Accounting&Reporting (Costing systems)

1) For a manufacturing company, which of the following is an example of a period rather than a product cost?

2) In a job-order cost system, the use of indirect materials would usually be reflected in the general ledger as an increase in

2) In a job-order cost system, the use of indirect materials would usually be reflected in the general ledger as an increase in

3) Cannon Cannery, Inc. estimated its factory overhead at $510,000 for 1997, based on a normal capacity of 100,000 direct manufacturing labor hours. Standard direct manufacturing labor hours for the year totaled 105,000, while the factory overhead control account at the end of the year showed a balance of $540,000. How much was the underapplied factory overhead for 1997?

4) In developing a factory overhead application rate for use in a process costing system, which of the following could be used in the denominator?

5) When using the first-in, first-out method of process costing, total equivalent units of production for a given period of time is equal to the number of units

6) In the computation of manufacturing cost per equivalent unit, the weighted-average method of process costing considers

7) In its July 1997 production, Gage Corp., which does not use a standard cost system, incurred total production costs of $800,000, of which Gage attributed $30,000 to normal spoilage and $20,000 to abnormal spoilage. Gage should account for this spoilage as

7) In its July 1997 production, Gage Corp., which does not use a standard cost system, incurred total production costs of $800,000, of which Gage attributed $30,000 to normal spoilage and $20,000 to abnormal spoilage. Gage should account for this spoilage as

8) For purposes of allocating joint costs to joint products, the sales price at point of sale reduced by cost to complete after split-off is assumed to be equal to the

9) Pendall Company manufactures products Dee and Eff from a joint process. Product Dee has been allocated $2,500 of total joint costs of $20,000 for the 1,000 units produced. Dee can be sold at the split-off point for $3 per unit, or it can be processed further with additional costs of $1,000 and sold for $5 per unit. If Dee is processed further and sold, the result would be