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(TCO 2) Manufacturers producing unique or customized products would employ a(n)
(Points : 5)
 process costing system.
 job-costing system.
 homogeneous costing system.
 All of the above

2.
(TCO 2) If Overhead is under-applied, that mean
(Points : 5)

 actual overhead costs exceed overhead applied.
 applied overhead costs exceed actual overhead.
 actual overhead has not been closed to cost of goods sold.
 None of the above

3.
(TCO 2) Which of the following costs is NOT a period cost?
(Points : 5)

 Steel used in steel railings
 Receptionist’s salary
 Depreciation on sales staff’s cars
 Sales commission

4.
(TCO 3) The FIFO process costing method assumes
(Points : 5)

 beginning inventory costs should be treated as if they belong to the current period.
 that units in beginning work in process units are completed first, before any new units are started.
 prior period costs are merged with the current period output and manufacturing costs.
 that current period manufacturing costs are added to the beginning work in process costs.

5.
(TCO 3) The following information was provided by Joe’s Distribution Company:

% complete

Units

Begninning Work-in-process

25%

13,000

Units transferred in

34,000

Ending Work-in=process

50%

15,000

Materials added at start of process

How many equivalent units for materials would there be using the weighted average method?
(Points : 5)

 47,000
 62,000
 34,000
 41,500

6.
(TCO 8) A(n) _____ method first assigns costs to a department and then to products.
(Points : 5)

 direct costing
 absorption costing
 unit-based costing
 indirect costing

7.
(TCO 8) Which of the following is an example of a non-value-added manufacturing activity?
(Points : 5)

 Assembly
 Scheduling
 Finishing
 All of these are value-added activities.

8.
(TCO 8) Value-added costs are standard costs based on
(Points : 5)

 currently attainable standards.
 ideal usage standards.
 cycle time.
 the value added.

9.
(TCO 3) The costs included in the cost per equivalent unit using the weighted average method are
(Points : 5)

 current costs.
 beginning work-in-process.
 ending work-in-process.
 both a and b.

10.
(TCO 2) Conversion product costs include
(Points : 5)

 order-producing costs.
 order-filling costs.
 order-getting costs.
 All of the above are period costs.

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