1. Which one of the following is assigned to goods that were either purchased or manufactured for resales?

Transcription

1 1. Which one of the following is assigned to goods that were either purchased or manufactured for resales? a. Relevant cost b. Period cost c. Product cost d. Opportunity cost 2. Which one of the following categories of cost is most likely not considered a component of fixed factory overhead? a. Rent b. Property taxes c. Depreciation d. Power 3. Smile Labs develops 35mm film using a four-step process that moves progressively through four departments. The company specializes in overnight service and has the largest drug store chain as its primary customer. Currently, direct labor, direct materials, and overhead are accumulated by department. The cost accumulation system that best describe the system Smile Labs is using is a. Operation costing b. Activity-based costing c. Job-order costing d. Process costing 4. Generally, individual departmental rates rather than a plant-wide rate for applying overhead would be used if a. A company wants to adopt a standard cost system b. A company's manufacturing operations are all highly automated c. Manufacturing overhead is the largest cost component of its product cost d. The manufactured products differ in the resources consumed from the individual departments in the plant - 2 -

2 5. New-Rage Cosmetics has used a traditional cost accounting system to apply quality control costs uniformly to all products at a rate of 14.5% of direct labor cost. Monthly direct labor cost for Satin Sheen makeup is $27,500. In an attempt to distribute quality control costs more equitably, New-Rage is considering activity-based costing. The monthly data shown in the chart below have been gathered for Satin Sheen makeup. Activity Cost Driver Cost Rates Quantity for Satin Sheen Incoming material inspection Type of material $11.5/type 12 types In-process inspection Number of units $0.14/unit 17,500 units Product certification Per order $77/order 25 orders The monthly quality control cost assigned to Satin Sheen makeup using activity-based costing is a. $88.64 per order b. $ lower than the cost using the traditional system c. $8, d. $ higher than the cost using the traditional system 6. Lucy Sportswear manufactures a specialty line of T-shirts using a job-order cost system. During March, the following costs were incurred in completing Job ICU2: direct materials, $13,700; direct labor, $4,800; administrative, $1,400; and selling, $5,600. Factory overhead was applied at the rate of $25 per machine hour, and Job ICU2 required 800 machine hours. If Job ICU2 resulted in 7,000 good shirts, the cost of goods sold per unit would be a. $6.50 b. $6.30 c. $5.70 d. $ The principal disadvantage of using the physical quantity method of allocating joint costs is that - 3 -

3 a. Costs assigned to inventories may have no relationship to value b. Physical quantities may be difficult to measure c. Additional processing costs after the allocation base d. Joint costs, by definition, should not be separated on a unit basis. 8. Backflush costing is most likely to be used when a. Management desires sequential tracking of costs. b. A just-in-time production philosophy has been adopted c. The company carries significant amounts of inventory d. Actual production costs are debited to work-in-process 9. A company with three products classifies its costs as belonging to five functions: design, production, marketing, distribution, and customer services. For pricing purpose, all company costs are assigned to the three products. The direct costs of each of the five functions are traced directly to the three products. The indirect costs of each of the five business functions are collected into five separate costs pools and then assigned to the three products using appropriate allocation bases. The allocation basis that would most likely be the best for allocating the indirect costs of the distribution function is a. Number of customer phone calls. b. Number of shipments c. Number of sales persons d. Dollar sales volume 10. In target costing a. The market price of the product is taken as a given b. Only raw materials, labor, and variable overhead cannot exceed a threshold target c. Only raw materials cannot exceed a threshold target d. Raw materials are recorded directly to cost of goods sold - 4 -

4 11. During May, Mercer Company completed 50,000 units costing $600,000, exclusive of spoilage allocation. Of these completed units, 25,000 were sold during the month. An additional 10,000 units, costing $80,000, were 50 percent complete at May 31. All units are inspected at the completion of manufacturing. Normal spoilage for the month was $20,000, and abnormal spoilage of $50,000 was also incurred during the month. The portion of total spoilage that should be charged against revenue in May is a. $50,000 b. $20,000 c. $70,000 d. $60, The appropriate method for the disposition of underapplied or overapplied factory overhead a. is to cost of goods sold only b. is to finished goods inventory only c. is apportioned to finished goods sold and finished goods inventory d. depends on the significance of the amount 13. Which one of the following alternatives correctly classifies the business application to the appropriate costing system? Job-Costing system Process Costing system a. Microcomputer manufacturer Construction b. Wallpaper manufacturer Oil refinery c. Paint manufacturer Retail banking d. Print shop Beverage drinking manufacturer - 5 -

