GB519: Unit 2 Quiz GB519: Unit 2 Quiz Question 1. Question : When completed units are transferred to the warehouse: Cost of Goods Sold account is debited. Save your time! Proper editing and formatting Free revision, title page, and bibliography Flexible prices and money-back guarantee ORDER NOW Cost of Goods Manufactured account is debited. Make sure you submit a unique essay Our writers will provide you with an essay sample written from scratch: any topic, any deadline, any instructions. 100% ORIGINAL ORDER NOW Finished Goods Inventory account is debited. Work-in-Process Inventory account is debited. Finished Goods Inventory account is credited. Question 2. Question : Which of the following companies uses process costing systems? Accenture. Coca-Cola. Jiffy Lube International. A professional service firm. All of the above. Question 3. Question : Which one of the following is the amount that actual factory overhead exceeds the factory overhead applied? Factory overhead applied. Actual factory overhead. Overapplied overhead. Allocated factory overhead. Underapplied overhead. Question 4. Question : Abnormal spoilage: Is considered part of good production. Arises under efficient operating conditions. Is controllable in the short run. Is unacceptable spoilage that should not occur under efficient operating conditions. Is part of inventory product cost. Question 5. Question : An activity that is performed to support the production of a new custom-order product is a(n): Product-level activity. Facility-level activity. Unit-level activity. Customer-support activity. Batch-level activity. Question 6. Question : The general sales manager's salary is an example of a: Customer unit-level cost. Customer batch-level cost. Customer-sustaining cost. Distribution-channel cost. Sales-level cost. Question 7. Question : Which of the following activities is a facility-level activity? Plant management salaries. Depreciation on a highly specialized piece of production equipment. Direct labor. Product design. Question 8. Question : Effective implementation of activity-based costing (ABC) requires: Normally the assistance of a consultant. A sophisticated and expensive computer system. Support of top management and key employees. Capturing properly the complexity of the data. ABC has no significant implementation issues. Question 9. Question : Process cost systems are used in all of the following industries except: Chemicals. Ship building. Oil refining. Textiles. Steel. Question 10. Question : JIT (Just in time) methods are designed primarily to: Reduce costs. Reduce inventory levels. Improve product design. Improve the accuracy of product costs. Question 11. Question : The journal entry to record incurred direct labor would include a credit to: Work-in-Process Inventory. Accrued Payroll. Factory Overhead. Materials Inventory. Finished Goods Inventory. Question 12. Question : Transferred-in costs are costs of work performed: In the current department from last period that are transferred in this period. In the preceding department that are transferred into the present department. In a prior period that transferred in this period. By an outside supplier of materials or labor. Question 13. Question : Wings Co. budgeted $555,600 manufacturing direct wages, 2,315 direct labor hours, and had the following manufacturing overhead: Overhead Cost Pool - Budgeted O/H $ - Budgeted Level for Cost Driver - O/H Cost Driver Materials Handling $160,000 3,200 lbs. Material Weight Machine Setup 13,200 390 S/U’s # of S/Us Machine Repair 1,380 30,000 Mach. Hrs Machine Hrs. Inspections 10,560 160 Inspections # of Inspections Requirements for Job #971 which included 4 Units of Production: D/L Hours = 20 Hours D/Mat’ls = 130 lbs. Machine S/U = 30 Set-ups Machine Hrs. = 15,000 Machine Hours Inspections = 15 Inspections. Using ABC, overhead cost assigned to Job #971 for machine repair is: $2,300. $990. $6,500. $690. $1,020. Question 14. Question : Stoltenberg Co. had the following information for the month of June: WIP Beginning Inventory – June 1 = 2,000 Units Units Transferred-in = 16,000 Units WIP Ending Inventory – June 30 = 4,000 Units Beginning work-in-process inventory is 30 percent complete as to conversion. Ending work-in-process inventory is 50 percent complete as to conversion. Materials are added at the end of the process. How many units were started and completed in June? 12,000. 10,000. 14,000. 16,000. Question 15. Question : Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 125% of direct labor cost. Selected data concerning the past year's operation of the company are presented below. Direct Materials January 1 = $77,000 Direct Materials December 31 = 40,000 WIP January 1 = 66,000 WIP December 31 = 42,000 Finished Goods January 1 = 115,000 Finished Goods December 31 = 100,000 Other Information: Direct Materials Purchased = $324,000 Cost of Goods Available for Sale = 950,000 Actual Factory Overhead = 206,000 The cost of goods manufactured during the year is: $850,000. $348,000. $672,000. $835,000. $811,000.