Accounting mcq question answer | Accounting homework help

1.)    Costs assigned to the building of a house should appear on the income statement when Answer [removed] a. the purchase order to manufacture the…

1.)    Costs assigned to the building of a house should appear on the income statement when
Answer

[removed]

a.

the purchase order to manufacture the house is received.

[removed]

b.

the house is sold.

[removed]

c.

cash is collected for the sale of the house.

[removed]

d.

the house is completed.

2.)    The basic document for keeping track of costs in a job order costing system is a
Answer

[removed]

a.

labor time card.

[removed]

b.

job order cost card.

[removed]

c.

process cost report.

[removed]

d.

materials requisition form.

3.)    The following information is available at the end of May:

Balance in work in process on May 1

$141,800

Direct materials costs for May

174,500

Direct labor costs for May

162,500

Overhead applied at rate of 140% of direct labor dollars

Jobs completed during May:

Job 84

$198,780

Job 85

102,520

Job 86

119,450

Job 87

93,150

Job 88 was not complete at the end of May.

 
 
 

If $72,400 of materials were charged to Job 88’s job cost card, how much overhead was applied to Job 88?
Answer

[removed]

a.

$70,000

[removed]

b.

$120,000

[removed]

c.

$72,400

[removed]

d.

$35,100

4.)    Unit costs for each job are computed by dividing
Answer

[removed]

a.

estimated total costs by planned units to be produced.

[removed]

b.

actual costs by actual units sold.

[removed]

c.

cost of direct materials, direct labor, and overhead by number of units produced.

[removed]

d.

estimated total costs by actual units produced.

5.)    The _________ provide(s) the most direct means of calculating unit costs for a job.
Answer

[removed]

a.

job order cost card

[removed]

b.

general ledger

[removed]

c.

Finished Goods Inventory account

[removed]

d.

Overhead and Work in Process Inventory accounts

6.)    The following information is available at the end of the period for the completed Job 713:

Beginning balance

$21,500.00

Direct materials

30,600

Direct labor

24,500

Overhead applied

41,700

Adjustment—overapplied overhead

1,600

Total number of units produced

30,000

Total number of units sold

28,500

 
 

What is the unit cost for Job 713?
Answer

[removed]

a.

$3.89

[removed]

b.

$4.00

[removed]

c.

$3.94

[removed]

d.

$4.09

7.)    The balance in the Work in Process account equals the
Answer

[removed]

a.

balance in the Cost of Goods Sold account.

[removed]

b.

balance in the Finished Goods Inventory account.

[removed]

c.

balance in the Overhead account.

[removed]

d.

balances on the job cost sheets of uncompleted jobs.

8.)    Actual overhead during the year was more than applied overhead,  the journal entry to close the Overhead account for the difference?
Answer

[removed]

a.

Overhead                        XX      Finished Goods Inventory                  XX

[removed]

b.

Overhead                        XX      Cost of Goods Sold                  XX

[removed]

c.

Cost of Goods Sold                  XX      Finished Goods Inventory                  XX

[removed]

d.

Cost of Goods Sold                  XX      Overhead                              XX

9.)    Which one of the following entries includes the initial application of indirect labor to production?
Answer

[removed]

a.

Factory Payroll                  XX      Overhead                              XX

[removed]

b.

Work in Process Inventory            XX      Overhead                              XX

[removed]

c.

Overhead                        XX      Work in Process Inventory                  XX

[removed]

d.

Overhead                        XX      Factory Payroll                        XX

10.)Service organizations incur little or no cost for
Answer

[removed]

a.

materials.

[removed]

b.

actual overhead.

[removed]

c.

labor.

[removed]

d.

applied overhead.

11.)The following partially completed T accounts summarize the transactions of Carlton Company for last year:

Materials Inventory

Beg Bal

5,000

20,000

(2)

(1)

17,000

Work in Process Inventory

Beg Bal

9,000

63,600

(7)

(2)

13,000

(4)

16,000

(6)

29,000

Overhead

(2)

7,000

29,000

(6)

(3)

14,000

(4)

6,000

(5)

3,000

     Cost of Goods Sold

     Accounts Payable

17,000

(1)

3,000

(5)

Finished Goods Inventory

Beg Bal

16,000

(7)

63,600

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)

 
 
 
 
 
 

At the end of the year, the company closes out the balance in the Overhead account to Cost of Goods Sold.
The cost of goods manufactured is
Answer

[removed]

a.