5 The following Date Apply to Items Farber Company employs a normal cost system. The information below is from the financial records of the company for Total manufacturing costs were $2,500,000 - Cost of goods manufactured was $2,425,000 - Applied factory overhead was 30 percent of total manufacturing costs. - Factory overhead was applied to production at a rate of 80 percent of direct labor cost. - Work-in-process inventory at January 1, 2009, was 75 percent of work-in-process inventory at December 31, Farber Company's total direct labor cost in 2009 is a. $750,000 b. $600,000 c. $900,000 d. $937, Total cost of direct material used by Farber Company in 2009 is a. $750,000 b. $812,500 c. $850,000 d. $1,150, The carrying value of Farber Company's work-process inventory at December 31, 2009 is a. $300,000 b. $225,000 c. $100,000 d. $75,

6 17. Cost driver are a. Activities that cause costs to increase as the activity increases b. Accounting techniques used to control costs c. Accounting measurements used to evaluate whether or not performance is proceeding according to plan d. A mechanical basis, such as machine hours, computer time, size of equipment, or square footage of factory, used to assign costs to activities. 18. inventoriable costs a. Include only the prime costs of manufacturing a product b. Include only the conversion costs of manufacturing a product c. Are expensed when products become part of finished goods inventory d. Are regarded as assets before the products are sold. 19. In allocating factory service department costs to producing departments, which one of the following items would most likely be used as an activity base? a. Units of product sold b. Salary of service department employees c. Units of electric power consumed d. units of finished goods shipped to customers The following Data Apply to Items Atlas Foods produces the following three supplemental food products. simultaneously through a refining process costing $93, ,000 pounds of Alfa, a popular but relatively rare grain supplement having a caloric value of 4,400 calories per pound. - 5,000 pounds of Betters, a flavoring material high in carbohydrates, with a caloric - 7 -

7 value of 11,200 calories per pound. - 1,000 pounds of Morefeed, used as a cattle feed supplement which has a caloric value of 1,000 calories per pound. The joint product, Alfa and Betters, have a final selling price of $4 per pound and $10 per pound, relatively after additional processing costs of $2 per pound of each product are incurred after the split-off point. Morefeed, a by-product, is sold at the split-off for $3 per pound. 20. Assuming Atlas Foods inventories Morefeed(recognize at the time of production), the by-product, the joint cost to be allocated to Alfa, using the net realizable value method is a. $3,000 b. $30,000 c. $31,000 d. $60, Assuming Atlas Foods does not inventory morefeed, the by-product, the joint cost to be allocated to Betters using the net realizable value method is a. $31,000 b. $52,080 c. $60,000 d. $62, The series of activities in which customer usefulness is added to the product is the definition of a. A value chain b. Process value analysis c. Integrated manufacturing d. Activity-based costing - 8 -

8 23. Book Co, uses the activity-based costing approach for cost allocation and product costing purposes. Printing, cutting, and binding functions make up the manufacturing process. Machinery and equipment are arranged in operating cells that produce a complete product starting with raw materials. Which of the following are characteristic of Book's activity-based costing approach? Ⅰ. Cost drivers are used as a basis for cost allocation Ⅱ. Costs are accumulated by department or function for purposes of product costing. Ⅲ. Activities that do not add value to the product are identified and reduced to the extent possible. a. Ⅰ only b. Ⅰ and Ⅱ c. Ⅰ and Ⅲ d. Ⅱ and Ⅲ 24. Jonathan Mfg. adopted a job-order costing system. For the current year, budgeted cost driver activity for direct labor hours and direct labor costs were 20,000 and $100,000, respectively. In addition, budgeted variable and fixed factory overhead were $50,000 and $25,000, respectively. actual costs and hours for the year were as follows: direct labor hours 21,000 direct labor costs $110,000 machine hours 35,000 For a particular job, 1,500 direct labor hours were used. Using direct labor hours as the cost driver, what amount of overhead should be applied to this job? a. $3,214 b. $5,357 c. $5,625 d. $7, Palmer Company uses an activity based costing system. It has the following manufacturing activity areas, related drivers used as application bases, and conversion cost per unit of driver: - 9 -

