Score:

5 out of 20 points (25%)

7.
award:

0 out of 1.00 point

Trenton worked on four jobs during its first year of operation: nos. 401, 402, 403, and 404. A review of job no. 403's cost record revealed direct material charges of $52,600 and total manufacturing costs of $64,000. If Trenton applies overhead at 150% of direct labor cost, the overhead applied to job no. 403 must have been:
$3,800. $6,840. $4,560. $0. $5,700.

Score:
5 out of 20 points (25%)

15.
award:

1 out of 1.00 point

Manufacturing overhead is a pool of indirect production costs that must somehow be attached to each unit manufactured.
True False

20.
award:

0 out of 1.00 point

Product costing in a manufacturing firm is the process of:

assigning costs to the firm's inventory. accumulating the company's period costs. placing a value on the company's fixed assets. assigning costs to the company's managers. allocating costs among the firm's departments.

22.
award:

0 out of 1.00 point

Which of the following manufacturers would most likely use job-order costing?
Chemical manufacturers. Gasoline refiners. Microchip processors. Custom-furniture manufacturers. Fertilizer manufacturers.

37.
award:

0 out of 1.00 point

A review of a company's Work-in-Process Inventory account found a debit for materials of $67,000. If all procedures were performed in the correct manner, this means that the firm:
B. also recorded a credit to Manufacturing Supplies Inventory. C. was accounting for the usage of direct materials. E. Both A and C are correct A. also recorded a credit to Raw-Material Inventory. D. was accounting for the usage of indirect materials.

40.

award:

1 out of 1.00 point

Electricity costs that were incurred by a company's production processes should be debited to: Accounts Payable. Utilities Expense. Manufacturing Overhead. Cash. Work-in-Process Inventory.

46.
award:

0 out of 1.00 point

Strong Company applies overhead based on machine hours. At the beginning of 20x1, the company estimated that manufacturing overhead would be $500,000, and machine hours would total 20,000. By 20x1 year-end, actual overhead totaled $525,000, and actual machine hours were 25,000. On the basis of this information, the 20x1 predetermined overhead rate was:
$20 per machine hour. $25 per machine hour. $21 per machine hour. $0.05 per machine hour. $0.04 per machine hour.

50.
award:

0 out of 1.00 point

Trenton worked on four jobs during its first year of operation: nos. 401, 402, 403, and 404. A review of job no. 403's cost record revealed direct material charges of $40,000 and total manufacturing costs of $50,000. If Trenton applies overhead at 150% of direct labor cost, the overhead applied to job no. 403 must have been:
$4,000. $3,333.

$6,000. $5,000. $0.

53.
award:

0 out of 1.00 point

An accountant recently debited Work-in-Process Inventory and credited Manufacturing Overhead at a company that uses normal costing. The accountant was:

applying a predetermined overhead amount to production. recognizing receipt of the factory utilities bill. recording a year-end adjustment for an insignificant amount of underapplied overhead. recognizing the completion of production. recognizing actual overhead incurred during the period.

55.
award:

0 out of 1.00 point

Job no. C12 was completed in November at a cost of $28,500, subdivided as follows: direct material, $13,500; direct labor, $6,000; and manufacturing overhead, $9,000. The journal entry to record the completion of the job is:

81.

award:

1 out of 1.00 point

The direct method ignores the fact that some service departments provide service to other service departments.
True False

85.
award:

0 out of 1.00 point

Eastside Hospital has two service departments (Patient Records and Accounting) and two "production" departments (Internal Medicine and Surgery). It uses the reciprocalservices method of cost allocation and should allocate Internal Medicine cost to Surgery.
True False

91.
award:

0 out of 1.00 point

Which of the following methods recognizes the fact that fixed and variable service department costs should be allocated separately?
Direct method. Dual-cost allocation method. Step-down method. Reciprocal method. None of the above.

95.
award:

1 out of 1.00 point

Which of the following methods recognizes some (but not all) of the services that occur between service departments?
Direct method. Step-down method. Dual-cost allocation method. (Direct method). Reciprocal method. None of the above.

97.
award:

0 out of 1.00 point

Consider the following statements about the step-down method of service department cost allocation: I. Under the step-down method, all service department costs are eventually allocated to production departments. II. The order in which service department costs are allocated is important. III. After a service department's costs have been allocated to other departments, no costs are re-circulated back to that service department. Which of the above statements is (are) correct?
I and III. I, II, and III. I only. II only. I and II.

