Question

1

When direct materials are requisitioned, they flow directly into

	cost of goods sold.
	finished goods inventory.
	work in process inventory.
	manufacturing overhead.

Question

2

The assignment of direct and indirect materials to cost objects reduces

	finished goods inventory.
	raw materials inventory.
	manufacturing overhead.
	work in process inventory.

Question

3

A ________ is used to accumulate the costs of a job.

	labor time record
	materials inventory requisition form
	bill of materials
	job cost record

Question

4

In the flow of costs, which of the following comes second?

	Cost of goods sold
	Finished goods inventory
	Work in process inventory
	Raw materials inventory

Question

5

In the flow of costs, which of the following comes third?

	Finished goods inventory
	Cost of goods sold
	Raw materials inventory
	Work in process inventory

Question

6

Which of the following items would appear first on a production cost report?

	Total costs accounted for
	Cost of goods finished for the month
	Total equivalent units
	Beginning WIP, if any

Question

7

In a department, 26,000 units are completed and transferred out, and 7,400 remain in ending WIP at 65% complete. If an equivalent unit costs $9.00 for direct materials, what is the value of materials transferred out?

	$43,290
	$167,400
	$66,600
	$234,000

Question

8

How is the cost per equivalent unit computed?

	Total equivalent units divided by total costs to account for
	Total costs to account for divided by total equivalent units
	Costs in beginning WIP inventory divided by equivalent units in beginning WIP
	Costs added to production during the month divided by equivalent units in ending WIP

Question

9

Which of the following is the last step of the five-step process costing procedure?

	Summarize total costs to account for
	Assign total costs to units completed and to units in ending WIP inventory
	Compute the cost per equivalent unit
	Summarize the flow of physical units

Question

10

What are the ending inventory equivalent units for materials if 15,500 units are completed and transferred out and 4,200 remain in ending WIP at 35% complete?

	3,955
	4,200
	1,470
	5,425