jamesbond1714 posted a question Nov 02, 2012 at 11:37pm

ACNT 2309 - Ch 02 Quiz - Attempt 2
Question 1
Marks: 1
In a period of rising prices, the use of which of the following cost flow methods would result in the lowest tax liability?
Choose one answer.

a. FIFO

b. LIFO

c. Weighted average cost

d. Moving average cost
Question 2
Marks: 1
Listed below are steps of procuring materials for production:

1. The receiving clerk checks the quantity and quality of incoming materials.
2. The purchasing agent issue the purchase order to the vendor.
3. The production floor supervisor issues a materials requisition.
4. The storeroom clerk issues a purchase requisition.

In which order would these events typically happen?
Choose one answer.

a. 3, 2, 4, 1

b. 3, 4, 2, 1

c. 2, 1, 3, 4

d. 4, 2, 1, 3
Question 3
Marks: 1
The following data refer to various annual costs relating to the inventory of a single-product company that requires 10,000 units per year:
Cost per unit
Order cost $ .05
Transportation-in on purchases .18
Storage .16
Insurance .10
Total per year
Interest that could have been earned on alternate investment of funds $800


What is the annual carrying cost per unit?
Choose one answer.

a. $ .21

b. $ .29

c. $ .34

d. $ .44
Question 4
Marks: 1
Expected annual usage of a particular raw material is 1,200,000 units, and standard order size is 10,000 units. The invoice cost of each unit is $145, and the cost to place one purchase order is $105. The estimated annual order cost is:
Choose one answer.

a. $12,000.

b. $17,400.

c. $12,600.

d. $800,000.
Question 5
Marks: 1
Under a backflush accounting system, the following entry is made when products are completed:
Choose one answer.

a. Debit-Finished Goods
Credit-Work In Process

b. Debit-Cost of Goods Sold
Credit-Raw and In Process
Credit-Conversion Costs

c. Debit-Finished Goods
Credit-Raw and In Process
Credit-Conversion Costs

d. Debit-Cost of Goods Sold
Credit-Finished Goods
Question 6
Marks: 1
The inventory method which results in the prices paid for the earliest purchases being assigned to inventory on hand at the end of the period is:
Choose one answer.

a. First-in, first-out.

b. Last-in, first-out.

c. Last-in, last-out.

d. Moving average.
Question 7
Marks: 1
What is the objective of the economic order quantity (EOQ) model for inventory?
Choose one answer.

a. To minimize order costs or carrying costs, whichever are higher

b. To minimize order costs or carrying costs and maximize the rate of inventory turnover

c. To minimize the total order costs and carrying costs over a period of time

d. To order sufficient quantity to economically meet the next period's demand
Question 8
Marks: 1
The Bisset Corporation uses Raw Material A in a manufacturing process. Information as to balances on hand, purchases, and requisitions of Raw Material A is given in the following table.

Raw Material A


Date
Transaction
Number of Units
Unit Price
Balance of Units
Jan. 1 Beginning balance 100 $1.40 100
Jan. 24 Purchased 300 $1.55 400
Feb. 8 Issued 80 320
Mar. 16 Issued 140 180
Jun. 11 Purchased 150 $1.62 330
Aug. 18 Issued 130 200
Sep. 6 Issued 110 90
Oct. 15 Purchased 150 $1.70 240
Dec. 29 Issued 140 100


If a perpetual inventory record of Raw Material A is maintained on a FIFO basis, 200 units on hand on August 18 will consist of:
Choose one answer.

a. 100 units @ $1.40, 80 units @ $1.55 and 20 units @ $1.62.

b. 100 units @ $1.55 and 100 units @ $1.62.

c. 150 units @ $1.62 and 50 units @ $1.55.

d. 200 units @ $1.55.
Question 9
Marks: 1
The following data pertains to Western Company’s materials inventory:
Number of pounds required annually 16,000
Cost of placing an order $20
Annual carrying cost per pound of material $4


What is Western Company’s EOQ?
Choose one answer.

a. 4,000 pounds

b. 800 pounds

c. 400 pounds

d. 200 pounds
Question 10
Marks: 1
If the amount of materials on hand at the end of the period is less than the control account balance, the control account balance should be decreased by the following entry:
Choose one answer.

