Question

1. Management is all of the following except: a. Constraining b. Planning c. Controlling d. Directing

2. Another name for sales commissions is: a. overhead costs b. period costs. c. product costs. d. indirect labor.

3. In process costing, manufacturing overhead is debited to ____ when put into production. a. the Finished Goods Inventory account. b. Cost of Goods Sold. c. a Manufacturing Overhead account. d. a Work in Process account

4. Indirect labor is debited to a. manufacturing overhead. b. direct labor. c. the individual jobs worked on. d. salary expense.

5. When direct labor costs are assigned to a job, which account is debited? a. Direct Labor. b. Factory Labor. c. Manufacturing Overhead d. Work in Process Inventory.

6. The predetermined overhead rate is determined: a. throughout the year. b. after incurring all actual overhead costs. c. at the beginning of the year. d. at the end of the current year.

7. The cost of goods sold amount is found from: a. all the control accounts in the cost system. b. the finished goods inventory records. c. the work in process inventory records. d. the Raw Materials Inventory control account.

8. Managerial accounting reports are generally prepared for a. stockholders. b. creditors. c. managers. d. regulatory agencies.

9. The entry to record the completion of a job when all costs are accumulated on a job cost sheet is: a. Finished Goods Inventory Work In Process Inventory b. Work In Process Inventory Direct Materials Direct Labor Manufacturing Overhead c. Raw Materials Inventory Work In Process Inventory

10. For the Assembly Department, unit materials cost is $6 and unit conversion cost is $9. If there are 10,000 units in ending work in process 75% complete as to conversion costs, the costs to be assigned to the inventory are a. $150,000. b. $127,500. c. $112,500. d. $135,000

11. Process costing would be used by companies producing motion pictures. T F

12. . Process cost systems are used to apply costs to a specific job. T F

13. A department's productivity can be determined with the production cost report. T F

Answer 1

1) Management is all of the following except : A) constraining

2) Another name for sales commissions is : B) Period costs.

3) In process costing, manufacturing overhead is denoted to C) a manufacturing overhead account when put into production.

4) Indirect labor debited to A) Manufacturing overhead

5) When direct labor costs are assigned to a job which account is debited : D) Working process inventory

6) The predetermined overhead rate is determined C) At the beginning of the year.

7) The cost of goods sold amount is found from B) the finished goods inventory records.

8) Managerial accounting reports are generally prepared for C) managers

9) The entry to record the completion of a job when all costs are accumulated on a job cost sheet is A) Finished goods inventory work in process inventory

10) The costs to be assigned to the inventory B) $ 127,500

=[ 10,000 X $ 6 ] + [ 10,000 X { $ 9 X 75%}] = $ 127,500

11)  False

12) False

13) True