ACCT 201 Exam 1

A process cost system company has 5 production departments. How many work-in-process accounts will it use?

The recording of the jobs completed would include a debit to

Which of the following is an example of a factory overhead cost?

Determining the units to be assigned costs is what step of creating a cost of production report?

Custom-made goods would be accounted for using a process costing system.

Conversion costs are usually incurred evenly throughout a process.

Managerial accounting reports are designed to meet the specific needs of a company's management.

Which of the following would record the labor costs to an individual job?

Direct materials, direct labor, & factory overhead are assigned to each manufacturing process in process cost systems.

Managerial accounting uses only past data in reports to aid management in the decision-making process.

Advertising fees in a bakery are considered a product cost.

Conversion costs are usually incurred evenly throughout a process.

Which of the following items would not be classified as part of factory overhead?

A paper manufacturer is an example of a business that uses process costing.

Which of the following costs would be considered direct materials for a car manufacturer?

Process manufacturing usually reflects a manufacturer that produces small quantities of unique items.

For which of the following businesses would a process cost system be appropriate?

A movie studio is an example of a business that uses process costing.

Both job order and process cost accounting use equivalent units of production to determine costs.

Equivalent units are the sum of direct materials used and direct labor incurred.

Depreciation expense on factory equipment is part of factory overhead cost.

For which of the following businesses would the job order cost system be appropriate?

The cost of oil used to lubricate factory machinery and equipment is an example of a direct materials cost.

For an automotive repair shop, the wages of mechanics would be classified as direct labor cost.

A separate account for each material is found in a job cost sheet.

Calculating equivalent units of production is what step of creating a cost of production report?

What measures the quantity of output of production relative to the inputs?

Yield measures the ratio of the materials output quantity to the materials input quantity.

If factory overhead applied exceeds the actual costs, overhead is said to be underapplied.

Job order cost systems can be used to compare unit costs of similar jobs to determine if costs are staying within range.

The recording of the factory labor incurred for general factory use would include a debit to cost of goods sold.

Conversion costs are made up of

Equivalent Units measure the work done during a production period, expressed in terms of fully complete units of output.

In a process costing system, each process will have a work-in-process inventory account.

The source document for the data for debiting Work in Process for direct materials is a

Which of the following would be considered direct labor for a lawnmower manufacturer?

A diagram of the operating structure of an organization is called an organization chart.

In a bakery, frosting would be considered a period cost.

A flour mill is an example of a business that uses process costing.

Which of the following is most associated with financial accounting?