a. Debit - Work in Process
Credit - Materials

b. Debit - Materials
Credit - Factory Overhead

c. Debit - Materials
Credit - Work in Process

d. Debit - Factory Overhead
Credit - Materials
Question 11
Marks: 1
Rowe Co.'s Job 401 for the manufacture of 2,200 wagons was completed during August at the unit costs presented below. Final inspection of Job 401 disclosed 200 spoiled wagons that were sold to a jobber for $6,000.
Direct materials $24
Direct labor 18
Factory overhead 14
$56


Assume that spoilage loss is attributable to the exacting specifications of Job 401 and is charged to this specific job. What would be the unit cost of the good wagons produced on Job 401?
Choose one answer.

a. $56.00

b. $58.60

c. $53.00

d. $48.18
Question 12
Marks: 1
The data used to calculate the order point include all of the following except:
Choose one answer.

a. the costs of placing an order.

b. the rate at which the material will be used.

c. the estimated time interval between the placement and receipt of an order.

d. the estimated minimum level of inventory needed to protect against stockouts.
Question 13
Marks: 1
The Bisset Corporation uses Raw Material A in a manufacturing process. Information as to balances on hand, purchases, and requisitions of Raw Material A is given in the following table.

Raw Material A


Date
Transaction
Number of Units
Unit Price
Balance of Units
Jan. 1 Beginning balance 100 $1.40 100
Jan. 24 Purchased 300 $1.55 400
Feb. 8 Issued 80 320
Mar. 16 Issued 140 180
Jun. 11 Purchased 150 $1.62 330
Aug. 18 Issued 130 200
Sep. 6 Issued 110 90
Oct. 15 Purchased 150 $1.70 240
Dec. 29 Issued 140 100


If a perpetual inventory record of Raw Material A is maintained on a moving average basis, the 140 units issued on March 16 will have a unit cost of (round to 3 decimal places):
Choose one answer.

a. $1.513.

b. $1.475.

c. $1.55.

d. $1.438.
Question 14
Marks: 1
The form prepared by the purchasing agent and sent to the vendor to obtain materials is known as a:
Choose one answer.

a. Materials requisition.

b. Purchase requisition.

c. Purchase order.

d. Vendor's invoice.
Question 15
Marks: 1
If a company receives a larger quantity of goods than had been ordered and keeps the excess for future use, a(n)______________ is prepared to notify the vendor of the amount of increase to accounts payable in the invoice.
Choose one answer.

a. credit memorandum

b. return shipping order

c. debit memorandum

d. additional purchase order

ACNT 2309 Ch03 Quiz - Attempt 1
Question 1
Marks: 1
Jay Vato works at Batwing Industries from midnight until 8:00 AM. His normal wage rate is $17 per hour, while Ben Phillips, who does the same job from 8:00 AM until 4:00 PM makes $15 per hour. Since Ben and Jay have the same seniority within the plant, the difference in pay is due to a(n):
Choose one answer.

a. overtime premium.

b. production bonus

c. make-up guarantee.

d. shift premium.
Question 2
Marks: 1
Western Industries pays employees on a weekly basis on Tuesday for the week ended the previous Friday. Employees’ compensation is earned evenly each day over a 5-day work week. This year, April 30 fell on Thursday. Payroll costs for the week ended May 1 follow:
Non Factory:
Sales $ 5,000
Administrative 10,000
$15,000
Factory:
Direct labor $25,000
Overtime premium 2,500
Indirect labor 15,000
$42,500
$57,500


Excluding payroll taxes, how much of the accrued payroll at April 30 should be charged to Factory Overhead?
Choose one answer.

a. $17,500

b. $26,000

c. $14,000

d. $34,000
Question 3
Marks: 1
The file for each factory employee that shows the time the employee spent on each job, as well as time spent as indirect labor is the:
Choose one answer.

a. labor time record.

b. payroll record.

c. employee’s earnings record.

d. labor cost summary.
Question 4
Marks: 1
Under a modified wage plan, an employee earns $1.50 for each finished unit and is guaranteed $18 per hour as a minimum wage. If the daily quota is 96 units, on a particular day when an employee completes 90 units and works 8 hours, the amount of the make-up guarantee will be:
Choose one answer.

a. $27.00

b. $12.00

c. $9.00

d. $6.00
Question 5
Marks: 1
Harmony Company has accrued payroll costs of $50,000 for the period May 28 - 31 as follows:
Administrative salaries $ 5,000
Sales salaries 5,000
Direct labor 30,000
Indirect labor 10,000
$50,000


Other Information:
(a) The FICA rate is 8% of the first $100,000 of wages. None of the employees has reached this maximum.
(b) The company is responsible for state and federal unemployment taxes on the first $8,000 of wages. All of the employees have previously reached this maximum.
(c) Payroll taxes are spread over all jobs.

