Question 1

What are hybrid cost systems? Under what circumstances might a company use a hybrid system?

Accepted Answer

The answer of What are hybrid cost systems? Under what...

Question 2

Indicate whether each of the following statements about cost systems is

Accepted Answer

The answer of Indicate whether each of the following statements...

Question 3

Indicate whether each of the following statements about process cost systems is

Accepted Answer

The answer of Indicate whether each of the following statements...

Question 4

The weighted average method of calculating equivalent units does not account for the state of completion of units in beginning work in process inventory.

Accepted Answer

The weighted average method only accounts for the units completed during the current period and the units in ending work in process inventory. It does not consider the units in beginning work in process inventory or their degree of completion.

Question 5

What are job cost sheets,and how are they used in a job-order cost system?

Accepted Answer

The answer of What are job cost sheets,and how are...

Question 6

The 10,000 units in Department B that are 30% complete are equivalent to 3,000 whole units.

Accepted Answer

Equivalent whole units in ending inventory = Units in ending inventory x Percentage complete

Question 7

Why does a company that uses a process cost system need to calculate equivalent whole units?

Accepted Answer

The answer of Why does a company that uses a...

Question 8

Why is the concept of equivalent units important for process costing?

Accepted Answer

The answer of Why is the concept of equivalent units...

Question 9

What are materials requisition forms,and how are they used in a job-order cost system?

Accepted Answer

The answer of What are materials requisition forms,and how are...

Question 10

The weighted average method of process costing does not account for the state of completion of units in beginning inventory.

Accepted Answer

The answer of The weighted average method of process costing...

Question 11

What source documents would be used in preparing a job cost sheet?

Accepted Answer

The answer of What source documents would be used in...

Question 12

A company that uses a process cost system would calculate the cost per equivalent unit and then use that amount to allocate costs between the goods transferred out and the beginning work in process inventory.

Accepted Answer

A company that uses a process cost system would calculate the cost per equivalent unit and then use that amount to allocate costs between the goods transferred out and the ending (rather than the beginning)work in process inventory.

Question 13

Under process costing,a cost of production report is prepared to determine the amount of costs that should be transferred to the next department or to finished goods.

Accepted Answer

This statement is true. A cost of production report is a key document in process costing that summarizes the cost information for a production department during a period and calculates the cost per equivalent unit. This report is used to allocate the total costs of the department to the units processed and to determine how much of these costs should be transferred to the next department or to finished goods inventory.

Question 14

Company N manufactures machines to customer order.Why would the use of a process cost system not be appropriate for N?

Accepted Answer

The answer of Company N manufactures machines to customer order.Why...

Question 15

How should a company choose between a job-order cost system and a process cost system?

Accepted Answer

The answer of How should a company choose between a...

Question 16

Indicate whether each of the following statements about product cost systems is

Accepted Answer

The answer of Indicate whether each of the following statements...

Question 17

Indicate whether each of the following statements about job-order cost systems is

Accepted Answer

The answer of Indicate whether each of the following statements...

Question 18

Describe how accumulation of costs in a job-order cost system parallels the manufacturing process.

Accepted Answer

The answer of Describe how accumulation of costs in a...

Question 19

Two methods of computing equivalent whole units are the LIFO and the weighted average methods.

Accepted Answer

The two methods of computing equivalent whole units are the FIFO and the weighted average methods.

Question 20

Why is calculating the cost of services provided to customers important for a service business?

Accepted Answer

The answer of Why is calculating the cost of services...

Quiz 12: Job-Order, Process, and Hybrid Costing Systems

What are hybrid cost systems? Under what circumstances might a company use a hybrid system?

Indicate whether each of the following statements about cost systems is

Indicate whether each of the following statements about process cost systems is

The weighted average method of calculating equivalent units does not account for the state of completion of units in beginning work in process inventory.

What are job cost sheets,and how are they used in a job-order cost system?

The 10,000 units in Department B that are 30% complete are equivalent to 3,000 whole units.

Why does a company that uses a process cost system need to calculate equivalent whole units?

Why is the concept of equivalent units important for process costing?

What are materials requisition forms,and how are they used in a job-order cost system?

The weighted average method of process costing does not account for the state of completion of units in beginning inventory.

What source documents would be used in preparing a job cost sheet?

A company that uses a process cost system would calculate the cost per equivalent unit and then use that amount to allocate costs between the goods transferred out and the beginning work in process inventory.

Under process costing,a cost of production report is prepared to determine the amount of costs that should be transferred to the next department or to finished goods.

Company N manufactures machines to customer order.Why would the use of a process cost system not be appropriate for N?

How should a company choose between a job-order cost system and a process cost system?

Indicate whether each of the following statements about product cost systems is

Indicate whether each of the following statements about job-order cost systems is

Describe how accumulation of costs in a job-order cost system parallels the manufacturing process.

Two methods of computing equivalent whole units are the LIFO and the weighted average methods.

Why is calculating the cost of services provided to customers important for a service business?