Online Tutorial Quiz

Please answer all questions

1		Cost accounting systems are the methods and techniques used by enterprises to track resources consumed in creating and delivering products and services to customers.
			A)	True
			B)	False
2		Regardless of the industry, the unit of product is generally defined the same way.
			A)	True
			B)	False
3		Process costing is typically used in companies that tailor their goods or services to the specific needs of individual customers.
			A)	True
			B)	False
4		Activity-based costing is used to track resources that are not directly traceable to the product or service purchased.
			A)	True
			B)	False
5		At the core of a job-order costing system is a job-cost sheet.
			A)	True
			B)	False
6		The first step to obtaining materials from the materials warehouse to the factory is completion of a purchase order by a factory line manager.
			A)	True
			B)	False
7		The materials requisitions are the supporting documents for the month-end journal entry debiting the Work in Process Inventory account and crediting the Materials Inventory account for all direct materials delivered from the warehouse to the factory.
			A)	True
			B)	False
8		Whenever entries are made to the Work in Process Inventory account, the job cost sheets should be up-dated.
			A)	True
			B)	False
9		Overhead, even for finished work, is not charged to the individual job cost sheets until the month-end journal entries in which manufacturing overhead is recorded.
			A)	True
			B)	False
10		If the Manufacturing Overhead account has total charges of $340,000 but the month-end journal entry to apply overhead to the Work in Process Inventory account amounts to $345,000, the Manufacturing Overhead account is overapplied.
			A)	True
			B)	False
11		The supporting documents for recording the transfer of work in process to finished goods are the job cost sheets.
			A)	True
			B)	False
12		When using a perpetual inventory system, such as a job-order costing system, the sale of finished work requires two journal entries.
			A)	True
			B)	False
13		While a job-order costing system is used in companies that tailor their goods or services to the specific needs of individual customers, a job-order costing system is not appropriate for service industries.
			A)	True
			B)	False
14		In a process-costing system, a Work in Process account is maintained for each production process.
			A)	True
			B)	False
15		In a process-costing system, the finished units of one process become the direct materials of the subsequent process.
			A)	True
			B)	False
16		An equivalent unit is a measure of work done during an accounting period.
			A)	True
			B)	False
17		Assuming no beginning work in process, if 10,000 units are transferred in from a previous department and 2,000 of the 10,000 units are still in process at the end of the period, the equivalent units of production are 8,000.
			A)	True
			B)	False
18		If the number of equivalent units of 5,000 units in process is 4,000, it means that 80% of the 5,000 units are still in process.
			A)	True
			B)	False
19		If 2,000 units were in process at the beginning, 10,000 units were transferred in from a previous process and 3,000 units are still in process, the number of units started and completed is 7,000.
			A)	True
			B)	False
20		Activity-based costing (ABC) entails developing cost pools and determining the most appropriate cost driver with which to apply the costs to production.
			A)	True
			B)	False
21		ABC may lead to adjustments in the selling prices of products.
			A)	True
			B)	False
22		Under ABC, the Manufacturing Overhead account will usually have an underapplied balance at the end of the accounting period.
			A)	True
			B)	False
23		Which of the following are cost accounting systems?
			A)	Job order costing
			B)	Process costing
			C)	Activity-based costing
			D)	Only A and B
			E)	A, B, and C
24		Which of the following business is most likely to use a job order costing system?
			A)	Automobile manufacturer
			B)	House paint manufacturer
			C)	Automotive repair shop
			D)	Oil refiner
			E)	Cannery
25		The typical job cost sheet used in a job order costing system is used to accumulate which of the following for each particular job?
			A)	Direct labor
			B)	Direct materials
			C)	Applied manufacturing overhead
			D)	Indirect materials
			E)	Only A, B, and C
26		Issuing a materials requisition results in which of the following journal entries?
			A)	A debit to Work in Process Inventory and a credit to Materials Inventory.
			B)	A debit to Materials Inventory and a credit to Work in Process Inventory.
			C)	A debit to Materials Inventory and a credit to Accounts Payable.
			D)	A debit to Manufacturing Overhead and a credit to Materials Inventory.
			E)	None of the above
27		Time sheets show total direct labor of $50,000. Payroll records show factory salaries at $12,000 and factory maintenance salaries at $6,000. Making the month-entry to record labor to the Work in Process Inventory account will require a debit for how much?
			A)	$67,000
			B)	$56,000
			C)	$62,000
			D)	$50,000
			E)	$18,000
28		The Manufacturing Overhead account has total debits of $320,000. Direct labor hours for the month were 12,000. At the end of the month, the manufacturing Overhead account has an underapplied balance of $8,000. What was the application rate, based on direct labor hours?
			A)	$27.33
			B)	$26.00
			C)	$26.66
			D)	$25.00
			E)	Cannot be determined from the information provided.
29		Which of the following accounts is not a control account in a job order costing system?
			A)	Finished Goods Inventory
			B)	Materials Inventory
			C)	Work in Process Inventory
			D)	Direct Labor
			E)	Manufacturing Overhead

Consider the following:
Units
Beginning units 10,000 3/4 completed as to labor
7/8 completed as to overhead
Units started 100,000
Ending units 8,000 1/4 completed as to labor
1/2 completed as to overhead

30		What were the equivalent units of the resource input of direct labor for the period?
			A)	96,500
			B)	108,000
			C)	101,500
			D)	82,000
			E)	89,500

Consider the following:
Work Done Materials Direct
In August Wood Paint Labor Overhead
Beginning work in process -0- 200 50 250
Started and completed 1,000 1,000 1,000 1,000
Ending work in process 400 -0- 200 100
----------------------------------------------------------------
Cost of resources, August $28,000 $1,200 $3,750 $5,400
================================================================

31		What was the dollar amount of the ending inventory?
			A)	$12,200
			B)	$ 9,400
			C)	$ 9,000
			D)	$ 8,000
			E)	None of the above

Consider the following:
Maintenance Department Costs: $45,000 Rocking Horses
Activity Cost Pools: Cost Drivers Metal Wooden
Repair 15 employees Work Orders - 60 60% 40%
Set-up 5 employees Production Runs - 40 50% 50%
Utilities Costs: $24,000
Activity Cost Pools: Cost Drives
Heating KWH 20,000 Square Feet - 20,000 80% 20%
Machinery KWH 80,000 Machine Hours - 50,000 60% 40%

32		The firm manufactures metal and wooden rocking horses. Maintenance costs are allocated to the cost pools on the basis of employees. Utilities costs are allocated to the cost pools on the basis of KWH. What is the total amount of maintenance and utility costs allocated to the metal rocking horses?
			A)	$33,750
			B)	$41,235
			C)	$29,715
			D)	$35,610
			E)	None of the above