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Unformatted text preview: Chapter 6Product and Service Costing: A Process Systems Approach MULTIPLE CHOICE 1. The appropriate cost accounting system to use when inventory items are produced on an assembly line is a. job-order costing. b. process costing. c. weighted average. d. perpetual method. ANS: B PTS: 1 OBJ: 6-1 2. What system would a manufacturer of unique special orders or batch processes most likely use to ac- cumulate costs? a. process costing b. contract costing c. variable costing d. job-order costing ANS: D PTS: 1 OBJ: 6-1 3. _______________ is used when products are produced in a continuous production process. a. Periodical method b. Job-order costing c. Process costing d. Perpetual method ANS: C PTS: 1 OBJ: 6-1 4. Which of the following companies would be most likely to use a job-order costing system? a. carpet manufacturer b. oil refinery c. furniture manufacturer d. paper manufacturer ANS: C PTS: 1 OBJ: 6-1 5. In process costing, costs are accounted for by a. year. b. batch. c. process. d. job. ANS: C PTS: 1 OBJ: 6-1 6. _______________ accumulates production costs by process and uses a work-in-process account for each process. a. Process costing b. Joint costing c. Variable costing d. Job-order costing ANS: A PTS: 1 OBJ: 6-1 This edition is intended for use outside of the U.S. only, with content that may be different from the U.S. Edition. This may not be resold, copied, or distributed without the prior consent of the publisher. 7. Which of the following characteristics pertains to job-order costing but NOT to process costing? a. computing equivalent units b. using predetermined overhead rates c. preparing cost of production reports d. preparing job-cost sheets ANS: D PTS: 1 OBJ: 6-1 8. The production report is: a. a document used to requisition materials from inventory b. the document to account for the transfer of costs to finished goods c. the document that summarizes the manufacturing activity that takes place in a process de- partment for a given period of time d. the document that summarizes the manufacturing costs associated with a job in a job-cost- ing system ANS: C PTS: 1 OBJ: 6-1 9. Which is NOT a difference between the job-order costing system and the process costing system? a. They accumulate their costs to different cost objectives. b. The number of work-in-process accounts is different. c. One does not use the finished goods account. d. All are differences. ANS: C PTS: 1 OBJ: 6-1 Figure 6-1 Allen Company has the following information for the Assembly Department for October 2010: Materials purchased $ 40,000 Materials used 44,000 Direct labor 30,000 Actual manufacturing overhead 56,000 Cost of goods completed and transferred to the Finishing Dept. 120,000 Overhead rate is 200 percent of direct labor costs....
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This note was uploaded on 01/19/2012 for the course ACC 3302 taught by Professor Pence during the Fall '10 term at University of Houston - Downtown.
- Fall '10
- Cost Accounting