What entry would be necessary to accrue payroll taxes for the period of May 28 - 31?
Choose one answer.

a. Factory Overhead 4,000
FICA Tax Payable 4,000


b. Payroll Tax Expense - Sales 400
Payroll Tax Expense - Administrative 400
Work in Process 3,200
FICA Tax Payable 4,000


c. Payroll Tax Expense 4,000
FICA Tax Payable 4,000


d. Payroll Tax Expense - Sales 400
Payroll Tax Expense - Administrative 400
Factory Overhead 3,200
FICA Tax Payable 4,000

Question 6
Marks: 1
Which of the following would not be included on a payroll record?
Choose one answer.

a. The employees’ gross earnings.

b. Amounts withheld from the employees’ earnings.

c. Which jobs should be charged for the employees’ time.

d. The amount of overtime paid to the employees.
Question 7
Marks: 1
Which of the following is not true about the cost of a factory employee’s pension plan?
Choose one answer.

a. It is incurred when paid to the employee during his/her retirement.

b. It should be accrued systematically over the period of an employee’s active service.

c. In some cases, it may be partially offset by contributions made by employees.

d. It may be charged to general and administrative expenses under the premise that the existence of a pension plan is beneficial to the company as a whole.
Question 8
Marks: 1
Joel Williams works at Allentown Company where he assembles components for small appliances and earns $16 per hour with “time-an-a-half” for overtime. During the week ended July 25, Joel worked 43 hours as follows:
Job XBRL 20.5 hours
Job FASB 14.5 hours
Idle time due to power outage 2.0 hours
Machine maintenance 6.0 hours


The amount of Joel’s wages that will be charged to the Work in Process account, assuming that the overtime worked was due to a rush order on the FASB job is:
Choose one answer.

a. $560

b. $608

c. $584

d. $680
Question 9
Marks: 1
If the amount of overtime premium is to be charged to all jobs worked on during the period as a result of random scheduling of jobs, the debit will be to:
Choose one answer.

a. Factory Overhead.

b. Payroll.

c. Work in Process.

d. Accrued Payroll.
Question 10
Marks: 1
An analysis of total labor costs into work in process and factory overhead components is recorded on a(n):
Choose one answer.

a. Labor cost summary.

b. Payroll record.

c. Individual production report.

d. Employee earnings record.
Question 11
Marks: 1
The file that serves as a basis for reporting payroll information to governmental agencies and preparing Form W-2 is the:
Choose one answer.

a. labor time record.

b. payroll record.

c. employee’s earnings record.

d. labor cost summary.
Question 12
Marks: 1
A factory worker earns $500 per week and will receive a $2,000 bonus at year-end, a 2-week paid vacation, and 5 paid holidays. The combined amount of the accruals for bonus, vacation, and holiday pay in the weekly payroll would be:
Choose one answer.

a. $20.00.

b. $70.00.

c. $40.00.

d. None of the above.
Question 13
Marks: 1
At a plant where car doors were manufactured, all of the following would be classified as direct labor except:
Choose one answer.

a. Machinists.

b. Assembly workers.

c. Maintenance personnel.

d. Painters.
Question 14
Marks: 1
Under a modified wage plan, an employee working an eight-hour day earns $.40 for each finished unit and is guaranteed $20 per hour as a minimum wage. At what level should the daily quota be set?
Choose one answer.

a. 160 units

b. 400 units

c. 500 units

d. 640 units
Question 15
Marks: 1
Harrison Carter, who is classified as direct labor, earns $800 per week and is entitled to three weeks of vacation and 10 holidays each year. How much should be accrued for his vacation each week?
Choose one answer.

a. $85.11

b. $46.15

c. $48.98

d. $76.92

ACNT 2309 - Chapter 4 Quiz - Attempt 2
Question 1
Marks: 1
Costs that change in relation to volume changes, but not in direct proportion to those changes, are known as:
Choose one answer.

