Question 1

________ is a costing system that starts with output that has been completed and then assigns manufacturing costs to units sold and to inventories.
A)Job costing
B)Batch costing
C)Backflush costing
D)Process costing

Accepted Answer

The answer of ________ is a costing system that starts...

Question 2

Under the just-in-time costing system,underallocated and overallocated conversion costs are treated just like underallocated and overallocated manufacturing overhead.

Accepted Answer

Under the just-in-time costing system, underallocated and overallocated conversion costs are treated as a part of manufacturing overhead and are adjusted accordingly. Therefore, they are treated just like underallocated and overallocated manufacturing overhead.

Question 3

A just-in-time costing system does not use the Finished Goods Inventory account; instead,it combines the Finished Goods Inventory account with the Work-in-Process Inventory account.

Accepted Answer

The answer of A just-in-time costing system does not use...

Question 4

Under the just-in-time costing system,a credit purchase of raw materials is recorded by ________.
A)debiting the Raw Materials Inventory account
B)crediting the Conversion Costs account
C)debiting the Raw and In-Process Inventory account
D)crediting the Cash account

Accepted Answer

The answer of Under the just-in-time costing system,a credit purchase...

Question 5

List and briefly discuss three major differences between just-in-time costing (JIT)and traditional costing.

Accepted Answer

The answer of List and briefly discuss three major differences...

Question 6

The just-in-time costing system waits until the units are completed to record the cost of production.

Accepted Answer

The answer of The just-in-time costing system waits until the...

Question 7

Just-in-time costing systems use a combined account for Raw Materials Inventory and Work-in-Process Inventory known as the ________.
A)Raw Materials Inventory account
B)Work-in-Process Inventory account
C)Raw and In-Process Inventory account
D)Process account

Accepted Answer

Just-in-time costing systems combine Raw Materials Inventory and Work-in-Process Inventory into one account, known as the Raw and In-Process Inventory account. This allows for a more accurate reflection of inventory levels and costs, as well as better tracking of the cost of goods sold. Option A and B are incorrect as they only refer to one type of inventory, while option D is too general and does not specify the combined account used in just-in-time costing systems.

Question 8

Under just-in-time costing,the purchase of raw materials is recorded by debiting the Raw Materials Inventory account.

Accepted Answer

The answer of Under just-in-time costing,the purchase of raw materials...

Question 9

Just-in-time costing does not track the cost of products from Raw Materials Inventory to Work-in-Process Inventory to Finished Goods Inventory.

Accepted Answer

Just-in-time costing focuses on reducing inventory and production time, and therefore does not track products through the various inventory stages. Instead, it uses a single cost for each product, based on the total cost of production, and assumes a continuous flow of materials and production.

Question 10

Just-in-time costing is also known as ________.
A)job costing
B)batch costing
C)backflush costing
D)process costing

Accepted Answer

Just-in-time costing is also known as backflush costing, which is a method of cost accounting that involves recording all costs at the completion of a production process rather than at each stage of production. This method is often used in lean manufacturing and is intended to simplify the accounting process and reduce the administrative burden associated with tracking and reporting costs in real-time.

Question 11

Companies using just-in-time management systems are far more vulnerable to production shutdowns if they receive poor-quality or defective raw materials.

Accepted Answer

Just-in-time management systems require precise timing and coordination of materials and resources, so any disruptions or delays caused by poor-quality or defective raw materials can have significant impacts on production and potentially lead to shutdowns.

Question 12

Which of the following statements is true of just-in-time management systems?
A)It involves ordering raw materials in large quantities to obtain volume discounts.
B)It triggers production after the customer places an order.
C)Its successful implementation is independent of vendor relationships.
D)It contracts with suppliers to deliver large quantities of goods once a year.

Accepted Answer

Just-in-time management systems trigger production after an order is placed by the customer, rather than producing items and then hoping that they will sell. This helps to prevent excess inventory and waste. Ordering raw materials in large quantities to obtain volume discounts is more closely associated with economies of scale. Successful implementation of just-in-time is often dependent on strong relationships with vendors who can deliver materials quickly and when needed, so choice C is incorrect. Additionally, JIT typically involves more frequent, smaller deliveries from suppliers rather than annual delivery of large quantities, making choice D incorrect.

Question 13

Which of the following is a disadvantage of a just-in-time management system?
A)It results in a decrease in production space.
B)It increases the inventory cost.
C)The risk of the inventory becoming obsolete is very high.
D)The users of this system sometimes lose sales because of little or no inventory buffers.

Accepted Answer

Just-in-time management systems rely on having minimal inventory, which can result in little or no inventory buffers to accommodate unexpected surges in demand. This can lead to stockouts and lost sales.

Question 14

Which of the following triggers manufacturing under the just-in-time management system?
A)increased purchases
B)consumer demand
C)government pressure
D)budgeted profit

Accepted Answer

In just-in-time management system, manufacturing is triggered by consumer demand. The system focuses on producing goods only when there is a demand for them, thereby reducing inventory costs and increasing efficiency. Increased purchases, government pressure, and budgeted profit are not directly related to triggering manufacturing in the just-in-time system.

Question 15

Which of the following is an attribute of traditional costing systems?
A)raw materials are ordered in large quantities
B)production is completed in self-contained work cells
C)suppliers make frequent deliveries of small quantities of raw materials
D)management works with suppliers to ensure defect-free raw materials

Accepted Answer

Traditional costing systems typically rely on ordering raw materials in large quantities to take advantage of discounts and minimize ordering costs.

