Question :
Approximate
ProblemTopicPoints Minutes
A – IMultiple Choice……………………2020
A – IICost of Goods Manufactured : 1311554
Approximate
ProblemTopicPoints Minutes
A – IMultiple Choice……………………2020
A – IICost of Goods Manufactured and Sold…….2015
A – IIIJob Order Cost Accounting……………. 2015
A – IVProcess Cost Accounting……………..2520
A – VActivity-Based Costing………………. 1515
10085
Checking Work …………………………….. 5
90
Problem A – I — Multiple Choice (20 points)
Circle the one best answer.
1. Which one of the following is not a benefit of activity-based costing?
a.More accurate product costing
b.Fewer cost pools used to assign overhead costs to products
c.Enhanced control over overhead costs
d.Better management decisions
2. An example of a value-added activity in a manufacturing operation is
a.machine repair.
b.inventory control.
c.engineering design.
d.building maintenance.
3. Assigning manufacturing costs to work in process results in credits to all of the following accounts except
a.Factory Labor.
b.Manufacturing Overhead.
c.Raw Materials Inventory.
d.Work in Process Inventory.
Use the following information for questions 4 and 5.
In the month of November, a department had 700 units in the beginning work in process inventory that were 45% complete. These units had $42,000 of materials cost and $26,075 of conversion costs. Materials are added at the beginning of the process and conversion costs are added uniformly throughout the process. During November, 12,000 units were completed and transferred to the finished goods inventory and there were 3,000 units that were 25% complete in the ending work in process inventory on November 30. During November, manufacturing costs charged to the department were: Materials $241,500; Conversion costs $184,300.
4. How much is the cost assigned to the units transferred to finished goods during November?
a.$493,875
b.$283,500
c.$424,800
d.$69,075
5. How much is the cost assigned to the units in the ending work in process inventory on November 30?
a.$69,075
b.$56,700
c.$106,200
d.$12,385
6. Cost of goods sold is equal to
a.total manufacturing costs plus beginning work in process less ending work in process.
b.cost of goods sold plus beginning work in process less ending work in process.
c.total manufacturing costs plus ending work in process less beginning work in process.
d.cost of goods manufactured plus beginning finished goods less ending finished goods.
7. Cost of goods manufactured during a period is obtained by taking the total manufacturing costs incurred during the period and adding and subtracting the following inventories:
AddingSubtracting
a.Beginning finished goods inventoryEnding finished goods inventory
b.Beginning work in process inventoryEnding finished goods inventory
c.Beginning raw materials inventoryEnding work in process inventory
d.Beginning work in process inventoryEnding work in process inventory
8. Which of the following are inventory accounts for a manufacturer?
a.raw materials, work in process, and finished goods
b.direct labor, work in process, and finished goods
c.manufacturing overhead, raw materials, and direct labor
d.work in process, direct labor, and manufacturing overhead
9. In a process cost system, equivalent units of production are the
a.work done on physical units expressed in fully completed units.
b.units that are transferred to the next processing department.
c.units completed and transferred to finished goods.
d.units that are incomplete at the end of a period.
10. An appropriate cost driver for ordering and receiving materials cost is
a.direct labor hours.
b.machine hours.
c.number of parts.
d.number of purchase orders.
