1. (TCO 2) Which of the following products would NOT use job-order costing? (Points : 5) Houses Chemicals Ships Custom-built furniture. Question 2. 2. (TCO 2) In a traditional enterprise, the flow of costs through the system is as follows (Points : 5) materials inventory, work-in-process inventory, finished goods inventory, and cost of goods sold materials inventory, work-in-process inventory, cost of goods sold, and finished goods inventory work-in-process inventory, materials inventory, finished goods inventory, andcost of goods sold work-in-process inventory, materials inventory, and finished goods Question 3. 3. (TCO 2) Which of the following costs is a period cost? (Points : 5) Depreciation of factory equipment Transportation-in for material shipments Amortization of a patent for the company's product Depreciation of office computers Question 4. 4. (TCO 3) The FIFO costing method assumes (Points : 5) beginning inventory costs should be treated as if they belong to the current period. that units in beginning work in process units are completed first, before any new units are started. prior period costs are merged with the current period output and manufacturing costs. that current period manufacturing costs are added to the beginning work in process costs. Question 5. 5. (TCO 3) The following information was provided by Joe's Distribution Company: % complete Units Begninning Work-in-process 30% 12,000 Units transferred in 50,000 Ending Work-in=process 60% 10,500 Materials added at start of process How many equivalent units for materials would there be using the weighted average method? (Points : 5) 72,500 50,000 56,300 62,000 Question 6. 6. (TCO 8) Unit-based product costing uses which of the following procedures (Points : 5) overhead costs are traced to departments, then costs are traced to products. overhead costs are traced to activities, then costs are traced to products. overhead costs are traced directly to products. All overhead costs are expensed as incurred. Question 7. 7. (TCO 8) A company keeps 20 days of materials inventory on hand to avoid shutdowns due to materials shortages. Carrying costs average $4,000 per day. A competitor keeps 10 days of inventory on hand, and the competitor's carrying costs average $2,000 per day. The value-added costs are (Points : 5) $80,000. $40,000. $20,000. $0. Question 8. 8. (TCO 8) Value-added costs are standard costs based on (Points : 5) currently attainable standards. ideal usage standards. cycle time. the value added. Question 9. 9. (TCO 3) The costs included in the cost per equivalent unit using the weighted average method are (Points : 5) current costs. beginning work-in-process. ending work-in-process. both a and b. Question 10. 10. (TCO 2) The sum of direct labor and factory overhead is referred to as (Points : 5) prime costs. direct product costs. period costs. conversion costs. Question 4. (TCO 8) Household Manufacturing Inc. sells its product for $50 each. Sales volume averages 4,000 units per year. Recently, its main competitor reduced the price of its product to $38. Maximum expects sales to drop dramatically unless it matches the competitor's price. In addition, the current profit per unit must be maintained. Information about the product (for production of 4,000) is as follows. Standard Quantity Actual Quantity Actual Cost Materials (pounds) 4,800 5,000 $50,000 Labor (hours) 800 1,000 $18,000 Setups (hours) 0 200 $7,000 Material handling (moves) 0 450 $3,500 Warranties (number repaired) 0 325 $18,000 Required a. Calculate the target cost for maintaining current market share and profitability. b. Calculate the non-value-added cost per unit. c. If non-value-added costs can be reduced to zero, can the target cost be achieved