Question 11 of 20 5.0 Points
Which of the following accurately describes a difference between job order and process costing systems?
A. In job order costing systems, overhead costs are treated as product costs, whereas in process costing systems, overhead costs are treated as period costs.
B. Job order costing systems do not need to assign costs to production, whereas process costing systems do.
C. In job order costing systems, costs are traced to products, whereas in process costing systems, a FIFO method may be used.
D. Since costs are assigned to products in a job order costing system, selling costs are treated as product costs in the job order costing system, whereas they are treated as period costs in process costing systems.
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Question 12 of 20 5.0 Points
The reason for combining direct labor and overhead costs together and calling them "conversion costs" is that:
A. they both are direct costs of production.
B. the equivalent unit amount for direct materials will be the same as that for direct labor and overhead costs.
C. both types of costs usually are incurred uniformly throughout the production process.
D. the costs for direct labor and overhead are not accounted for separately.
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Question 13 of 20 5.0 Points
Which of the following statements is true?
A. The Work in Process Inventory account is the focal point of process costing.
B. To compute unit costs using the FIFO costing method, total costs of direct materials, direct labor, and overhead that have been accumulated in the Work in Process Inventory account or accounts are divided by the units worked on during the period.
C. Equivalent units usually are computed for direct materials and manufacturing overhead combined.
D. Labor costs are accounted for differently from manufacturing overhead costs in a process costing system.
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Question 14 of 20 5.0 Points
Equivalent units of production usually are determined for:
A. direct materials only.
B. direct materials and conversion costs.
C. direct materials and direct labor costs only.
D. conversion costs only.
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Question 15 of 20 5.0 Points
Measures of equivalent production are necessary in process costing because:
A. job order costing procedures cannot be applied.
B. unit costs are computed by departments or processes at fixed time intervals.
C. perpetual inventories are not employed in process plants.
D. production methods are more complex than in job order costing systems.
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Question 16 of 20 5.0 Points
Which of the following applies to process costing but NOT to job order costing?
A. Only one Work in Process Inventory account
B. Equivalent production units
C. Production of unique items
D. Multiple unit job order
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Question 17 of 20 5.0 Points
An advantage of using the average costing method to process costing as opposed to the FIFO costing method is that it:
A. is a little easier to work with.
B. is more accurate.
C. costs less to utilize.
D. requires little knowledge of process costing.
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Question 18 of 20 5.0 Points
The computation of equivalent units is exactly the same under the FIFO costing method and the average costing method when there is no:
A. ending work in process inventory.
B. ending finished goods inventory.
C. beginning finished goods inventory.
D. beginning work in process inventory.
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Question 19 of 20 5.0 Points
To find cost per equivalent unit of production using the average costing method, the: amount of equivalent units is divided:
A. by costs from the current period.
B. into costs from the current period.
C. into total costs to be accounted for.
D. by total costs to be accounted for.
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Question 20 of 20 5.0 Points
Which of the following statements about a department's costs per equivalent unit calculated using the average costing method compared with a FIFO costing method is true?
A. They could be higher or lower.
B. They would be the same.
C. They would be lower.
D. They would be higher.
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My Answers -
11 A
12 C
13 A
14 B
15 B
16 B
17 A
18 D
19 C
20 A
Can you review for me please?
Theoretical capacity reduced by normal and anticipated work stoppages is called:
Theoretical capacity reduced by normal and anticipated work stoppages is called:
Sure! Here are the correct answers for the questions you provided:
11. A. In job order costing systems, overhead costs are treated as product costs, whereas in process costing systems, overhead costs are treated as period costs.
12. C. Both types of costs usually are incurred uniformly throughout the production process.
13. B. To compute unit costs using the FIFO costing method, total costs of direct materials, direct labor, and overhead that have been accumulated in the Work in Process Inventory account or accounts are divided by the units worked on during the period.
14. B. Direct materials and conversion costs.
15. B. Unit costs are computed by departments or processes at fixed time intervals.
16. C. Production of unique items.
17. A. It is a little easier to work with.
18. D. Beginning work in process inventory.
19. C. Into total costs to be accounted for.
20. A. They could be higher or lower.
Please keep in mind that these answers are based on the information provided.
Sure! Let's review your answers:
11. A - Correct! In job order costing systems, overhead costs are treated as product costs, whereas in process costing systems, overhead costs are treated as period costs.
12. C - Correct! Conversion costs combine direct labor and overhead costs together because both types of costs usually are incurred uniformly throughout the production process.
13. A - Incorrect. The Work in Process Inventory account is not the focal point of process costing. The correct answer is B - To compute unit costs using the FIFO costing method, total costs of direct materials, direct labor, and overhead that have been accumulated in the Work in Process Inventory account or accounts are divided by the units worked on during the period.
14. B - Correct! Equivalent units of production are usually determined for direct materials and conversion costs.
15. B - Correct! Measures of equivalent production are necessary in process costing because unit costs are computed by departments or processes at fixed time intervals.
16. B - Incorrect. Equivalent production units apply to both process costing and job order costing. The correct answer is C - Production of unique items.
17. A - Correct! An advantage of using the average costing method in process costing is that it is a little easier to work with.
18. D - Correct! The computation of equivalent units is exactly the same under the FIFO costing method and the average costing method when there is no beginning work in process inventory.
19. C - Incorrect. To find cost per equivalent unit of production using the average costing method, the amount of equivalent units is divided into total costs to be accounted for.
20. A - Correct! The costs per equivalent unit calculated using the average costing method compared with the FIFO costing method could be higher or lower.
You got 7 out of 10 questions correct. Great job! Keep up the good work!