ACCT344 Cost Accounting: Week 5 Quiz (Version 2)

Reminder: There are other versions of this week’s quiz questions so please make sure you compare and review your questions to the ones posted on the website and/or the questions in this tutorial. Thank you.

ACCT344 Cost Accounting
Week 5 Quiz (Version 2)

1. (TCO 7) Support departments (Points : 3)
are responsible for manufacturing the products sold to customers.
work directly on the products of the firm.
provide services directly to customers.
provide essential services to the producing departments.

2. (TCO 7) Which would be the most appropriate base for allocating the costs of the housekeeping department? (Points : 3)
Machine hours
Direct labor hours
Square feet
Number of employees

3. (TCO 7) If the costs of support departments are NOT allocated to producing departments, (Points : 3)
product costs would be understated.
GAAP requirements would not be met.
managers of producing departments may tend to overconsume services.
All of the above

4. (TCO 7) Joint costs are allocated because of (Points : 3)
financial reporting requirements.
tax reporting requirements.
IMA requirements.
Both A and B

5. (TCO 7) Which method allocates support department costs? (Points : 3)
Direct allocation method
Reciprocal allocation method
Sequential allocation method
All of the above

6. (TCO 7) The cost of crude oil used in producing gasoline products is an example of (Points : 3)
joint costs.
a by-product.
joint products.
common cost allocation.

7. (TCO 7) A joint cost allocation method that would assign the same amount of cost per unit to two joint products that sell for $10 and $40, respectively, is the (Points : 3)
sales-value-at-split-off method.
direct allocation method.
net realizable value method.
physical unit method.

8. (TCO 7) DeeDee Corporation manufactures the following products in its factory. $400,000 of costs were incurred.
Product Units Produced Weight per Unit (lb) Selling Price per Unit
A 2,500 10 $ 6
B 5,000 8 $12
C 7,500 6 $12
D 10,000 4 $ 6

How much joint cost would be allocated to Product B based on the physical units method? (Points : 3)

9. (TCO 7) Sally Corporation manufactures four products. The following data were provided by the cost accountant for the current year.
Product Units Produced Sales Value at Split-Off
J 15,000 $10,000
K 9,000 $ 5,000
L 24,000 $ 6,000
M 12,000 $ 9,000

Total Joint Processing Costs $24,000

Which is the amount of joint costs assigned to Product J using the sales-value-at-split-off method? (Points : 3)

10. (TCO 7) Lamb Inc. processes wool into four grades of yarn as follows.
Product Yards Produced Sales Value at Split-Off
Merino Wool 75,000 $ 56,250
Wool Singles 200,000 $180,000
Superwash Wool 100,000 $105,000
Plied Wool 125,000 $127,500

Total Joint Processing Costs $300,000

Which is the amount of joint costs assigned to Superwash Wool using the constant gross margin percentage method? (Points : 3)
Powered by