1. Which of the following is an industry that would use a process costing system rather than a job

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1. Which of the following is an industry that would use a process costing system rather than a job order costing system? (Points : 1)
Custom furniture manufacturer
Music production studio
Paint manufacturer
Home remodeling contractor

2. The journal entry to issue $500 of direct materials and $30 of indirect materials to production includes which of the following? (Points : 1)
Debit to Work in process for $500 and debit to Finished goods for $30
Debit to Manufacturing overhead for $530
Debit to Work in process for $500 and debit to Manufacturing overhead for $30
Debit to Work in process inventory for $530

3. Village Company's selected cost data for 2012 are shown below:
Cost of goods manufactured $145,200
Work in process inventory, Jan. 1, 2012 18,500
Work in process inventory, Dec. 31, 2012 22,500
Direct materials used 15,800

Assuming manufacturing overhead costs of $83,375, what is the amount of direct labor incurred by Village Company in 2012? (Points : 1)
$50,025
$22,500 + $145,200 - $18,500 = $149,200
$149,200 - $15,800 - $83,375 = $50,025
$62,550
$41,700
$83,400
None of these is correct

4. Which of the following statements is INCORRECT? (Points : 1)
Managerial accounting is used to determine the cost of products and services.
Managerial accounting is used to plan and control business operations.
Managerial accounting is used to report the company's financial position and results of operations to creditors and investors.
Managerial accounting is used to prepare budgets.

5. The following information pertains to Bright Toy Company's operating activities for 2012. The company sells light box toys and sold 10,000 units in 2012.
Purchases $ 126,000
Selling and Administrative Expenses 90,000
Merchandise inventory, 1/1/2012 14,000
Merchandise inventory, 12/31/2012 10,000
Sales Revenue 250,000

What is the cost per unit sold? (Points : 1)
$13.00 $130,000/10,000 = $13
$12.40
$14.00
$10.40
None of these is correct

6. Manufacturing businesses have inventory accounts, but service and merchandising businesses do not. (Points : 1)
True
False

7. Process costing is used by companies that produce large numbers of identical units in a continuous fashion. (Points : 1)
True
False

8. When materials are requisitioned for a job, the materials inventory account is debited. (Points : 1)
True
False

9. Management accounting is influenced significantly by rules of GAAP and guidelines of the Securities Exchange Commission. (Points : 1)
True
False

10. The sales manager for Baker Products told the shipping department to ship an order to a customer on the last day of December instead of the previously scheduled shipping date of January 2. This would allow the company to book the sales revenue in the year just ended and boost year-end profit. Although done deliberately to boost income, the action did not misrepresent any facts of the situation, and so it would not be considered unethical. (Points : 1)
True
False