Exam 9: Cost Accounting Systems

In 2014, Brunswick Plumbing Supplies planned the following: Factory overhead costs $180 000 Direct labour costs (15 000 hours at $8.00 per hour) $120 000 Machine Hours 48 000 Direct material costs $108 000 The predetermined overhead rate is based on direct labour hours and planned production during 2014 is 12 000 units. The estimated cost per unit produced is:

Process costs are determined by:

The method of calculating equivalent units where the costs assigned to the beginning inventory of work-in-process are combined with the current periods costs of production and the degree of completion of the beginning units is ignored is the:

The work in process account of Green Manufacturing shows a balance of $42 000 at the end of an accounting period. The job cost orders of the two uncompleted jobs show charges of $15 000 and $7000 for materials used and charges of $10 000 and $5000 for direct labour used. From this information it appears that the company is using a predetermined overhead rate as a percentage of direct labour costs, of:

The flow of goods in a firm that uses process costing is, work in process at the start 5000 units ½ complete, units started 54 000, units finished 50 000, work in process end of period 9000 units 1/3 complete. Raw materials are issued at the end of the production process. Using the weighted average method, the equivalent units as to conversion cost for the period are:

Which of these inputs are debited to a work-in-process account with a process costing system?

It is true that Just-in-time (JIT) processing:

The McIntyre Manufacturing Company distributes overhead based on direct labour dollars. The estimated manufacturing overhead for the year was $484 000 and the estimated direct labour dollars for the year were $110 000. Indicate the amount of underapplied or overapplied overhead if actual direct labour was $98 000 and actual manufacturing overhead was $418 800.

Which of the following statements concerning cost accounting for service type businesses is correct?

Which of the following statements concerning activity-based costing is correct?

A job costing system tracks:

Which industry generally uses a job costing system?

In the year 2014, Arden Panel Works planned the following. Factory overhead costs $180 000 Direct labour costs (15 000 hours at $8.00 per hour) $120 000 Machine Hours 48 000 Direct material costs $108 000 The predetermined overhead rate is based on direct labour hours and planned production during 2014 of 12 000 units. The direct material cost in each unit would be:

The correct statement concerning process costing is:

In a factory with several processes, there may be one or more service departments that do not process the materials directly. Which of the following is not an example of a service department?

Overhead has been underapplied when the:

An activity-based approach to designing a costing system focuses on:

Which of these is not a source document for job costing?

Surrey Pty Ltd applies overhead to completed jobs using a predetermined rate of 60% of direct labour costs. If Job No. 22 shows $12 000 of factory overhead applied, how much was the direct labour cost of the job?