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119. Bear Country produces hand-carved wooden bears and uses a job order costing system. The following are data on the three jobs worked on in the company's first month of operations: Smokey Rocky Curious Number of bears 180 100 80 Direct labor hours worked 400 200 140 Direct materials cost $4,500 $2,700 $2,000 Direct labor cost $6,000 $3,000 $2,100 Overhead cost is applied to job orders on the basis of.
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21. Several Work in Process Inventory accounts are used in a process costing system.  22. It is difficult to track costs to individual products in a continuous flow manufacturing process.  23. Once the products are completed, packaged, and ready for sale, their costs are transferredto the Finished Goods Inventory account.  24. The average costing method matches cost.
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82. For a small coffee cafe, which of the following is a nonvalue-adding activity? A. Importing coffee beansB. Purchasing ingredientsC. Accounting for materials and conversion costsD. Operating the drive-through window 83. For a company offering services, which of the following is a value-adding activity? A. Billing the clientsB. Preparing job order formsC. Ordering, receiving, and inspecting suppliesD. Designing advertisements 84. .Engineering design is an activity.
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117. Pretty Pillows, Mfg., manufactures silk throw pillows. Last month the company produced 3,890 pillows. Using job order costing, determine the product unit cost for one pillow based on the following costs: production facility utilities, $1,600; depreciation on production equipment, $650; indirect materials, $400; direct materials, $5,300; indirect labor, $1,000; direct.
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92. Activity-based management includes all of the following except identifying A. the level of customer satisfaction with a product or service.B. the resources that are consumed by each activity.C. activities as value-adding.D. how resources are consumed by each activity. 93. Which of the following is the first step in assigning costs in the activity-based costing? A. Analyze all nonvalue-adding activities.
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112. Explain how the unit cost information is used by managers in the management process. 113. Match the following key terms with their meaning: 114. The Work in Process Inventory account for Clinton Company for the month ended September 30 appears below. Work in Process Inventory Beginning Balance               0 Completed                 135,800 Direct Materials           42,000 Direct Labor                 70,000 Overhead                      91,000 Overhead.
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142. Trunkey Products Inc. uses a process costing system and has just completed production for the month of November 2014. The following production data were obtained from the accounting records:a. Units in beginning inventory totaled 6,800 and were 30 percent complete as of November 1 (all direct materials were added to.
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144. Use the following information to perform the calculations requested below, assuming that the average costing approach to a process costing system is being used. Beginning work in process inventory: 16,000 units, 100 percent complete as to direct materials, 85 percent complete as to conversion costsEnding work in process inventory: 36,000.
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136. Production has just been completed for January 2014 by Colombo Inc. The company utilizes a process costing system, and the following accounting and operating information was obtained from company records:a. Beginning work in process inventory consisted of units totaling 8,200 that were 60 percent complete as of January 1, 2014.
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132. Use the following information to perform the calculations requested below, assuming that the FIFO costing approach to a process costing system is being used. Beginning work in process inventory: 6,000 units, 100 percent complete as to direct materials, 75 percent complete as to conversion costsEnding work in process inventory: 18,000.
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72. Which of the following is included in full product cost? A. All direct labor and direct material costs and all production and nonproduction costs.B. Only nonproduction costs.C. Only the costs of direct material.D. Only the costs of direct labor. 73. Customer relations are usually part of A. the supply chain.B. the value chain.C. both the value chain and the supply chain.D. neither.
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77. The following information is available at the end of the period for the completed Job 73: Beginning balance $17,000 Direct materials 30,600 Direct labor 24,500 Overhead applied 41,700 Total number of units produced 35,000 Total number of units sold 28,500 What is the unit cost for Job 73? A. $2.55B. $3.19C. $1.50D. $3.92 78. The balances on the job cost sheets of uncompleted jobs will be equal to the.
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11. In a process costing system, newest units in the production process are the first to be transferred to the next department.  12. In a process costing system, all production costs are assigned to departments or processes.  13. In a process costing system, each department's production costs are transferred to the next department and ultimately.
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31. Cost traceability is decreased in a just-in-time operating environment.  32. In moving toward the just-in-time continuous work flow concept, a key objective is the reduction in the use of raw materials for manufacturing a product.  33. A just-in-time philosophy seeks to maximize inventories.  34. Traditional environments emphasize functional departments that tend to group similar activities together.  35. When.
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21. In a job order costing system, the transfer of overhead costs to the Work in Process Inventory account must take place before product unit costs can be computed.  22. In a job order costing system, when indirect materials are used, the Overhead account is increased.  23. In a job order costing system, indirect labor.
