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1. Which of the following accounts is used to accumulate the actual manufacturing overhead costs incurred during a period?

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1. Which of the following accounts is used to accumulate the actual manufacturing overhead costs incurred during a period?

A. Applied Manufacturing Overhead
B. Work-in-Process Inventory
C. Manufacturing Overhead Control
D. Cost of Goods Sold
E. Finished Goods Inventory

2. Which of the following statements is (are) false regarding first-stage and second-stage cost allocation methods?

(A) The basic difference between a first-stage cost allocation and a second-stage cost allocation is that cost pools are not used in first-stage cost allocations.
(B) Predetermined overhead rates are used in first-stage cost allocations but not in second-stage cost allocations. (Points : 1)

A. Only A is false
B. Only B is false.
C. Neither A nor B is false.
D. Both A and B are false.

3. Volume-based costing allocates indirect product costs based on the volume of output, using such allocation bases as direct labor hours, machine hours, and the amount of direct material used in the production process. Activity-based costing (ABC) has consistently shown that Volume-based costing (Points : 1)

A. overstates high volume products.
B. overstates low volume products.
C. understates high volume products.
D. understates low volume products.
E. More than one of the above is true.

4. The ALG Manufacturing Company has gathered the following information for the month of September:

· 6,000 units in the beginning Work-in-Process Inventory (75% complete as to materials, 1/3 complete with respect to the conversion costs)
· 60,000 units were started into production
· 50,000 units were completed and transferred to the next department
· The ending Work-in-Process Inventory is complete as to materials but only 3/8 complete with respect to conversion costs.

What are the equivalent units of production (EUP) for materials in the month of September assuming ALG uses weighted-average process costing? (Points : 1)

A. 52,000
B. 64,500
C. 66,000
D. 61,500

5. RST Company incurred $126,000 in material costs during July. Additionally, the 12,000 units in the Work-in-Process Inventory on July 01 had materials assigned to them of $32,000, even though they were only 5% complete as to materials. No additional units were started during July, and there were no incomplete units on hand on July 31. What is the material cost per unit for July, assuming RST uses weighted-average process costing? (Points : 1)

A. $10.50
B. $11.59
C. $13.17
D. $15.49

6. Which of the following statements is (are) true regarding product costing?
(A) A job is a cost object that can be easily and conveniently distinguished from other cost objects.
(B) Job cost sheets are used in accounting systems as a subsidiary ledger for the Work-in-Process account. (Points : 1)

A. Only A is true
B. Only B is true.
C. Both A and B are true.
D. Neither A nor B is true.

7. In a production-cost report using process costing, transferred-in costs are similar to (Points : 1)
A. material added at the beginning of the process.
B. conversion costs added during the process.
C. costs transferred to the next process.
C. costs included in beginning inventory.

8. The Blue Corporation started and completed 4,800 units during February. Blue started the month with 700 units in process (40% complete) and ended the month with 400 units in process (40% complete). How many units were transferred to the Finished Goods Inventory during February? (Points : 1)

A. 5,500.
B. 5,380.
C. 5,100.
D. 4,400.
E. 4,100.

9. For which of the following businesses would the job order cost system be appropriate? (Points : 1)

A. auto repair shop
B. crude oil refinery
C. drug manufacturer
D. beer distillery

10. Additional materials are added in the second department of a four-department production process. However, this addition does not increase the number of units being produced in the second department, but will (Points : 1)

A. increase the equivalent units of production.
B. increase the total cost per unit.
C. decrease the value of the transferred-in costs.
D. decrease the total costs to account for.

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