Hi I have done my exam primer but there is no answer key so I am looking to see if I got the answers correct Thanks Exam 2 Primer True(T) False(F) Questions Circle the BEST answer 2 points each In a job order costing system, job cost sheets are the subsidiary ledger for the Work In Process Inventory control account When allocating overhead, the use of either direct labor hours or direct labor cost will provide the same amount of cost being allocated to each unit of product Activity based costing is based on the assumption that a company's products or services consume activities and those activities consume resources Multiple Choice The goal of a good cost management system should be to make the best trade off between the cost of determining product cost information and the cost of Which of the following is the best reason as to why we compute and use a predetermined overhead rate (i e , instead of using an actual overhead rate) The best costing system for a construction business specializing in home renovation and remodeling would be a The loan department of a financial corporation makes loans to businesses The costs of processing these loans are often several thousand dollars All loans are initially evaluated using the same financial analysis software, but some require outside services such as appraisals and legal services Which of the following is the most appropriate costing system for the loan department In a job order costing system using normal costing, which of the following costs are collected on a job cost sheet In a job order costing system, which of the following could cause a job to be overcosted Page 1 of 5 Which of the following situations will always result in underapplied overhead When a manufacturing company is using a job order costing system, which of the following would trigger the recording of information onto a job cost sheet Operation costing is similar to Sijay Corporation manufactures many diverse products Sijay currently uses a single plantwide overhead rate with direct labor hours as the cost driver If Sijay switches to an activity based costing system, which of the following types of products would Sijay mostly likely find to be undercosted The electricity used for computerized machinery would be classified as a Which of the following costs would NOT be associated with a batch related activity Use the following information for questions 16 and 17 Leija Manufacturing Company uses a job order costing system and started the month of March with one job in process (i e , Job 359) which had $500 of cost assigned to it at this time No finished goods inventory was on hand at the beginning of March During March, Leija assigned the following costs to the jobs worked on during the month Total cost assigned to jobs during March Job 359 $ 6,000 Job 360 $ 8,100 Job 361 $ 2,400 During March, Leija completed and sold Job 359 Job 360 was also completed but was not sold by month end Job 361 was not completed by the end of March What is Leija's work in process inventory balance at the end of March What is Leija's finished goods inventory balance at the end of March Page 2 of 5 Chipata Corporation uses a job order costing system and applies manufacturing overhead to the products it produces on the basis of machine hours For last year, Chipata estimated 250,000 machine hours and $100,000 of manufacturing overhead cost for the year During last year, Chipata incurred 262,000 machine hours and $113,000 of manufacturing overhead cost in the production of its 36 jobs for the year What was Chipata's under or overapplied overhead for last year Furment Tea Company uses a process costing system to collect costs related to the production of its slow brewed bottled iced tea The iced tea is first created in Furment's Brewing Department and is then transferred out and bottled in its Bottling Department The finished cases of bottled iced tea are then transferred to Finished Goods Inventory The following information relates to Furment's two departments for the month of January Brewing Bottling Cases of tea in work in process, January 1 10,000 3,000 Cases of tea transferred out completed during January 77,000 Cases of tea in work in process, January 31 4,000 8,000 How many cases of tea were completed and transferred to Finished Goods Inventory during January Page 3 of 5 Use the following information for questions 20 and 21 Zaglav Products Company uses a FIFO process costing system The following information relates to the work in process account of Zaglav's Mixing Department for the month of June June 1 June 30 Units in process 8,000 3,000 Percent complete as to materials 100 100 Percent complete as to conversion 75 10 During June, Zaglav started an additional 79,000 units into production and completed and transferred out 84,000 units What are the Mixing Department's equivalent units of production related to materials for June What are the Mixing Department's equivalent units of production related to conversion costs for June Kittana Corporation uses a FIFO process costing system The following information relates to the Cutting Department of Kittana Corporation for the month of February Work in process, February 1 Work in process, February 28 Number of units 18,000 7,000 complete materials 100 100 complete conversion cost 10 40 Kittana started 160,000 units into production during February On February 1, the work in process inventory account contained $55,620 of material cost and $12,312 of conversion cost Cost per equivalent unit of production for February was $3 10 for materials and $7 50 for conversion costs What total amount of cost should be assigned to the units completed and transferred out during February Page 4 of 5 What total amount of cost should be assigned to the units in work in process on February 28 Short Answer Essay Instructions In the box below, state whether or not you agree with the quote below and provide justification for your stance It's all cost benefit Cost information systems can be very costly to implement So let's just use the accounting system the financial accounting people use to come up with the numbers for the annual report Njombe Corporation manufactures a variety of products In the past, Njombe has been using a traditional overhead allocation system based on applying overhead at a rate of 150 of direct labor cost Selling prices had been set by multiplying total product cost by 200 (i e , double the total product cost) Sensing that this traditional system was distorting costs and selling prices, Njombe has decided to switch to an activity based costing system using three cost pools Information on these cost pools for next year is as follows Determine the selling prices of each model above under the previous traditional overhead allocation system Show your computations and clearly label your final answers in the box below Determine the selling prices of each model above under the new activity based costing system Show your computations and clearly label your final answers in the box below Refer back to questions 25 and 26 Did Njombe make a wise decision by changing to an activity based costing system Why or why not Indicate your response in the box below Page 5 of 5

