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Accounting

ACCT 221 Q3

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1. Because of automation, which component of product cost is declining?
a. Direct labor
b. Direct materials
c. Manufacturing overhead
d. Advertising
2. The management function that requires managers to look ahead and establish
objectives is
a. controlling.
b. planning.
c. directing.
d. constraining.
3. A manufacturing process requires small amounts of glue. The glue used in the
production process is classified as a(n)
a. period cost.
b. indirect material
c. direct material.
d. miscellaneous expense
4. All of the following would be entries in assigning accumulated costs to the Work In
Process Inventory except:
a. the purchase of raw materials.
b. raw materials are used.
c. overhead is applied.
d. factory labor is used.
5. Which one of the following is a source document that impacts the job cost sheet?
a. Raw materials receiving slips.
b. Materials purchase orders.
c Labor time tickets
d. Finished goods shipping documents.
6. Process costing is not used when
a. similar goods are being produced.
b. jobs have distinguishing characteristics
c. large volumes are produced.
d. a series of connected manufacturing processes is necessary.

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7. When determining costs of jobs, how does a company account for indirect materials?
a. It is added to work in process as used.
b. It is transferred out of raw materials into manufacturing overhead when used
c. It remains part of raw materials inventory..
d. It is transferred out of raw materials into work in process as used.
8. A process cost system would be used for all of the following products except
a. chemicals.
b. computer chips.
c. motion pictures.
d. soft drinks.
9. The predetermined overhead rate is based on the relationship between
a. actual monthly costs and actual annual activity.
b. estimated annual costs and expected annual activity.
c. estimated monthly costs and actual monthly activity.
d. estimated annual costs and actual activity
10. When manufacturing overhead costs are assigned to production in a process cost
system, they are debited to
a. the Work in Process account.
b. the Finished Goods Inventory account.
c. Cost of Goods Sold.
d. a Manufacturing Overhead account.
11. A process with no beginning work in process, completed and transferred out 65,000 units
during a period and had 50,000 units in the ending work in process inventory that were
30% complete. The equivalentunits of production for the period were:
a. 75,000 equivalent units.
b. 125,000 equivalent units.
c. 37,500 equivalent units
d. 80,000 equivalent units
12. Which of the following is not viewed as part of accumulating manufacturing costs in a job
order cost system?
a. Raw materials are purchased
b. Cost of goods sold is recognized

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c. Factory labor is incurred
d. Manufacturing overhead is incurred
13. Cinder Company had the following department information for the month:
Total materials costs $ 80,000
Equivalent units of materials 8,000
Total conversion costs $120,000
Equivalent units of conversion costs 16,000
How much is the total manufacturing cost per unit?
a. $8.33.
b. $7.50
c. $17.50
d. $10.00.
14. A cost which remains constant per unit at various levels of activity is a
a. fixed cost.
b. mixed cost.
c. variable cost.
d. manufacturing cost.
15. Sales are $500,000 and variable costs are $400,000. What is the contribution margin
ratio?
a. 43%
b. 20%
c. 70%
d. Cannot be determined because amounts are not expressed per unit.
16. Which of the following is not a necessary step in preparing a production cost report?
a. Compute the equivalent units of production.
b. Prepare the job order cost sheet
c. Compute the physical unit flow.
d. Prepare a cost reconciliation schedule.
17. Fixed costs normally will not include
a. property taxes
b. supervisory salaries
c. direct labor
d. depreciation on buildings and equipment.

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1. Because of automation, which component of product cost is declining?a. Direct laborb. Direct materialsc. Manufacturing overheadd. Advertising2. The management function that requires managers to look ahead and establish objectives isa. controlling.b. planning.c. directing.d. constraining.3. A manufacturing process requires small amounts of glue. The glue used in the production process is classified as a(n)a. period cost.b. indirect materialc. direct material.d. miscellaneous expense4. All of the following would be entries in assigning accumulated costs to theWork In ProcessInventory except:a. the purchase of raw materials.b. raw materials are used.c. overhead is applied.d. factory labor is used.5. Which one of the following is a source document that impacts the job cost sheet?a. Raw materials receiving slips.b. Materials purchase orders.c Labor time ticketsd. Finished goods shipping documents.6. Process costing is not used whena. similar goods are being produced.b. jobs have distinguishing characteristicsc. large volumes are produced.d. a series of connected manufacturing processes is necessary.7. When determining costs of jobs, how does a companyaccountfor indirect materials?a. It is added to work in process as used.b. It is transferred out of raw materials into manufacturing overhead when usedc. It remains part of ...
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Anonymous
Really great stuff, couldn't ask for more. The assignment was done with remarkable detail.

Anonymous
Solid work, thanks.

Anonymous
Goes above and beyond expectations !

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