1. Question : When completed units are transferred to the warehouse: A-)Cost of Goods Sold account is debited. B-) Cost of Goods Manufactured account is debited. C-) Finished Goods Inventory account is debited. D-)Work-in-Process Inventory account is debited. E-) Finished Goods Inventory account is credited.

2. Question : Which of the following companies uses process costing systems? A-) Accenture. B-)Coca-Cola. C-)Jiffy Lube International. D-)A professional service firm. E-)All of the above.

3. Question : Which one of the following is the amount that actual factory overhead exceeds the factory overhead applied? A-) Factory overhead applied. B-)Actual factory overhead. C-)Overapplied overhead. D-) Allocated factory overhead. E-)Underapplied overhead.

4. Question : Abnormal spoilage: A-)Is considered part of good production. B-)Arises under efficient operating conditions. C-)Is controllable in the short run. D-)Is unacceptable spoilage that should not occur under efficient operating conditions. E-)Is part of inventory product cost.

5. Question : An activity that is performed to support the production of a new custom-order product is a(n): A-) Product-level activity. B-)Facility-level activity. C-)Unit-level activity. D-)Customer-support activity. E-)Batch-level activity.

6. Question : The general sales manager's salary is an example of a: A-)Customer unit-level cost. B-)Customer batch-level cost. C-)Customer-sustaining cost. D-) Distribution-channel cost. E-) Sales-level cost.

7. Question : Which of the following activities is a facility-level activity? A-)Plant management salaries. B-) Depreciation on a highly specialized piece of production equipment. C-) Direct labor. D-) Product design.

8. Question : Effective implementation of activity-based costing (ABC) requires: A-) Normally the assistance of a consultant. B-) A sophisticated and expensive computer system. C-) Support of top management and key employees. D-) Capturing properly the complexity of the data. E-) ABC has no significant implementation issues.

9. Question : Process cost systems are used in all of the following industries except: A-) Chemicals. B-) Ship building. C-) Oil refining. D-) Textiles. E-) Steel.

10. Question : JIT (Just in time) methods are designed primarily to: A-) Reduce costs. B-) Reduce inventory levels. C-) Improve product design. D-)Improve the accuracy of product costs.

11. Question : The journal entry to record incurred direct labor would include a credit to: A-) Work-in-Process Inventory. B-) Accrued Payroll. C-) Factory Overhead. D-) Materials Inventory. E-) Finished Goods Inventory.

12. Question : Transferred-in costs are costs of work performed: A-) In the current department from last period that are transferred in this period. B-) In the preceding department that are transferred into the present department. C-) In a prior period that transferred in this period. D-) By an outside supplier of materials or labor. Question

13. Question : Wings Co. budgeted $555,600 manufacturing direct wages, 2,315 direct labor hours, and had the following manufacturing overhead: Overhead Cost Pool - Budgeted O/H $ - Budgeted Level for Cost Driver - O/H Cost Driver Materials Handling $160,000 3,200 lbs. Material Weight Machine Setup 13,200 390 S/Us # of S/Us Machine Repair 1,380 30,000 Mach. Hrs Machine Hrs. Inspections 10,560 160 Inspections # of Inspections Requirements for Job #971 which included 4 Units of Production: D/L Hours = 20 Hours D/Matls = 130 lbs. Machine S/U = 30 Set-ups Machine Hrs. = 15,000 Machine Hours Inspections = 15 Inspections.

Using ABC, overhead cost assigned to Job #971 for machine repair is: A-) $2,300. B-) $990. C-) $6,500. $690. D-) $1,020.

Question 14. Question : Stoltenberg Co. had the following information for the month of June: WIP Beginning Inventory June 1 = 2,000 Units Units Transferred-in = 16,000 Units WIP Ending Inventory June 30 = 4,000 Units Beginning work-in-process inventory is 30 percent complete as to conversion. Ending work-in-process inventory is 50 percent complete as to conversion. Materials are added at the end of the process.

How many units were started and completed in June? A-) 12,000. B-) 10,000. C-) 14,000. D-) 16,000.

15. Question : Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 125% of direct labor cost. Selected data concerning the past year's operation of the company are presented below. Direct Materials January 1 = $77,000 Direct Materials December 31 = 40,000 WIP January 1 = 66,000 WIP December 31 = 42,000 Finished Goods January 1 = 115,000 Finished Goods December 31 = 100,000 Other Information: Direct Materials Purchased = $324,000 Cost of Goods Available for Sale = 950,000 Actual Factory Overhead = 206,000

The cost of goods manufactured during the year is: A-)$850,000. B-) $348,000. C-) $672,000. D-) $835,000. $811,000.