Question 1

Just-in-time (JIT)methods

Accepted Answer

A) do not start production until the firm receives an order for the finished product. 
B) do not order raw materials until the firm receives an order for the finished product. 
C) ends production as soon as an order for the finished product is filled. 
D) All of the answers are correct. 
A) do not start production until the firm receives an order for the finished product. 
B) do not order raw materials until the firm receives an order for the finished product. 
C) ends production as soon as an order for the finished product is filled. 
D) All of the answers are correct.

Question 2

What is important to recognize when comparing the cost-benefit considerations of job versus process costing?

Accepted Answer

A) Job costing provides less detailed information than process costing and job costing costs more to implement than process costing. 
B) Job costing provides less detailed information than process costing and job costing costs less to implement than process costing. 
C) Job costing provides more detailed information than process costing and job costing costs less to implement than process costing. 
D) Job costing provides more detailed information than process costing and job costing costs more to implement than process costing. 
A) Job costing provides less detailed information than process costing and job costing costs more to implement than process costing. 
B) Job costing provides less detailed information than process costing and job costing costs less to implement than process costing. 
C) Job costing provides more detailed information than process costing and job costing costs less to implement than process costing. 
D) Job costing provides more detailed information than process costing and job costing costs more to implement than process costing.

Question 3

Which method of costing is used to record all manufacturing costs directly in Cost of Goods Sold,and if any inventories occur at the end of the accounting period,the appropriate costs are transferred back to the inventory accounts?

Accepted Answer

A) Put-back costing 
B) Traditional costing 
C) Reverse costing 
D) Backflush costing 
A) Put-back costing 
B) Traditional costing 
C) Reverse costing 
D) Backflush costing

Question 4

Describe the three major manufacturing cost categories.

Accepted Answer

The three major categories of manufactur

Question 5

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 the wages for janitorial staff to sweep and mop the floors,that are not easily traced to a specific customized baseball bat 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 6

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 company's predetermined overhead rate using direct labor hours as the base?

Accepted Answer

$100,000/2

Question 7

Your supervisor at a consulting firm asks you to allocate the time you actually spent on jobs now in danger of exceeding their cost estimates to other jobs less likely to overrun cost estimates.Which of the following statements is true?

Accepted Answer

A) This practice misleads managers who rely on accurate cost information for pricing,cost control,and other decisions. 
B) This practice cheats people who may be paying for a job on a cost-plus-fee basis,where the job has cost less than the producer claims. 
C) This practice avoids the appearance of cost overruns on some jobs and is unethical. 
D) All of the answers are correct. 
A) This practice misleads managers who rely on accurate cost information for pricing,cost control,and other decisions. 
B) This practice cheats people who may be paying for a job on a cost-plus-fee basis,where the job has cost less than the producer claims. 
C) This practice avoids the appearance of cost overruns on some jobs and is unethical. 
D) All of the answers are correct.

Question 8

Computing product costs with incomplete products (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.
Assume that the cost assigned to beginning inventory on April 1 was $78,000 and that the department incurred $298,000 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

Why do firms collect costs by job?

Accepted Answer

A) For performance evaluation 
B) To provide information for cost control 
C) To compare actual with estimated costs for pricing future jobs 
D) All of the answers are correct. 
A) For performance evaluation 
B) To provide information for cost control 
C) To compare actual with estimated costs for pricing future jobs 
D) All of the answers are correct.

Question 10

The Work-in-Process account both describes the transformation of inputs into outputs in a company and accounts for the costs incurred in the process.The key equation in symbols is

Accepted Answer

A) BB + TI = TO + EB. 
B) EB + TI = TO + BB. 
C) BB + TO = TI + EB. 
D) None of the answers is correct. 
A) BB + TI = TO + EB. 
B) EB + TI = TO + BB. 
C) BB + TO = TI + EB. 
D) None of the answers is correct.

Question 11

Continuous flow processing is most appropriate for
Type of Product Length of Production Run

Accepted Answer

A) Customized Short 
B) Customized Long 
C) Standardized Short 
D) Standardized Long 
A) Customized Short 
B) Customized Long 
C) Standardized Short 
D) Standardized Long

Question 12

What can be said of the relationship between cost of goods sold and the cost of goods manufactured when finished goods inventories increase? (Assume no change in unit prices. )

Accepted Answer

A) They are equal. 
B) Cost of Goods Sold greater than Cost of Goods Manufactured 
C) Cost of Goods Manufactured greater than Cost of Goods Sold 
D) Nothing can be said without additional information. 
A) They are equal. 
B) Cost of Goods Sold greater than Cost of Goods Manufactured 
C) Cost of Goods Manufactured greater than Cost of Goods Sold 
D) Nothing can be said without additional information.

Question 13

The Mega-Audits Accounting Firm uses a job costing system.For Year 6,the firm estimated total overhead to be $80,000 and the number of direct labor hours to be 20,000.In the last quarter,the firm completed the following audit jobs:
   
Calculate the predetermined overhead rate.

Accepted Answer

Predetermined overhe

Question 14

Jenkins Company
Jenkins Company applies overhead costs to products at a rate of 50 percent of direct labor costs.The following data relate to the manufacturing activities of Jenkins Company during April:

Accepted Answer

The answer of Jenkins Company
Jenkins Company applies overhead costs to...

