When applying job-order costing, which of the following would likely be the most

appropriate cost driver of machinery power costs?

Answer
Production run set-ups.
Repair work orders.
Machine hours.
Direct labour hours.
Davidson Manufacturing uses the weighted-average method in its process costing
system. The following data for the Mixing Department were taken from the
company's accounting records.
Beginning work in process inventory (100% complete as to materials, 80% as to
conversion): 60,000 units
Started in process during the period: 180,000 units
Ending work in process inventory (100% complete as to materials, 60% complete as
to conversion): 40,000 units
The equivalent units of production for conversion costs were:
Answer
222,000 units.
204,000 units.
200,000 units.
224,000 units.
A company is deciding whether or not to accept a special order. The following cost is
most likely to be an incremental cost:
Answer
insurance
CEO's salary
direct materials
rent

Which of the following is an assumption of the learning curve theory?

Answer
Unit time will decrease at an increasing rate
Unit time will decrease at a decreasing rate
Unit time will hold constant
Unit time will increase at a decreasing rate

Which of the following is an assumption of the learning curve theory?

Answer
The reduction in unit time will follow a predictable pattern
Learning will not be transferred from one worker to the next
The time required to do a task will vary randomly each time the task
is repeated
Organizational learning is not included in learning theory
Miele Engineering uses the weighted-average method in its process costing system.
The following information was available about one of the company's processing
departments:
There were 108,000 equivalent units of production with respect to conversion costs
during the current month. There were 15,000 units in the department's beginning
work in process inventory, which were two-thirds complete with respect to conversion
costs. During the current month, 105,000 units were started and 100,000 were
completed and transferred out of the department.
The ending work in process inventory in the department:
Answer
was 65% complete with respect to conversion costs.
was 40% complete with respect to conversion costs.
consisted of 10,000 units.
consisted of 5,000 units.
In the month of March, department A had 10,000 units in beginning work in process
that were 70% complete. During March, 40,000 units were transferred into
production from another department. At the end of March, there were 5,000 units in
ending work in process that were 40% complete. Materials are added at the
beginning of the process, while conversion costs are incurred uniformly throughout
the process. The equivalent units of production for materials for March were:
Answer
52,000 units
40,000 units
50,000 units
45,000 units
You have just timed a person doing a job a few times. The first time it took the
person 25 minutes, the second time it took 20 minutes, and the third time it took
17.55 minutes. Which learning curve unit improvement factor should you use to
describe it?
Answer
85
percent
75
percent
80
percent

25
percent

One characteristic of products that are mass-produced in a continuous

production process is that:
Answer
The products are identical or very similar in nature.
They are produced at the time an order is received.
Their costs are accumulated on job cost sheets.
They are grouped in batches.
Jack Furnishing had the following department information about physical units and
percentage of completion:
Physical Units:
Work in process, June 1 (60%): 36,000
Completed and transferred out: 90,000
Work in process, June 30 (40%): 30,000
If materials are added at the beginning of the production process, the total number of
equivalent units for materials during June would be:
Answer
116,400
102,000
126,000
120,000
The beginning work in process is 3,000 units, ending work in process is 1,000 units,
and the units accounted for equals 6,000 units. The units started in production is:
Answer
9,000
6,000
3,000
7,000
Analyse which of the following is not a Product Cost?
Answer
Factory Overhead
Direct Material
Direct Labour
Selling and Distribution costs
Jack Component Ltd. is attempting to build a reputation as a world-class
manufacturer of automotive brake components. Of the following four categories of
cost, which would be the most damaging to Jack Component?

Answer
Cost of internal failures.
Cost of external failures.
Appraisal costs.
Prevention costs.
The beginning work in process inventory in the Milling Department consisted of
10,000 units, 50% complete with respect to materials cost and 60% complete with
respect to conversion costs. The total cost of the beginning inventory was $60,000.
During the month, 50,000 units were transferred out of this department. The
equivalent unit cost was computed to be $4.00 for materials and $7.40 for
conversion costs under the weighted-average method. Given this information, the
total cost of the units completed and transferred out of this department during the
month was:
Answer
$540,000.
$510,000.
$570,000.
$480,000.

The learning curve remains valid:

Answer
as long as process revisions involve only the addition of automated
machinery.
as long as production volume increases and processes are consistent.
for product modifications that simplify the sequence of assembly.
when applied to different firms in the same industry.

Eng Huat Engineering uses the weighted-average method in its process costing
system. The company has only a single processing department. The company's
ending work in process inventory consisted of 36,000 units. The units in the ending
work in process inventory were 50% complete with respect to materials and 30%
complete with respect to labour and overhead. If the costs per equivalent unit for the
current period were $5.50 for materials and $8.50 for labour and overhead, the total
cost assigned to the ending work in process inventory was:
Answer
$190,800.
$151,200.
$160,200.
$252,000.

