11.Which of the following is not a period cost?

A.	Depreciation on factory equipment.
B.	Depreciation on the retail store building.
C.	Salesperson salaries.
D.		Office supplies used.

12.The following information is available about the August transactions of the Helpful Tool Company:

Invoices for product costs paid during the month	$493,000
Product costs charged to Work In Process	$737,000
Cost of finished goods manufactured	$718,000
Cost of Goods Sold

The product costs to be deducted from revenue in August amount to:

A.	$493,000.
B.	$737,000.
C.			$718,000.
D.		$739,000.

13.Amounts debited to the Work in Process Inventory account may best be described as:

A.	Direct materials purchased, direct labor costs paid, and payments for items classified as manufacturing overhead.
B.	The cost of finished goods manufactured during the period.
C.	Total manufacturing costs charged to production.
D.	The cost of goods sold.

14.The wages paid to employees working directly on a company's products would be shown as a:

A.	Credit to Direct Labor.
B.	Debit to Direct Labor.
C.			Credit to Work in Process.
D.		Debit to Manufacturing Overhead.

15.In a manufacturing company, the cost of finished goods manufactured is equal to:

A.	The beginning inventory of finished goods, plus net purchases, less the ending inventory of finished goods.
B.	The sum of the manufacturing costs charged (debited) to the Work in Process Inventory account during the period.
C.	The costs of direct materials, direct labor, and manufacturing overhead incurred in manufacturing the goods sold during the period.
D.	The beginning inventory of Work in Process, plus total manufacturing costs for the period, less the ending inventory of Work in Process.

16.Under a job order cost system, costs are accumulated for:

A.	Each department in the production cycle.
B.	Each batch of production, known as a job or lot.
C.	Each individual unit produced.
D.	Each job supervisor.

17.A job order cost system would be suitable for which of the following:

A.	A manufacturer of laundry detergent.
B.		A manufacturer of candy bars.
C.		A sugar refinery.
D.		A sailboat builder.

Moran Company uses a job order cost system and has established a predetermined overhead application rate for the current year of 150% of direct labor cost, based on budgeted overhead of $900,000 and budgeted direct labor cost of $600,000. Job no. 1 was charged with direct materials of $36,000 and with overhead of $27,000. What is the total cost of job no. 1?

A.

$64,000.

B.

$81,000.

C.

$91,000.

D.

Cannot be determined without additional information.

19.Doyle Co. uses a job order cost accounting system. At year-end the Work-in-Process Inventory controlling account showed a debit balance of $43,125. For the two jobs in process at year-end, one showed $6,000 in direct materials and $4,500 in direct labor. The job cost sheet for the second job showed $9,000 in direct materials and $6,750 in direct labor. If the company is using a predetermined overhead application rate based on direct labor cost, the rate is:

A.	50%.
B.	100%.
C.			150%.
D.		200%.

20.Marty's Metal Shop uses a job order cost system. It applies overhead to jobs at a rate of 175% of direct labor costs. Job No. 2617 required $800 in direct labor costs. The job was initially budgeted to require $850 in direct labor costs. Overhead applied to Job No. 2617 during the period amounted to:

A.	$850.
B.	$1,400.
C.	$1,275.
D.	Some other amount.

21.Which of the following is not a characteristic of a process costing system?

A.	The costs incurred in each process are accumulated in separate Work in Process Inventory accounts.
B.	It is suitable for mass-produced operations.
C.	Costs are accumulated separately for each unit of production as it moves through the factory.
D.	The cost of a finished unit is the sum of the unit costs of performing each manufacturing process.

22.The Work in Process - Assembly account would be credited and the Work in Process - Packaging account would be debited when:

A.	Goods are transferred from Assembly to Packaging.
B.	Goods are transferred from Packaging to Assembly.
C.	The units are complete and ready for sale.
D.	The number of units started during the period is greater than the number of units in process at the end of the period.

23.If 8,000 units were in beginning inventory, 26,000 units were started, and 6,000 units were in the ending inventory, how many units were transferred out?

A.	40,000 units.
B.	26,000 units.

C.		28,000 units.
D.		24,000 units.

24.In most process costing systems, per-unit costs are determined by:

A.	Dividing the number of units completed during the period by the total manufacturing costs incurred during the period.
B.	Dividing the total manufacturing costs incurred during the period by the number of units worked on during the period.
C.	Dividing the total manufacturing costs incurred during the period by the equivalent number of units completed during the period.
D.	Unit costs cannot be determined in a process costing system.

25.In a process costing system, the number of units started and completed for a period is equal to:

A.	Units transferred out less units in beginning work in process.
B.	Units transferred out less units in ending work in process.
C.	Units transferred out plus units in beginning work in process.
D.	Units transferred out plus units in ending work in process.