Question 1 of 20
5.0 Points
Which of the following products probably would be manufactured using a job order costing system?
A. Paper
B. Baseball cards
C. Computer monitors
D. Company business cards Reset Selection
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Question 2 of 20
5.0 Points
Applied overhead exceeds actual overhead when the:
A. Overhead account has a credit balance.
B. journal entry to account for the difference involves a debit to Cost of Goods Sold.
C. Overhead account has a debit balance.
D. company has overspent in the overhead cost area. Reset Selection
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Question 3 of 20
5.0 Points
The total of the dollar amounts on the job order cost cards that have not been completed would be equal to the:
A. cost of goods completed.
B. balance in the Finished Goods Inventory account.
C. Cost of Goods Sold account.
D. balance in the Work in Process Inventory account. Reset Selection
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Question 4 of 20
5.0 Points
The basic document for keeping track of costs in a job order costing system is a:
A. job order cost card.
B. labor time card.
C. process cost report.
D. materials requisition form. Reset Selection
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Question 5 of 20
5.0 Points
When direct materials are issued from inventory to production under a job order costing system, an increase is recorded in:
A. Overhead.
B. Work in Process Inventory.
C. Materials Inventory.
D. Finished Goods Inventory. Reset Selection
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Question 6 of 20
5.0 Points
Unit costs for each job are computed by dividing:
A. estimated total costs by planned units to be produced.
B. actual costs by actual units sold.
C. cost of materials, direct labor, and overhead by number of units produced.
D. estimated total costs by actual units produced. Reset Selection
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Question 7 of 20
5.0 Points
In cost-plus contracts, the "plus" represents:
A. sales price.
B. profit, based on the amount of costs incurred.
C. overapplied overhead costs.
D. the amount of any cost overruns. Reset Selection
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Question 8 of 20
5.0 Points
The balance in the Work in Process Inventory account equals the:
A. balance in the Finished Goods inventory account.
B. balance in the Cost of Goods Sold account.
C. total of the balances on the job order cost sheets of uncompleted jobs.
D. balance in the Overhead account. Reset Selection
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Question 9 of 20
5.0 Points
Which of the following entities probably would use a process costing system?
A. An oil refinery
B. A yacht builder
C. A custom furniture company
D. A custom screw manufacturer Reset Selection
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Question 10 of 20
5.0 Points
Process costing is applicable to production operations that:
A. utilize several processes, departments, or work cells in a series.
B. do not assign overhead costs to operations.
C. produce large and unique machines.
D. are found in only a few industries. Reset Selection
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Question 11 of 20
5.0 Points
Which of the following accurately describes a difference between job order and process costing systems?
A. In job order costing systems, overhead costs are treated as product costs, whereas in process costing systems, overhead costs are treated as period costs.
B. Job order costing systems do not need to assign costs to production, whereas process costing systems do.
C. In job order costing systems, costs are traced to products, whereas in process costing systems, a FIFO method may be used.
D. Since costs are assigned to products in a job order costing system, selling costs are treated as product costs in the job order costing system, whereas they are treated as period costs in process costing systems. Reset Selection
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Question 12 of 20
5.0 Points
The reason for combining direct labor and overhead costs together and calling them "conversion costs" is that:
A. they both are direct costs of production.
B. the equivalent unit amount for direct materials will be the same as that for direct labor and overhead costs.
C. both types of costs usually are incurred uniformly throughout the production process.
D. the costs for direct labor and overhead are not accounted for separately. Reset Selection
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Question 13 of 20
5.0 Points
Which of the following statements is true?
A. The Work in Process Inventory account is the focal point of process costing.
B. To compute unit costs using the FIFO costing method, total costs of direct materials, direct labor, and overhead that have been accumulated in the Work in Process Inventory account or accounts are divided by the units worked on during the period.