$63,600.

[removed]

b.

$61,600.

[removed]

c.

$62,600.

[removed]

d.

$59,600.

12.)The following partially completed T accounts summarize the transactions of Carlton Company for last year:

Materials Inventory

Beg Bal

5,000

20,000

(2)

(1)

17,000

Work in Process Inventory

Beg Bal

9,000

63,600

(7)

(2)

13,000

(4)

16,000

(6)

29,000

Overhead

(2)

7,000

29,000

(6)

(3)

14,000

(4)

6,000

(5)

3,000

     Cost of Goods Sold

     Accounts Payable

17,000

(1)

3,000

(5)

Finished Goods Inventory

Beg Bal

16,000

(7)

63,600

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)

 
 
 
 
 
 

At the end of the year, the company closes out the balance in the Overhead account to Cost of Goods Sold.
The cost of goods sold (after adjusting for under- or overapplied overhead) is
Answer

[removed]

a.

$66,600.

[removed]

b.

$65,600.

[removed]

c.

$64,600.

[removed]

d.

67,600

13.)The following partially completed T accounts summarize the transactions of Carlton Company for last year:

Materials Inventory

Beg Bal

5,000

20,000

(2)

(1)

17,000

Work in Process Inventory

Beg Bal

9,000

63,600

(7)

(2)

13,000

(4)

16,000

(6)

29,000

Overhead

(2)

7,000

29,000

(6)

(3)

14,000

(4)

6,000

(5)

3,000

     Cost of Goods Sold

     Accounts Payable

17,000

(1)

3,000

(5)

Finished Goods Inventory

Beg Bal

16,000

(7)

63,600

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)

 
 
 
 
 
 

At the end of the year, the company closes out the balance in the Overhead account to Cost of Goods Sold.
The applied overhead is
Answer

[removed]

a.

$30,000.

[removed]

b.

$29,000.

[removed]

c.

$28,000.

[removed]

d.

$40,000.

14.)In cost-plus contracts, the “plus” represents
Answer

[removed]

a.

profit, based on the amount of costs incurred.

[removed]

b.

sales price.

[removed]

c.

the amount of any cost overruns.

[removed]

d.

overapplied overhead costs.

15.)Which of the following could not be learned by analyzing job order cost cards?
Answer

[removed]

a.

The type of products ordered by a particular customer

[removed]

b.

The cost of all jobs done for a particular customer

[removed]

c.

The balance of Work in Process Inventory at the end of the period

[removed]

d.

The completion time of jobs yet to be completed

16.)                        Process costing is applicable to production operations that
Answer

a.

produce large and unique machines.

b.

do not assign overhead costs to operations.

c.

are found in only a few industries.

d.

utilize several processes, departments, or work cells in a series.

17.)                        A process costing system accounts for product costs
Answer

a.

for a specific period of time.

b.

almost always in a single Work in Process Inventory account.

c.

without regard to the process that created the cost.

d.

for specific orders.

18.)                        In a process costing system, the cost of ending work in process inventory for a period can be verified by reference to supporting analysis in
Answer

a.

materials requisitions and labor time tickets.

b.

cost recap included in the statement of production.

c.

cost recap included in the process cost report.

d.

none of the above.

19.)                        Use the following data from a company using a process costing system to answer the question(s) below.

Beginning Work in Process Inventory on June 1:

1,000 units—100 percent complete as to direct materials

80 percent complete as to conversion costs

 

 

Units Started During June:

6,500 units

 

 

 

Ending Work in Process Inventory on June 30:

1,200 units—100 percent complete as to direct materials

40 percent complete as to conversion costs

 

 

 The FIFO process costing method is used by the company.  Units completed and transferred out of the department during the month totaled
Answer

a.

6,500.

b.

6,700.

c.

5,300.

d.

6,300.

20.)                        Use the following data from a company using a process costing system to answer the question(s) below.

Beginning Work in Process Inventory on June 1:

1,000 units—100 percent complete as to direct materials

80 percent complete as to conversion costs

 

 

Units Started During June:

6,500 units

 

 

 

Ending Work in Process Inventory on June 30:

1,200 units—100 percent complete as to direct materials

40 percent complete as to conversion costs

 

 

 The FIFO process costing method is used by the company.  Equivalent units for direct materials during the month totaled
Answer

a.

8,700.

b.

6,500.

c.

7,700.

d.

