Question :
61)
Which of the following entries would correctly record costs associated : 1196140
61)
Which of the following entries would correctly record costs associated with reworked items? 61)
______ A)
Work in Process ControlXXX
Materials ControlXXX
Wages Payable ControlXXX
Mfg. Overhead AllocatedXXX B)
Materials Control XXX
Wages Payable Control XXX
Work in Process ControlXXX
Mfg. Overhead AllocatedXXX C)
Mfg. Overhead AllocatedXXX
Materials ControlXXX
Work in Process ControlXXX D)
Finished Goods controlXXX
Work in Process ControlXXX E)
Work in Process ControlXXX
Materials ControlXXX
Wages Payable ControlXXX
Mfg. Overhead AllocatedXXX
62)
When abnormal rework is distinguished from normal rework, and charged to a separate loss account, which of the following is a likely result? 62)
______ A)
If responsibility for abnormal spoilage expense is penalized less heavily than the unfavourable efficiency variances arising from rework, then managers will tend to rework too many spoiled units. B)
If responsibility for abnormal spoilage expense is penalized more heavily than the unfavourable efficiency variances arising from rework, then managers will tend to rework too many spoiled units. C)
Prices will have to increase on the company’s products accordingly. D)
If responsibility for normal spoilage expense is penalized more heavily than the unfavourable efficiency variances arising from rework, then managers will tend to rework too many spoiled units. E)
If responsibility for normal spoilage expense is penalized less heavily than the unfavourable efficiency variances arising from rework, then managers will tend to rework too many spoiled units.
63)
Which of the following is NOT a consideration when accounting for scrap? 63)
______ A)
decisions as to whether to group scrap with reworked units B)
to assist in measuring efficiency C)
planning and control includes physical tracking D)
inventory costing E)
possibility of theft
64)
Which of the following journal entries could appropriately record the cash sale of scrap? 64)
______ A)
either of the following two entries,
(i) CashXXX
Materials controlXXX
(ii) Sales of ScrapXXX
Accounts ReceivableXXX B)
CashXXX
Materials controlXXX C)
Manufacturing Dept. Overhead ControlXXX
Accounts PayableXXX D)
Sales of ScrapXXX
Accounts ReceivableXXX E)
CashXXX
Manufacturing Dept. Overhead ControlXXX
65)
When scrap is insignificant in value 65)
______ A)
it is recorded at its fair market value. B)
it is recognized at the point of production. C)
it is not necessary to recognize it in the accounting records. D)
it is recorded when discovered. E)
it may not be recognized until the point of sale.
66)
Sales of scrap may be traced to the individual jobs in which it occurred when the ________ system is used. 66)
______ A)
weighted-average costing B)
process costing C)
revenue costing D)
job-costing E)
budgeted costing
67)
Which account is debited when scrap is reused as direct material? 67)
______ A)
materials control B)
work-in-process-control C)
scrap inventory D)
manufacturing overhead control E)
Either work-in-process-control, or manufacturing overhead control, depending on whether process-costing or job costing is used.
68)
Costs and revenue from scrap may be treated in all of the following ways, EXCEPT 68)
______ A)
spread across all jobs. B)
charged to specific related jobs. C)
treated as a miscellaneous revenue or expense, as required. D)
charged to specific unrelated jobs. E)
debited to Materials Control, credited to Work In Process and debited to Cash, credited to Materials Control.
69)
When scrap is returned to the storeroom, so that it may be used as direct material, which account is debited? 69)
______ A)
materials control B)
manufacturing overhead control C)
work-in-process-control D)
scrap inventory E)
Either work-in-process-control, or manufacturing overhead control, depending on whether process-costing or job costing is used.
70)
Which of the following statements is FALSE? 70)
______ A)
Spoilage units cannot be sold. B)
Spoilage may occur at points other than the inspection point. C)
The cost of spoiled units is the costs incurred prior to detection. D)
The unit costs of abnormal and normal spoilage are the same if detected simultaneously. E)
the timing of inspection affects the amount of abnormal spoilage.
71)
Normal spoilage is computed on the basis of 71)
______ A)
the number of units that are 100% complete as to materials. B)
the percentage of good units that passed inspection in the previous period. C)
the number of spoiled units that pass inspection during the current period. D)
the number of units that pass the inspection point during the current period. E)
the number of good units that pass inspection during the current period.
