Reference no: EM13332045

The three inventory accounts used in traditional costing are replaced by two inventory accounts in backflush costing.

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False

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Question 2 1 pts <p>Nonvalue-adding activity costs do not increase a product's cost because they do not add value to the product.</p>
Nonvalue-adding activity costs do not increase a product's cost because they do not add value to the product.

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False

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Question 3 1 pts <p>Activity-based costing applies only to production-related activities.</p>
Activity-based costing applies only to production-related activities.

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False

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Question 4 1 pts <p>The ending balance of the Cost of Goods Sold account will differ in traditional and backflush costing.</p>
The ending balance of the Cost of Goods Sold account will differ in traditional and backflush costing.

True
False

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Question 5 1 pts <p>In moving toward the just-in-time continuous work flow concept, a key objective is the reduction in the use of raw materials for manufacturing a product.</p>
In moving toward the just-in-time continuous work flow concept, a key objective is the reduction in the use of raw materials for manufacturing a product.

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False

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Question 6 1 pts In a just-in-time environment,
In a just-in-time environment,
production runs are interrupted each day at setup time to perform routine maintenance.
scheduled and preventive maintenance is extremely important.
cost savings are realized by performing maintenance whenever it is needed.
routine minor maintenance is always performed by the repair department.

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Question 7 1 pts A change to just-in-time manufacturing expands mainly the role of the
A change to just-in-time manufacturing expands mainly the role of the
cost accountant.
machine operator.
purchasing manager.
quality control inspector.

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Question 8 1 pts Skip to question text.
Engineering design is an activity vital to the success of any motor vehicle manufacturer. Identify the level at which engineering design would be classified in the cost hierarchy used with ABC for a maker of built-to-order city and county emergency vehicles (orders are usually placed for 10 to 12 identical vehicles).
Unit-level activity
Batch-level activity
Product-level activity
Facility-level activity

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Question 9 1 pts When using backflush costing, product costs are first accumulated in the __________ account.
When using backflush costing, product costs are first accumulated in the __________ account.
Cost of Goods Sold
Work in Process Inventory
Conversion Costs
Finished Goods Inventory

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Question 10 1 pts .Johnson Products Company is in the process of adopting the just-in-time operating philosophy for its idol-making operations. Indicate which of the following overhead costs is a nonvalue-adding cost (NVA).
.Johnson Products Company is in the process of adopting the just-in-time operating philosophy for its idol-making operations. Indicate which of the following overhead costs is a nonvalue-adding cost (NVA).
Machine electricity
Machine repairs
Depreciation of the machine used
Machine setup labor

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Question 11 1 pts Which of the following is reduced by a just-in-time operations?
Which of the following is reduced by a just-in-time operations?
Inspection time and moving time
Only storage time
Moving time and processing time
Inspection time and processing time

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Question 12 1 pts Process value analysis (PVA) identifies all activities of a production and/or assembly operation for the purpose of
Process value analysis (PVA) identifies all activities of a production and/or assembly operation for the purpose of
preparing budgets based on activity centers.
determining the value of the process.
replacing cost drivers used in cost assignment analyses with activities.
relating cost assignment to the activities that caused the cost to be incurred.

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Question 13 1 pts Which of the following is a unit-level activity?
Which of the following is a unit-level activity?
Redesigning the process
Setting up the production process
Purchase of raw materials
Insuring the factory

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Question 14 1 pts The initial step in achieving the efficiency of a just-in-time system is to
The initial step in achieving the efficiency of a just-in-time system is to
redesign the plant layout.
replace laborers with machines.
stop ordering materials for inventory.
identify products that are not profitable.

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Question 15 1 pts Both traditional and backflush costing have an account for __________ Inventory.
Both traditional and backflush costing have an account for __________ Inventory.
Materials
Raw in Process
Finished Goods
Conversion Costs

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Question 16 1 pts Which of the four levels of the cost hierarchy would be used by a dress manufacturer using an activity-based management to design a pattern for a new dress style?
Which of the four levels of the cost hierarchy would be used by a dress manufacturer using an activity-based management to design a pattern for a new dress style?
Unit-level activity
Batch-level activity
Product-level activity
Facility-level activity

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Question 17 1 pts Skip to question text.
For work done during August, Footprints Company incurred direct materials costs of $104,000 and conversion costs of $260,000. The company employs a just-in-time operating philosophy and backflush costing. At the end of August, it was determined that the Work in Process Inventory account had been assigned $1,080 of costs, and the ending balance of the Finished Goods Inventory account was $1,220. There were no beginning inventory balances.

Using the information provided for Footprints Company, what is the cost of completed units for August?
$104,000
$260,000
$361,700
$362,920

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Question 18 1 pts Skip to question text.
For work done during August, Footprints Company incurred direct materials costs of $104,000 and conversion costs of $260,000. The company employs a just-in-time operating philosophy and backflush costing. At the end of August, it was determined that the Work in Process Inventory account had been assigned $1,080 of costs, and the ending balance of the Finished Goods Inventory account was $1,220. There were no beginning inventory balances.

Using the information provided for Footprints Company, what was the ending balance of the Cost of Goods Sold account for August?

$361,700
$362,780
$362,920
$364,000

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Question 19 1 pts Skip to question text.
For work done during June, Prints Company incurred direct materials costs of $150,000 and conversion costs of $225,000. The company employs a traditional operating philosophy. At the end of June, it was determined that the Work in Process Inventory account had been assigned $2,000 of costs, and the ending balance of the Finished Goods Inventory account was $5,000. There were no beginning inventory balances.

Using the information provided for Prints Company, how much was charged to the Cost of Goods Sold account during June?

$378,000
$380,000
$375,000
$368,000

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Question 20 1 pts Skip to question text.
For work done during June, Prints Company incurred direct materials costs of $150,000 and conversion costs of $225,000. The company employs a traditional operating philosophy. At the end of June, it was determined that the Work in Process Inventory account had been assigned $2,000 of costs, and the ending balance of the Finished Goods Inventory account was $5,000. There were no beginning inventory balances.

Using the information provided for Prints Company, how much was cost of goods manufactured during June?

$375,000
$373,000
$370,000
$377,000