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21) Which of the following is one of the four cost categories typically found on a cost of quality report? A) Development costs B) Inventory failure costs C) Marketing costs D) Prevention costs 22) Which of the following refers to costs incurred in detecting poor quality goods or services? A) Appraisal costs B) External failure costs C) Internal.
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31) The cost of training production personnel on their job tasks is an example of a(n): A) internal failure cost. B) external failure cost. C) prevention cost. D) appraisal cost. 32) Production loss caused by downtime is an example of what type of cost? A) External failure cost B) Internal failure cost C) Prevention cost D) Appraisal cost 33) Costs.
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44) The CEO of Oakville Machine Parts (OMP) is concerned with the quality of its products and the amount of resources currently spent on customer returns. The CEO would like to analyze the costs incurred in conjunction with the quality of the product. The following information was collected from various departments within the.
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21) If conversion costs are added evenly throughout the production process, and the units have made it 50% of the way through the production process, then the percentage completion for conversion costs is 50%. 22) The weighted average and FIFO methods differ only in how they treat beginning inventory. 23) The FIFO.
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11) Which of the following cost items should be classified as an external failure cost on a cost of quality report? A) Net cost of scrap B) Customer returns of defective products C) Technical support provided to suppliers D) Supplies used in the quality inspection program 12) If a company were to increase its appraisal.
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29) Autodig mass-produces a single product using three sequential processing departments: Machining, Assembly, and Packaging. The following transactions occurred during February: 1. Direct materials used in the Packaging Department $28,000 2. Costs assigned to units completed and transferred out of Machining 165,000 3. Direct labour incurred in the Machining Department 9,000 4. Beginning balance:.
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48) The following information is provided by Wilson Company: WIP inventory, January 1 0 units Units started 50,000 units Units completed and transferred out   37,500 units WIP inventory, December 31   3,000 units Direct materials $52,000 Direct labor $35,000 Manufacturing overhead $54,000 The units in ending WIP inventory were 65% complete for materials and 45% complete for conversion.
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51) Beginning WIP inventory is 12,500 units, 55% complete for materials.  During the month 80,000 units were started; 84,000 were finished; and ending WIP was 8,500 units that were 40% complete for materials.  How many equivalent units should be used to allocate costs for materials (assume as usual, that the.
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27) Sweet Stuff Bakery mass-produces cakes using three sequential processing departments: Mixing, Baking, and Packaging. The following transactions occurred during February: 1. Direct materials used in the Packaging Department $15,000 2. Costs assigned to units completed and transferred out of Mixing 110,000 3. Direct labour incurred in the Mixing Department 6,000 4. Beginning balance: Work in Process.
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93) The Assembly Department of Watts Speakers began April with 12,000 partially complete units in beginning work in process inventory. The beginning work in process inventory balance of $57,402 consisted of $25,056 of direct materials and $32,346 of conversion costs. During the month, production that cost $230,000 (direct materials,$92,000, and.
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45) The CEO of Prairie Machine Parts (OMP) is concerned with the quality of its products and the amount of resources currently spent on customer returns. The CEO would like to analyze the costs incurred in conjunction with the quality of the product. The following information was collected from various departments within the.
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11) Companies that use automated production processes often condense the three manufacturing costs into two categories–Direct materials and Conversion costs. 12) Companies that use automated production processes often condense the three manufacturing costs into two categories–Direct labor and Conversion costs. 13) Direct materials are usually added evenly throughout the production process. 14).
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91) The Assembly Department of Zoom Auto Parts began April with 10,000 partially complete units in beginning work in process inventory. The beginning work in process inventory balance of $48,762 consisted of $21,120 of direct materials and $27,642 of conversion costs. During the month, production that cost $192,000 (direct materials,$76,800,.
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89) The Assembly Department of Zoom Auto Parts began September with no work in process inventory. During the month, production that cost $136,719 (direct materials, $39,195, and conversion costs, $97,524) was started on 116,000 units. Zoom completed and transferred to the Testing Department a total of 103,000 units. The ending.