6,700.

21.)                        The Taylor Company uses a process costing system. Assume that direct materials are added at the beginning of the period and that direct labor and overhead are added continuously throughout the process. The company uses the FIFO costing method. The following data are available for one of its accounting periods:

 

Units

 

Beginning work in process

26,000

(70 percent complete for conversion costs)

Units started

180,000

 

Units transferred out

191,000

 

Ending work in process

15,000

(60 percent complete for conversion costs)

 

 

 

 Equivalent units for direct materials are
Answer

a.

176,000.

b.

180,000.

c.

202,000.

d.

191,000.

22.)                        Which of the following is not included in conversion costs?
Answer

a.

Direct labor

b.

Indirect labor

c.

Overhead

d.

Direct materials

23.)                        During March, Department A started 300,000 units of product in a particular production process. The beginning work in process inventory was 50,000 units, and the ending inventory was 40,000 units. Direct materials are introduced at the start of processing, and beginning and ending inventories are considered to be 40 percent complete with respect to conversion costs. Department A uses the FIFO costing method.  The number of equivalent units produced with respect to conversion costs was
Answer

a.

336,000.

b.

316,000.

c.

306,000.

d.

296,000.

24.)                        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 inventory     (30 percent complete)

 5,000

Units started in August

44,000

Ending work in process    (60 percent complete)

 4,500

 

 

 The number of equivalent units produced with respect to conversion costs is
Answer

a.

48,200.

b.

50,200.

c.

45,700.

d.

43,700.

25.)                        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 inventory     (30 percent complete)

 5,000

Units started in August

44,000

Ending work in process    (60 percent complete)

 4,500

 

 

 The number of equivalent units produced with respect to direct materials costs is
Answer

a.

44,000.

b.

39,500.

c.

49,000.

d.

48,500.

26.)                        A measure of productive output of units for a period of time, expressed in terms of completed whole units, is the definition of
Answer

a.

equivalent units.

b.

ending work in process inventory.

c.

units started and completed.

d.

conversion costs.

27.)                        In a process costing system, percentage-of-completion factors normally are obtained from
Answer

a.

supervisors in the production departments.

b.

time cards.

c.

accounting records.

d.

job order cost cards.

28.)                        The use of the FIFO method would result in a company’s process cost report showing
Answer

a.

units transferred out as two amounts: one for units completed during the period and one for ending inventory.

b.

units transferred out as three amounts: one for beginning inventory, one for units started and completed during the period, and one for ending inventory.

c.

units transferred out as two amounts: one for beginning inventory and the other for units started and completed during the month.

d.

units transferred out as one amount with no distinction made for beginning inventory.

29.)                        Fantastic Fabricating uses the FIFO method in its process costing system. Beginning inventory in the mixing processing center consisted of 4,000 units, 75 percent complete with respect to conversion costs. Ending work in process inventory consisted of 3,000 units, 60 percent complete with respect to conversion costs. If 11,200 units were transferred to the next processing center during the period, the equivalent units for conversion costs would be
Answer

a.

10,000 units.

b.

11,200 units.

c.

12,400 units.

d.

12,200 units.

30.)                        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 work in process inventory: 30,000 units (materials 100% complete, conversion costs 70% complete)              The equivalent units are
Answer

a.

materials, 80,000 units; conversion costs, 79,000 units.

b.

materials, 100,000 units; conversion costs, 91,000 units.

c.

materials, 60,000 units; conversion costs, 53,000 units.

d.

materials, 90,000 units; conversion costs, 89,000 units.

31.)                        Nader, Inc., has the following information available:

 

Costs from Beginning Inventory

Costs from Current Period

Direct materials

$2,300

$ 21,252

Conversion costs

6,200

150,536

 

 

 

 At the beginning of the period, there were 500 units in process that were 40 percent complete as to conversion costs and 100 percent complete as to direct materials costs. During the current period, 4,300 units were started and completed. Ending inventory contained 320 units that were 80 percent complete as to conversion costs and 100 percent complete as to direct materials costs. (Assume that the company uses the FIFO costing method.)  The cost of completing a unit during the current period was
Answer

a.

$35.79.

b.

$35.21.

c.

$35.60.

d.

$39.50.

32.)                        Information for the current month for Process 3 is shown below.

