help!! multiple choices.
Systems Design: Job-Order Costing 201 12. Which of the following statements related to manufacturing overhead is true? a. Credits to subsidiary manufacturing overhead records occur at the time the manufacturing overhead costs are incurred. Both debits and credits to subsidiary manufacturing overhead records C. occur at the time manufacturing overhead costs are incurred. Credits to manufacturing overhead allocated occur as the allocation base d. is consumed. Manufacturing overhead costs incurred are dependent upon the allocation method used. 13. When goods are completed, a. b . the work-in-process control is increased. the total cost of each job will consist of actual direct materials and actual indirect manufacturing labor. C. d. the total cost of each job is computed in the general ledger. actual direct materials, actual direct manufacturing labor and budgeted manufacturing overhead will comprise the total cost of each job. 14. During an accounting period, job costs are computed on an ongoing basis by the use of a. actual allocation rates. b. budgeted indirect-cost rates. C . overallocated indirect-cost rates. d. underallocated indirect-cost rates. 15. The allocation of underapplied or overapplied overhead among ending work- in-process, finished goods, and cost of goods sold is called a. Budgeted indirect allocation b. Budgeted direct allocation c. Proration d. Proration with direct-cost allocation 16. Which of the following is not one of the main alternatives for disposing underallocated manufacturing overhead? a. Current accounting period write-off b. Proration based on the allocated overhead amount C. Proration based on the budgeted overhead amount d. Proration based on total ending balances in work-in-process, finished goods, and cost of goods sold.Ill. Multiple Choice 1. Which of the following statements is true? a. The equivalent units in beginning work in process inventory plus the equivalent units for the work done during the period equals the units transferred out plus the equivalent units in ending work in process b. inventory. When materials are purchased in a process costing system, a work in process account is debited with the cost of the materials. Any difference in the equivalent units calculated under the weighted- average and the FIFO methods is due to the units in the ending work in process inventory. d. Under the FIFO method of product costing, equivalent units of production consider units in beginning inventory as if they were started and completed during the current period. 2. Which of the following statements is false? a. Under job-order costing, costs are accumulated by department and are assigned equally to all units passing through the department during the period. b. Under the weighted-average method of process costing, costs from the prior period are averaged with those of the current period in computing unit costs. c. There is no difference in the unit costs computed under the weighted- average and FIFO methods of process costing if there are no beginning work in process inventories. d. In a process costing production report, the "Cost to be accounted for" will be the same whether the weighted-average of the FIFO methods is used. 3. Which of the following statements about process costing system is incorrect? a. In a process costing system, each processing department has a work in process account. b. In a process costing system, equivalent units are separately computed for materials and for conversation costs. c. In a process costing system, overhead can be under- or overapplied just as in Job- order costing. d. In a process costing system, materials costs are traced to units of products.250 Chapter 7 Which of the following journal entries would be used to record direct lahn 4. costs in a company having two p wo processing departments (Department A and Department B)? XXX XXX a. Work in Process Salaries and Wages Payable XXX b. Salaries and Wages Expense XXX Salaries and Wages payable XXX c. Work in Process-Department A XXX Work in Process-Department B XXX Salaries and Wages Payable d. Salaries and Wages Payable XXX XXX Work in Process 5. Which of the following Journal entries would be used to record application of manufacturing overhead to work in process in a process costing system with two processing department, department A and department B? a. Manufacturing Overhead XXX Work in Process-Department A XXX Work in Process-department B XXX b. Work in Process-Department A XXX Work in Process-Department B XXX Manufacturing Overhead XXX c. Work in Process-Department B XXX Work in Process-Department A XXX d. Work in Process-Department A XXX Work in Process-Department B Manufacturing Overhead XXX XXX 6. Cost in an operation costing system are accumulated by: a. department. b. by individual job. c. by both job and departments. b. by neither job nor department. 7. The FIFO method provides a major advantage over the weighted-average method in that: a. the calculation of equivalent units is less complex under the FIFO method. b. the FIFO method treats units in the units in the beginning inventory as if they were started and completed during the current period.Systems Design: Process Costing System; Cost Allocation 251 c. the FIFO methods provides measurement of work done during the current period. d. the weighted-average method ignores units in the beginning and ending work in process inventories. 8. The weighted-average method of process costing differs from the FIFO method of process costing in that the weighted-average method: a. can be used under any cost flow assumption. b. does not require the use of predetermined overhead rates. c. keeps costs in the beginning inventory separate from current period costs. d. does not consider the degree of completion of units in the beginning work in process inventory when computing equivalent units of production. 9. Which of the following types of entities would be most likely to use a process costing system? a. a shipbuilder b. a furniture manufacturer c. a law firm d. a utility producing natural gas 10. Jessica Company uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 20,000 units in its beginning work in process inventory that were 10% complete with respect to conversation costs. The conversation cost in this beginning work in process inventory was P7,000. An additional 63,000 units were started into production during the month. There were 10,000 units in the ending work in process inventory of the Welding Department that were 10% complete with respect to conversation costs. A total of P237,600 in conversation costs were incurred in the department during the month. What would be the cost equivalent unit for conversation costs for the month? (Round off to three decimal places.) a. P3.225 b. P3.771 c. P3.500 d. P3.305