a. Variable costs.

b. Semivariable costs.

c. Fixed costs.

d. Curvilinear costs.
Question 2
Marks: 1
An example of a step-fixed cost would be:
Choose one answer.

a. the cost of factory insurance because the insurance company increased the premium.

b. the cost of supervision since a second supervisor was added to oversee the new second shift.

c. depreciation of equipment because it is computed on the units of production method.

d. utility costs because it costs more to heat the building in the winter.
Question 3
Marks: 1
The method of distributing service department costs to production departments which makes no attempt to determine the extent to which one service department renders its services to another department is the:
Choose one answer.

a. Direct distribution method.

b. Sequential distribution method.

c. Service department distribution method.

d. Reciprocal method.
Question 4
Marks: 1
Factory overhead:
Choose one answer.

a. Can be a variable cost or a fixed cost.

b. Is a prime cost.

c. Can only be a fixed cost.

d. Includes all factory labor.
Question 5
Marks: 1
Kilowatt hours would be an appropriate basis for distributing the cost of which of the following service departments to production departments?
Choose one answer.

a. Power

b. Machine Maintenance

c. Human Resources

d. Building Maintenance
Question 6
Marks: 1
Factory overhead includes:
Choose one answer.

a. Indirect labor but not indirect materials.

b. All manufacturing costs except direct materials and direct labor.

c. All manufacturing costs.

d. Indirect materials but not indirect labor.
Question 7
Marks: 1
Cooper Company had overapplied factory overhead of $2,000 last year. Assuming the amount was considered small enough not to materially distort net income, the entries needed to close factory overhead are:
Choose one answer.

a. Factory Overhead 2,000
Applied Factory Overhead 2,000

Applied Factory Overhead 2,000
Cost of Goods Sold 2,000

b. Factory Overhead 2,000
Under- and Overapplied
Factory Overhead 2,000

Cost of Goods Sold 2,000
Under- and Overapplied
Factory Overhead 2,000

c. Factory Overhead 2,000
Under- and Overapplied
Factory Overhead 2,000

Under- and Overapplied Factory
Overhead 2,000
Cost of Goods Sold 2,000

d. Factory Overhead 2,000
Applied Factory Overhead 2,000

Applied Factory Overhead 2,000
Cost of Goods Sold 2,000
Question 8
Marks: 1
If a company uses a factory overhead ledger, at the end of the month, an accountant should:
Choose one answer.

a. close the accounts in the factory overhead ledger to Work in Process.

b. total the accounts in the factory overhead ledger and compare the total to the balance in the Factory Overhead control account.

c. prepare a schedule of fixed costs.

d. All of the above are true.
Question 9
Marks: 1
The preferred sequence for distributing the cost of service departments to production departments when using the sequential distribution method is:
Choose one answer.

a. to distribute the cost of the service department with the largest total overhead cost first.

b. to always distribute the cost of the Human Resources Department first.

c. to distribute the costs of the service departments to the production department having the largest amount of overhead cost first.

d. to distribute the costs of the service department that services the greatest number of departments first.
Question 10
Marks: 1
The Lorenzo Printing Company has two production departments (printing and binding) and three service departments (power generation, factory maintenance, and human resources). A summary of costs and other data for each department, prior to allocation of service department costs for the year ended April 30, appears below.

The costs of the power generation department, factory maintenance department, and human resources are allocated on the basis of kilowatt hours, square footage occupied, and number of employees, respectively.


Printing

Binding
Power
Gen.
Factory
Maint.
Human
Res.
Direct labor costs: $475,000 $438,000
Direct material costs: $632,000 $527,000
Factory overhead costs: $750,000 $832,000 $75,000 $50,000 $30,000
Direct labor hours: 262,000 254,000
Number of employees: 40 35 5 20 5
Sq. footage occupied: 36,000 24,000 5,000 3,000 1,000


Assuming that Lucas elects to distribute service department costs to production departments using the direct distribution method, the amount of human resources department costs that would be allocated to the printing department would be (round all final calculations to the nearest dollar):
Choose one answer.

a. $15,000.

b. $12,000.

c. $16,000.

d. $18,000.
Question 11
Marks: 1
Which of the following statements about using the direct labor hour method of applying factory overhead to production is false?
Choose one answer.