 

Direct Materials

Conversion Costs

Beginning work in process

$ 3,600

$   930

Current month’s costs

55,800

48,204

Equivalent units based on the FIFO costing method

62,000

61,800

 

 

 

 Units completed—60,000 Units in ending work in process—6,000       Direct materials are added at the beginning of the process. Beginning work in process is 30 percent complete as to conversion costs; ending work in process inventory is 50 percent complete. The cost of ending work in process inventory totaled
Answer

a.

$7,740.

b.

$5,400.

c.

$4,224.

d.

$8,700.

33.)                        Information for the current month for Process D is shown below.

 

Direct Materials

Conversion Costs

Beginning work in process inventory

$ 6,400

$ 9,600

Current month’s costs

31,740

51,100

Equivalent units based on the FIFO costing method

69,000

70,000

 

 

 

 
      Direct materials are added at the beginning of the process. Beginning work in process is 50 percent complete as to conversion costs; ending work in process inventory is 40 percent complete. Determine the cost of ending work in process inventory.
Answer

a.

$5,120

b.

$3,200

c.

$7,040

d.

$3,760

34.)                        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 40 percent complete as to conversion costs; ending work in process inventory is 60 percent complete. The cost of ending work in process inventory totaled
Answer

a.

$4,650.

b.

$7,750.

c.

$6,250.

d.

$5,500.

35.)                        The total costs that will be transferred into the Finished Goods Inventory account during the current period are
Answer

a.

$160,080.

b.

$180,050.

c.

$164,736.

d.

$144,768.

36.)                        Weston Company uses the FIFO method in its process costing system. The first processing department, the Welding Department, started the month with 18,000 units in its beginning work in process inventory that were 50 percent complete with respect to conversion costs. The conversion costs in the beginning work in process inventory were $52,200. An additional 55,000 units were started into production during the month. There were 16,000 units in the ending work in process inventory of the Welding Department that were 20 percent complete with respect to conversion costs. A total of $284,160 in conversion costs were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for the month on the department’s process cost report? (Round to three decimal places.)
Answer

a.

$5.167

b.

$5.800

c.

$5.550

d.

$4.608

37.)                        Use the following data from a company using a process costing system to answer the question below.

Beginning Work in Process Inventory on June 1:

2,000 units—100 percent complete as to direct materials

80 percent complete as to conversion costs

 

 

Units Started During June:

12,800 units

 

 

 

Ending Work in Process Inventory on June 30:

2,400 units—100 percent complete as to direct materials

40 percent complete as to conversion costs

 

 

 The company uses average process costing method. Units completed and transferred out of the department during the month totaled
Answer

a.

14,800.

b.

10,400.

c.

12,400.

d.

12,800.

38.)                        Use the following data from a company using a process costing system to answer the question below.

Beginning Work in Process Inventory on June 1:

1,000 units—100 percent complete as to direct materials

80 percent complete as to conversion costs

 

 

Units Started During June:

6,400 units

 

 

 

Ending Work in Process Inventory on June 30:

1,200 units—100 percent complete as to direct materials

40 percent complete as to conversion costs

 

 

 The company uses average process costing method. Equivalent units for conversion costs during the month totaled
Answer

a.

7,920.

b.

7,680.

c.

5,880.

d.

6,680.

39.)                        The Taylor Company uses a process costing system. Assume that direct materials are added at the beginning of the period and that direct labor and overhead are added continuously throughout the process. The company uses the average costing method. The following data are available for one of its accounting periods:

 

Units

 

Beginning work in process

26,000

(70 percent complete for conversion costs)

Units started

180,000

 

Units transferred out

191,000

 

Ending work in process

15,000

(60 percent complete for conversion costs)

 

 

 

 Equivalent units for conversion costs are
Answer

a.

200,000.

b.

207,800.

c.

192,200.

d.

181,800.

40.)                        The Taylor Company uses a process costing system. Assume that direct materials are added at the beginning of the period and that direct labor and overhead are added continuously throughout the process. The company uses the average costing method. The following data are available for one of its accounting periods:

 

Units

 

Beginning work in process

26,000

(70 percent complete for conversion costs)

Units started

180,000

 

Units transferred out

191,000

 

Ending work in process

15,000

(60 percent complete for conversion costs)

 

 

 

Assume that you have calculated a direct materials cost per unit of $5 and a conversion cost per unit of $8. Under this assumption, the ending balance for Work in Process Inventory would be
Answer

a.

$195,000.

b.

$123,000.

c.

$147,000.

d.

$165,000.

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