ID#: True / False Questions (circle Tor F) - 10 marks (10 questions, 1 mark each) 1. Managers and accountants gather the information that goes into their cost systems through source documents, which are the original records that support journal entries in an accounting system. T / F 2. Cost pools are defined as groupings of individual cost items which can range from broad, company-wide categories to very narrow categories. T 7 F 3. The first-in, first-out (FIFO) process costing method assumes that units in beginning inventory are completed during the current accounting period, 7 F 4. In each period, Job costing divides the total cost of producing an identical or similar product by the total number of units produced to obtain a per-unit average cost. 1 F 5. Actual costing systems are commonly found in practice because the indirect cost information is readily available and accurate in a timely manner. T F 6. The manufacturing overhead control account and the manufacturing overhead allocated account both have zero balances at the end of each year after all adjustments are recorded. / 7. Equivalent units measure output in terms of the physical quantities of each of the inputs (facto of production) that have been consumed by the units. T 7 F 16. The Manufacturing Overhead Control account is debited for A) the actual costs in all the individual overhead categories (such as indirect materials and electric power) B) the amount of the under applied overhead. C) the budgeted costs in all the individual overhead categories (such as indirect materials and electric power) D) the budgeted amount of indirect manufacturing overhead costs. E) the overhead allocated to Work-in-Process inventory 17. Assigning direct costs to a cost object is called A) cost allocation. B) job costing. C) cost pooling. D) process costing. E) cost tracing 18. Angel Industries manufactured 2,400 units of its product in the month of April. It incurred a total cost of $132,000 during the month. Out of this $132,000, $45,700 was direct materials used in the product, and the rest was incurred because of the conversion cost involved in the process, including $10,000 of indirect labour. Angel had no opening or closing inventory. What will be the total cost per unit of the product? A) $55 B) $50 C) $39 D) $35 E) $100 19. When using the weighted average method, work completed in beginning work-in-process and work done during the current period are included in the A) equivalent units B) process units. C) qualitative units D) standard units E) normal units. Use the following information for the next two questions: Alexander Ltd. began operations on October 1 of the current year. Its production requires that direct materials be added at the beginning of the process, and conversion costs are incurred uniformly. Direct materials costs for October were $380,000, and conversion costs were $1,750,000. There were 80,000 units started during the month. The ending inventory was 25,000 units, which were 60% complete. 20. The cost per equivalent unit for direct materials was A) $4.75 B) $15.20 C) $5.85 D) $5.43 E) $7.92 21. The cost per equivalent unit for conversion was A) $25.00 B) $21.88 C) $70.00 D) $116.67 E) $16.67