The computation of equivalent units under the FIFO method:

Answer
treats units in the ending work in process stock as if they were started
and completed during the current period.
ignores units in the beginning and ending work in process inventories.
treats units in the beginning work in process stock as if they represent
a separate batch of goods distinct from goods started and completed
during the current period.
treats units in the beginning work in process stock as if they were
started and completed during the current period.
Which of the following would not appear as a debit in the Work in Process account of
a second department in a two stage production process?
Answer
Materials used
Overhead applied
Labour assigned
Cost of products transferred out

==================================== 90/100

Paul's Pizza produced and sold 2,000 pizzas last month and had fixed costs of
$6,000. If production and sales are expected to increase by 10% next month, which
of the following statements is true?
Answer
Total fixed
costs will
decrease.
Fixed cost
per unit will
increase.
Total fixed
costs will
increase.
Fixed cost
per unit will
decrease.
You have just timed a person doing a job a few times. The first time it
took the person 25 minutes, the second time it took 20 minutes, and
the third time it took 17.55 minutes. Which learning curve unit
improvement factor should you use to describe it?
Answer
75 percent
80 percent
25 percent

85 percent
Davidson Manufacturing uses the weighted-average method in its process costing
system. The following data for the Mixing Department were taken from the
company's accounting records.
Beginning work in process inventory (100% complete as to materials, 80% as to
conversion): 60,000 units
Started in process during the period: 180,000 units
Ending work in process inventory (100% complete as to materials, 60% complete as
to conversion): 40,000 units
The equivalent units of production for conversion costs were:
Answer
222,000 units.
204,000 units.
200,000 units.
224,000 units.
Jack Furnishing had the following department information about physical units and
percentage of completion:
Physical Units:
Work in process, June 1 (60%): 36,000
Completed and transferred out: 90,000
Work in process, June 30 (40%): 30,000
If materials are added at the beginning of the production process, the total number of
equivalent units for materials during June would be:
Answer
102,0
00
116,4
00
126,0
00
120,0
00
The computation of equivalent units under the FIFO method:
Answer
treats units in the ending work in process stock as if they were
started and completed during the current period.
ignores units in the beginning and ending work in process
inventories.
treats units in the beginning work in process stock as if they
were started and completed during the current period.

treats units in the beginning work in process stock as if they

represent a separate batch of goods distinct from goods
started and completed during the current period.
Milden Enterprise uses the weighted-average method in its process costing system.
The following information was available for one of its processing departments:
The beginning work in process inventory consisted of 16,000 units, which were 75%
complete with respect to conversion costs. The department converted the equivalent
of 59,000 units of production during the current month. A total of 50,000 units were
completed and transferred out of that department during the current month. The
ending work in process inventory consisted of 12,000 units, which were 50%
complete with respect to conversion costs.
The number of units started during the month in that department was:
Answer
54,000 units.
42,000 units.
29,000 units.
46,000 units.

The learning curve remains valid:

Answer
as long as production volume increases and processes are consistent.
as long as process revisions involve only the addition of automated
machinery.
when applied to different firms in the same industry.
for product modifications that simplify the sequence of assembly.
Which of the following statement discusses the concept of a sunk cost?
Answer
incurred in the past which is not relevant to present decisions.
incurred in the current period which remains constant even though
production activity changes.
incurred in the current period which changes with changes in
production activity.
which is estimated to occur in the future.
Which of the following cost elements occurs in a process costing system?
Answer
Direct labour
All of the listed choices
Manufacturing overhead
Direct materials

Which of the following is an assumption of the learning curve theory?

Answer
Unit time will hold constant
Unit time will decrease at an increasing rate
Unit time will increase at a decreasing rate
Unit time will decrease at a decreasing rate

Analyse which of the following is not a Product Cost?

Answer
Factory Overhead
Selling and Distribution costs
Direct Material
Direct Labour

In a process costing system, the journal entry used to record the transfer of units
from Department A, a processing department, to Department B, the next processing
department, includes a debit to:
Answer
Work in Process - Department A and a credit to Work in Process Department B.
Finished Goods and a credit to Work in Process - Department B.
Work in Process - Department B and a credit to Materials.
Work in Process - Department B and a credit to Work in Process Department A
The raw materials used by a manufacturing company are properly classified as an
inventory asset until what point in time?
Answer
The date on which the invoice for the materials is paid.
The date on which the completed final products containing the
materials is sold to the customer.
The date on which the final product is completed.
The date on which the materials are first used in production.
When preparing a production report, if equivalent units are 6,000 for conversion
costs and units transferred out equals 4,000, what stage of completion should the
ending work in process be for the 8,000 units remaining?
Answer
10%

25%
75%
20%
Which of the following approaches to cost estimation is not based on fitting data
points to a line?
Answer
high-low method
regression analysis
account analysis
scattergraph approach
Hup Seng Engineering has materials cost at $4 per unit and conversion cost at $8
per unit. There are 9,000 units in ending work in process, all of which are 70%
complete as to conversion costs. The total costs assigned to inventory is:
Answer
$108,000
$50,400
$75,600
$86,400
Which of the following would not appear as a debit in the Work in Process account of
a second department in a two stage production process?
Answer
Overhead applied
Materials used
Labour assigned
Cost of products transferred out
Which of the following is likely to be a non-controllable cost of a department
supervisor?
Answer
materials used in the department
overtime premium pay earned by those working in the department
insurance on the plant
labour in the department
Which of the following computational methods are used to calculate learning curve
statistics?
Answer
Logarithms
Simple compounding
Calculus

Exponential smoothing
In a process costing system:
Answer
A materials requisition identifies the job on which the materials will be
used.
A Work in Process account is maintained for each product.
A Work in Process account is maintained for each process.
One Work in Process account is maintained for all manufacturing
processes
100/100