B1

Question 0

Cost of Ending Inventory

Answer 0

Beginning Inventory
Add total production costs
\_\_\_\_\_\_\_\_\_\_\_\_
Total Manufacturing Costs Available
Subtract COGS
\_\_\_\_\_\_\_\_\_\_\_\_
Ending Inventory

Question 1

Equivalent Units: Weighted Average

Answer 1

Two elements:

1. Units completed during the month (beginning WIP + units started and completed during the month).
2. Units partially complete at the end of the period.

Question 2

Weighted-average and FIFO equivalent units would be the same when…?

Answer 2

No beginning inventory exists.

Question 3

Cost Driver definition

Answer 3

An indirect cost that cannot be traced to a particular cost objective but is essential to the business.

Question 4

A cost that bears an observable and known relationship to a quantifiable activity base is an…

Answer 4

Engineered cost

Question 5

One of the purposes of cost allocation is…

Answer 5

Measuring income and assets for external reporting

Question 6

COGS reminder

Answer 6

Only consider manufacturing costs. Not selling and admin.

Question 7

Treadway Commission studied factors that lead to fraudulent financial reporting. Who established?

Answer 7

Private sponsoring organizations aka COSO

Question 8

Allocating joint costs when there is a byproduct

Answer 8

Joint costs
Less NRV of byproduct
Equals Joint costs to be allocated