ACCT/221 ACCT221 ACCT 221 MCQS

ACCT 221 MCQS

ACCT 221

1. A manufacturing process requires small amounts of glue. The glue used in the production process is classified as a(n)
2. period cost.
3. miscellaneous expense.
4. direct material.
5. indirect material.

.

2.       Because of automation, which component of product cost is declining?
3. Direct labor
4. Direct materials
5. Manufacturing overhead
6. Advertising
7. The management function that requires managers to look ahead and establish objectives is
8. controlling.
9. planning.
10. directing.
11. constraining.
12.       Process costing is not used when
13. similar goods are being produced.
14. large volumes are produced.
15. jobs have distinguishing characteristics.
16. a series of connected manufacturing processes is necessary.
17.       All of the following would be entries in assigning costs to the Work In Process Inventory except:
18. the purchase of raw materials.
19. raw materials are used.
20. overhead is applied.
21. factory labor is used.
22.       8.         Which one of the following is a source document that impacts the job cost sheet?
23. Raw materials receiving slips.
24. Materials purchase orders.

c    Labor time tickets

1. Finished goods shipping documents.
2.       The predetermined overhead rate is based on the relationship between
3. estimated annual costs and actual activity.
4. estimated annual costs and expected annual activity.
5. actual monthly costs and actual annual activity.
6. estimated monthly costs and actual monthly activity.
7. When determining costs of jobs, how does a company account for indirect materials?
8. It is added to work in process as used.
9. It remains part of raw materials inventory.
10. It is transferred out of raw materials into manufacturing overhead when used.
11. It is transferred out of raw materials into work in process as used.
12. A process cost system would be used for all of the following products except
13. chemicals.
14. computer chips.
15. motion pictures.
16. soft drinks.
17. A process with no beginning work in process, completed and transferred out 65,000 units during a period and had 50,000 units in the ending work in process inventory that were 30% complete. The equivalent units of production for the period were:
18. 75,000 equivalent units.
19. 80,000 equivalent units.
20. 125,000 equivalent units.
21. 37,500 equivalent units.
22. Which of the following is notviewed as part of accumulating manufacturing costs in a job order cost system?
23. Raw materials are purchased
24. Factory labor is incurred
25. Cost of goods sold is recognized
26. Manufacturing overhead is incurred
27. When manufacturing overhead costs are assigned to production in a process cost system, they are debited to
28. the Work in Process account.
29. the Finished Goods Inventory account.
30. Cost of Goods Sold.
31. a Manufacturing Overhead account.
32.       Cinder Company had the following department information for the month:

Total materials costs                                          $ 80,000

Equivalent units of materials                                    8,000

Total conversion costs                                      $120,000

Equivalent units of conversion costs                    16,000

How much is the total manufacturing cost per unit?

8. $8.33.
9. $17.50
10. $7.50.
11. $10.00.
12.       Which of the following is not a necessary step in preparing a production cost report?
13. Compute the equivalent units of production.
14. Compute the physical unit flow.
15.       Prepare a cost reconciliation schedule.
16.       Prepare the job order cost sheet
17.       A cost which remains constant per unit at various levels of activity is a
18. variable cost.
19. fixed cost.
20. mixed cost.
21. manufacturing cost.
22. Sales are $500,000 and variable costs are $400,000. What is the contribution margin ratio?
23. 43%
24. 20%
25. 70%
26. Cannot be determined because amounts are not expressed per unit.

17..      Fixed costs normally will not include

1. property taxes.
2. direct labor
3. supervisory salaries
4. depreciation on buildings and equipment.
5.       In applying the high-low method, which months are relevant?

Month               Miles                Total Cost

January            80,000               $ 96,000

February          50,000                   80,000

March               70,000                   94,000

April                  90,000                 130,000

1. January and February
2. January and April
3. February and April
4. February and March