Product Costing Systems MCQs Quiz November 7, 2020November 28, 2018 by rashidjaved Please enter your email: 1. The document that lists the type and quantity of each item of materials that is needed to complete a unit of product: Material requisition form Bill of material Job cost sheet Time ticket 2. A materials requisition form: Specifies the type and quality of materials to be drawn from the storeroom Identifies the job to which the costs of materials are to be charged Controls the flow of materials into production All of above 3. A normal costing system applies overhead cost to jobs by: Multiplying annual activity times the predetermined overhead rate Multiplying the estimated activity times the estimated overhead cost Multiplying the estimated activity times the predetermined overhead rate Multiplying the estimated overhead cost times the predetermined overhead rate 4. Which of the following is not a reason for the difficulty associated with assigning manufacturing overhead to products: Manufacturing overhead is an indirect cost Manufacturing overhead consists of many different items Manufacturing overhead costs tend to remain constant Manufacturing overhead costs are known at the time of the calculation of the predetermined overhead rate 5. The Work in Process account contains the summarized balance of all units: Unfinished at a given point in time Complete at a given point in time Transferred to Finished Goods Inventory and in the process of being sold Sold and in the process of being recorded in the financial records 6. Materials requisitioned from the storeroom included $1,000 of direct materials and $2,000 of indirect materials. Manufacturing overhead should be debited for what amount to record the transaction: $1,000 $2,000 $3,000 $0 7. The cost of a completed job includes: Actual material, actual labor and actual overhead Actual material, estimated labor and estimated overhead Estimated materials, estimated labor and estimated overhead Estimated material, estimated labor and actual overhead 8. The journal entry that transfers the costs of a completed product to Finished Goods Inventory includes: A debit to Finished Goods Inventory and a credit to Cost of Goods Sold A debit to Finished Goods Inventory and a credit to Work in Process A debit to Work in Process and a debit to Finished Goods Inventory A debit to Work in Process and a credit to Cost of Goods Sold 9. If amount of over and under-applied overhead is material, which account or accounts would the amount be charged (closed) to? Work in Process Finished Goods Inventory Cost of Goods Sold All the above 10. Which of the following is descriptive of a job order costing system rather than a process costing system? A single product is produced either on a continuous basis or for long periods of time Many different jobs are worked on during each period Costs are accumulated by department Unit costs are computed by department on the department cost report 11. The number of partially completed units x percentage of completion is referred to as: Partially completed units Whole units Equivalent units Work units 12. In a process costing system, blending units and costs from the current period with units and costs from the prior period is accomplished through the use of which of the following methods? Equivalent units method FIFO method Weighted average method None of the above 13. The production report includes which of the following? A quantity schedule A computation of costs per equivalent unit A reconciliation of all cost flows into and out of the department during the period All of the above 14. To calculate equivalent units of production, the weighted average method requires: That units from beginning inventory be added to production in the current period That units from the beginning inventory to production in the current period That units from beginning inventory be added to both production in the current period and units in ending inventory That units from beginning inventory be ignored 15. If Work in Process inventories increase by 500 units during the month and 1,300 units were transferred to the next department, how many units were started during the month? 500 units 1,300 units 1,800 units 2,300 units Loading … Next Quiz: Activity-based Costing Related posts: Q. 4. What is the difference between standard costing and historical costing? Difference between actual costing and normal costing Joint product costing Stocks of a manufacturing concern First in first out method of costing (FIFO)