C. Equivalent units usually are computed for direct materials and manufacturing overhead combined.
D. Labor costs are accounted for differently from manufacturing overhead costs in a process costing system. Reset Selection
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Question 14 of 20
5.0 Points
Equivalent units of production usually are determined for:
A. direct materials only.
B. direct materials and conversion costs.
C. direct materials and direct labor costs only.
D. conversion costs only. Reset Selection
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Question 15 of 20
5.0 Points
Measures of equivalent production are necessary in process costing because:
A. job order costing procedures cannot be applied.
B. unit costs are computed by departments or processes at fixed time intervals.
C. perpetual inventories are not employed in process plants.
D. production methods are more complex than in job order costing systems. Reset Selection
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Question 16 of 20
5.0 Points
Which of the following applies to process costing but NOT to job order costing?
A. Only one Work in Process Inventory account
B. Equivalent production units
C. Production of unique items
D. Multiple unit job order Reset Selection
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Question 17 of 20
5.0 Points
An advantage of using the average costing method to process costing as opposed to the FIFO costing method is that it:
A. is a little easier to work with.
B. is more accurate.
C. costs less to utilize.
D. requires little knowledge of process costing. Reset Selection
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Question 18 of 20
5.0 Points
The computation of equivalent units is exactly the same under the FIFO costing method and the average costing method when there is no:
A. ending work in process inventory.
B. ending finished goods inventory.
C. beginning finished goods inventory.
D. beginning work in process inventory. Reset Selection
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Question 19 of 20
5.0 Points
To find cost per equivalent unit of production using the average costing method, the: amount of equivalent units is divided:
A. by costs from the current period.
B. into costs from the current period.
C. into total costs to be accounted for.
D. by total costs to be accounted for. Reset Selection
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Question 20 of 20
5.0 Points
Which of the following statements about a department's costs per equivalent unit calculated using the average costing method compared with a FIFO costing method is true?
A. They could be higher or lower.
B. They would be the same.
C. They would be lower.
D. They would be higher. Reset Selection
5.0 Points
Which of the following products probably would be manufactured using a job order costing system?
A. Paper
B. Baseball cards
C. Computer monitors
D. Company business cards Reset Selection
Mark for Review What's This?
Question 2 of 20
5.0 Points
Applied overhead exceeds actual overhead when the:
A. Overhead account has a credit balance.
B. journal entry to account for the difference involves a debit to Cost of Goods Sold.
C. Overhead account has a debit balance.
D. company has overspent in the overhead cost area. Reset Selection
Mark for Review What's This?
Question 3 of 20
5.0 Points
The total of the dollar amounts on the job order cost cards that have not been completed would be equal to the:
A. cost of goods completed.
B. balance in the Finished Goods Inventory account.
C. Cost of Goods Sold account.
D. balance in the Work in Process Inventory account. Reset Selection
Mark for Review What's This?
Question 4 of 20
5.0 Points
The basic document for keeping track of costs in a job order costing system is a:
A. job order cost card.
B. labor time card.
C. process cost report.
D. materials requisition form. Reset Selection
Mark for Review What's This?
Question 5 of 20
5.0 Points
When direct materials are issued from inventory to production under a job order costing system, an increase is recorded in:
A. Overhead.
B. Work in Process Inventory.
C. Materials Inventory.
D. Finished Goods Inventory. Reset Selection
Mark for Review What's This?
Question 6 of 20
5.0 Points
Unit costs for each job are computed by dividing:
A. estimated total costs by planned units to be produced.
B. actual costs by actual units sold.
C. cost of materials, direct labor, and overhead by number of units produced.
D. estimated total costs by actual units produced. Reset Selection
Mark for Review What's This?
Question 7 of 20
5.0 Points
In cost-plus contracts, the "plus" represents:
A. sales price.
B. profit, based on the amount of costs incurred.
C. overapplied overhead costs.
D. the amount of any cost overruns. Reset Selection
Mark for Review What's This?
Question 8 of 20
5.0 Points
The balance in the Work in Process Inventory account equals the:
A. balance in the Finished Goods inventory account.
B. balance in the Cost of Goods Sold account.
C. total of the balances on the job order cost sheets of uncompleted jobs.
D. balance in the Overhead account. Reset Selection
Mark for Review What's This?
