Question;110. Snead Manufacturing has;recently tried to improve its analysis for its manufacturing process. Units;started into production equaled 9,000 and ending work in process equaled 600;units. Snead had no beginning work in process inventory. Conversion costs are;applied equally throughout production, and materials are applied at the;beginning of the process. How much is the materials cost per unit if ending;work in process was 25% complete and total materials costs equaled $60,000?;a. $6.67;b. $7.02;c. $25.00;d. $6.25;21 - 20 Test Bank for Accounting Principles, Eighth;Edition;113. Madison Industries has;equivalent units of 4,000 for materials and for conversion costs. Total;manufacturing costs are $200,000. Total materials costs are $150,000. How much;is the conversion cost per unit?;a. $37.50;b. $12.50;c. $50.00;d. $10.00;114. In a process cost system, a;production cost report is prepared;a. only for the first;processing department.;b. for all departments in the;aggregate.;c. for each processing;department.;d. only for the last;processing department.;115. A production cost report;a. is prepared for each;product.;b. is prepared from a job cost;sheet.;c. will show quantity and cost;data for a production department.;d. will not identify a specific;department if more than one department is involved in the production process.;116. In the production cost;report, the total;a. physical units accounted;for equals the costs accounted for.;b. physical units accounted;for equals the units to be accounted for.;c. costs charged equals the;units to be accounted for.;d. costs accounted for equals;the costs of the units started into production.;117. Just-in-time processing;requires;a. a constant build-up of;finished goods inventory just in case unexpected or rush orders are received.;b. that suppliers of the;company be able to deliver on short notice exact quantities of raw materials.;c. that the quality control;system be eliminated so that production is completed without interruption.;d. an increase in the level of;raw materials inventory so that production can be completed just-in-time before;the delivery date promised.;118. Many U.S. firms are;switching to JIT processing because;a. they desire a;push" approach to manufacturing.;b. it eliminates conversion;costs.;c. it can reduce the funds;invested in inventories.;d. it is a means of building;up inventories.;119. The elements of JIT do not;include;a. dependable suppliers.;b. efficient competitors.;c. a total quality control;system.;d. a multiskilled work force.;Process Cost;Accounting 21 - 21;120. In a JIT cost accounting;system;a. reduced product quality is;offset by reduced cost.;b. manufacturing overhead is;applied in the traditional manner.;c. Raw Materials and Work in;Process Inventory accounts are replaced by Raw and In-Process Inventory.;d. conversion costs are;eliminated.;121. Which of the following is not;considered a benefit of JIT processing?;a. More efficient production;because all raw materials are delivered to one central receiving warehouse.;b. Product quality is enhanced;through a total quality control system.;c. Rework costs and inventory;storage costs should be reduced or eliminated.;d. Manufacturing inventories;are significantly reduced.;122. What is the biggest;disadvantage of ABC?;a. It does not provide costing;information needed for GAAP purposes.;b. It causes management to;make frivolous decisions.;c. It often causes managers to;argue about the best activity measure.;d. It is expensive.;123. An important assumption in;using ABC is that;a. production must take place;on a continuous basis.;b. all costs in an activity;should respond proportionately to changes in the activity level of the cost;driver.;c. production must take place;on a just-in-time basis.;d. all costs are pushed;through each process when customer orders are received.;124. What is true concerning an;ABC philosophy?;a. Costs should be applied;using one activity level for simplicity.;b. Each overhead cost should;respond proportionally to changes in the activity level of its cost driver.;c. One best cost driver should;be selected.;d. No work in process;inventories should be used.;125. Under the ABC philosophy;a. all inventories should be;reduced or eliminated.;b. the push approach should be;used in the first department of a process and the pull approach should be used;in all subsequent departments.;c. the cost of a product is;equal to the sum of the costs of all activities performed to manufacture it.;d. only one cost driver can be;used.;126. Which would be an;appropriate cost driver for the delivery activity?;a. Customers;b. Purchase orders;c. Shipments;d. Inspections;127. Which would be an;appropriate cost driver for the ordering activity?;a. Machine setups;b. Purchase orders;c. Machine hours;d. Inspections;21 - 22 Test Bank for Accounting Principles, Eighth;Edition;a128. Which of the following is not a;benefit of activity-based costing?;a. More accurate product;costing;b. Enhanced control over;overhead costs;c. Better management decisions;d. Less costly to use;a129. Which of the following is a limitation of;activity-based costing?;a. More cost bases;b. Less control over overhead;costs;c. Poorer management decisions;d.;Some;arbitrary allocations continue Additional Multiple Choice Questions;130. A process cost system would;be used by all of the following except a(n);a. chemical company.;b. advertising company.;c. oil company.;d. computer chip company.;131. Which of the following is;considered a difference between a job order cost and a process cost system?;a. The manufacturing cost;elements;b. Documents used to track;costs;c. The accumulation of the;costs of materials, labor, and overhead;d. The flow of costs;132. The basic similarities;between job order cost and process cost systems include all of the following except;the;a. manufacturing cost;elements.;b. flow of costs.;c. point at which costs are;totaled.;d. accumulation of the costs;of materials, labor, and overhead.;133;Equivalent;units of production are a measure of;a. units completed and;transferred out.;b. units transferred out.;c. units in ending work in;process.;d. the work done in a period;expressed in fully completed units.;134. Total physical units to be;accounted for are equal to the units;a. started (or transferred);into production.;b. started (or transferred);into production plus the units in beginning work in process.;c. started (or transferred);into production less the units in beginning work in process.;d. completed and transferred;out.;135. In computing equivalent;units, ___________ is not part of the equivalent units of production formula.;a. units transferred out;b. beginning work in process;c. ending work in process;d. None of these is correct.;Process Cost;Accounting 21 - 23;136. In Saint-Simon, Inc., the;Assembly Department started 12,000 units and completed 14,000 units. If;beginning work in process was 6,000 units, how many units are in ending work in;process?;a. 0;b. 2,000;c. 4,000;d. 8,000;137. The total units to be;accounted for is computed by adding;a. beginning units in process;to units transferred out.;b. ending units in process to;units started into production.;c. beginning units in process;to units started into production.;d. ending units in process to;total units accounted for.;138. In the Camria Company;materials are entered at the beginning of the process. If there is no beginning;work in process, but there is an ending work in process inventory, the number;of equivalent units as to materials costs will be;a. the same as the units started.;b. the same as the units;completed.;c. less than the units;started.;d. less than the units;completed.;139. For the Assembly;Department, unit materials cost is $8 and unit conversion cost is $12. If there;are 6,000 units in ending work in process 75% complete as to conversion costs;the costs to be assigned to the inventory are;a. $120,000.;b. $102,000.;c. $90,000.;d. $108,000.;140. The total costs accounted;for in a production cost report equal the;a. cost of units completed and;transferred out only.;b. cost of units started into;production.;c. cost of units completed and;transferred out plus the cost of ending work in process.;d. cost of beginning work in;process plus the cost of units completed and transferred out.;141. In a production cost;report, which one of the following sections is not shown under Costs?;a. Unit costs;b. Costs to be accounted for;c. Costs during the period;d. Units accounted for;142. Which of the following;statements is incorrect concerning just-in-time (JIT) processing?;a. U.S. firms are switching to;JIT processing in response to foreign competition.;b. JIT manufacturing is;dedicated to producing the right products at the right time as they are needed.;c. JIT strives to eliminate;inventories by using a "push" approach in manufacturing.;d. JIT accounting creates a;Raw and In-Process Inventory account.
Paper#41824 | Written in 18-Jul-2015Price : $19