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1. Conversion costs in a process cost system in...

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1. Conversion costs in a process cost system include: (Points : 2) Direct materials and direct labor. Direct labor and manufacturing overhead. Direct materials and manufacturing overhead. Manufacturing overhead and selling, general & administrative expenses. 2. The costs of operating a regional warehouse is an example of a: (Points : 2) Customer unit-level cost. Customer batch-level cost. Customer-sustaining cost. Distribution-channel cost. 3. Firms should use a process costing system when they produce products that: (Points : 2) Are semi-homogeneous. Pass through a series of manufacturing processes. Pass through only one department. Have small batch sizes. 4. Which one of the following is a high value-added activity? (Points : 2) Set up. Rework. Repair. Storage. Processing. 5. The sum of units transferred out and ending inventory units, assuming no spoilage, determines the: (Points : 2) Units completed during the period. Units spoiled. Units transferred in during the period. Units accounted for. 6. For job costing in service industries, overhead costs are usually applied to jobs based on: (Points : 2) Factory overhead. Indirect labor. Indirect materials. Direct labor-hours or dollars. Direct materials. 7. Activity-based costing (ABC) differs from other costing approaches in its: (Points : 2) Incorporating customer needs. Complexity in implementation. Focus on operational excellence. Use of cost objects. Recognition of the causal relationship. 8. With the increase in competition over the past several years, traditional cost accounting systems have become less common in product costing because (Points : 2) They use volume-based cost drivers. They use structural cost drivers. They use executional cost drivers. They use indirect cost drivers. 9. Which of the following characteristics applies to process costing but not to job costing? (Points : 2) Identifiable batches of production. Average costs. Equivalent units. Application of overhead. 10. An adaptation of ABC costing that simplifies ABC by assigning resource costs directly to cost objects is called: (Points : 2) Activity analysis Multistage ABC Time-Driven ABC Resource Consumption Accounting Customer profitability analysis 11. The major limitation of volume-based costing systems is the use of volume-based: (Points : 2) Criteria. Standards. Rates. Variances. Restrictions. 12. Roussey Co. had the following information for the month of June: Work-in-Progress Inventory ? 6/1 2,000 Units Units Transferred In 10,000 Units Work-in-Progress Inventory ? 6/30 3,000 Units Beginning work-in-process inventory is 30 percent complete as to conversion. Ending work-in-process inventory is 40 percent complete as to conversion. Materials are added at the end of the process. How many units were completed in June? (Points : 2) 12,000. 10,000. 9,600. 9,000. 7,000. 13. Freight charges based on number of units shipped to customers is a: (Points : 2) Customer unit-level cost. Customer batch-level cost. Customer-sustaining cost. Distribution-channel cost. Sales-level cost. 14. A Production Cost Report summarizes all except: (Points : 2) The physical units of a department. The equivalent units of a department. The costs incurred during the period. The costs assigned to both units completed and ending work-in-process inventories. The budgeted labor and overhead application rates. 15. From the industries listed below, which one is most likely to use process costing in accounting for production costs? (Points : 2) Printing shop. Accounting firm. Electrical contractor. Steel mill. 16. In an organization that makes furniture, which of the following is a high value-added activity? (Points : 2) Using direct materials in production. Inspecting production. Storing finished goods inventory. Moving work-in-process inventory between work stations. Reworking the product to repair defects. 17. A time ticket: (Points : 2) Shows the time an employee worked on each job, pay rate, and total cost chargeable to each job. Shows the time that a department's employees worked on all jobs, the pay rate of each employee, and the total cost chargeable to each job. Shows the time an employee worked on each job and the total cost chargeable to each job only. Shows the time an employee worked on each job only. 18. Which of the following is an example of a high-value-added activity? (Points : 2) Shipping the customer's order. Scheduling the customer order for production. Inspecting goods to ensure the right quantity is being shipped. E-mailing a customer to assure that a complaint will be resolved expeditiously. 19. Oregonian Fisheries Inc. processes king salmon for various distributors. Two departments are involved ? processing and packaging. Data relating to tons of king salmon processed in the processing department during June 2010 are provided below: Percent Completed Tons of King Salmon Materials Conversion Work-in-Progress Inventory ? 6/1 1,800 90 80 Work-in-Progress Inventory ? 6/30 2,800 60 40 Started Processing During June 7,800 Total equivalent units for conversion under the weighted-average method are calculated to be: (Points : 2) 6,860 equivalent units. 8,480 equivalent units. 6,480 equivalent units. 7,440 equivalent units. 7,920 equivalent units. 20. Jackson Inc. listed the following data for 2010: Budgeted Factory Overhead $1,300,000 Budgeted Direct Labor Hours 82,000 Budgeted Machine Hours 41,000 Actual Factory Overhead 1,201,000 Actual Direct Labor Hours 86,300 Actual Machine Hours 39,400 Round calculations to two significant digits. Assuming Jackson Inc. applied overhead based on machine hours, the firm's predetermined overhead rate for 2010 is: (Points : 2) $27.40 per machine hour. $29.38 per machine hour. $31.71 per machine hour. $33.50 per machine hour. $37.41 per machine hour. 21. Customer equity is a type of analysis used to: (Points : 2) Assess the ethical practices of each salesperson-customer relationship. Assess the current profit potential of a customer. Assess the long term profit potential of a customer. Assess the current profit potential of all the firm's customers. Assess the long term profit potential of all the firm's customers. 22. In a process costing system, the cost of abnormal spoilage should be: (Points : 2) Prorated between units transferred out and ending inventory. Included in the cost of units transferred out. Treated as a loss in the period incurred. Ignored in the period incurred. 23. Normal spoilage is defined as: (Points : 2) Spoilage that occurs under efficient operations. Scrap. Uncontrollable waste as a result of a special production run. Spoilage that arises under inefficient operations. Controllable spoilage. 24. The journal entry to record incurred direct labor would include a credit to: (Points : 2) Work-in-Process Inventory. Accrued Payroll. Factory Overhead. Materials Inventory. Finished Goods Inventory. 25. Which of the following is most likely to be the cost driver for the packaging and shipping activity? (Points : 2) Number of setups. Number of components. Number of orders. Hours of testing. Number of production runs.

 

Paper#6137 | Written in 18-Jul-2015

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