ACCT 320 Eam 2 Sample Multiple Choice Questions Which of the following is a disadvantage of the weighted average costing method? a. It can be used only by manufacturing fims. b. I combines the performance of the current period with that of a prior period. c. It does not consider nits in beginning work in process while computing equivalent mits of output. d. It increases the material costs of a firm significantly In the weighted average costing method prior-period ourput and manufacturing costs found in beginning work in process are: a. treated separately from the curent-period output and manufachuring costs b. merged with the current-period output and manufacturing costs. c. subtracted from the current-period output and manfacturing costs. d excluded from the curent-period unit cost calculation. Which of the following is true of the cost of transferred-in material? a. It need not be calculated umder the first in, first out method. b. I is the cost of the goods transferred out computed in the prior department. c. It is treated as an overhead in the subsequent process d It includes only the cost of direct materials and direct labor used in the manufacturing process. In the conmputation of manufacturing cost per equivalent mit, the weighted-average method of process costing considers A) Cuurent costs only B) Current costs plus cost of beginning work-in-process inventory C) Current costs plus cost of ending work-in-process inventory D) Current costs mminus cost of beginning woik-in-process inventory CHAPTERS Which of the following is the sequence in a. Sales budget, prochuction budget, and budgeted income statement b. Budgeted income statement, overhead budget, and sales budget C. Ending finished goods iventory budget, direct labor budget, and production budget d Marketing which the budgets of a firm are prepared? Individual budget schedules are prepared to develop an amual conprebensive or master budget. The budget schedule that would provide the necessary input data for the direct labor budget would be the A) Sales forecast. B) Direct materials purchases budget. C) Schenle of cash receipts and disbursements. D) Production budget. ACCT 320 Eam 2 Sample Multiple Choice Questions Which of the following is a disadvantage of the weighted average costing method? a. It can be used only by manufacturing fims. b. I combines the performance of the current period with that of a prior period. c. It does not consider nits in beginning work in process while computing equivalent mits of output. d. It increases the material costs of a firm significantly In the weighted average costing method prior-period ourput and manufacturing costs found in beginning work in process are: a. treated separately from the curent-period output and manufachuring costs b. merged with the current-period output and manufacturing costs. c. subtracted from the current-period output and manfacturing costs. d excluded from the curent-period unit cost calculation. Which of the following is true of the cost of transferred-in material? a. It need not be calculated umder the first in, first out method. b. I is the cost of the goods transferred out computed in the prior department. c. It is treated as an overhead in the subsequent process d It includes only the cost of direct materials and direct labor used in the manufacturing process. In the conmputation of manufacturing cost per equivalent mit, the weighted-average method of process costing considers A) Cuurent costs only B) Current costs plus cost of beginning work-in-process inventory C) Current costs plus cost of ending work-in-process inventory D) Current costs mminus cost of beginning woik-in-process inventory CHAPTERS Which of the following is the sequence in a. Sales budget, prochuction budget, and budgeted income statement b. Budgeted income statement, overhead budget, and sales budget C. Ending finished goods iventory budget, direct labor budget, and production budget d Marketing which the budgets of a firm are prepared? Individual budget schedules are prepared to develop an amual conprebensive or master budget. The budget schedule that would provide the necessary input data for the direct labor budget would be the A) Sales forecast. B) Direct materials purchases budget. C) Schenle of cash receipts and disbursements. D) Production budget