Lackawanna ACC220 Module 4 Quiz Latest 2021 November

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

1.allocate costs to transferred and partially completed units

2.determine the units to be assigned costs

3.determine the cost per equivalent unit

4.calculate equivalent units of production