a. It may not be as accurate as the direct labor cost method if factory overhead primarily consists of items more closely tied to employee wages, such as benefits.

b. The application base could be substantially smaller than when direct labor cost is used.

c. It is the most appropriate method for a highly automated department.

d. The amount of factory overhead applied is not affected by the mix of labor rates.
Question 12
Marks: 1
In Activity-based costing, the activity rates that are used to charge costs to each job are based on:
Choose one answer.

a. the direct labor hours incurred by each activity.

b. the number of units produced.

c. each activity’s consumption of the resources required to sustain it.

d. volume related cost drivers.
Question 13
Marks: 1
Spencer Company had overapplied factory overhead of $5,000 last year. Which of the following statements is not true?
Choose one answer.

a. A higher level of production may have been achieved than budgeted for.

b. The Work in Process account was overcharged for the costs of factory overhead incurred during the period.

c. The actual factory overhead expenses may have been less than budgeted for the operating level achieved.

d. Assuming the amount is not material enough to distort net income, Cost of Goods Sold should be increased by this amount.
Question 14
Marks: 1
Fixed factory overhead costs include:
Choose one answer.

a. Property taxes.

b. Plant manager’s salary.

c. Factory insurance.

d. All of the these are correct.
Question 15
Marks: 1
Once the amounts of the service department allocations have been determined, a journal entry should be prepared to record the distributions, the result of which is:
Choose one answer.

a. debit balances in the Factory Overhead accounts of the production departments for which the total agrees to the total amount of factory overhead incurred.

b. credit balances in the Factory Overhead accounts of the production departments for which the total agrees to the total amount of factory overhead incurred.

c. debit balances in the Factory Overhead accounts of the service departments for which the total agrees to the total amount of factory overhead incurred.

d. credit balances in the Factory Overhead accounts of the service departments for which the total agrees to the total amount of factory overhead incurred.

ACNT 2309 - Chapter 05 Quiz - Attempt 2
Page: 1 2 3 4 (Next)
Question 1
Marks: 1
Information concerning the materials used in the Mixing Department in October is as follows:
Units Materials Costs
Work in Process, October 1 11,700 $ 4,100
Units started during October 43,300 22,900
Units completed and transferred to next department
during October
45,000


If the ending work-in-process inventory is 50% complete, using the average cost method, what was the materials cost in Work in Process at October 31?
Choose one answer.

a. $2,644

b. $2,700

c. $4,330

d. $4,811
Question 2
Marks: 1
A characteristic of a process cost accounting system is:
Choose one answer.

a. Costs are accumulated by order.

b. Work in process inventory is restated in terms of equivalent production.

c. It is used by a company manufacturing custom machinery.

d. None of these is correct.
Question 3
Marks: 1
The total number of units to be accounted for in the second department of a process is:
Choose one answer.

a. the number of units in process at the beginning of the period plus the units received from another department during the period.

b. the number of units in process at the beginning of the period plus the units transferred out to another department during the period.

c. the number of units in process at the end of the period plus the units completed and on hand.

d. the number of units in process at the end of the period plus the units received from another department during the period.
Question 4
Marks: 1
The cost of production summary for Maha Industries follows:
Maha Industries
Cost of Production Summary
For the Month Ended May 31, 20--
Cost of production for month:
Materials $ 8,000
Labor 4,000
Factory overhead 3,000
Total costs to be accounted for $15,000
Unit output for month:
Finished and transferred to Finished goods
during month 3,500
Equivalent units of work in process, end of
month (2,000 units, 25% completed) 500
Total equivalent production 4,000
Unit cost for month:
Materials ($8,000 / 4,000) $2.00
Labor ($4,000 / 4,000) 1.00
Factory overhead ($3,000 / 4,000) .75
Total $3.75
Inventory costs:
Cost of goods finished and transferred to
Finished goods during month: (3,500 ´ $3.75) $13,125
Cost of work in process, end of month:
Materials (2,000 ´ .25 ´ $2.00) $1,000
Labor (2,000 ´ .25 ´ $1.00) 500
Factory overhead (1,000 ´ .25 ´ $.75) 375 1,875
Total production costs accounted for $15,000


What is the journal entry to record completed production and transfer to the warehouse?
Choose one answer.

