Question 1: Which of the following is true about both process costing systems and job costing systems?
1. Either one can be easily implemented in any type of manufacturing situation.
2. The use of finished goods accounts is unnecessary in either method.
3. None of the other answers
4. Both utilize work in process accounts to accumulate costs
Question 2: Gomez Industries makes high definition screens for use in flat panel monitors. This week they began work on 1400 27 inch screens and had 300 unfinished remaining at the end of the week which also coincided with the month end. All remaining monitors were 90% completed in regard to direct materials and 65% completed in regard to direct labor and overhead.
Considering the concept of equivalent units, how many units are incomplete in regard to conversion costs?
1. 300
2. 270
3. None of the other answers
4. 195
Question 3: The cost of goods completed and ready for sale are normally transferred from work in process to _______.
1. Sales of Goods in Process
2. Finished Goods Inventory
3. Raw Materials Inventory
4. Cost of Goods Sold
5. None of the other answers
Question 4: Which of the following indicates the typical flow of costs in either a job costing or process costing system?
1. Cost of goods sold, raw materials inventory, work in process inventory, finished goods inventory
2. Raw materials inventory, cost of goods sold, work in process inventory, finished goods inventory
3. Raw materials inventory, work in process inventory, cost of goods sold, finished goods inventory
4. Raw materials inventory, work in process inventory, finished goods inventory, cost of goods sold
5. None of the other answers
Question 5: The accounting system that records manufacturing activities using a periodic inventory system is known as a ____________.
1. General accounting system
2. None of the other answers
3. Periodic accounting system
4. Cost accounting system
5. Perpetual accounting system