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47) The following information is provided by Gibson Company: WIP inventory, January 1 0 units Units started 20,000 units Units completed and transferred out   17,500 units WIP inventory, December 31   2,500 units Direct materials $25,300 Direct labor $17,400 Manufacturing overhead $26,700 The units in ending WIP inventory were 85% complete for materials and 35% complete for conversion costs. Required A. What are.
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1) Lean production systems keep large inventories. 2) Lean production may be regarded as a general philosophy of manufacturing without waste, rather than a particular type of manufacturing process. 3) Lean production systems typically carry large inventories. 4) Lean production systems typically arrange production activities in self-contained cells. 5) Lean production systems typically strive.
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1) Cost for direct materials, direct labor and manufacturing overhead are assigned to each job. 2) A separate work in process inventory account is maintained for each process. 3) Unique or custom-made goods use a job costing system. 4) Both process and job costing assign costs to units as they proceed through the.
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92) The Assembly Department of Zoom Auto Parts began June with 15,000 partially complete units in beginning work in process inventory. The beginning work in process inventory balance of $71,762 consisted of $31,286 of direct materials and $40,476 of conversion costs. During the month, production that cost $288,000 (direct materials,$115,500,.
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41) The following information is provided by Dart Manufacturing: WIP inventory, January 1 0 units Units started 5,000 Units completed and transferred out 2,000 WIP inventory, December 31 3,000 Direct materials $12,500 Direct labor $16,300 Manufacturing overhead $8,700 The units in ending WIP inventory were 90% complete for materials and 60% complete for.
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71) A pasta maker gives us their data for the year: WIP inventory, beginning 0 units Units started 7,200 units Units completed and transferred out 6,700 units WIP inventory, ending   500 units Direct materials $12,600 Direct labor $6,100 Manufacturing overhead $3,500 Units in ending WIP inventory were 100% complete for materials and 40% complete for conversion.
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41) At Davide Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied.  Other details include: WIP beginning (60% for conversion) 17,500 units Units started 114,500 units Units completed and transferred out 111,700 units WIP ending (30% for conversion) 20,300 units Beginning WIP direct materials $22,300 Beginning WIP conversion costs $19,700 Costs of materials added $370,000 Costs.
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61) The Adams Company uses a process system.  During the current period, 1,600 units were started and 1,200 units were completed and transferred out.  Ending units were 70% complete for materials and 35% complete for conversion costs.  Direct materials costs added were $32,500 and conversion costs added were $31,400.  There.
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20) Characterize each of the following characteristics as being either more representative of traditional manufacturing or lean production by placing a "T" for traditional manufacturing of "L" for lean manufacturing in the blank. A. Set-up times are shorter. ________ B.  High quality is stressed in every aspect of production. ________ C. Products are.
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87) The Assembly Department of Watts Speakers began November with no work in process inventory. During the month, production that cost $79,800 (direct materials, $19,800, and conversion costs, $60,000) was started on 46,000 units. Watts completed and transferred to the Testing Department a total of 30,000 units. The ending work.
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31) In a process system, direct labor and manufacturing overhead are normally: A) incurred at the end of the process. B) incurred in full at the beginning of the process. C) incurred evenly throughout the process. D) not recorded. 32) A measure of the amount of work done, expressed in complete units of output is: A).
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21) Direct labor costs plus manufacturing overhead costs equal: A) prime costs. B) operating costs. C) equivalent costs. D) conversion costs. 22) The costing system used by a company producing custom window treatments would be: A) job costing. B) process costing. C) equivalent units costing. D) conversion cost costing. 23) The costing system used by a company making computer chips.
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1) Appraisal costs are incurred to detect poor-quality goods or services. 2) Internal failure costs occur when the company detects and corrects poor-quality goods or services after delivery to customers. 3) Inspection of incoming raw materials and production loss caused by downtime are examples of prevention costs. 4) Internal failure costs occur when.