a. Work in process 13,125
Finished goods 13,125

b. Finished goods 1,875
Work in process 1,875

c. Finished goods 3,000
Factory overhead 3,000

d. Finished goods 13,125
Work in process 13,125
5
Marks: 1
The Binding Department is the second stage of News Printing’s production cycle. On May 1, the beginning work in process contained 30,000 units that were 60 percent complete. During May, 170,000 units were transferred in from the first stage of Pine's production cycle and 160,000 units were completed and transferred to Finished Goods. On May 31, the ending work in process contained 40,000 units that were 25 percent complete. Using the average cost method, the equivalent units of the Assembly Department are:
Transferred-In
Costs
Materials Conversion
Costs

Choose one answer.

a. 170,000 54,000 50,000

b. 200,000 160,000 160,000

c. 200,000 170,000 170,000

d. 240,000 200,000 200,000
Question 6
Marks: 1
Michael Company had 2,000 units in work in process at January 1 that were 80 percent complete. During January, 15,000 units were completed. At January 31, 4,000 units remained in work in process that were 40 percent complete. Using the average cost method, how many units were started during January?
Choose one answer.

a. 21,000

b. 18,200

c. 17,000

d. 19,000
Question 7
Marks: 1
The production report for Glenway Company for February contained the following information:

Work in process, beginning of the month - 3,500 units; 1 / 5 completed
Units completed and transferred to finished goods - 25,000
Work in process, end of month - 4,000 units; 1 / 4 completed

Production costs for the month were: materials - $25,325; labor - $20,175; overhead - $38,950. Costs in beginning work in process were $5,250.

What is the cost per equivalent unit?
Choose one answer.

a. $3.45

b. $3.59

c. $3.20

d. $3.25
Question 8
Marks: 1
If there is no beginning work in process inventory and the ending work in process inventory is 90 percent complete, the number of equivalent units would be:
Choose one answer.

a. The same as the units placed in process.

b. The same as the units completed.

c. Less than the units placed in process.

d. Less than the units completed.
9
Marks: 1
In a given process costing system, the equivalent units of production are computed using the average cost method. The percentage of completion for the current period only is included in the calculation of the:
Beginning Work in
Process Inventory Ending Work in
Process Inventory

Choose one answer.

a. No No

b. No Yes

c. Yes No

d. Yes Yes
Question 10
Marks: 1
Howell Company uses the average cost method of process costing. Howell had 1,000 units in beginning work-in-process which were 75% complete. Costs associated with this inventory were $3,200. When calculating the cost per equivalent unit for the month of June, Howell’s controller should:
Choose one answer.

a. Not consider the $3,200 as those costs were incurred in a prior period.

b. Calculate the cost to complete the 1,000 items in beginning work-in-process separately.

c. Include the $3,200 with the current month’s cost to arrive at total cost for production to date.

d. Include the equivalent units to complete the beginning work-in-process inventory to arrive at the equivalent units for the period.
Question 11
Marks: 1
The beginning work in process inventory is 60 percent complete, and the ending work in process inventory is 45 percent complete. The dollar amount of the production cost included in the ending work in process inventory (using the average cost method) is determined by multiplying the average unit costs by what percentage of the total units in the ending work in process inventory?
Choose one answer.

a. 100 percent

b. 60 percent

c. 55 percent

d. 45 percent
Question 12
Marks: 1
Using the average cost method of process costing, the computation of manufacturing cost per equivalent unit considers:
Choose one answer.

a. Current costs only.

b. Current costs plus cost of beginning work in process inventory.

c. Current costs plus cost of ending work in process inventory.

d. Current costs less cost of beginning work in process inventory.
13
Marks: 1
What are transferred-in costs as used in a process cost accounting system?
Choose one answer.

