Question 1

A document in a job order costing system that is used to record the costs of producing a job is a(n):

Accepted Answer

A) Job cost sheet. 
B) Job lot. 
C) Finished goods summary. 
D) Process cost system. 
E) Units-of-production sheet. 
A) Job cost sheet. 
B) Job lot. 
C) Finished goods summary. 
D) Process cost system. 
E) Units-of-production sheet.

Question 2

Factory overhead is often collected and summarized in a subsidiary factory overhead ledger.

Accepted Answer

A) True 
 B)False

Question 3

A __________ is calculated by relating total estimated factory overhead to an allocation factor such as total estimated direct labor cost,and is used to allocate factory overhead to specific jobs.

Accepted Answer

predetermi

Question 4

The Work in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $4,400 debit balance after all posting is completed.The cost sheet of the one job still in process shows direct material cost of $2,000 and direct labor cost of $800.Therefore,the company's overhead application rate is:

Accepted Answer

A) 40%. 
B) 50%. 
C) 80%. 
D) 200%. 
E) 220%. 
A) 40%. 
B) 50%. 
C) 80%. 
D) 200%. 
E) 220%.

Question 5

A company has an overhead application rate of 125% of direct labor costs.How much overhead would be allocated to a job if it required total labor costing $20,000?

Accepted Answer

A) $5,000. 
B) $16,000. 
C) $25,000. 
D) $125,000. 
E) $250,000. 
A) $5,000. 
B) $16,000. 
C) $25,000. 
D) $125,000. 
E) $250,000.

Question 6

There are two basic types of cost accounting systems: job order costing and periodic costing.

Accepted Answer

A) True 
 B)False

Question 7

Southwick Company uses a job order costing system.On November 1,$15,000 of direct materials and $3,500 of indirect materials were requisitioned for production.Prepare the general journal entries to record this requisition.

Accepted Answer

The answer of Southwick Company uses a job order costing...

Question 8

Omega Contractors manufactures each house to customer specifications.It most likely would use:

Accepted Answer

A) Process costing. 
B) A periodic inventory system. 
C) Unique costing. 
D) Job order costing. 
E) Activity-based costing. 
A) Process costing. 
B) A periodic inventory system. 
C) Unique costing. 
D) Job order costing. 
E) Activity-based costing.

Question 9

CWN Company uses a job order costing system and last period incurred $80,000 of actual overhead and $100,000 of direct labor.CWN estimates that its overhead next period will be $75,000.It also expects to incur $100,000 of direct labor.If CWN bases applied overhead on direct labor cost,its predetermined overhead rate for the next period should be:

Accepted Answer

A) 75%. 
B) 80%. 
C) 107%. 
D) 125%. 
E) 133%. 
A) 75%. 
B) 80%. 
C) 107%. 
D) 125%. 
E) 133%.

Question 10

Andrew Industries purchased $165,000 of raw materials on account during the month of March.The beginning Raw Materials Inventory balance was $22,000,and the materials used to complete jobs during the month were $141,000 direct materials and $13,000 indirect materials.What amount will Andrew transfer to Work In Process Inventory for the month of March?

Accepted Answer

A) $165,000 
B) $154,000 
C) $13,000 
D) $141,000 
E) $33,000 
A) $165,000 
B) $154,000 
C) $13,000 
D) $141,000 
E) $33,000

Question 11

Actual factory overhead incurred in a job costing system is debited to a Factory Overhead general ledger account and credited to various other accounts.

Accepted Answer

A) True 
 B)False

Question 12

The Marina Corp.has applied overhead to jobs during the period as follows:   The application of overhead has resulted in a $5,600 credit balance in the Factory Overhead account,and this amount is not material.The entry to dispose of this remaining factory overhead balance is:

Accepted Answer

A) Debit Cost of Goods Sold $5,600;credit Factory Overhead $5,600. 
B) Debit Factory Overhead $5,600;credit Cost of Goods Sold $5,600. 
C) Debit Factory Overhead $5,600;credit Work in Process Inventory $5,600. 
D) Debit Work in Process Inventory $5,600;credit Factory Overhead $5,600. 
E) No entry is needed. 
A) Debit Cost of Goods Sold $5,600;credit Factory Overhead $5,600. 
B) Debit Factory Overhead $5,600;credit Cost of Goods Sold $5,600. 
C) Debit Factory Overhead $5,600;credit Work in Process Inventory $5,600. 
D) Debit Work in Process Inventory $5,600;credit Factory Overhead $5,600. 
E) No entry is needed.

Question 13

The Work in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $3,200 debit balance after all posting is completed.The cost sheet of the one job still in process shows direct material cost of $1,400 and direct labor cost of $800.Therefore,the amount of the applied overhead is:

Accepted Answer

A) $1,800. 
B) $2,200. 
C) $1,000. 
D) $800. 
E) $2,400. 
A) $1,800. 
B) $2,200. 
C) $1,000. 
D) $800. 
E) $2,400.

Question 14

A ________ accounting system records production activities using a perpetual inventory system.
Answers must appear in this order.

Accepted Answer

The answer of A ________ accounting system records production activities...

Question 15

The predetermined overhead rate for Shilling Manufacturing is based on estimated direct labor costs of $350,000 and estimated factory overhead of $770,000.Actual costs incurred were:   a.Calculate the predetermined overhead rate and calculate the overhead applied during the year.
b.Determine the amount of over- or underapplied overhead and prepare the journal entry to eliminate the over- or underapplied overhead assuming that it is not material in amount.
a.Predetermined overhead rate = $770,000/$350,000 = 220% of direct labor cost
Overhead applied = $347,000 * 220% = $763,400
b.

