QUESTION 1

1.Which type of business would most likely use a process costing system?

Chemical producer

Custom furniture maker

Printer

Ship builder

1 points

QUESTION 2

1.In a process costing system, transferred-in costs

Are computed for all production but not reported in the cost of process costing report

Usually do not include any indirect costs

Are the costs recorded in preceding departments

Are the costs of the completed units

1 points

QUESTION 3

1.Under a job costing system the total cost of all the incomplete jobs recorded in the subsidiary ledger is reconciled to the

Cost of goods sold account

Finished goods inventory account

Work-in-process account

Direct materials account

1 points

QUESTION 4

1.The true statement is:

Period costs are expensed in the period the product is sold

Period costs are initially inventoried, then expensed

Product costs are expensed as the product is produced

Product costs are expensed in the period the product is sold

1 points

QUESTION 5

1.If estimated production overhead in the printing department is $120,000 and actual overhead is $116,000 and estimated machine hours in the printing department are 30,000 hours and actual machine hours are 32,000 hours, using normal costing what is the predetermined overhead rate for the printing department?

$3.87 per machine hour

$4 per machine hour

$3.75 per machine hour

$3.63 per machine hour

1 points

QUESTION 6

1.Pax Ltd started 10,000 units during the month of February. 800 units were in the beginning work in process inventory and 900 units in the ending work in process inventory. Units completed and transferred out during February will be

9,000

9,900

1,900

1,700