Accounting 6375 MA Assessment Questions And Answers Latest Update 2023-2024 Best Rated, Exams of Accounting

Download Accounting 6375 MA Assessment Questions And Answers Latest Update 2023-2024 Best Rated and more Exams Accounting in PDF only on Docsity! ACCOUNTING 6375 MA Assessment Questions And Answers Latest Update 2023-2024 Best Rated The departmental production report replaces the job cost sheet used by production departments. Select one: True Fals e In which of the following ways is normal spoilage accounted for? Select one: a. Expensed in the period in which it occurred b. Included as part of the unit cost of output c. Written off to cost of goods sold d. Included in inventory valuation until year-end and then written off Eldervale Winery produces premium wine in the Hunter Valley. During the bottling process, small amount of spillage is often unavoidable. How should the costs associated with the spillage be treated? Select one: a. It should be included in the work in progress. b. It should be expensed in the period the cost is incurred. c. It should be ignored in the work in progress account and reported only in the internal production reports. d. It should be expensed immediately under the FIFO method, but included in the work in progress in the weighted average method. Conversion costs are generally added at specific points throughout a process. Select one: True Fals e To calculate equivalent units, multiply the partially completed physical units in the process by the percentage of completion. Select one: True Fals e Raphael's Refining uses a weighted average process Assuming that there was no beginning work in process inventory and the ending work in process inventory is 50 per cent complete as to conversion costs, the number of equivalent units as to conversion costs would be Select one: a. the same as the units completed. b. the same as the units placed in process. c. less than the units completed. d. less than the units placed in process. Operation costing is just another name for process costing as both systems trace all production costs to processes or departments. Select one: True Fals e Process costing and operation costing are consistent with the concepts of responsibility accounting. Select one: True Fals e Process costing is only suitable for products that are Select one: a. heterogeneous. b. homogeneous. c. harmonious. d. None of the given answers When accounting for the costs of abnormal spoilage at the end of the period, the costs of abnormal spoilage are Select one: a. included as part of the cost of unit completed. b. expensed as loss on abnormal spoilage in the current period. c. included in the cost of finished goods. d. expensed as closing work in process in the current period. Owl's Hours produces herbal tea and prides itself in having one of the largest ranges of herbal teas in Australia. It sells more than 50 varieties of tea leaves with a wide range of prices (depending on where the tea leaves are grown). The production processes of its products is simple, but vary depending on whether the tea is sold as loose leaves (which requires packing tea leaves in various sized boxes) or tea bags (which requires additional process in packaging tea in specially designed tea bags). Owl's Hours decides to use an operation costing system. This decision is Select one: a. correct, because the company uses a large variety of tea leaves as direct materials and yet has simple production processes. b. correct, because the company uses a large variety of tea leaves as direct materials and the different products require different sequences of processes. c. incorrect, because the different production lines require the tea leaves to be packaged in very distinctive methods. d. incorrect, because the company has a very homogenous product – it produces and sells only tea. Rebex Chemical Company manufactures Compound 2 in two sequential departments. On June 1, Department 2 had 3000 units, which were 50 per cent complete as to conversion cost. During June, 15 000 units were completed and transferred from Department 1. On June 30, Department 2 had 4000 units, which were 20 per cent complete as to conversion costs. How many units were completed and transferred from Department 2 during the month of June? Select one: a. 11 000 b. 12 500 c. 14 000 d. 15 700 1 May the Rolling Department had 2000 units work in progress, which were 20 per cent completed as to conversion costs. During May 10 000 units were completed and transferred out. The remaining work in progress on 30 May was 50 per cent complete in terms of conversion rate. If the equivalent unit is 12 000 units, what is the 30 May work in progress? Select one: a. 4000 units b. 2000 units (Wrong Answer) c. 8000 units d. 5000 units Process costing can be used in service businesses if the service is routine and repetitive. Select one: True For a firm, which produces its product through two processes, the costs transferred into Process 2 from Process 1 can be described as Select one: a. prior process costs. b. transferred in costs. c. prior period costs. d. prior process costs AND transferred in costs. Collins Chemicals produces a compound through two processes. For its second process for a particular period, Collins had an opening WIP inventory of 100 units halfway through the process; 2300 units completed in the period; and a closing WIP inventory of 400 units three-quarters of the way through the process. Materials are added at the beginning of the process and conversion costs are incurred uniformly. Calculate the equivalent units for transferred in costs for the period if the firm used FIFO costing. Select one: a. 2300 b. 2400 c. 2500 d. 2600 Rex Company Ltd had 4000 units in work in process at 1 April. During April, 11 000 units were completed. At 30 April, 5000 units remained in work in process. How many units