Deck 6: Product Costing: Job and Process Operations

Question 1

The number of fully completed units that equates with a given number of partially completed units is referred to as the:

A) Number of units in ending finished goods inventory
B) Equivalent completed units
C) The number of units sold this period
D) The number of units in ending Work-in-Process inventory

Answer 1

Equivalent completed units

Question 2

Indicate whether each of the following costs, incurred by a manufacturer

-Vice president of manufacturing salary

A) Product cost
B) Period cost

Answer 2

Product cost

Question 3

Indicate whether each of the following costs, incurred by a manufacturer

-Vice president for human Resources salary

A) Product cost
B) Period cost

Answer 3

Period cost

Question 4

Indicate whether each of the following costs, incurred by a manufacturer

-Plant janitorial costs

A) Product cost
B) Period cost

Question 5

Indicate whether each of the following costs, incurred by a manufacturer

-Corporate jet operating expense

A) Product cost
B) Period cost

Question 6

Indicate whether each of the following costs, incurred by a manufacturer

-Depreciation on the sales office

A) Product cost
B) Period cost

Question 7

Indicate whether each of the following costs, incurred by a manufacturer

-Manufacturing overhead

A) Product cost
B) Period cost

Question 8

Indicate whether each of the following costs, incurred by a manufacturer

-Entertainment costs of vice president of manufacturing

A) Product cost
B) Period cost

Question 9

Classify the following costs incurred in the manufacturing of cookie bars

-Depreciation on Automated Wrapping Machine

A) Product Cost-Direct Materials
B) Product Cost-Conversion
C) Period Cost

Question 10

Classify the following costs incurred in the manufacturing of cookie bars

-Cookie Dough

A) Product Cost-Direct Materials
B) Product Cost-Conversion
C) Period Cost

Question 11

Classify the following costs incurred in the manufacturing of cookie bars

-Peanut Butter

A) Product Cost-Direct Materials
B) Product Cost-Conversion
C) Period Cost

Question 12

Classify the following costs incurred in the manufacturing of cookie bars

-Plant Manager's Salary of $85,000

A) Product Cost-Direct Materials
B) Product Cost-Conversion
C) Period Cost

Question 13

Classify the following costs incurred in the manufacturing of cookie bars

-Overtime Pay of Production Workers

A) Product Cost-Direct Materials
B) Product Cost-Conversion
C) Period Cost

Question 14

Classify the following costs incurred in the manufacturing of cookie bars

-Cost of Air Time for New Radio Advertising

A) Product Cost-Direct Materials
B) Product Cost-Conversion
C) Period Cost

Question 15

Classify the following costs incurred in the manufacturing of cookie bars

-Salary of Plant Security Guard

A) Product Cost-Direct Materials
B) Product Cost-Conversion
C) Period Cost

Question 16

Classify the following costs incurred in the manufacturing of cookie bars

-Salary of Company Controller

A) Product Cost-Direct Materials
B) Product Cost-Conversion
C) Period Cost

Question 17

Classify the following costs incurred in the manufacturing of cookie bars

-Depreciation on Computers in Legal Staff Office

A) Product Cost-Direct Materials
B) Product Cost-Conversion
C) Period Cost

Question 18

Classify the following costs incurred in the manufacturing of cookie bars

-Manufacturing Department's Allocation of Cafeteria Costs

A) Product Cost-Direct Materials
B) Product Cost-Conversion
C) Period Cost

Question 19

For each of the following independent manufacturing situation, select the best choice and why ?

-A manufacturer of customized vans

A) Job Order
B) Process

Question 20

For each of the following independent manufacturing situation, select the best choice and why ?

-A shoe manufacturer

A) Job Order
B) Process

Question 21

For each of the following independent manufacturing situation, select the best choice and why ?

-A newsprint paper mill

A) Job Order
B) Process

Question 22

For each of the following independent manufacturing situation, select the best choice and why ?

-A one-time order of 60,000 identical clips

A) Job Order
B) Process

Question 23

For each of the following independent manufacturing situation, select the best choice and why ?

-A manufacturer of upscale men's suits

A) Job Order
B) Process

Question 24

For each of the following independent manufacturing situation, select the best choice and why ?

-A building contractor for $800,000 homes

A) Job Order
B) Process

Question 25

For each of the following independent manufacturing situation, select the best choice and why ?

-A manufacturer of airplanes

A) Job Order
B) Process

Question 26

For each of the following independent manufacturing situation, select the best choice and why ?

-A maker of commercial chemicals

A) Job Order
B) Process

Question 27

For each of the following independent manufacturing situation, select the best choice and why ?

-A one-size-fits-all hosiery mill

A) Job Order
B) Process

Question 28

For each of the following independent manufacturing situation, select the best choice and why ?

-A manufacturer of yarn for the hosiery mill

A) Job Order
B) Process