a. Labor that is transferred from another department within the same plant instead of hiring temporary workers from the outside

b. Costs that have been incurred in a prior department on units that have been moved into a subsequent department

c. Supervisory salaries that are transferred from an overhead cost center to a production cost center

d. Ending work in process inventory of a previous process that will be used in a succeeding process
Question 14
Marks: 1
The cost of production summary for Maha Industries follows:
Maha Industries
Cost of Production Summary
For the Month Ended May 31, 20--
Cost of production for month:
Materials $ 8,000
Labor 4,000
Factory overhead 3,000
Total costs to be accounted for $15,000
Unit output for month:
Finished and transferred to Finished goods
during month 3,500
Equivalent units of work in process, end of
month (2,000 units, 25% completed) 500
Total equivalent production 4,000
Unit cost for month:
Materials ($8,000 / 4,000) $2.00
Labor ($4,000 / 4,000) 1.00
Factory overhead ($3,000 / 4,000) .75
Total $3.75
Inventory costs:
Cost of goods finished and transferred to
Finished goods during month: (3,500 ´ $3.75) $13,125
Cost of work in process, end of month:
Materials (2,000 ´ .25 ´ $2.00) $1,000
Labor (2,000 ´ .25 ´ $1.00) 500
Factory overhead (1,000 ´ .25 ´ $.75) 375 1,875
Total production costs accounted for $15,000


What is the journal entry to record factory overhead applied to production?
Choose one answer.

a. Work in process 3,000
Factory overhead 3,000

b. Factory overhead 3,000
Various accounts 3,000

c. Work-in-process 375
Factory overhead 375

d. Factory overhead 375
Work in process 375
Question 15
Marks: 1
Which of the following characteristics applies to process costing?
Choose one answer.

a. Differentiated products are provided on a special order basis.

b. Cost are accumulated by department.

c. Cost are accumulated by jobs.

d. Direct labor workers must keep detailed records as to the jobs on which they worked.

ACNT 2309 - Chapter 6 Quiz - Attempt 1
Question 1
Marks: 1
If the amount of loss in a manufacturing process is abnormal, it should be classified as a:
Choose one answer.

a. Period cost.

b. Deferred charge.

c. Joint cost.

d. Product cost.
Question 2
Marks: 1
Which of the following statements best describes a by-product?
Choose one answer.

a. A product with a value that can easily and accurately be determined.

b. A product that has a greater value than the main product.

c. A product created along with the main product whose sales value does not cover the cost of its production.

d. A product that usually produces a small amount of revenue when compared to the main product revenue.
Question 3
Marks: 1
Information concerning Department A of Ali Company for the month of June is as follows:

Units Materials
Costs

Work in process, beginning of month 20,000 $14,550
Started in June 85,000 $66,300
Units completed 90,000
Work in process, end of month 15,000


All materials are added at the beginning of the process. Using the average cost method, the cost (rounded to two places) per equivalent unit for materials for June is:
Choose one answer.

a. $0.74.

b. $0.90.

c. $0.77.

d. $0.78.
Question 4
Marks: 1
The following information is available for the month of April from the Second department of the Armque Corporation:
Units
Work in process, April 1 (50% complete) 90,000
Transferred from First Department in April 250,000
Transferred to Finished Goods in April 280,000
Work in process, April 30 (40% complete) 60,000


Materials are added at the end of the process in the Second department. Using the first-in, first-out method, what are the equivalent units of production for materials and conversion costs for the month of April?
Materials Conversion

Choose one answer.

a. 250,000 259,000

b. 280,000 259,000

c. 340,000 271,000

d. 280,000 271,000
Question 5
Marks: 1
Klug Industries adds materials at the beginning of the process in the molding department, which is the first of two stages of its production cycle. Information concerning the materials used in the molding department in August follows:

Units Materials
Costs
Work in process at August 1 8,000 $11,550
Units started during August 20,000 $72,450
Units completed and transferred to next department
during August
21,000


Using the FIFO method, what is the materials cost of the work in process at August 31 (rounded to nearest dollar)?
Choose one answer.

a. $28,000

b. $29,400

c. $29,639

d. $25,358
Question 6
Marks: 1
During June, Birch Bay Company's Department B equivalent unit product costs computed under the average cost method were as follows:
Materials $2
Conversion $3
Transferred-in $5


Materials are introduced at the end of the process in Department B. There were 4,000 units (60 % complete as to conversion costs) in work in process at June 30. The total costs assigned to the June 30 work in process inventory should be:
Choose one answer.

a. $20,000.

b. $24,800.

c. $27,200.

d. $35,200.
Question 7
Marks: 1
Information concerning Department A of Ali Company for the month of June is as follows:

Units Materials
Costs

Work in process, beginning of month 20,000 $14,550
Started in June 85,000 $66,300
Units completed 90,000
Work in process, end of month 15,000


