Refer to the Fisher Products Company.What is the overhead assigned to job #205?

Accepted Answer

1,250 hour

Operation cost is a hybrid of job and process costing,where the materials differ by type of product but

What method of production eliminates the need for inventories because no production takes place until the firm knows that it will sell the item?

How does the Work-in-Process account both describe the transformation of inputs into outputs in a company and account for the costs incurred in the process?

Which of the following is the appropriate procedure to apply overhead to production using normal costing?

Which is not correct for just-in-time (JIT)methods?

Which costing methodology derives a rate for applying overhead to units produced before the production period,then uses this "predetermined rate" in applying overhead to each unit as they produces it?

The basic cost flow equation is used by

Which of the following statements is true if a company overstates the ending balance of inventory?

Explain the importance of product cost information for managers.

Which of the following accounts does not appear on the balance sheet?

Assume a normal costing system.Calculate the predetermined overhead rate based on the following assumptions:

In process costing,what is the equation for determining average unit cost?

What is the method of costing used by companies that use a combination of job and process costing?

Which of the following isnot a component of just-in-time (JIT)production methods?

Which of the following costing system has characteristics of both job and process costing?

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

Operation cost is a hybrid of job and process costing,where the materials differ by type of product but

What method of production eliminates the need for inventories because no production takes place until the firm knows that it will sell the item?

How does the Work-in-Process account both describe the transformation of inputs into outputs in a company and account for the costs incurred in the process?

Which of the following is the appropriate procedure to apply overhead to production using normal costing?

Which is not correct for just-in-time (JIT)methods?

Which costing methodology derives a rate for applying overhead to units produced before the production period,then uses this "predetermined rate" in applying overhead to each unit as they produces it?

The basic cost flow equation is used by

Which of the following statements is true if a company overstates the ending balance of inventory?

Explain the importance of product cost information for managers.

Which of the following accounts does not appear on the balance sheet?

Assume a normal costing system.Calculate the predetermined overhead rate based on the following assumptions:

In process costing,what is the equation for determining average unit cost?

What is the method of costing used by companies that use a combination of job and process costing?

Which of the following isnot a component of just-in-time (JIT)production methods?

Which of the following costing system has characteristics of both job and process costing?

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