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1. Full product cost includes both nonproduction costs and production costs required to satisfy customers.   2. Value –based systems are information systems that provide customer- related, activity –based information.  3. One of the drawbacks of full product cost is that it is relevant only for companies providing services.  4. A non value-adding activity is one that adds.
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58. Process costing is a system of A. inventory management.B. manufacturing.C. product costing.D. product placement. 59. The type of product costing system used by a company is dictated by the A. project manager.B. production process.C. company president.D. plant supervisor. 60. A company should use process costing rather than job order costing if A. production is only partially completed during the accounting period.B. the product is produced in batches.
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97. An allocation base used in the process cost allocation is known as A. cost processor.B. cost object.C. cost driver.D. cost pooler. 98. The traditional approach to applying overhead costs to a product or service is to use a(n) A. actual overhead rate.B. activity-based overhead rate.C. departmental overhead rate.D. single-plantwide overhead rate. 99. Lotus Company’s actual overhead is greater than the applied overhead. This difference.
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138. Jackson Electronics Inc. manufactures a variety of microelectronic component parts and utilizes a process costing system. The following information was provided by the accounting department as of July 31, 2014:a. Units started during the month of July totaled 118,200.b. Units partially complete as of July 31 equaled 7,400.c. Ending work.
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88. The following unit data were assembled for the heating process of Morgan Processing Inc. for the month of August. Direct materials are added at the beginning of the process. Conversion costs are added uniformly over the production process. The company uses the FIFO process costing method. Units Beginning work in process.
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87. Cardsheet CompanyThe following partially completed T accounts summarize the transactions of  Cardsheet Company for last year: Materials Inventory Beg Bal 1,000 18,000 (2) (1) 17,000 Work in Process Inventory Beg Bal 9,000 62,300 (7) (2) 11,000 (4) 15,000 (6) 30,000 Overhead (2) 7,000 30,000 (6) (3) 14,000 (4) 7,000 (5) 3,000      Cost of Goods Sold      Accounts Payable 17,000 (1) 3,000 (5) Finished Goods Inventory Beg Bal 16,000 (7) 62,300 End Bal 13,000           Payroll Payable 5,000 Beg Bal 31,000 (4) Office Salaries Expense (4) 9,000 Accumulated Depreciation (Factory) 80,000 Beg Bal 14,000 (3) The cost of direct materials used in.
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61. Backflush costing aims at decreasing waste in the production process.  62. Backflush costing eliminates the need to make journal entries during the period to track cost flows through the production process as the product is made.  63. Traditional costing and backflush costing provide the same ending balances only when there is little or no.
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121. Logan Company uses a job order costing system. A predetermined overhead rate of $7 per machine hour in Department A and 220 percent per direct labor dollar in Department B has been established based upon the following information at the beginning of the year: Department A Department B Estimated overhead $40,600 $88,000 Estimated.
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31. Direct materials are most likely added at the beginning of the process.  32. Separate equivalent units of production usually are calculated for materials and conversion costs.  33. The number of equivalent units of production will always be lesser than the number of completed units during the period.  34. Equivalent production is a measure of productive output.
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118. Use the following data of Daylight Incorporation, a company using a process costing system, to answer the questions below. Beginning Work in Process Inventory on September 1: 2,000 units—100 percent complete as to direct materials                      75 percent complete as to conversion costs Units Started During September: 7,500 units Ending Work in Process Inventory on.
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130. Johnson Electronics Inc. manufactures a variety of microelectronic component parts and utilizes a process costing system. The following information was provided by the accounting department as of July 31, 2014:a. Units started during the month of July totaled 118,200.b. Units partially complete as of July 31 equaled 7,400.c. Ending work.
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134. Coffeeberry Company manufactures a variety of coffee and utilizes a process costing system. The following information was provided by the accounting department as of May 31, 2014:a. Units started during the month of May totaled 40,000.b. Units partially complete as of May 31 equaled 8,600.c. Ending work in process inventory.
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57. 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 assign costs to production, whereas process costing.
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78. Equivalent units of production usually are determined for A. direct materials costs only.B. direct materials and conversion costs.C. direct and indirect materials only.D. conversion costs only. 79. 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.
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68. Which of the following in a process costing system helps in verifying the cost of ending work in process inventory for a period? A. Materials requisitions and labor time ticketsB. Cost recap included in the statement of productionC. Cost recap included in the process cost reportD. None of the these 69. If a company uses a process.
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41. When planning, managers allocate overhead costs using either the traditional or ABC approach.  42. Managers’ knowledge on unit cost helps in setting reasonable selling prices for products.  43. Job estimates must be compared with actuals for evaluating performance.  44. Service organizations use unit costs of services to determine inventory balances.  45. Financial statements referred by external stakeholders compare.