9 Activities Drivers Conversion cost per unit of driver Machine setup Number of setups $50.00 Material handling Number of parts 0.50 Machining Machine hours Assembly Direct labor hours Inspection Number of finished units During the month, 100 units were produced, requiring two setups. Each unit consisted of 19 part, used 1.5 direct labor hours, and 1.25 machine hours. Direct materials cost $100 per finished unit. All other manufacturing costs other than direct materials are classified as conversion costs. Manufacturing cost per unit for the period was a. $88.00 b. $ c. $ d. $ Actual sales values at the split-off point for joint products Y and Z are not known. For purposes of allocating joint costs to products Y and Z, the relative sales value at split-off method(= NRV method) is used. An increase in the costs beyond split-off occurs for product Z, while those of product Y remain constant. If the selling price of finished products Y and Z remain constant, the percentage of total joint costs allocated to Product Y an Product Z would a. Decrease for Product Y and increase for Product Z b. Decrease for Product Y and Product Z c. Increase for product Y and decrease for Product Z d. Increase for Product Y and Product Z 27. Worrell Corporation has a job order costing system. The following debits(credits) appeared in the general ledger account work-in-process for the month of March. March 1, balance $12,000 March 31, direct materials 40,

10 March 31, direct labor 30,000 March 31, factory overhead 27,000 March 31, to finished goods (100,000) Worrell applies overhead to production at a predetermined rate of 90% based on the direct-labor cost. Job No.232, the only job still in process at the end of March, has been charged with factory overhead of $2,250. What was the amount of direct materials charged to Jon No.232? a. $2,250 b. $2,500 c. $4,250 d. $9, Blackwood uses a job order cost system and applies factory overhead to production orders on the basis of direct-labor cost. The overhead rates for the year are 200% for department A and 50% for department B. Job 123, started and completed during the year, was charged with the following costs : Department A B Direct materials $25,000 $5,000 Direct labor? 30,000 Factory overhead 40,000? The total manufacturing costs associated with Job 123 should be a. $135,000 b. $180,000 c. $195,000 d. $240, Under a job order product costing system, the dollar amount of the entry involved in the transfer of inventory from work-in-process to finished goods is the sum of the costs charged to all jobs :

11 a. Started in process during the period b. In process during the period c. Completed and sold during the period d. Completed during the period 30. Yarn Co.'s inventories in process were at the following stages of completion for conversion at April 30 : No. of units Percent complete Equivalent units of production for conversion costs amounted to a. 150 b. 180 c. 330 d The weighted average method of process costing differs from the first-in, first-out method of process costing in that the weighted average method a. Requires that ending work-in-process inventory be started in terms of equivalent units of production b. Consider the ending work-in-process inventory only partially complete c. Does not consider the degree of completion of beginning work-in-process inventory when computing equivalent units of production. d. Can be used under any cost-flow assumption. 32. When using the FIFO method of process costing, total equivalent units of production for a given period of time is equal to the number of units a. Started into process during the period, plus the number of units in WIP at the

12 beginning of the period. b. In WIP at the beginning of the period, plus the number of units started during the period, plus the number of units remaining in WIP in process at the end of the period times the percent of work necessary to complete the items. c. In WIP at the beginning of the period times the percent of work necessary to complete the items, plus the number of units started during the period, less the number of units remaining in WIP at the end of the period times the percent of work necessary to complete the items. d. Transferred out during the period, plus the number of units remaining in WIP at the end of the period times the percent of work necessary to complete the items. 33. Sussex Corporation's production cycle starts in the Mixing Department. The following information is available for the month of April : Units Work-in-process, April 1(50% complete) 40,000 Started in April 240,000 Work-in-process, April 30(60% complete) 25,000 Materials are added in the beginning of the process in the Mixing Department. Using the weighted-average method, what are the equivalent units of production for the month of April? Materials Conversion a. 240, ,000 b. 255, ,000 c. 270, ,000 d. 280, , Bronson Company had 6,000 units in work-in-process at January 1, which were 60% complete as to conversion costs. during January 20,000 units were completed. At January 31 8,000 units remained in work-in-process which were 40% complete as to conversion costs. Materials are added at the beginning of the process. How many units were started during January?