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28) Sweet Stuff Bakery mass-produces cakes using three sequential processing departments: Mixing, Baking, and Packaging. The following transactions occurred during February: 1. Direct materials used in the Packaging Department $45,000 2. Costs assigned to units completed and transferred out of Mixing 330,000 3. Direct labour incurred in the Mixing Department 18,000 4. Beginning balance: Work in.
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55) Henry’s Wagons collected the following production information relating to May’s assembly operations: Physical Units Direct Materials (% Complete) Conversion Costs (% Complete) Beginning work in process 42,000 --- --- Ending work in process 52,000 90% 35% Units started during the month 596,000 Complete the first two steps in the process costing procedure: 1. Summarize the flow of physical units. 2. Compute output in terms of equivalent units. (Hint:.
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94) The Assembly Department of Watts Speakers began November with 18,000 partially complete units in beginning work in process inventory. The beginning work in process inventory balance of $85,014 consisted of $38,000 of direct materials and $47,014 of conversion costs. During the month, production that cost $350,715 (direct materials,$138,715, and.
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31) On a production cost report, total equivalent units would appear: A)  before units in beginning WIP inventory. B) just before total costs accounted for at the end of the report. C) as part of unit output for the period. D) before units in ending WIP inventory. 32) On a production cost  report, current costs.
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88) The Assembly Department of Watts Speakers began June with no work in process inventory. During the month, production that cost $68,595 (direct materials, $19,635, and conversion costs, $48,960) was started on 58,000 units. Watts completed and transferred to the Testing Department a total of 40,000 units. The ending work.
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86) Direct materials are added at the beginning of the process and conversions costs are uniformly applied.  Other details include: WIP beginning (40% for conversion) 22,500 units Units started 130,000 units Units completed and transferred out 124,000 units WIP ending (60% for conversion) 28,500 units Beginning WIP direct materials $51,900 Beginning WIP conversion costs $20,174 Costs of materials added $430,000 Costs of conversion added $310,000 Required: A. .
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30) Baoding mass-produces a single product using three sequential processing departments: Machining, Assembly, and Packaging. The following transactions occurred during February: 1. Direct materials used in the Packaging Department $42,000 2. Costs assigned to units completed and transferred out of Machining 250,000 3. Direct labour incurred in the Machining Department 15,000 4. Beginning balance:.
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53) Wanda’s Sweet Buns collected the following production information relating to October’s baking operations: Physical Units Direct Materials (% Complete) Conversion Costs (% Complete) Beginning work in process 103,000 --- --- Ending work in process 78,000 55% 85% Units started during the month 507,500 Complete the first two steps in the process costing procedure: 1. Summarize the flow of physical units. 2. Compute output in terms of equivalent.
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11) Which of the following pertains to a lean production system? A) It will have like machines grouped together. B) It will produce goods in smaller batches than a traditional production system. C) It will require higher inventory levels than a traditional production system. D) It will require longer set-up times than a traditional.
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90) The Assembly Department of Zoom Auto Parts began April with no work in process inventory. During the month, production that cost $71,345 (direct materials, $27,825, and conversion costs, $43,520) was started on 52,000 units. Zoom completed and transferred to the Testing Department a total of 43,000 units. The ending.
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1) When units are transferred from Processing Department #1 to Processing Department #2, a debit is made to WIP-Processing Department #2 to reflect the transferred-in costs. 2) When units are transferred from Processing Department #1 to Processing Department #2, a credit is made to WIP-Processing Department #2 to reflect the transferred-in.
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1) Conversion costs are generally added evenly throughout a process. 2) Equivalent units are the sum of direct materials and direct labor. 3) Equivalent units should be computed separately for direct materials and conversion costs. 4) The number of partially completed units multiplied by the percentage of process started equals the number of.
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