Question

Hi I have done my exam primer but there is no answer key so I am looking to see if I got the answers correct  Thanks Exam  2 Primer True(T)   False(F) Questions  Circle the BEST answer  2 points each  In a job order costing system, job cost sheets are the subsidiary ledger for the Work In Process Inventory control account  When allocating overhead, the use of either direct labor hours or direct labor cost will provide the same amount of cost being allocated to each unit of product  Activity based costing is based on the assumption that a company's products or services consume activities and those activities consume resources  Multiple Choice The goal of a good cost management system should be to make the best trade off between the cost of determining product cost information and the cost of  Which of the following is the best reason as to why we compute and use a predetermined overhead rate (i e , instead of using an actual overhead rate)  The best costing system for a construction business specializing in home renovation and remodeling would be a  The loan department of a financial corporation makes loans to businesses  The costs of processing these loans are often several thousand dollars  All loans are initially evaluated using the same financial analysis software, but some require outside services such as appraisals and legal services  Which of the following is the most appropriate costing system for the loan department  In a job order costing system using normal costing, which of the following costs are collected on a job cost sheet  In a job order costing system, which of the following could cause a job to be overcosted  Page 1 of 5 Which of the following situations will always result in underapplied overhead  When a manufacturing company is using a job order costing system, which of the following would trigger the recording of information onto a job cost sheet  Operation costing is similar to  Sijay Corporation manufactures many diverse products  Sijay currently uses a single plantwide overhead rate with direct labor hours as the cost driver  If Sijay switches to an activity based costing system, which of the following types of products would Sijay mostly likely find to be undercosted  The electricity used for computerized machinery would be classified as a  Which of the following costs would NOT be associated with a batch related activity  Use the following information for questions 16 and 17  Leija Manufacturing Company uses a job order costing system and started the month of March with one job in process (i e , Job  359) which had $500 of cost assigned to it at this time  No finished goods inventory was on hand at the beginning of March  During March, Leija assigned the following costs to the jobs worked on during the month  Total cost assigned to jobs during March     Job  359 $ 6,000 Job  360 $ 8,100 Job  361 $ 2,400 During March, Leija completed and sold Job  359  Job  360 was also completed but was not sold by month end  Job  361 was not completed by the end of March  What is Leija's work in process inventory balance at the end of March    What is Leija's finished goods inventory balance at the end of March  Page 2 of 5 Chipata Corporation uses a job order costing system and applies manufacturing overhead to the products it produces on the basis of machine hours  For last year, Chipata estimated 250,000 machine hours and $100,000 of manufacturing overhead cost for the year  During last year, Chipata incurred 262,000 machine hours and $113,000 of manufacturing overhead cost in the production of its 36 jobs for the year  What was Chipata's under  or overapplied overhead for last year  Furment Tea Company uses a process costing system to collect costs related to the production of its slow brewed bottled iced tea  The iced tea is first created in Furment's Brewing Department and is then transferred out and bottled in its Bottling Department  The finished cases of bottled iced tea are then transferred to Finished Goods Inventory  The following information relates to Furment's two departments for the month of January  Brewing Bottling Cases of tea in work in process, January 1                  10,000 3,000 Cases of tea transferred out completed during January 77,000     Cases of tea in work in process, January 31                4,000 8,000 How many cases of tea were completed and transferred to Finished Goods Inventory during January  Page 3 of 5 Use the following information for questions 20 and 21  Zaglav Products Company uses a FIFO process costing system  The following information relates to the work in process account of Zaglav's Mixing Department for the month of June  June 1 June 30 Units in process                           8,000 3,000 Percent complete as to materials     100  100  Percent complete as to conversion 75  10  During June, Zaglav started an additional 79,000 units into production and completed and transferred out 84,000 units  What are the Mixing Department's equivalent units of production related to materials for June  What are the Mixing Department's equivalent units of production related to conversion costs for June  Kittana Corporation uses a FIFO process costing system  The following information relates to the Cutting Department of Kittana Corporation for the month of February  Work in process, February 1 Work in process, February 28 Number of units 18,000 7,000   complete materials 100  100    complete conversion cost 10  40  Kittana started 160,000 units into production during February  On February 1, the work in process inventory account contained $55,620 of material cost and $12,312 of conversion cost  Cost per equivalent unit of production for February was $3 10 for materials and $7 50 for conversion costs  What total amount of cost should be assigned to the units completed and transferred out during February  Page 4 of 5 What total amount of cost should be assigned to the units in work in process on February 28  Short Answer Essay Instructions  In the box below, state whether or not you agree with the quote below and provide justification for your stance    It's all cost benefit  Cost information systems can be very costly to implement  So let's just use the accounting system the financial accounting people use to come up with the numbers for the annual report    Njombe Corporation manufactures a variety of products  In the past, Njombe has been using a traditional overhead allocation system based on applying overhead at a rate of 150  of direct labor cost  Selling prices had been set by multiplying total product cost by 200  (i e , double the total product cost)  Sensing that this traditional system was distorting costs and selling prices, Njombe has decided to switch to an activity based costing system using three cost pools  Information on these cost pools for next year is as follows  Determine the selling prices of each model above under the previous traditional overhead allocation system  Show your computations and clearly label your final answers in the box below  Determine the selling prices of each model above under the new activity based costing system  Show your computations and clearly label your final answers in the box below  Refer back to questions 25 and 26  Did Njombe make a wise decision by changing to an activity based costing system  Why or why not  Indicate your response in the box below  Page 5 of 5

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