100.
award:

0 out of 1.00 point

The Metropolitan Clinic has two service departments (S1 and S2) and two "production" departments (P1 and P2). The service departments service the "production" departments but S2 also serves S1. Which of the following choices correctly denotes an allocation that would not occur under (1) the direct method and (2) the step-down method of cost allocation?

Choice A Choice C Choice B Choice D Choice E

109.
award:

0 out of 1.00 point

Consider the following statements about dual-cost allocation: I. Dual-cost allocation prevents a change in the short-run activity of one department from affecting the cost allocated to another department. II. Dual-cost allocations create an incentive for user department managers to understate their expected long-run service needs. III. Dual-cost allocations are generally preferred over lump-sum allocations, or those that combine variable and fixed costs together. Which of the above statements is (are) true?

I, II, and III. I only. III only. I and II. II and III.

114.
award:

0 out of 1.00 point

A company that uses activity-based costing would likely allocate costs from:
service departments to products and services. activity-cost pools to production departments. service departments to production departments. service departments to production departments and then to products and services. activity-cost pools to products and services.

116.
award:

0 out of 1.00 point

The joint-cost allocation method that recognizes the revenues at split-off but does not consider any further processing costs is the:
reciprocal-accounting method. gross margin at split-off method. physical-units method. net-realizable-value method. relative-sales-value method.

119.
award:

1 out of 1.00 point

When allocating joint costs, Weinberg calculates the final sales value of the various products manufactured and subtracts appropriate separable costs. The company is using the:
physical-units method. relative-sales-value method. reciprocal-accounting method. net-realizable-value method. gross margin at split-off method.

2.

award:

0 out of 1.00 point

Othello Manufacturing incurred $200,000 of direct labor and $19,100 of indirect labor. The proper journal entry to record these events would include a debit to Work-inProcess for:
$0 because Work-in-Process should be credited. $0 because Work-in-Process is not affected. $200,000. $219,100. $19,100.

4.
award:

1 out of 1.00 point

Reynardo Company incurred $91,000 of depreciation for the year. Seventy percent relates to the firm's production facilities, and 30% relates to sales and administrative offices. If all items are handled in the proper manner, a review of the company's accounting records should reveal a:
debit to Work-in-Process Inventory for $27,300. debit to Depreciation Expense for $91,000. debit to Manufacturing Overhead for $91,000. credit to Cash for $91,000. debit to Manufacturing Overhead for $63,700.

6.
award:

1 out of 1.00 point

Huxtable charges manufacturing overhead to products by using a predetermined application rate, computed on the basis of machine hours. The following data pertain to the current year: Budgeted manufacturing overhead: $634,500 Actual manufacturing overhead: $ 592,100

Budgeted machine hours: 23,500 Actual machine hours: 19,080 Overhead applied to production totaled:
$ 731,160. $ 681,160. $ 483,160. $ 515,160. some other amount.

10.
award:

1 out of 1.00 point

Serina Manufacturing recently sold goods that cost $40,000 for $50,900 cash. The journal entries to record this transaction would include:
a debit to Finished-Goods Inventory for $40,000. a credit to Work-in-Process Inventory for $40,000. a credit to Profit on Sale for $10,900. a credit to Sales Revenue for $50,900. a debit to Sales Revenue for $50,900.

16.
award:

0 out of 1.00 point

Electricity costs that were incurred by a company's production processes should be debited to Utilities Expense.
True False

20.
award:

0 out of 1.00 point

Product costing in a manufacturing firm is the process of:

placing a value on the company's fixed assets. accumulating the company's period costs. assigning costs to the firm's inventory. assigning costs to the company's managers. allocating costs among the firm's departments.

24.
award:

1 out of 1.00 point

Which of the following types of companies would most likely use process costing?
Shipbuilders. Custom-machining firms. Textile manufacturers. Textbook publishers. Aircraft manufacturers.

28.
award:

0 out of 1.00 point

Pruitt Company has developed an integrated system that coordinates the flow of all goods, services, and information into and out of the organization, working with raw material vendors as well as customers to improve service and reduce costs. The firm is said to be using:
strategic cost management. supply chain management. top-down management. management by objectives (MBO). participative management.

