1. The Blue Corporation started and completed 4,800 units during February. Blue started the month with 700 units in process (40% complete) and ended the month with 400 units in process (40% complete). How many units were transferred to the Finished Goods Inventory during February? (Points: 1)
5,500.
5,380.
5,100.
4,400.
4,100.

Opening stock 700

Add: Units completed 4,800

Less: Closed stock ( 400)

Units transferred to inventory 5,100

2. Additional materials are added in the second department of a four-department production process. However, this addition does not increase the number of units being produced in the second department, but will (Points: 1)
Increase the equivalent units of production.

Increase the total cost per unit.

Decrease the value of the transferred-in costs.

Decrease the total costs to account for.
3. In a production-cost report using process costing, transferred-in costs are similar to (Points: 1)

Material added at the beginning of the process.

Conversion costs added during the process.

Costs transferred to the next process.

Costs included in beginning inventory.
4. Cost pools are used with:
(A). Plant Wide Rates
(B). Department Rates (Points: 1)
Only A is true.
Only B is true.
Neither A nor B is true.
Both A and B are true.
5. Which one of the following accounts is not used in an activity-based costing (ABC) system? (Points : 1)
Materials Inventory
Work-in-Process Inventory
Finished Goods Inventory
Overhead Applied
Allocations Incurred
6. Companies using activity-based costing (ABC) have learned that costs are a function of (Points: 1)

Volume and activities.

Time and complexity.

Volume and time.

Resources and time.

Volume and resources.
7. Which of the following statements is (are) true regarding product costing?
(A) A job is a cost object that can be easily and conveniently distinguished from other cost objects.
(B) Job cost sheets are used in accounting systems as a subsidiary ledger for the Work-in-Process account. (Points: 1)
Only A is true
Only B is true.
Both A and B are true.
Neither A nor B is true.
8. Which of the following statements is true? (Points: 1)
One of the lessons learned from activity-based costing (ABC) is that all costs are really a function of volume.
The primary purpose of the plant wide and department allocation methods is allocating direct costs to specific products.
A problem with activity-based costing (ABC) is that it requires more recordkeeping than other methods.
Service department allocations are required for the plant wide and department allocation methods.
9. Which of the following statements is (are) true regarding product costing?
(A) Twenty cans of paint that are 25% full are equivalent to four cans of paint that are completely full.
(B) The equivalent unit concept refers to the actual amount of work during the period stated in terms of whole units. (Points: 1)
Only A is true
Only B is true.
Both A and B are true.
Neither A nor B is true.
10. Which of the following statements is (are) false regarding first-stage and second-stage cost allocation methods?
(A) The basic difference between a first-stage cost allocation and a second-stage cost allocation is that cost pools are not used in first-stage cost allocations.
(B) Predetermined overhead rates are used in first-stage cost allocations but not in second-stage cost allocations. (Points: 1)
Only A is false
Only B is false.
Neither A nor B is false.
Both A and B are false.

Answer rating: 100% (QA)

1 5100 Opening stock 700 Add Units completed 4800 Less ... View the full answer