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Study Resources (Accounting)

18.4   Apply job cost allocation procedures to account for spoilage in job costing. 1) Spoilage can be attributed to a particular job in a process costing system. 2) The costs of normal spoilage are assigned to individual jobs in process costing, and in job costing. 3) When normal spoilage is detected, the work-in-process.
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35) New Image Sports uses a process costing system. Direct materials are placed into production at the beginning of the process. All spoilage is normal and is detected at the end of the process. For March the company had the following activities: Beginning work in process inventory6,000 units, one third complete Units.
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35) Calendar Time Company prints calendars. All direct materials are included at the inception of the printing process. There were 20,000 units in beginning inventory with a direct material cost of $1,000 in March. Direct materials totalled $26,000 for the month. work-in-process records revealed that 160,000 calendars were started in.
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38) Dutton Industries is a manufacturer of cleaning products. Its main product goes through two departments: Mixing and Bottling. During June, the beginning WIP in the Mixing department was 32% complete as to conversion cost. The beginning inventory included $15,200 for materials and $19,800 for conversion costs. Ending WIP in.
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11) Total cost per equivalent unit using the weighted-average method equals A) the cost per equivalent unit of direct materials plus cost per spoiled unit. B) the cost per equivalent unit of conversion costs plus cost per unit of spoiled materials. C) the total costs divided by total equivalent units. D) the cost per.
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18) Marvin Ltd. uses an automated process in its manufacturing operations. On November 1, the company had 25,000 units in beginning work in process which were 80% complete with respect to conversion. During the month of November, it started 120,000 into production. On November 30, there were 20,000 units in.
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39) Playtime Ltd. manufactures toys in two departments: Forming and Finishing. During August, the beginning WIP in the Forming Department was 38% complete with respect to conversion, direct materials are added at the beginning of the process. The beginning inventory in Forming included $36,400 for materials and $9,400 for conversion.
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34) What is the difference between a weighted-average method of process costing and a first-in, first-out method of process costing? 35) Universal Industries operates a division in Brazil, a country with very high inflation rates. Traditionally, the company has used the same costing techniques in all countries so as to.
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12) The Parson Valve Corporation was recently formed to produce a brass valve that forms an essential part of a compressor manufactured by a major corporation. The direct materials are added at the start of the production process while conversion costs are added uniformly throughout the production process. September is.
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  Use the information below to answer the following question(s). Carnival Furniture had 60,000 foam cushions in process at May 1 (70% converted) and 40,000 cushions in process at May 31 (50% converted). All direct materials are added at the beginning of the production process. During the month, 140,000 cushions were transferred.
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  Use the information below to answer the following question(s). Plastic Molding, Inc.'s costing system utilizes two cost categories; direct materials and conversion costs. Each product must pass through the Assembly Department and the Testing Department. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production..
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31) Assuming Hawk uses the FIFO method of process costing, the cost of the ending work in process inventory is: A) $23,040 B) $23,142 C) $28,800 D) $28,920 E) $19,200 32) Viking Sports is a manufacturer of sportswear. It produces all of its products in one department. The information for the current month is as follows: Beginning.
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11) An example of a nonfinancial Balanced Scorecard measure concerning internal business processes would be the percentage of products that fail soon after delivery. Diff: 1      Type: TF 12) A measurement of market share is considered a financial measure of customer satisfaction in a balanced scorecard. Diff: 2      Type: TF 13) In the.
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16) General Fabricators assembles its product in several departments. It has two departments that process all units. During October the beginning work-in-process in the Assembly Department was half completed as to conversion and complete as to direct materials. The beginning inventory included $12,000 for materials and $3,000 for conversion costs..
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17.3   Apply the weighted-average method of process costing to calculate the cost of goods manufactured and transferred out when there is both beginning and ending work-in-process inventory. 1) The final result of the process costing procedure is to compute the dollar amount of the credit to a work-in-process account and the.
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17) Caulfield Ltd. has two production departments in the manufacturing of its products. In the first department, Fabricating, component parts are manufactured. In the second department, Assembly, the components are assembled and finished.  Direct materials are added at the start of production in Fabricating and at the 90% point of.
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11) Which of the following is NOT a consideration when accounting for scrap? A) possibility of theft B) inventory costing C) planning and control includes physical tracking D) decisions as to whether to group scrap with reworked units E) to assist in measuring efficiency 12) Which of the following journal entries could appropriately record the cash.
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21) What costs would be associated with normal and abnormal spoilage, respectively, using the FIFO method of process costing? A) $12,571; $30,108 B) $30,108; $12,571 C) $1,257; $3,010 D) $8,000; $4,000 E) $10,627; $25,453 22) What costs are allocated to the ending work-in-process inventory for direct materials and conversion costs, respectively, using the FIFO.
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23) Marvin Randall had a background in the manufacturing of building bricks. The building brick industry used clay and other material which were first mixed, then aged. After aging, they were molded into shapes, retouched and fired in kilns. The materials were fairly durable and spoilage was not significant.  As.
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11) Conceptually transferred-in costs from another department are similar to A) direct labour. B) finished goods inventory. C) direct labour and materials. D) manufacturing overhead. E) materials provided by external suppliers. 12) An operation costing system would be applicable to A) batches of similar products where each batch is a variation of a single design. B) the construction.
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31) For each of the following items identify whether it is spoilage, reworked units, or scrap. _______________a.Defective jeans sold as seconds _______________b.Shavings _______________c.Edges from plastic moldings _______________d.Carpets sold as seconds _______________e.Precision tools that are not built successfully to the necessary tolerance, but which can be successfully converted to a saleable product _______________f.Rock extracted as a result.
