Which of the following products probably would be manufactured using a job order costing system?
B. Baseball cards
C. Computer monitors
Question 2 of 20 5.0 Points
Applied overhead exceeds actual overhead when the:
B. journal entry to account for the difference involves a debit to Cost of Goods Sold.
C. Overhead account has a debit balance.
D. company has overspent in the overhead cost area.
Question 3 of 20 5.0 Points
The total of the dollar amounts on the job order cost cards that have not been completed would be equal to the:
A. cost of goods completed.
B. balance in the Finished Goods Inventory account.
C. Cost of Goods Sold account.
Question 4 of 20 5.0 Points
The basic document for keeping track of costs in a job order costing system is a:
B. labor time card.
C. process cost report.
D. materials requisition form.
Question 5 of 20 5.0 Points
When direct materials are issued from inventory to production under a job order costing system, an increase is recorded in:
C. Materials Inventory.
D. Finished Goods Inventory.
Question 6 of 20 5.0 Points
Unit costs for each job are computed by dividing:
A. estimated total costs by planned units to be produced.
B. actual costs by actual units sold.
D. estimated total costs by actual units produced.
Question 7 of 20 5.0 Points
In cost-plus contracts, the "plus" represents:
A. sales price.
C. overapplied overhead costs.
D. the amount of any cost overruns.
Question 8 of 20 5.0 Points
The balance in the Work in Process Inventory account equals the:
A. balance in the Finished Goods inventory account.
B. balance in the Cost of Goods Sold account.
D. balance in the Overhead account.
Question 9 of 20 5.0 Points
Which of the following entities probably would use a process costing system?
B. A yacht builder
C. A custom furniture company
D. A custom screw manufacturer
Question 10 of 20 5.0 Points
Process costing is applicable to production operations that:
B. do not assign overhead costs to operations.
C. produce large and unique machines.
D. are found in only a few industries.
Question 11 of 20 5.0 Points
Which of the following accurately describes a difference between job order and process costing systems?
A. In job order costing systems, overhead costs are treated as product costs, whereas in process costing systems, overhead costs are treated as period costs.
B. Job order costing systems do not need to assign costs to production, whereas process costing systems do.
D. Since costs are assigned to products in a job order costing system, selling costs are treated as product costs in the job order costing system, whereas they are treated as period costs in process costing systems.
Question 12 of 20 5.0 Points
The reason for combining direct labor and overhead costs together and calling them "conversion costs" is that:
A. they both are direct costs of production.
B. the equivalent unit amount for direct materials will be the same as that for direct labor and overhead costs.
D. the costs for direct labor and overhead are not accounted for separately.
Question 13 of 20 5.0 Points
Which of the following statements is true?
B. To compute unit costs using the FIFO costing method, total costs of direct materials, direct labor, and overhead that have been accumulated in the Work in Process Inventory account or accounts are divided by the units worked on during the period.
C. Equivalent units usually are computed for direct materials and manufacturing overhead combined.
D. Labor costs are accounted for differently from manufacturing overhead costs in a process costing system.
Question 14 of 20 5.0 Points
Equivalent units of production usually are determined for:
A. direct materials only.
C. direct materials and direct labor costs only.
D. conversion costs only.
Question 15 of 20 5.0 Points
Measures of equivalent production are necessary in process costing because:
A. job order costing procedures cannot be applied.
C. perpetual inventories are not employed in process plants.
D. production methods are more complex than in job order costing systems.
Question 16 of 20 5.0 Points
Which of the following applies to process costing but NOT to job order costing?
A. Only one Work in Process Inventory account
C. Production of unique items
D. Multiple unit job order
Question 17 of 20 5.0 Points
An advantage of using the average costing method to process costing as opposed to the FIFO costing method is that it:
B. is more accurate.
C. costs less to utilize.
D. requires little knowledge of process costing.
Question 18 of 20 5.0 Points
The computation of equivalent units is exactly the same under the FIFO costing method and the average costing method when there is no:
A. ending work in process inventory.
B. ending finished goods inventory.
C. beginning finished goods inventory.
Question 19 of 20 5.0 Points
To find cost per equivalent unit of production using the average costing method, the: amount of equivalent units is divided:
A. by costs from the current period.
B. into costs from the current period.
D. by total costs to be accounted for.
Question 20 of 20 5.0 Points
Which of the following statements about a department's costs per equivalent unit calculated using the average costing method compared with a FIFO costing method is true?
B. They would be the same.
C. They would be lower.
D. They would be higher.
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