Question 1

The number of fully completed units that equates with a given number of partially completed units is referred to as the:&#10;A) Number of units in ending finished goods inventory&#10;B) Equivalent completed units&#10;C) The number of units sold this period&#10;D) The number of units in ending Work-in-Process inventory

Accepted Answer

Process costing calculates costs based on equivalent units of completed production, which is the number of finished units this is equivalent to a given number of partially completed units. For example, two units 50% completed are equivalent to 1 equivalent completed unit.

Question 2

Indicate whether each of the following costs, incurred by a manufacturer&#10;&#10;-Vice president of manufacturing salary&#10;A) Product cost&#10;B) Period cost

Accepted Answer

The Vice President of Manufacturing's salary is a period cost because it is an expense that is incurred over a period of time and is not directly related to the production of a specific product.

Question 3

Indicate whether each of the following costs, incurred by a manufacturer&#10;&#10;-Vice president for human Resources salary&#10;A) Product cost&#10;B) Period cost

Accepted Answer

The salary of a vice president for human resources is considered a period cost because it is an administrative expense, not directly tied to the production process. Period costs are expensed in the period in which they are incurred.

Question 4

Indicate whether each of the following costs, incurred by a manufacturer&#10;&#10;-Plant janitorial costs&#10;A) Product cost&#10;B) Period cost

Accepted Answer

Plant janitorial costs are considered a product cost because they are necessary for maintaining the manufacturing facility and are part of the overhead costs associated with producing goods.

Question 5

Indicate whether each of the following costs, incurred by a manufacturer&#10;&#10;-Corporate jet operating expense&#10;A) Product cost&#10;B) Period cost

Accepted Answer

Corporate jet operating expense is considered a period cost because it is not directly tied to the production process and is expensed in the period in which it is incurred. Period costs are all the costs not included in product costs and are expensed on the income statement in the period they are incurred.

Question 6

Indicate whether each of the following costs, incurred by a manufacturer&#10;&#10;-Depreciation on the sales office&#10;A) Product cost&#10;B) Period cost

Accepted Answer

Depreciation on the sales office is considered a period cost because it is not directly tied to the production process and is expensed in the period in which it occurs. Period costs are associated with time periods rather than with finished products.

Question 7

Indicate whether each of the following costs, incurred by a manufacturer&#10;&#10;-Manufacturing overhead&#10;A) Product cost&#10;B) Period cost

Accepted Answer

Manufacturing overhead is considered a product cost because it is directly associated with the production of goods and is allocated to the cost of those goods. Period costs are expenses that are not directly tied to production, such as selling and administrative expenses.

Question 8

Indicate whether each of the following costs, incurred by a manufacturer&#10;&#10;-Entertainment costs of vice president of manufacturing&#10;A) Product cost&#10;B) Period cost

Accepted Answer

The answer of Indicate whether each of the following costs,...

Question 9

Classify the following costs incurred in the manufacturing of cookie bars

-Manufacturing Department's Allocation of Cafeteria Costs

A) Product Cost-Direct Materials
B) Product Cost-Conversion
C) Period Cost

Accepted Answer

Conversion

Question 10

Classify the following costs incurred in the manufacturing of cookie bars&#10;&#10;-Cookie Dough&#10;A) Product Cost-Direct Materials&#10;B) Product Cost-Conversion&#10;C) Period Cost

Accepted Answer

Direct Materials

Question 11

Classify the following costs incurred in the manufacturing of cookie bars&#10;&#10;-Peanut Butter&#10;A) Product Cost-Direct Materials&#10;B) Product Cost-Conversion&#10;C) Period Cost

Accepted Answer

The answer of Classify the following costs incurred in the...

Question 12

Classify the following costs incurred in the manufacturing of cookie bars

-Manufacturing Department's Allocation of Cafeteria Costs

A) Product Cost-Direct Materials
B) Product Cost-Conversion
C) Period Cost

Accepted Answer

The answer of Classify the following costs incurred in the...

Question 13

Classify the following costs incurred in the manufacturing of cookie bars

-Manufacturing Department's Allocation of Cafeteria Costs

A) Product Cost-Direct Materials
B) Product Cost-Conversion
C) Period Cost

Accepted Answer

The answer of Classify the following costs incurred in the...

Question 14

Classify the following costs incurred in the manufacturing of cookie bars

-Manufacturing Department's Allocation of Cafeteria Costs

A) Product Cost-Direct Materials
B) Product Cost-Conversion
C) Period Cost

Accepted Answer

The answer of Classify the following costs incurred in the...

Question 15

Classify the following costs incurred in the manufacturing of cookie bars

-Depreciation on Computers in Legal Staff Office

A) Product Cost-Direct Materials
B) Product Cost-Conversion
C) Period Cost

Accepted Answer

The answer of Classify the following costs incurred in the...

Question 16

Classify the following costs incurred in the manufacturing of cookie bars&#10;&#10;-Salary of Company Controller&#10;A) Product Cost-Direct Materials&#10;B) Product Cost-Conversion&#10;C) Period Cost

Accepted Answer

The answer of Classify the following costs incurred in the...

Question 17

Classify the following costs incurred in the manufacturing of cookie bars

-Manufacturing Department's Allocation of Cafeteria Costs

A) Product Cost-Direct Materials
B) Product Cost-Conversion
C) Period Cost

Accepted Answer

The answer of Classify the following costs incurred in the...

Question 18

Classify the following costs incurred in the manufacturing of cookie bars

-Manufacturing Department's Allocation of Cafeteria Costs

A) Product Cost-Direct Materials
B) Product Cost-Conversion
C) Period Cost

Accepted Answer

The answer of Classify the following costs incurred in the...

Question 19

For each of the following independent manufacturing situation, select the best choice and why ?&#10;&#10;-A manufacturer of customized vans&#10;A) Job Order&#10;B) Process

Accepted Answer