were started during April? Select one: a. 11 000 b. 5000 c. 12 000 d. 16 000 Operation costing is appropriate where i. there are different material inputs. ii. there are common material inputs. iii. processes are identical. iv. different combinations of specific processes apply to different products. Select one: a. i and ii b. ii and iii c. ii and iv d. i and iv The FIFO method is a more accurate method than weighted average because: Select one: a. it does not require the calculation of equivalent units. b. the costs of current period are not combined with the costs of the prior period. c. it considers prior period costs during the current period. d. it must be computerised in order to obtain accurate calculations. A company starts work on 1000 physical units and completes 75 per cent of conversion activity. The costs are $1500 for conversion and $5000 for direct material. What is the cost per equivalent unit for conversion? Select one: a. $1.00 per unit b. $1.50 per unit c. $2.50 per unit d. $2.00 per unit In both job and process costing, the journal entry to record cost of goods sold is. Select one: Yes Yes b. Yes No c. No Yes d. Costs are irrelevant for control purposes Which of the following are needed to calculate ending work in process under process costing? Unit cost Equivalent units Cost in beginning in process Select one: a. No b. Ye s c. Ye s d. Ye s No Ye s Ye s No Ye s No Ye s No Normal spoilage can always be avoided by a more efficient approach to production. Select one: True Fals e Which of the following inventory valuation method/s is/are less suited to cost control? Select one: a. Weighted average costs b. First in first out cost c. Standard costs d. Weighted average costs AND standard costs In both job and process costing, the journal entry to record predetermined overhead is. Select one: a. debit work in process and credit raw materials inventory, salaries payable and manufacturing overhead. b. debit work in process and credit manufacturing overhead applied. c. debit manufacturing overhead and credit work in process and raw materials inventory. d. debit manufacturing overhead and credit work in process inventory Latta Coffee Ltd has two main processes: roasting and packaging. Roasted coffee beans are transferred to the packaging department before the final product is shipped to customers. The following information for the month of April for the Roasting department is available: total cost of goods completed and transferred from Roasting department to Packaging department is $25 000; ending work in progress in April is $1000; number of equivalent units of conversion is 5000 units. Which of the following journal entries is appropriate at the end of April? Select one: a. Debit Packaging Department $26 000, Credit Roasting Department $26 000 b. Debit Packaging Department $25 000, Credit Roasting Department $25 000 c. Debit Roasting Department $26 000, Credit Packaging Department $26 000 d. Debit Roasting Department $25 000, Credit Packaging Department $25 000 Equivalent unit calculations are necessary to allocate manufacturing costs between: Select one: a. cost of goods manufactured and ending work in process. b. beginning work in process and units completed. c. cost of goods manufactured and beginning work in process. d. cost of goods manufactured and cost of goods sold. Softcloth Textile Pty Ltd manufactures a variety of fabrics. The Weaving Department had 1000 units in work in i. Conversion costs are accumulated by department. ii. Direct material costs are accumulated by batch. iii. It is a hybrid product costing system. Select one: a. i, ii and iii b. ii and iii c. i and iii d. i and ii Which of the following is not required when calculating the equivalent units for conversion? i Percentage of conversion for ending work in progress ii Percentage of conversion for physical units that have been completed and transferred out of the department iii. Cost of direct materials Select one: a. i only (may be) b. i and ii c. i, ii and iii d. i and iii Abnormal spoilage costs assist management to Select one: a. control costs. b. control quality. c. hold supervisors responsible. d. All of the given answers Inventory valuation in operation costing requires Select one: a. direct materials and conversion costs being traced to processes. b. direct material and conversion costs being traced to batches. c. direct materials traced to batches and conversion costs traced to processes. d. direct materials traced to processes and conversion costs traced to batches. Heara Ltd manufactures metal sheets, and uses the weighted average method process costing. On 1 May the Rolling Department had 3000 units work in progress, which were 50 per cent completed as to conversion costs. ou t During May 8000 units were completed and transferred out. The remaining work in progress on 30 May was 2000 units, at 50 per cent complete in terms of conversion rate. What is the equivalent unit of conversion? Select one: a. 1000 units b. 2000 units c. 7500 units d. 9000 units A standard cost is a budgeted cost per unit. Select one: True Which of the following represents a correct sequence in preparing a departmental production report? Select one: a. Analysis of physical flow of units, computation of unit costs, calculation of equivalent units and analysis of total costs b. Analysis of physical flow of units, calculation of equivalent units, computation of unit costs and analysis of total costs c. Analysis of total costs, calculation of equivalent units, computation of unit costs and analysis of physical flow of units d. Analysis of total costs, analysis of physical flow of units, computation of unit costs and calculation of equivalent units If the FIFO method is used, the cost of beginning work in process should be included in: Unit Cost Cost of units transferred Select one: a. No Yes b. No No