ACC220 | Accounting in Business - Lackawanna university
ACC220 Managerial Accounting Module 4 Quiz Question 1The cost system best suited to industries that manufacture a large number of identical units of commodities on a continuous basis is a. process b. departmental c. first-in, first-out d. job order Question 2In a process cost system, the amount of work in process inventory is valued by a. finding the sum of all open job costs b. allocating departmental costs between completed and partially completed units c. multiplying units in ending inventory by the direct materials cost per unit d. finding the sum of all completed jobs
Question 3The two categories of cost comprising conversion costs are
a. direct labor and indirect labor b. direct labor and factory overhead c. factory overhead and direct materials d. direct labor and direct materials Question 4The three categories of manufacturing costs comprising the total cost of work in process are direct labor, direct materials, and a. selling expenses b. direct expenses c. accounting salaries expense d. factory overhead
Question 5Which of the following would use a process costing system?
a. custom home builder b. custom helicopter manufacturer c. graduation photographer d. lumber mill Question 6In the manufacture of 10,000 units of a product, direct materials cost incurred was $165,000, direct labor cost incurred was $105,000, and applied factory overhead was $53,000. What is the total conversion cost? a. $218,000 b. $158,000 c. $323,000 d. $53,000 Question 7Department M had 600 units 60% completed in process at the beginning of June, 6,000 units completed during June, and 700 units 30% completed at the end of June. Using the first-in, first-out method of inventory costing, what was the number of equivalent units of production for conversion costs for the period? a. 7,300 units b. 5,640 units c. 6,700 units d. 5,850 units Question 8The debits to Work in Process—Assembly Department for May, together with data concerning production, are as follows:
May 1, work in process:
Materials cost, 3,000 units $ 8,000 Conversion costs, 3,000 units, 66.7% completed 6,000 Materials added during May, 10,000 units 30,000 Conversion costs during May 31,000 Goods finished during May, 11,500 units 0 May 31 work in process, 1,500 units, 50% completed 0 ?All direct materials are placed in process at the beginning of the process and the first-in, first-out method is used to cost inventories. The materials cost per equivalent unit for May is a. $3.00 b. $3.80 c. $2.92 d. $2.31 Question 9Which of the following costs incurred by a tool manufacturer would not be included in conversion costs? a. factory supervisor's salary b. machine operator's wages c. raw steel d. factory maintenance personnel supplies Question 10The four steps necessary to complete a cost of production report in a process cost system are