All materials are added at the beginning of the process. Using the first-in, first-out method, the cost (rounded to two places) per equivalent unit for materials for June is:
Choose one answer.

a. $0.63.

b. $0.90.

c. $0.77.

d. $0.78.
Question 8
Marks: 1
Boron Refiners had 50,000 gallons started in its process in June. At June 30, 35,000 gallons were completed and transferred to finished goods and 10,000 gallons were still in process, one-fourth completed as to materials, labor and overhead. The remaining 5,000 units were lost to evaporation, a normal result of the process. Costs of production during the month were $75,000, $50,000, and $25,000 for material, labor and overhead, respectively. What is the cost per equivalent unit in June?
Choose one answer.

a. $4.00

b. $3.33

c. $3.53

d. $3.75
Question 9
Marks: 1
An example of a process where all of the materials would be added at the end of the process would be:
Choose one answer.

a. A bakery where the ingredients for bread are combined and left to rise.

b. The second process of a snack factory where snack chips coming from the frying process are cooled and dried for an hour, then bagged.

c. A baker where the wet ingredients for a cake are added one-at-a-time after the dry ingredients have been thoroughly blended.

d. None of the above.
Question 10
Marks: 1
Anderson Compounds produces two industrial chemical compounds, Gorp and Gumm, from the same process, which last year, cost $240,000. Anderson produced 20,000 pounds of Gorp, which sells for $60 per gallon and 60,000 gallons of Gumm, which sells for $30 per gallon. After the split-off point, Gorp required additional processing costing $300,000 to make it salable. Using the adjusted sales method, how much of the joint cost should be allocated to Gorp?
Choose one answer.

a. $60,000

b. $160,000

c. $80,000

d. $96,000
Question 11
Marks: 1
The following information is available for the month of April from the First department of the Armque Corporation:
Units
Work in process, April 1 (50% complete) 90,000
Started in April 250,000
Transferred to Second Department in April 280,000
Work in process, April 30 (40% complete) 60,000


Materials are added in the beginning of the process in the First department. Using the first-in, first-out method, what are the equivalent units of production for the month of April?
Materials Conversion

Choose one answer.

a. 250,000 259,000

b. 340,000 259,000

c. 280,000 271,000

d. 250,000 271,000
Question 12
Marks: 1
The average cost method of process costing differs from the FIFO method of process costing in that the average cost method:
Choose one answer.

a. Requires that ending work in process inventory be stated in terms of equivalent units of production.

b. Can be used under any cost-flow assumption.

c. Does not consider the degree of completion of beginning work in process inventory when computing equivalent units of production.

d. Considers the ending work in process inventory only partially complete.
Question 13
Marks: 1
Under which of the following conditions will the first-in, first-out method of process costing produce the same cost of goods manufactured amount as the average cost method?
Choose one answer.

a. When goods produced are homogeneous in nature

b. When there is no beginning inventory

c. When there is no ending inventory

d. When beginning and ending inventories are each 50 percent complete
Question 14
Marks: 1
Van Pelt Company uses the average cost method of process costing. The production report for the Mixing department follows:
In process, beginning of period 1,000 units
800 units - materials 50% complete; conversion costs 40% complete
200 units - materials 25% complete; conversion costs 15% complete
Placed in process during period 5,000 units
Transferred to packing department 4,800 units
In process, end of period 1,200 units
700 units - materials 75% complete; conversion costs 50% complete
500 units - materials 25% complete; conversion costs 20% complete


What are the equivalent units for:

Materials Conversion Costs
Choose one answer.

a. 5,650 5,450

b. 5,450 5,250

c. 4,850 4,400

d. 5,400 5,220
Question 15
Marks: 1
During June, Birch Bay Company's Department B equivalent unit product costs computed under the FIFO method were as follows:
Materials $2
Conversion $3
Transferred-in $5


Materials are introduced at the end of the process in Department B. There were 4,000 units (60 % complete as to conversion costs) in work in process at June 30. The total costs assigned to the June 30 work in process inventory should be:
Choose one answer.

a. $20,000.

b. $24,800.

c. $27,200.

d. $35,200.

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    ACNT 2309 - Ch 02 Quiz - Attempt 2
    Question 1
    Marks: 1
    In a period of rising prices, the use of which of the following cost flow methods would result in
    the lowest tax liability?
    Choose one...
    Show more