Acctg 305 Fall 2010 Practice Test Ch6-7

Acctg 305 Fall 2010 Practice Test Ch6-7 - Accounting 305...

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Unformatted text preview: Accounting 305 – Cost Accounting Name School of Management Date Fall 2010 Chapters 6 & 7 Practice Test Multiple Choice Identify the choice that best completes the statement or answers the question. ____ 1. What system would a manufacturer of unique special orders or batch processes most likely use to accumulate costs? a. process costing b. contract costing c. variable costing d. job-order costing ____ 2. _______________ is used when products are produced in a continuous production process. a. Periodical method b. Job-order costing c. Process costing d. Perpetual method ____ 3. 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 department for a given period of time d. the document that summarizes the manufacturing costs associated with a job in a job-costing system 3/12/12Acctg 305 Fall 2010 Practice Test Ch6-7.rtf Page 1 of 30 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. Allen Company uses a process costing system for the Assembly Department. ____ 4. Refer to Figure 6-1. The journal entry to record materials purchased would include a a. debit to Materials Inventory for $40,000. b. debit to Materials Inventory for $44,000. c. credit to Accounts Payable for $44,000. d. both b and c. ____ 5. Refer to Figure 6-1. What is the total amount of debits to Work in Process-Assembly Department for October? a. $120,000 b. $126,000 c. $134,000 d. cannot be determined ____ 6. Refer to Figure 6-1. The journal entry to record goods completed and transferred out of the Assembly Department would include a a. debit to Finished Goods Inventory for $120,000. b. credit to Materials Inventory for $120,000. c. debit to Work in Process-Assembly Department for $120,000. d. debit to Work in Process-Finishing Department for $120,000. ____ 7. JIT manufacturing emphasizes a. continuous improvement. b. elimination of waste. c. reduction of work-in-process inventories. d. all of the above. 3/12/12Acctg 305 Fall 2010 Practice Test Ch6-7.rtf Page 2 of 30 ____ 8. Equivalent units expresses all activity of the period in terms of a. direct labor hours. b. partially completed units. c. fully completed units. d. units of input. ____ 9. An accounting firm had the following data concerning tax returns for January (output is measured in the number of returns): Units, beginning work in process-0- Units started 12,000 Units completed 7,000 Units, ending work in process (25% complete) 5,000 What are the equivalent units processed?...
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This note was uploaded on 03/12/2012 for the course ACCT 211 taught by Professor Kamlet during the Spring '08 term at Binghamton.

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Acctg 305 Fall 2010 Practice Test Ch6-7 - Accounting 305...

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