Topic: Process Costing
LO: 3
13. A single product produced by a continuous manufacturing process is an example of:
A) Process management
B) Job Costing
C) Process manufacturing
D) Process reengineering
Topic: Job Costing
LO: 3
14. When a job is completed in a job order costing system, the final cost of the job is determined by summing up:
A) The work-in-process inventory subsidiary ledgers
B) The statement of costs of goods manufactured
C) The finished goods activities report
D) The various costs on the job cost sheet
Topic: Job Order Production
LO: 3
15. Which of the following is an appropriate setting for job order production?
A) Products are produced in batches of identical units.
B) Products are produced in single units.
C) Neither A nor B are examples of job order production.
D) Both A and B are examples of job order production.
Topic: Job Order Records
LO: 3
16. Which of the following is not a record required for operating a job cost system?
A) Production orders
B) Job cost sheets
C) Equivalent units calculations
D) Materials requisition forms
Topic: Job Order Costing
LO: 3
17. For which of the following products would job order costing be least likely to be used?
A) Residential building
B) Textbook printing
C) Mortgage loan processing
D) Newsprint paper Manufacturing
Topic: Process Costing
LO: 3
18. For which of the following manufactured products would job costing be more appropriate than process costing?
A) Paint
B) Designer dresses sold to celebrities
C) Chemicals
D) Liquid soap
Topic: Job Costing
LO: 3
19. Which of the following tasks does not pertain to job-costing?
A) Computing equivalent units
B) Computing predetermined overhead rates
C) Computing cost of goods sold
D) Computing ending work-in-process inventory
Topic: Statement of Cost of Goods Manufactured
LO: 4
20. The purpose of the statement of cost of goods manufactured is to:
A) Calculate the cost of goods transferred to finished goods inventory during the period.
B) Calculate cost of goods sold.
C) Calculate net income.
D) Both
E) Topic: Work-in-Process Inventory
LO: 4
21. Which of the following results in an increase in work-in-process inventory?
A) Purchasing raw materials
B) Using direct manufacturing labor hours
C) Finishing a job in process
D) Selling finished goods inventory
Topic: Sale of Finished Goods
LO: 4
22. When finished goods are sold, there is an increase in which of the following accounts?
A) Cost of Goods Sold
B) Cost of Goods Manufactured
C) Finished Goods Inventory
D) Work-in-Process
Topic: Change in Raw Materials
LO: 4
23. Which of the following accounts increases when raw materials are used?
A) Finished Goods Inventory
B) Raw Materials Expense
C) Raw Materials Inventory
D) Work-in-Process Inventory
Topic: Calculating Raw Materials Used
LO: 4
24. Cooper Corp. obtained the following information from the Raw Materials Inventory account and purchasing records for the second quarter of the current year:
Beginning Raw Materials $10,000
Ending Raw Materials $8,000
April Purchases $8,000
May Purchases $4,000
June Purchases $4,000
The amount of Raw Materials used this period was:
A) $10,000
B) $18,000
C) $20,000
D) Some other amount
Topic: Period Costs Calculation
LO: 4
25. Park Corp. obtained the following information from its absorption costing accounting records:
Operating Income $48,000
Total Product Costs incurred during the period $32,000
Value of Beginning Work-in-Process and Finished Goods Inventories $0
Value of Ending Work-in-Process and Finished Goods Inventories $0
Sales $100,000
The total Period Costs incurred this period equals:
A) $16,000
B) $20,000
C) $48,000
D) $68,000
Topic: Cost of Goods Manufactured Calculation
LO: 4
26. Damen Corp. obtained the following information from its accounting records:
Sales $36,000
Beginning Finished Goods Inventory $21,000
Ending Finished Goods Inventory $17,000
Cost of Goods Sold $16,000
The Cost of Goods Manufactured this period equals:
A) $16,000
B) $18,000
C) $12,000
D) $23,000
Topic: Weighted Average Method
LO: 5
27. When computing equivalent units of production, the method that averages the cost of partially completed units in beginning inventory with current period production is the:
A) FIFO method
B) LIFO average method
C) Specific identification method
D) Weighted average method
Topic: Components of Work-in-Process
LO: 5
28. Which of the following is not included in work-in-process inventory?
A) Direct materials costs
B) Applied manufacturing overhead
C) Direct manufacturing labor costs
D) Sales commissions