Question 15

Which of the following costing system is appropriate for a company that produces customized products?

Accepted Answer

A) job costing. 
B) process costing 
C) operation costing. 
D) standard costing. 
A) job costing. 
B) process costing 
C) operation costing. 
D) standard costing.

Question 16

Describe the cost accumulation process for a manufacturer.Is it different for a service organization?

Accepted Answer

A manufacturer normally has three invent

Question 17

Applied overhead in a bank.On January 1,a bank estimated its production capacity to be 950 million units and used that estimate to compute its predetermined overhead rate of $0.012 per transaction (one unit = one transaction).The units produced for the four quarters follow:
   
Required:
a.Compute the amount of total overhead applied under normal costing for each quarter.
b.What was the estimated overhead for the year for the predicted capacity of 950 million units?

Accepted Answer

a.Total overhead applied.
 @#IMG-DLM&_TB

Question 18

Just-in-time methods.Carmen Products uses just-in-time production methods.To produce 1,200 units for an order,the company purchased and used materials costing $36,000 and incurred other manufacturing costs of $24,000,of which $10,000 was labor.All costs were on account.After Carmen completed production on the 1,200 units and shipped 1,100 units,management recorded the Finished Goods Inventory balance for the 100 units remaining in inventory for financial statement preparation.
Required: Prepare journal entries and T-accounts for these transactions using backflush costing.

Accepted Answer

Journal En

Question 19

Which costing system uses equivalent units in the computation of costs?

Accepted Answer

A) Job costing 
B) Process costing 
C) Both a and b 
D) Neither a nor b 
A) Job costing 
B) Process costing 
C) Both a and b 
D) Neither a nor b

Question 20

Job costing is most appropriate for
Type of Product Length of Production Run

Accepted Answer

A) Customized Short 
B) Customized Long 
C) Standardized Short 
D) Standardized Long 
A) Customized Short 
B) Customized Long 
C) Standardized Short 
D) Standardized Long

Just-in-time (JIT)methods

What is important to recognize when comparing the cost-benefit considerations of job versus process costing?

Which method of costing is used to record all manufacturing costs directly in Cost of Goods Sold,and if any inventories occur at the end of the accounting period,the appropriate costs are transferred back to the inventory accounts?

Describe the three major manufacturing cost categories.

Your supervisor at a consulting firm asks you to allocate the time you actually spent on jobs now in danger of exceeding their cost estimates to other jobs less likely to overrun cost estimates.Which of the following statements is true?

Why do firms collect costs by job?

The Work-in-Process account both describes the transformation of inputs into outputs in a company and accounts for the costs incurred in the process.The key equation in symbols is

Continuous flow processing is most appropriate for Type of Product Length of Production Run

What can be said of the relationship between cost of goods sold and the cost of goods manufactured when finished goods inventories increase? (Assume no change in unit prices. )

The Mega-Audits Accounting Firm uses a job costing system.For Year 6,the firm estimated total overhead to be $80,000 and the number of direct labor hours to be 20,000.In the last quarter,the firm completed the following audit jobs: Calculate the predetermined overhead rate.

Jenkins Company Jenkins Company applies overhead costs to products at a rate of 50 percent of direct labor costs.The following data relate to the manufacturing activities of Jenkins Company during April:

Which of the following costing system is appropriate for a company that produces customized products?

Describe the cost accumulation process for a manufacturer.Is it different for a service organization?

Which costing system uses equivalent units in the computation of costs?

Job costing is most appropriate for Type of Product Length of Production Run

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

Just-in-time (JIT)methods

What is important to recognize when comparing the cost-benefit considerations of job versus process costing?

Which method of costing is used to record all manufacturing costs directly in Cost of Goods Sold,and if any inventories occur at the end of the accounting period,the appropriate costs are transferred back to the inventory accounts?

Describe the three major manufacturing cost categories.

Your supervisor at a consulting firm asks you to allocate the time you actually spent on jobs now in danger of exceeding their cost estimates to other jobs less likely to overrun cost estimates.Which of the following statements is true?

Why do firms collect costs by job?

The Work-in-Process account both describes the transformation of inputs into outputs in a company and accounts for the costs incurred in the process.The key equation in symbols is

Continuous flow processing is most appropriate for Type of Product Length of Production Run

What can be said of the relationship between cost of goods sold and the cost of goods manufactured when finished goods inventories increase? (Assume no change in unit prices. )

The Mega-Audits Accounting Firm uses a job costing system.For Year 6,the firm estimated total overhead to be $80,000 and the number of direct labor hours to be 20,000.In the last quarter,the firm completed the following audit jobs: Calculate the predetermined overhead rate.

Jenkins Company Jenkins Company applies overhead costs to products at a rate of 50 percent of direct labor costs.The following data relate to the manufacturing activities of Jenkins Company during April:

Which of the following costing system is appropriate for a company that produces customized products?

Describe the cost accumulation process for a manufacturer.Is it different for a service organization?

Which costing system uses equivalent units in the computation of costs?

Job costing is most appropriate for Type of Product Length of Production Run

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