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34) The Clay Shop manufactures pottery products. All direct materials are included at the inception of the production process. For April, there was no beginning inventory in the processing plant. Direct materials totaled $310,000 for the month. Work-in-process records revealed that 5,000 kilograms were started in April and that 3,000 kilograms.
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17.5   Apply process-costing methods to report transferred-in costs and operations costing. 1) Transferred-in costs are an allocated indirect cost in process costing. 2) Transferred in costs are costs which have been incurred in a preceding department. 3) An operation-costing system is a hybrid costing system, applied to batches of similar products. 4) Operation-costing captures.
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31) What amount of conversion costs are assigned to the ending Work-in-Process account for April? A) $143,750.00 B) $145,312.50 C) $180,000.00 D) $250,000.00 E) $116,250.00 32) Weighty Steel processes a single type of steel. For the current period the following information is given: Units Material Costs Conversion Costs Beginning Inventory 3,000 $4,500 $5,400 Started During the Current Period 20,000 32,000 78,200 Ending Inventory 2,500 All materials are added.
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11) Which of the following is false concerning equivalent units? A) Equivalent units are calculated separately for each cost category. B) Equivalent units are equal to physical units. C) Equivalent units measure output in terms of the physical quantities of the inputs consumed. D) Equivalent units are necessary when process costing is used. E) The.
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  19.1   Apply balanced scorecard (BSC) concepts to the analysis of quality. 1) The number of defects in units shipped to customers as a percentage of total units shipped, is a non-financial measure. Diff: 2      Type: TF 2) Quality of design measures how closely the characteristics of products or services meet the needs and.
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30) Pet Products Company uses an automated process to manufacture its pet replica products. For June, the company had the following activities: Beginning work in process inventory 4,500 items, 1/4 complete Units placed in production 15,000 units Units completed 17,500 units Ending work in process inventory 2,000 items, 3/4 complete Cost of beginning work in process $5,250 Direct material costs,.
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49) Nidek manufactures sportswear. Classify each of the following quality costs as prevention, appraisal, internal failure or external failure. a.Disposal of spoiled work in process b.Downtime due to quality problems c.Expediting work to meet delivery schedule d.Field testing e.Maintaining a complaint department f.Product liability g.Quality training h.Reinspection i.Rework direct manufacturing labour and overhead j.Scrap k.Testing and inspecting of machinery l.Testing and inspecting.
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17.4   Analyze weighted-average, FIFO, and standard-costing methods of inventory valuation of cost of goods manufactured and transferred out. 1) The first-in, first-out process-costing method computes unit costs by confining equivalent units to work only done during the current period. 2) Process-costing systems using standard costs usually accumulate actual costs separately from the.
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21) A learning curve is a function that measures how labour-hours per unit decrease, as units of production increase. Diff: 2      Type: TF 22) A COQ report provides information on individual categories, but can not provide information on interdependencies across the four categories of quality costs. Diff: 2      Type: TF 23) Quality of.
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21) Material left over when making a product is referred to as A) reworked units. B) spoilage. C) scrap. D) defective units. E) indirect material. Use the information below to answer the following question(s). Waldorf Computer Systems, Inc. manufactures computer memory cards, and uses process-costing. All direct materials are added at the.
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18.2   Apply process-costing methods to account for spoilage using weighted-average and first-in, first-out (FIFO) methods. 1) Costs in beginning inventory are pooled with costs in the current period when determining the costs of good units under the weighted-average method of process costing. 2) All spoilage costs are related to the units completed.
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18.3   Apply the standard-costing method to account for spoilage, and allocate costs of normal spoilage. 1) Under standard costing, there is no need to calculate a cost per equivalent unit. 2) Process costing is simplified when using standard costs. 3) The calculation of equivalent units under standard costing is the same as.
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21) Calculate equivalent units for conversion costs using the FIFO method. A) 401,500 units B) 350,000 units C) 300,000 units D) 292,500 units E) 170,000 units 22) Calculate equivalent units for direct materials using the FIFO method. A) 100,000 units B) 350,000 units C) 400,000 units D) 450,000 units E) 515,000 units 23) Using standard costs simplifies the calculations for which of.
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  18.1   Distinguish among spoilage, rework, and scrap, and apply the appropriate methods to account for the costs of normal and abnormal costs. 1) Scrap products may be reprocessed and subsequently sold as a finished good. 2) The costs of abnormal spoilage are written off as a loss; however, the costs of normal.
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31) Internal failure costs include A) field repairs. B) rework. C) liability claims D) warranty expenses. E) supplier evaluations. Diff: 2      Type: MC 32) Prevention costs include all of the following EXCEPT A) quality engineering. B) design engineering. C) product testing. D) supplier evaluations. E) statistical process control. Diff: 1      Type: MC 33) Appraisal costs include all of the following EXCEPT A) inspection. B) spoilage. C) product.
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18.5   Apply cost allocation procedures to account for reworked units and scrap. 1) An example of rework is when a shoe manufacturer uses leftover leather from shoes to make leather watch bands. 2) Accounting for rework in process-costing only requires that abnormal rework be distinguished from normal rework. 3) One of the major.
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37) Weather Instruments assembles products from component parts. It has two departments that process all products. During January the beginning work in process in the assembly department was half completed as to conversion and complete as to direct materials. The beginning inventory included $12,000 for materials and $4,000 for conversion.
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