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108. Information for the current month for Process 5 is shown below. Direct Materials Conversion Costs Beginning work in process $ 4,600 $ 2,060 Current month's costs 46,400 42,375 Equivalent units based on the FIFO costing method 58,000 56,500 Units completed—55,000 Units in ending work in process—5,000    Direct materials are added at the beginning of the process. Beginning work in process is.
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11. A typical operations costing system for a manufacturer incorporates parts of both job order costing and process costing.  12. The production process determines the product costing system needed.  13. A process costing system first assigns the costs to the products manufactured by the departments, and then traces the costs of direct materials, direct labor,.
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115. During the first month of the current accounting period, Southern California Company experienced a devastating loss due to a fire. Many of the accounting records were lost and the company is now trying to recreate the lost information. Fragments of data found include the following:1. A portion of the budget.
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21. Activity-based management is useful for both strategic planning and operational decision making.  22. A cost hierarchy and a bill of activities are tools for the implementation of activity-based costing.  23. Cost hierarchy includes only value-adding activities.  24. For a bank, a credit check of a loan applicant is an example of a batch-level activity.  25. Typically, there are.
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200. Yamishi Production had the following inventories for the first quarter of 2014:  Beginning Ending Materials $606,600 $522,100 Work in process 312,100 280,800 Finished goods 416,100 540,200 Purchases of materials during the quarter were $427,800. Total direct labor costs were incurred in the amount of $1,482,000. Actual overhead costs were incurred as follows: operating supplies used, $17,100; janitorial and maintenance, $87,300; employee.
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140. Data for Orlando Company for the month of June 2014 are as follows: Beginning work in process inventory: Operations for the month of June:   Units—800   Units started—14,000   Direct materials—100% complete   Direct materials costs—$57,400   Conversion costs—70% complete   Conversion costs—$50,122   Direct materials costs—$2,860   Conversion costs—$2,150 Ending work in process inventory:   Units—1,500   Direct materials—100% complete  .
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109. Explain the similarities and differences between job order costing and process costing. Focus on the characteristics of each system. 110. Dyana Julian, president of Julian Juices, Inc., has approached you with the following questions: “Why must we use the process costing method to compute product unit costs for three lines of fruit.
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1. A job order costing system measures costs of each processes using an inventory account for each.  2. The computations for costs to be transferred out of Work in Process Inventory differ if the production process involves multiple departments rather than a single department.  3. Like a job order costing system, a process costing system.
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41. In a process costing system, the amount of total costs to be accounted for is made up of direct materials and conversion costs incurred during the current period plus those costs included in the beginning Work in Process Inventory account.  42. One reason for preparing a process cost report for a particular.
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11. The value chain is the sequence of business activities in which usefulness is added to the products or the services within an organization.  12. The value chain is also called the supply chain.  13. A value-adding activity is one that increases the cost of a product but does not add to the product's market.
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98. The following data were taken from the accounting records of a company that uses the FIFO method in its process costing system:    Beginning work in process inventory:    20,000 units (materials 100% complete, conversion costs 60% complete)   Started in process during the period:    80,000 units   Ending.
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1. Processes in a process costing system must incur the same amount of costs.  2. The computations for costs to be transferred out of Work in Process Inventory are the same regardless of the number and size of the departments involved in the production process.  3. Like job order costing systems, process costing systems are.
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51. Shifting to a just-in-time approach in a manufacturing environment usually will not require a new approach in evaluating costs.  52. In the JIT environment, direct materials and conversion costs will vary significantly for each product in a work cell.  53. The time a product spends waiting to be worked on is called storage time.  54. The.
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47. The type of product costing system used by a company is dictated by the A. cost flow assumptions made by the company.B. production process of the product.C. inventory system used by the company.D. selling price of the product. 48. Which of the following represents the product costs on the income statement? A. Cost of goods soldB. Sales revenueC. Sales commissionsD. None of.
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67. 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.D. balance in the Work in Process Inventory account. 68. Costs assigned to the building of a ship should appear.
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125. How are costs recognized, matched, and measured in a process costing system? 126. Mention the two cost allocation methods used in a process costing system. 127. Describe how the process costing information is used by managers in every stage of the management process. 128. Match the following with their meanings given below: 129. Waves International manufactures surfboards. Production.
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41. Just-in-time operating environments encourage continuous improvement of the work environment.  42. The just-in-time operating environment typically is characterized by a large number of non-value-adding activities.  43. The JIT operating philosophy requires a push-through production system.  44. A work cell is an autonomous production line that can perform only one required operation efficiently at a time.  45. In a.
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51. Under the average costing method in a process costing system, the costs in beginning inventory are combined with current period costs to compute an average product unit cost.  52. In a process cost report, accounting for physical units excludes the physical units in beginning inventory to arrive at “units to be accounted.
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