ACCT344 Cost Accounting Week 1 Quiz (Version 1)

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ACCT344 Cost Accounting
Week 1 Quiz (Version 1)

1. (TCO 2) Which cost assignment method would likely assign the cost of heating in a plant that makes beds and dressers when the bed product line is the cost object? (Points: 3)
Driver tracing
Direct tracing
Allocation
Arbitration

2. (TCO 2) Which cost is an example of product costs? (Points: 3)
Selling commissions
Nonfactory office salaries
Direct materials
Advertising expense

3. (TCO 2) Period costs do not include (Points: 3)
Order-getting costs
Order-filling costs
Order-making costs
All of the above are period costs

4. (TCO 2) Based on the following information, which are the conversion costs? (Points: 3)
Beginning work-in-process inventory $160,000
Ending work-in-process inventory $180,000
Cost of goods manufactured $500,000
Direct materials used $130,000

$210,000
$320,000
$340,000
$390,000

5. (TCO 2) Based on the following information, which are the prime costs for the year? (Points: 3)
Cost of goods manufactured $380,000
Beginning work-in-process inventory $140,000
Ending work-in-process inventory $120,000
Manufacturing overhead $70,000

$310,000
$570,000
$290,000
$330,000
6. (TCO 2) The absolute maximum production activity of a manufacturing firm is called (Points: 3)
expected activity level
normal activity level
theoretical activity level
practical activity level

7. (TCO 2) Which item is a basic costing system record in a job-order costing system? (Points: 3)
Materials requisition form
Job-order cost sheet
Job time ticket
All of the above

8. (TCO 2) Which firm would make extensive use of job-order costing? (Points: 3)
Dental and medical services
Canned foods
Discount brokers
Petroleum

9. (TCO 2) ABC Manufacturing Company has the following total job cards.
Job A $6,500
Job B $5,630
Job C $3,825
Job D $3,800
Job E $6,300
Job F $4,200
Jobs A and B were in Finished Goods Inv. at the beginning of the month.
Jobs C and D were in Work-in-Process at the beginning of the month.
Jobs E and F were started during the month.
At the end of the month, Jobs A and E were sent to customers.
At the end of the month, Jobs C, E, and F were completed and sent to finished goods.

Which is the cost of goods sold for the month? (Points: 3)
$12,130
$14,325
$12,800
None of the above

10. (TCO 2) Action Corporation uses activity-based costing to apply overhead to jobs within a job-order costing system. The following overhead activities were budgeted for the year.
Activity Cost Driver Amount of Driver
Setups $480,000 # of setups 8,000
Purchasing $240,000 # of parts 20,000
Other overhead $500,000 Direct labor hours 80,000

The following information about the jobs was given for May.
Balance 4/1 Direct materials Direct labor # of setups # of parts Direct labor hours
Job 1 84,900 44,000 60,000 30 250 4,000
Job 2 50,880 36,900 41,000 12 75 2,600
Job 3 61,000 50,000 83,000 35 600 6,000
Job 4 - 10,000 18,000 150 350 900

By May 30, Jobs 1, 2, and 3 were completed and sold. The remaining jobs were still in process.
Which is the cost of Job 2? (Points : 3)
$146,650
$95,770
$128,780
None of the above
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