devry acct344 week 1 and week 2 quiz

1. Question
: (TCO 2) Which cost assignment
method would likely assign the cost of heating in a plant that makes beds and
dressers when the bed product line is the cost object?

Driver tracing

Direct tracing

Allocation

Arbitration

2. Question : (TCO 2) Which cost is an example of product costs?

Selling commissions

Nonfactory office salaries

Direct materials

Advertising expense

3. Question : (TCO 2) Period costs do not include

order-getting costs.

order-filling costs.

order-making costs.

All of the above are period costs.

4. Question : (TCO 2) Based on the following information, which are the
conversion costs?
Beginning work-in-process inventory $160,000
Ending work-in-process inventory $180,000
Cost of goods manufactured $500,000
Direct materials used
$130,000

$210,000

$320,000

$340,000

$390,000

5. Question : (TCO 2) Based on
the following information, which are the prime costs for the year?
Cost of goods manufactured $380,000
Beginning work-in-process inventory $140,000
Ending work-in-process inventory $120,000
Manufacturing overhead $70,000

$310,000

$570,000

$290,000

$330,000

6. Question : (TCO 2) The absolute maximum production activity of a
manufacturing firm is called

expected activity level

normal activity level

theoretical activity level

practical activity level

7. Question : (TCO 2) Which item is a basic costing system record in a
job-order costing system?

Materials requisition form

Job-order cost sheet

Job time ticket

All of the above

8. Question : (TCO 2) Which firm would make extensive use of job-order
costing?

Dental and medical services

Canned foods

Discount brokers

Petroleum

9. Question : (TCO 2) ABC Manufacturing Company has the following total
job cards.
Job A $6,500
Job B $5,630
Job C $3,825
Job D $3,800
Job E $6,300
Job F $4,200
Jobs A and B were in Finished Goods Inv. at the beginning of
the month.
Jobs C and D were in Work-in-Process at the beginning of the
month.
Jobs E and F were started during the month.
At the end of the month, Jobs A and E were sent to
customers.
At the end of the month, Jobs C, E, and F were completed and
sent to finished goods.

Which is the cost of goods sold for the month?

$12,130

$14,325

$12,800

None of the above

10. Question : (TCO 2)
Action Corporation uses activity-based costing to apply
overhead to jobs within a job-order costing system. The following overhead
activities were budgeted for the year.

Activity Cost Driver Amount
of Driver
Setups $480,000 # of setups 8,000
Purchasing $240,000 # of parts 20,000
Other overhead $500,000 Direct labor hours 80,000
The following information about the jobs was given for May.
Job 1 Job 2 Job 3 Job 4
Balance 4/1
$84,900 $50,880 $61,000 $ –
Direct materials
$44,000 $36,900 $50,000 $10,000
Direct labor
$60,000 $41,000 $83,000 $18,000
# of setups 30 12 35 150
# of parts 250 75 600 350
Direct labor hours 4,000 2,600 6,000 900
By May 30, Jobs 1, 2, and 3 were completed and sold. The
remaining jobs were still in process.
Which is the cost of Job 2?

$146,650

$95,770

$128,780

None of the above1. Question
: (TCO 3) The appropriate cost
accounting system to use when inventory items are produced on an assembly line
is weighted average. job-order costing. process costing. perpetual method. 2. Question : (TCO 3) As production occurs, materials, direct labor, and
applied manufacturing overhead are recorded in cost of goods sold. work-in-process. materials. finished goods. 3 of 3 Comments: 3. Question : (TCO 3) “Equivalent units” expresses all activity of the
period in terms of direct labor hours. partially completed units. fully completed units. units of input. 4. Question : (TCO 3) Holly Inc. manufactures dolls. The following data
were provided for production results for the current month. 0 Units, beginning work-in-process 300 Units started ? Units completed 100 Units, ending work-in-process (40%
complete)Which are the equivalent units? 300 240 260 200 None of the above 5. Question : (TCO 3) When products and their costs are moved from one
process to the next process, these costs are referred to as unit costs. transferred-in costs. WIP inventory costs. 3 Comments: 6. Question : (TCO 3) Keller Inc. manufactures office chairs. The
following data were provided for production results for the current month. 0 Units, beginning
work-in-process 6,000 Units started ? Units completed 2,000 Units, ending work-in-process $440,000 Cost of direct materials $64,000 Cost of conversionEnding inventory is 100% complete for materials and 20%
complete for conversion. How many units were started and completed? 4,000 2,000 6,000 12,000 None of the above 7. Question : (TCO 3) The two methods used to determine equivalent units
of production are FIFO and LIFO. weighted average and LIFO. weighted average and FIFO. FIFO and specific identification. 8. Question : (TCO 3) Abby Corp. adds raw materials to production at the
beginning of the process in the Assembly Dept. Materials data for this
department for the current month are as follows. Costs Units Materials ConversionBeginning work-in-process
10,000 $70,750 $175,350Started during month
65,000 $250,000 $736,350Ending work-in-process
6,000 Beginning inventory was 70% complete. Ending inventory was
40% complete.How many equivalent units for materials would there be for
Abby Corp. during the month using the FIFO method? 71,000 65,000 75,000 72,800 9. Question : (TCO 3) The following information was provided by Sally
Company. % complete UnitsBegninning work-in-process 25% 25,000Units transferred in
75,000Ending work-in-process 50% 15,000All materials are added at the beginning of the process. How many equivalent units for materials would there be using
the weighted average method? 100,000 115,000 75,000 82,500 10. Question : (TCO 3) The material cost per equivalent unit using the
weighted average method is calculated as total material costs to account for /
equivalent units for materials. material costs added during the period /
equivalent units for materials. total material costs to account for / number
of partially completed units for materials. material costs added during the period /
number of partially completed units for materials.