Answer: B and D are not attributes of traditional costing systems, and C is not specific to traditional costing systems.

Question 16

The ________ system pulls materials,labor,and overhead costs into production under a just-in-time management system.
A)purchase-push
B)demand-push
C)purchase-pull
D)demand-pull

Accepted Answer

The answer of The ________ system pulls materials,labor,and overhead costs...

Question 17

Under the just-in-time management system,________.
A)a company's storage costs increase
B)a company's inventory insurance costs increase
C)the floor space available for production increases
D)the risk of the inventory becoming obsolete increases

Accepted Answer

Under the just-in-time management system, the inventory is kept to a minimum level, which frees up floor space that would have been used for storage. This can help increase production efficiency and reduce costs related to storage. The risk of inventory becoming obsolete is also reduced as the inventory turnover is higher. However, there may be challenges in terms of supplier reliability and potential delay in delivery of required raw materials.

Question 18

Agostino,Inc.uses a just-in-time costing system.During the month,Agostino incurred $300,000 as direct labor and $9,000 as overhead.Which of the following is the correct journal entry to record the conversion costs?
A) $$\begin{array} { | c | r | r | } 
\hline \text { Conversion Costs } & 309,000 & \
\hline \text { Wages Payable, Accumulated Depreciation, etc. } & & 309,000 \
\hline
\end{array}$$
B) $$\begin{array} { | c | r | r | } 
\hline \text { Conversion Costs } & 309,000 & \
\hline \text { Wages Payable } & & 309,000 \
\hline
\end{array}$$
C) $$\begin{array} { | c | r | r | } 
\hline \text { Manufacturing Overhead } & 309,000 & \
\hline \text { Conversion Costs } & & 309,000 \
\hline
\end{array}$$
D) $$\begin{array} { | c | r | r | } 
\hline \text { Conversion Costs } & 309,000 & \
\hline \text { Accounts Payable } & & 309,000 \
\hline
\end{array}$$

Accepted Answer

The correct journal entry for recording conversion costs in a just-in-time costing system is to debit Conversion Costs and credit Wages Payable, Accumulated Depreciation, etc., for the total amount of direct labor and overhead incurred.

Question 19

Which of the following temporary accounts is typically used in just-in-time costing systems to accumulate direct labor and manufacturing overhead costs?
A)Adjustments account
B)Conversion Costs account
C)Manufacturing Overhead account
D)Work-in-Process Inventory account

Accepted Answer

Conversion Costs account is typically used in just-in-time costing systems to accumulate direct labor and manufacturing overhead costs. This account helps to track the costs incurred to convert raw materials into finished goods during production. The other options - Adjustments account, Manufacturing Overhead account, and Work-in-Process Inventory account - do not specifically relate to accumulating direct labor and manufacturing overhead costs in just-in-time costing systems.

Question 20

Provide answers to the following just-in-time costing questions.
 $$\begin{array} { | l | l | } 
\hline { \text { Just-in-Time Costing Question } } & \text { Just-in-Time Costing Answer } \
\hline \text { When are the costs of products recorded? } & \
\hline \text { Which inventory accounts are used? } & \
\hline \text { Which accounts are used to record } & \
\text { manufacturing costs? } & \
\hline
\end{array}$$

Accepted Answer

The answer of Provide answers to the following just-in-time costing...

Quiz 19: Cost Management Systems: Activity-Based, just-In-Time, and Quality Management Systems

________ is a costing system that starts with output that has been completed and then assigns manufacturing costs to units sold and to inventories.

Under the just-in-time costing system,underallocated and overallocated conversion costs are treated just like underallocated and overallocated manufacturing overhead.

A just-in-time costing system does not use the Finished Goods Inventory account; instead,it combines the Finished Goods Inventory account with the Work-in-Process Inventory account.

Under the just-in-time costing system,a credit purchase of raw materials is recorded by ________.

List and briefly discuss three major differences between just-in-time costing (JIT)and traditional costing.

The just-in-time costing system waits until the units are completed to record the cost of production.

Just-in-time costing systems use a combined account for Raw Materials Inventory and Work-in-Process Inventory known as the ________.

Under just-in-time costing,the purchase of raw materials is recorded by debiting the Raw Materials Inventory account.

Just-in-time costing does not track the cost of products from Raw Materials Inventory to Work-in-Process Inventory to Finished Goods Inventory.

Just-in-time costing is also known as ________.

Companies using just-in-time management systems are far more vulnerable to production shutdowns if they receive poor-quality or defective raw materials.

Which of the following statements is true of just-in-time management systems?

Which of the following is a disadvantage of a just-in-time management system?

Which of the following triggers manufacturing under the just-in-time management system?

Which of the following is an attribute of traditional costing systems?

The ________ system pulls materials,labor,and overhead costs into production under a just-in-time management system.

Under the just-in-time management system,________.

Agostino,Inc.uses a just-in-time costing system.During the month,Agostino incurred $300,000 as direct labor and $9,000 as overhead.Which of the following is the correct journal entry to record the conversion costs?

Which of the following temporary accounts is typically used in just-in-time costing systems to accumulate direct labor and manufacturing overhead costs?