40.

award:

0 out of 1.00 point

Electricity costs that were incurred by a company's production processes should be debited to:
Work-in-Process Inventory. Cash. Manufacturing Overhead. Utilities Expense. Accounts Payable.

44.
award:

1 out of 1.00 point

Which of the following is the correct method to calculate a predetermined overhead rate?
Budgeted total manufacturing cost budgeted amount of cost driver. Actual overhead cost actual amount of cost driver. Budgeted overhead cost budgeted amount of cost driver. Budgeted amount of cost driver budgeted overhead cost. Actual overhead cost budgeted amount of cost driver.

59.
award:

0 out of 1.00 point

Blarney Company applies manufacturing overhead by using a predetermined rate of 50% of direct labor cost. The data that follow pertain to job no. 764:

If Blarney adds a 40% markup on total cost to generate a profit, which of the following choices depicts a portion of the accounting needed to record the sale of job no. 764?

Choice A Choice E Choice C Choice B Choice D

65.
award:

1 out of 1.00 point

Howard Manufacturing's overhead at year-end was underapplied by $5,800, a small amount given the firm's size. The year-end journal entry to record this amount would include:
a credit to Work-in-Process Inventory. a debit to Manufacturing Overhead. a debit to Cost of Goods Sold. a debit to Work-in-Process Inventory. a credit to Cost of Goods Sold.

75.
award:

1 out of 1.00 point

In the two-stage cost allocation process, costs are assigned:

from service departments, to production departments, to jobs. from service departments, to jobs, to production departments. from the balance sheet (when goods are produced), to the income statement (when goods are sold).

from jobs, to service departments, to production departments. from production departments, to jobs, to service departments.

79.
award:

1 out of 1.00 point

Gandolf Corporation allocates administrative costs on the basis of staff hours. Short-run monthly usage and anticipated long-run monthly usage of staff hours for Operating Departments 1 and 2 follow.
Dept. 1 46,000 30,000 Dept. 2 50,000 66,000 Total 96,000 96,000

Short-run usage (hours) Long-run usage (hours)

If Gandolf uses dual-cost accounting procedures and variable administrative costs total $300,000, the amount of variable administrative cost to allocate to Department 1 would be: (Do not round your intermediate calculations.)
$143,750. $76,000. $93,750. $96,000. None of these.

86.
award:

1 out of 1.00 point

Which of the following would be considered a service department for an airline?

All of these. Maintenance. Information Systems. Flight Catering. Purchasing.

89.

award:

1 out of 1.00 point

Which of the following methods ignores the fact that some service departments provide service to other service departments?
Reciprocal method. Step-down method. None of the above. Dual-cost allocation method. Direct method.

100.
award:

1 out of 1.00 point

The Metropolitan Clinic has two service departments (S1 and S2) and two "production" departments (P1 and P2). The service departments service the "production" departments but S2 also serves S1. Which of the following choices correctly denotes an allocation that would not occur under (1) the direct method and (2) the step-down method of cost allocation?

Choice A Choice C Choice D Choice B Choice E

119.
award:

1 out of 1.00 point

When allocating joint costs, Weinberg calculates the final sales value of the various products manufactured and subtracts appropriate separable costs. The company is using the:
reciprocal-accounting method. relative-sales-value method. physical-units method. gross margin at split-off method. net-realizable-value method.

122.
award:

1 out of 1.00 point

Isthmus Corporation uses the physical-units method to allocate costs among its three joint products: X, Y, and Z. The following data are available for the period just ended: Joint processing cost: $800,000 Total production: 150,000 pounds Share of joint cost allocated to X: $160,000 Share of joint cost allocated to Y: $400,000 Which of the following statements is true?
Based on the data presented, it is not possible to determine Ithaca's production of Z during the period. Ithaca produced 30,000 pounds of Z during the period. Ithaca produced 45,000 pounds of Z during the period. The company would have relied on the sales value of each product when allocating joint costs to X, Y, and Z. Ithaca produced 105,000 pounds of Z during the period.

124.
award:

0 out of 1.00 point

Consider the following statements about joint product cost allocation: I. Joint product cost is allocated because it is necessary for inventory valuation. II. Joint product cost is allocated because it is necessary for making economic decisions

about individual products (e.g., sell at split-off or process further). III. Joint cost may be allocated to products by using several different methods. Which of the above statements is (are) correct?
I, II, and III. III only. I and III. I only. I and II.