Reference no: EM132548480

Question 1: Which of thee following statements concerning the comparison among actual costing, normal costing and standard costing is correct?

A. Actual costing system values manufactured products with the actual material costs, actual direct labor costs, and actual manufacturing overhead costs.

B. Normal costing systems values manufactured products with the actual material cost, actual direct labor costs and manufacturing overhead based on a predetermined manufacturing overhead rate with possible over/under applied application of factory overhead to be closed to costs of goods sold only if insignificant or to be closed prorated to cost of goods sold, work in process and finished goods inventory if significant.

C. Standard costing system values manufactured goods with predetermined material cost, predetermined labor cost, and a predetermined manufacturing overhead costs with the possible over/under applied of factory overhead to be closed to costs of goods sold only if insignificant or to be closed prorated to cost of goods sold, work in process and finished goods inventory if significant.

D. All of the above

Question 2: When shall the job order costing be used instead of process costing?

A. When the production process performs standardized or uniform procedures

B. When the company performs a very long production runs

C. When the company intends to use it for billing customers

D. When the company produces low-value and homogeneous products

Question 3: When shall the process costing to be used instead of job order costing?

A. When the production process performs standardized or uniform procedures

B. When the company performs a very short production runs that is based on customer specifications

C. When the company intends to us it for billing customers

D. When the company produces high - value and heterogenous products

Question 4: Which of the following statements concerning in a job - order costing is correct?

A. If the scrap is significant, the realizable value of the scrap is recognized as revenue at the time it is sold

B. If the scrap is insignificant but traceable to the job that yielded the scrap, the net realizable value of the scrap shall be recorded as a deduction from cost of that specific job

C. If the scrap is insignificant but common to all jobs, the net realizable of scrap shall be credited to manufacturing overhead control

D. If the scrap is significant the net realizable value shall be capitalized as inventory of scrap with credit going to specific job if traceable to a particular job or manufacturing control if common to all jobs

E. All of the above

Question 5: Which of the following statements concerning rework costs in a job - order costing is correct?

A. If the normal rework cost is attributable to a specific job, it shall be capitalized to that particular job

B. If the normal rework cost is common to all jobs, it shall be debited to manufacturing overhead control

C. If the rework is abnormal, it shall be recorded as period cost or expense

D. All of the above

Question 6: Which of the following statement concerning spoilage in a job-order costing is correct?

A. The cost of abnormal spoilage is recorded as period cost or expense.

B. When normal spoilage occurs because of the specification of a particular job, cost of normal loss shall be capitalized to that specific job reduced by the current disposal value / net realizable value of the spoiled units

C. When normal spoilage is a characteristic of a given production cycle, the cost of normal loss is not charged to a specific job but will be closed to manufacturing overhead control account

D. All of the above