13 a. 18,000 b. 19,600 c. 20,000 d. 22, Information for the month of January concerning department A, the first stage of Ogden Corporation's production cycle, is as follows : Materials Conversion Work-in-process, beginning $8,000 $6,000 Current costs 40,000 32,000 Total costs 48,000 38,000 Equivalent units using Weighted-average method 100,000 95,000 Average unit costs $ 0.48 $ 0.40 Goods completed Work-in-process, end 90,000 units 10,000 units Materials are added at the beginning of the process. The ending work-in-process is 50% complete as to conversion costs. How would the total costs accounted for be distributed, using the weighted-average method? Goods completed Work-in-process, end a. $79,200 $6,800 b. $79,200 $8,800 c. $86,000 $0 d. $88,000 $6, Hoyt Co. manufactured the following units: Saleable 5,000 Unsalable(normal spoilage)

14 Unsalable(abnormal spoilage) 300 Manufacturing costs totaled $99,000. What amount should Hoyt debit to finished goods? a. $90,000 b. $93,600 c. $95,400 d. $99, Normal spoilage Ⅰ. Arises from inefficient operating conditions. Ⅱ. Is considered controllable in the short run. Ⅲ. Is generally treated as a period cost. a. Ⅰand Ⅱ only b. Ⅱ and Ⅲ only c. Ⅰ, Ⅱ, and Ⅲ d. Neither Ⅰ, Ⅱ, nor Ⅲ 38. Walden Company has a process cost system using the FIFO cost flow method. All materials are introduced at the beginning of the process in department One. The following information is available for the month of January : Units Work-in-process, 1/1(40% complete as to conversion costs) 500 Started in January 2,000 Transferred to department Two during January 2,100 Work-in-process, 1/31(25% complete as to conversion costs) 400 What are the equivalent units of production for the month of January? Materials Conversion a. 2,500 2,200 b. 2,500 1,

15 c. 2,000 2,200 d. 2,000 2, The Cutting Department is the first stage of Mark Company's production cycle. Conversion costs for this department were 80% complete as to the beginning work-in-process and 50% complete as to the ending work-in-process. Information as to conversion costs in the Cutting Department for January is as follows : Units Conversion costs WIP at January 1 25,000 $22,000 Units started and costs incurred during January 135,000 $143,000 Units completed and transferred to next department during January 100,000 Using the FIFO method, what was the conversion cost of the work-in-process in the Cutting Department at January 31? a. $33,000 b. $38,100 c. $39,000 d. $45, Factory rent or depreciation is a. A prime cost and an inventoriable cost b. A prime cost and a period cost c. A conversion cost and an inventoriable cost d. a conversion cost and a period cost. The following Data Apply to Items Donnelly Corporation manufactures and sells T-shirts imprinted with college names and slogans. Last year, the shirts sold for $7.50 each, and the variable cost to manufacture them was $2.25 per unit. The company needed to sell 20,000 shirts to break even. The

16 net income last year was $8,400. Donnelly's expectations for the coming year include the following: The sales price of the T-shirts will be $9.00 Variable cost to manufacture will increase by one third. Fixed costs will increase by 10 percent. 41. The selling price that would maintain the same contribution margin rate as last year is a. $9.00 b. $8.25 c. $10.00 d. $ The number of T-shirts Dolley Corporation must sell to break even in the coming year is a. 17,500 b. 19,250 c. 20,000 d. 22, Sales for the coming year are expected to exceed last year's by 1,000 units. If this occurs, Donnelly's sales volume in the coming year will be a. 22,600 units b. 21,960 units c. 23,400 units d. 21,000 units 44. If Donnelly Corporation wishes to earn $37,500 in net income for the coming year, the company's sales volume in dollars must be a. $213,750 b. $257,625 c. $207,000 d. $229,

