STUDY : chapter 18

Job Order vs. Process Costing Which of the following industries would typically use job order costing, and which would typically use process costing? a.Dentist b.Gasoline refining c.Flour mill d.Movie studio e.Paper manufacturing f. Custom printing

Job Order vs. Process Costing a. Job order costing b.Process costing c.Process costing d.Job order costing e.Process costing f. Job order costing

The inventory cost method that most closely resembles the physical flow of inventory units is a. FIFO. b. LIFO. c. specific identification. d. average cost.

a. FIFO

The journal entry to recognize depreciation on machinery would include a a. debit to Factory Overhead. b. debit to Accumulated Depreciation. c. credit to Factory Overhead. d. None of these choices are correct.

a. debit to factory overhead

The quantity of the material output divided by the quantity of the material input gives you the a. yield. b. direct materials cost per equivalent unit. c. average cost per unit. d. None of these choices are correct.

a. yield

Compute the yield as a percentage rounded to two digits after the decimal, assuming 110 pounds of tea entered the Packaging Department and 103 pounds of tea were packaged. a.1.07% b. 93.64% c.6.36% d.None of these choices are correct.

b. 93.64 %

The first step in preparing a cost of production report is to a.compute equivalent units of production. b.determine the units to be assigned costs. c.determine the cost per equivalent unit. d.allocate costs to units transferred out and partially completed units

b. determine the units to be assigned costs

The journal entry to record the transfer from work in process to finished goods would include a debit to a.Work in Process. b.Finished Goods. c.Cost of Goods Sold. d.None of these choices are correct.

b. finished goods

1. Which of the following most likely uses a process cost system? a.Purse manufacturer b.Oil refinery c.Automobile manufacturer d.Guitar manufacturer

b. oil refinery

The number of units in production during a period, whether completed or not, are known as a. partial units. b. whole units. c.equivalent units of production. d.None of these choices are correct.

b. whole units

How many barrels can the BP oil refinery facility in Whiting, Indiana process each day? a. 200,000 b. 400,000 c. 800,000 d. 1,000,000

b.400,000

In essence, labor costs for the BP refining facility in Whiting, Indiana are: a. Variable b. Semi-fixed (i.e., step) c.Fixed d. Mixed

c. fixed

A management approach that focuses on reducing time and cost and eliminating poor quality is known as a. employee management. b.near-zero defects management. c.just-in-time processing. d.Kanban processing.

c. just in time processing

In a just-in-time system, processing functions are combined into work centers, sometimes called a. assembly lines. b. departments. c. manufacturing cells. d. None of these choices are correct.

c. manufacturing cells

Using its linear programming model, in what order does BP determine the volume of each output and the costs of each output? a. the volume of each output and the costs of each output cannot be determined b. the volume of each output is determined BEFORE the costs of each output c. the volume of each output is determined AT THE SAME TIME as the costs of each output d. the volume of each output is determined AFTER the costs of each output

c. the volume of each output is determined at the same time as the costs of each output

Process and job order cost systems are similar in that each system a.records and summarizes product costs. b.classifies product costs as direct materials, direct labor, and factory overhead. c.allocates factory overhead costs to products. d.All of these choices are correct.

d. all of the choices are correct

The last step in preparing a cost of production report is to a. compute equivalent units of production. b. determine the units to be assigned costs. c. determine the cost per equivalent unit. d. allocate costs to units transferred out and partially completed units.

d. allocate costs to units transferred out and partially completed units.

How frequently does the BP refining facility in Whiting, Indiana track its process costs? a.Hourly b.Daily c.Weekly d.Monthly

d. monthly