ACC 650 ACC650 Module 7 Quiz Answers (Grand Canyon University)

ACC 650 ACC650 Module 7 Quiz Answers (Grand Canyon University)

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ACC 650 Module 7 Quiz Product Costing Systems and Cost Allocation (GRAND CANYON)

1) Indiana Company incurred the following costs during the past year when planned production and actual production each totaled 20,000 units:

2) Garage Specialty Corporation manufactures joint products P and Q. During a recent period,       joint costs amounted to $80,000 in the production of 20,000 gallons of P and 60,000 gallons of Q. Garage can sell P and Q at split-off for $2.20 per gallon and $2.60 per gallon, respectively. Alternatively, both products can be processed beyond the split-off point, as follows:

3) When allocating joint costs, Weinberg calculates the final sales value of the various products      manufactured and subtracts appropriate separable costs. The company is using the:

4) Which of the following statements pertain to both variable costing and absorption costing?

5) The point in a joint production process where each individual product becomes separately identifiable is commonly called the:

6) Herbster manufactures A, B, and C, all of which are joint products, and D, which is classified as a by-product. If joint manufacturing costs amount to $450,000 and the company is using a popular accounting method, the firm will:

7) Martina, Inc. has two service departments (Human Resources and Building Maintenance) and two production departments (Machining and Assembly). The company allocates Building Maintenance cost on the basis of square footage and believes that Building Maintenance provides more service than Human Resources. The square footage occupied by each department follows.

8) Consider the following comments about absorption- and variable-costing income statements:

9) Under variable costing, fixed manufacturing overhead is:

10) Which of the following product-costing systems is/are required for tax purposes?

11) Lone Star has computed the following unit costs for the year just ended:

12) Rocky Mountain Company produces two products (X and Y) from a joint process. Each product may be sold at the split-off point or processed further. Additional processing requires no special facilities, and production costs of further processing are entirely variable and traceable to the products involved. Joint manufacturing costs for the year were $60,000. Sales values and costs were as follows:

13) Which of the following methods recognizes some (but not all) of the services that occur between service departments?

14) Lone Star has computed the following unit costs for the year just ended:

15) The joint-cost allocation method that recognizes the revenues at split-off but does not consider any further processing costs is the:

16) Martina, Inc. has two service departments (Human Resources and Building Maintenance) and two production departments (Machining and Assembly). The company allocates Building Maintenance cost on the basis of square footage and believes that Building Maintenance provides more service than Human Resources. The square footage occupied by each department follows.

17) Which of the following situations would cause variable-costing income to be lower than absorption-costing income?

18) Indiana Company incurred the following costs during the past year when planned production and actual production each totaled 20,000 units:

19) The process of allocating fixed and variable costs separately is called:

20) The underlying difference between absorption costing and variable costing lies in the treatment of:


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