17 45. In determining cost behavior, the cost function is often expressed as y = a + bx. Which one of the following cost estimation methods should not be used in estimating fixed and variable costs for the equation shown? a. Scatter graph method b. Simple regression c. High and low method d. Multiple method 46. The breakeven point in units increases when unit costs a. Increase and sales price remain unchanged b. Decrease and sales price remain unchanged c. Decrease and sales price increases d. Increase and sales price increases 47. When an organization is operating above the break-even point, the degree or amount that sales may decline before losses are incurred is called the a. Residual income rate b. Marginal rate of return c. Margin of safety d. variable sales ratio 48. A company's value chain includes a. Product design, production, and marketing, but not distribution or support activities b. All internal activities from "cradle to grave" of a product, but does not include activities external to the company c. All activities relating to line functions, but no staff functions are considered to be part of the value chain since they do not deal directly with the product or service d. All primary and support activities which add utility to an organization's products and services. 49. Day Mail Order Co. applied the high-low method of cost estimation to customer order data for the first 4 months of What is the estimated variable order filing cost component per order?

18 Month Order Cost January 1,200 $3,120 February 1,300 $3,185 March 1,800 $4,320 April 1,700 $3,895 a. $2.00 b. $2.42 c. $2.48 d. $ Meg Co. has developed a regression equation to analyze the behavior of its maintenance costs(q) as a function of machine hours(z). The following equation was developed by using 30 monthly observations with a related coefficient of determination of.90 : Q = $6,000 + $5.25Z If 1,000 machine hours are worked in one month, the related point estimate of total maintenance costs would be a. $11,250 b. $10,125 c. $5,250 d. $4, Breakeven analysis assumes that over the relevant range total a. Revenues are linear b. Costs are unchanged c. Variable costs are nonlinear d. Fixed costs are nonlinear 52. The following information pertains to Clove Co. for the year : Budgeted sales $1,000,000 Breakeven sales 700,000 Budgeted contribution margin 600,000 Cashflow breakeven 200,

19 Clove's margin of safety is a. $300,000 b. $400,000 c. $500,000 d. $800,000 Below is a cot-volume-profit relationship diagram and apply to Items 53 to ,000 $ Revenue 60,000 Total cost 55,000 50,000 45,000 40,000 35,000 Variable cost 30,000 25,000 20,000 (not drawn to scale) 25,000 35,000 45,000 55,000 65,000 75,000 85,000 Units 53. Breakeven in units from the graph is a. 25,000 b. 35,000 c. 45,000 d. 55, Fixed costs from the graph is a. $30,000 b. $35,

20 c. $40,000 d. $45, The contribution margin ratio from the graph is a. 67% b. 70% c. 73% d. 75% 56. If target NI is $14,000, what is the desired sales level in dollars? a. $60,000 b. $70,000 c. $80,000 d. $90, Life-cycle costing a. Is sometimes used as a basis for cost planning and product pricing b. Includes only manufacturing costs incurred over the life of the product c. Includes only manufacturing costs, selling expense, and distribution expense d. Emphasizes cost savings opportunities during the manufacturing cycle. 58. An operation costing system is a. identical to a process costing system except that actual cost is used for manufacturing overhead b. the same as a process costing system except that materials are allocated on the basis of batches of production c. the same as a job order costing system except that materials are accounted for in the same way as they are in the process system d. the same as a job order costing system except that no overhead allocations are as actual costs are used

21 59. Kyle Company manufactures products S and T from a joint process. The sales value at split-off was $50,000 for 6,000 units of product S and $25,000 for 2,000 units of product T. Assuming that the portion of the total joint costs properly allocated to product S using the relative sales value at split-off approach was $30,000, what were the total joint costs? a. $40,000 b. $42,500 c. $45,000 d. $60, Joint costs allocation is useful for the purpose/s of Inventory valuation Income determination a. Yes Yes b. Yes No c. No Yes d. No No * 수고하셨습니다. 다음수업시간에문제풀이가있으니시험지를꼭지참하세요