Accepted Answer

The answer of The predetermined overhead rate for Shilling Manufacturing...

Question 16

If overapplied or underapplied overhead is material,it should be disposed of by allocating it to:

Accepted Answer

A) Cost of goods sold and finished goods inventory. 
B) Finished goods inventory and work in process inventory. 
C) work in process inventory,finished goods inventory,and cost of goods sold. 
D) work in process inventory. 
E) Raw materials inventory,work in process inventory,and finished goods inventory. 
A) Cost of goods sold and finished goods inventory. 
B) Finished goods inventory and work in process inventory. 
C) work in process inventory,finished goods inventory,and cost of goods sold. 
D) work in process inventory. 
E) Raw materials inventory,work in process inventory,and finished goods inventory.

Question 17

Andrew Industries purchased $165,000 of raw materials on account during the month of March.The beginning Raw Materials Inventory balance was $22,000,and the materials used to complete jobs during the month were $141,000 direct materials and $13,000 indirect materials.What is the ending Raw Materials Inventory balance for March?

Accepted Answer

A) $46,000 
B) $11,000 
C) $33,000 
D) $24,000 
E) $9,000 
A) $46,000 
B) $11,000 
C) $33,000 
D) $24,000 
E) $9,000

Question 18

Mesa Corp.allocates overhead to production on the basis of direct labor costs.Mesa's total estimated overhead is $450,000 and estimated direct labor is $180,000.Determine the amount of overhead to be allocated to finished goods inventory if there is $20,000 of total direct labor cost in the jobs in the finished goods inventory.

Accepted Answer

A) $8,000. 
B) $20,000. 
C) $70,000. 
D) $50,000. 
E) $90,000. 
A) $8,000. 
B) $20,000. 
C) $70,000. 
D) $50,000. 
E) $90,000.

Question 19

When time ticket information is entered into the accounting system,the journal entry is a debit to Factory Payroll and a credit to Work in Process Inventory.

Accepted Answer

A) True 
 B)False

Question 20

Materials requisitions and time tickets are cost accounting source documents.

Accepted Answer

A) True 
 B)False

A document in a job order costing system that is used to record the costs of producing a job is a(n):

Factory overhead is often collected and summarized in a subsidiary factory overhead ledger.

A __________ is calculated by relating total estimated factory overhead to an allocation factor such as total estimated direct labor cost,and is used to allocate factory overhead to specific jobs.

A company has an overhead application rate of 125% of direct labor costs.How much overhead would be allocated to a job if it required total labor costing $20,000?

There are two basic types of cost accounting systems: job order costing and periodic costing.

Southwick Company uses a job order costing system.On November 1,$15,000 of direct materials and $3,500 of indirect materials were requisitioned for production.Prepare the general journal entries to record this requisition.

Omega Contractors manufactures each house to customer specifications.It most likely would use:

Actual factory overhead incurred in a job costing system is debited to a Factory Overhead general ledger account and credited to various other accounts.

The Marina Corp.has applied overhead to jobs during the period as follows: The application of overhead has resulted in a $5,600 credit balance in the Factory Overhead account,and this amount is not material.The entry to dispose of this remaining factory overhead balance is:

A ________ accounting system records production activities using a perpetual inventory system. Answers must appear in this order.

If overapplied or underapplied overhead is material,it should be disposed of by allocating it to:

When time ticket information is entered into the accounting system,the journal entry is a debit to Factory Payroll and a credit to Work in Process Inventory.

Materials requisitions and time tickets are cost accounting source documents.

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Process Cost Accounting

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Appendix B: Time Value of Money

Appendix C: Activity-Based Costing

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Exam 19: Job Order Cost Accounting

A document in a job order costing system that is used to record the costs of producing a job is a(n):

Factory overhead is often collected and summarized in a subsidiary factory overhead ledger.

A __________ is calculated by relating total estimated factory overhead to an allocation factor such as total estimated direct labor cost,and is used to allocate factory overhead to specific jobs.

A company has an overhead application rate of 125% of direct labor costs.How much overhead would be allocated to a job if it required total labor costing $20,000?

There are two basic types of cost accounting systems: job order costing and periodic costing.

Southwick Company uses a job order costing system.On November 1,$15,000 of direct materials and $3,500 of indirect materials were requisitioned for production.Prepare the general journal entries to record this requisition.

Omega Contractors manufactures each house to customer specifications.It most likely would use:

Actual factory overhead incurred in a job costing system is debited to a Factory Overhead general ledger account and credited to various other accounts.

The Marina Corp.has applied overhead to jobs during the period as follows: The application of overhead has resulted in a $5,600 credit balance in the Factory Overhead account,and this amount is not material.The entry to dispose of this remaining factory overhead balance is:

A ________ accounting system records production activities using a perpetual inventory system. Answers must appear in this order.

If overapplied or underapplied overhead is material,it should be disposed of by allocating it to:

When time ticket information is entered into the accounting system,the journal entry is a debit to Factory Payroll and a credit to Work in Process Inventory.

Materials requisitions and time tickets are cost accounting source documents.

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Process Cost Accounting

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Appendix B: Time Value of Money

Appendix C: Activity-Based Costing

Filters