Question 9 of 20
5.0 Points
Which of the following entities probably would use a process costing system?
A. An oil refinery
B. A yacht builder
C. A custom furniture company
D. A custom screw manufacturer Reset Selection
Mark for Review What's This?
Question 10 of 20
5.0 Points
Process costing is applicable to production operations that:
A. utilize several processes, departments, or work cells in a series.
B. do not assign overhead costs to operations.
C. produce large and unique machines.
D. are found in only a few industries. Reset Selection
Mark for Review What's This?
Question 11 of 20
5.0 Points
Which of the following accurately describes a difference between job order and process costing systems?
A. In job order costing systems, overhead costs are treated as product costs, whereas in process costing systems, overhead costs are treated as period costs.
B. Job order costing systems do not need to assign costs to production, whereas process costing systems do.
C. In job order costing systems, costs are traced to products, whereas in process costing systems, a FIFO method may be used.
D. Since costs are assigned to products in a job order costing system, selling costs are treated as product costs in the job order costing system, whereas they are treated as period costs in process costing systems. Reset Selection
Mark for Review What's This?
Question 12 of 20
5.0 Points
The reason for combining direct labor and overhead costs together and calling them "conversion costs" is that:
A. they both are direct costs of production.
B. the equivalent unit amount for direct materials will be the same as that for direct labor and overhead costs.
C. both types of costs usually are incurred uniformly throughout the production process.
D. the costs for direct labor and overhead are not accounted for separately. Reset Selection
Mark for Review What's This?
Question 13 of 20
5.0 Points
Which of the following statements is true?
A. The Work in Process Inventory account is the focal point of process costing.
B. To compute unit costs using the FIFO costing method, total costs of direct materials, direct labor, and overhead that have been accumulated in the Work in Process Inventory account or accounts are divided by the units worked on during the period.
C. Equivalent units usually are computed for direct materials and manufacturing overhead combined.
D. Labor costs are accounted for differently from manufacturing overhead costs in a process costing system. Reset Selection
Mark for Review What's This?
Question 14 of 20
5.0 Points
Equivalent units of production usually are determined for:
A. direct materials only.
B. direct materials and conversion costs.
C. direct materials and direct labor costs only.
D. conversion costs only. Reset Selection
Mark for Review What's This?
Question 15 of 20
5.0 Points
Measures of equivalent production are necessary in process costing because:
A. job order costing procedures cannot be applied.
B. unit costs are computed by departments or processes at fixed time intervals.
C. perpetual inventories are not employed in process plants.
D. production methods are more complex than in job order costing systems. Reset Selection
Mark for Review What's This?
Question 16 of 20
5.0 Points
Which of the following applies to process costing but NOT to job order costing?
A. Only one Work in Process Inventory account
B. Equivalent production units
C. Production of unique items
D. Multiple unit job order Reset Selection
Mark for Review What's This?
Question 17 of 20
5.0 Points
An advantage of using the average costing method to process costing as opposed to the FIFO costing method is that it:
A. is a little easier to work with.
B. is more accurate.
C. costs less to utilize.
D. requires little knowledge of process costing. Reset Selection
Mark for Review What's This?
Question 18 of 20
5.0 Points
The computation of equivalent units is exactly the same under the FIFO costing method and the average costing method when there is no:
A. ending work in process inventory.
B. ending finished goods inventory.
C. beginning finished goods inventory.
D. beginning work in process inventory. Reset Selection
Mark for Review What's This?
Question 19 of 20
5.0 Points
To find cost per equivalent unit of production using the average costing method, the: amount of equivalent units is divided:
A. by costs from the current period.
B. into costs from the current period.
C. into total costs to be accounted for.
D. by total costs to be accounted for. Reset Selection
Mark for Review What's This?
Question 20 of 20
5.0 Points
Which of the following statements about a department's costs per equivalent unit calculated using the average costing method compared with a FIFO costing method is true?
A. They could be higher or lower.
B. They would be the same.
C. They would be lower.
D. They would be higher. Reset Selection
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