1. TMM.18-1

Learning Objective 1

Use the above video link to answer the following questions.

1. Which of the following most likely uses a process cost system?

Purse manufacturer

Oil refinery

Automobile manufacturer

Guitar manufacturer

2. Process and job order cost systems are similar in that each system

records and summarizes product costs.

classifies product costs as direct materials, direct labor, and factory overhead.

allocates factory overhead costs to products.

All of these choices are correct.

2. TMM.18-2

Learning Objective 2

Use the above video link to answer the following questions.

1. The first step in preparing a cost of production report is to

compute equivalent units of production.

determine the units to be assigned costs.

determine the cost per equivalent unit.

allocate costs to units transferred out and partially completed units.

2. The last step in preparing a cost of production report is to

compute equivalent units of production.

determine the units to be assigned costs.

determine the cost per equivalent unit.

allocate costs to units transferred out and partially completed units.

3. The inventory cost method that most closely resembles the physical flow of inventory units is

FIFO.

LIFO.

specific identification.

average cost.

4. The number of units in production during a period, whether completed or not, are known as

partial units.

whole units.

equivalent units of production.

None of these choices are correct.

3. TMM.18-3

Learning Objective 3

Use the above video link to answer the following questions.

1. The journal entry to recognize depreciation on machinery would include a

debit to Factory Overhead.

debit to Accumulated Depreciation.

credit to Factory Overhead.

None of these choices are correct.

2. The journal entry to record the transfer from work in process to finished goods would include a debit to

Work in Process.

Finished Goods.

Cost of Goods Sold.

None of these choices are correct.

4. TMM.18-5

Learning Objective 5

Use the above video link to answer the following questions.

1. A management approach that focuses on reducing time and cost and eliminating poor quality is known as

employee management.

near-zero defects management.

just-in-time processing.

Kanban processing.

2. In a just-in-time system, processing functions are combined into work centers, sometimes called

assembly lines.

departments.

manufacturing cells.

None of these choices are correct.