Question 1

The perpetual inventory method cannot be used in a job order cost system.

Accepted Answer

A) True 
 B)False

Question 2

The two major steps in the flow of costs are

Accepted Answer

A) allocating and assigning. 
B) acquiring and accumulating. 
C) accumulating and assigning. 
D) accumulating and amortizing. 
A) allocating and assigning. 
B) acquiring and accumulating. 
C) accumulating and assigning. 
D) accumulating and amortizing.

Question 3

Which one of the following best describes a job cost sheet?

Accepted Answer

A) It is a form used to record the costs chargeable to a specific job and to determine the total and unit costs of the completed job. 
B) It is used to track manufacturing overhead costs to specific jobs. 
C) It is used by management to understand how direct costs affect profitability. 
D) It is a daily form that management uses for tracking worker productivity on which employee raises are based. 
A) It is a form used to record the costs chargeable to a specific job and to determine the total and unit costs of the completed job. 
B) It is used to track manufacturing overhead costs to specific jobs. 
C) It is used by management to understand how direct costs affect profitability. 
D) It is a daily form that management uses for tracking worker productivity on which employee raises are based.

Question 4

The entry to record the acquisition of raw materials on account is a. Work in Process Inventory
Accounts Payable
b. Manufacturing Overhead
Raw Materials Inventory
Accounts Payable
c. Accounts Payable
Raw Materials I nventory
d. Raw Materials Inventory
Accounts Payable

Accepted Answer

The answer of The entry to record the acquisition of...

Question 5

In a job order cost system, it would be correct in recording the purchase of raw materials to debit

Accepted Answer

A) Work in Process Inventory. 
B) Work in Process and Manufacturing Overhead. 
C) Raw Materials Inventory. 
D) Finished Goods Inventory. 
A) Work in Process Inventory. 
B) Work in Process and Manufacturing Overhead. 
C) Raw Materials Inventory. 
D) Finished Goods Inventory.

Question 6

Overapplied manufacturing overhead exists when overhead assigned to work in process is

Accepted Answer

A) more than overhead incurred and there is a debit balance in Manufacturing Overhead at the end of a period. 
B) less than overhead incurred and there is a debit balance in Manufacturing Overhead at the end of a period. 
C) more than overhead incurred and there is a credit balance in Manufacturing Overhead at the end of a period. 
D) less than overhead incurred and there is a credit balance in Manufacturing Overhead at the end of a period. 
A) more than overhead incurred and there is a debit balance in Manufacturing Overhead at the end of a period. 
B) less than overhead incurred and there is a debit balance in Manufacturing Overhead at the end of a period. 
C) more than overhead incurred and there is a credit balance in Manufacturing Overhead at the end of a period. 
D) less than overhead incurred and there is a credit balance in Manufacturing Overhead at the end of a period.

Question 7

Chmelar Manufacturing Company developed the following data: $$\begin{array} { l r } 
\text { Beginning work in process inventory } & \$ 120,000 \
\text { Direct materials used } & 720,000 \
\text { Actual overhead } & 840,000 \
\text { Overhead applied } & 810,000 \
\text { Cost of goods manufactured } & 1,920,000 \
\text { Ending work in process } & 90,000
\end{array}$$ How much are total manufacturing costs for the period?

Accepted Answer

A) $2,370,000 
B) $1,890,000 
C) $1,650,000 
D) $1,830,000 
A) $2,370,000 
B) $1,890,000 
C) $1,650,000 
D) $1,830,000

Question 8

In a job order cost system, a credit to Manufacturing Overhead will be accompanied by a debit to

Accepted Answer

A) Cost of Goods Manufactured. 
B) Finished Goods Inventory. 
C) Work in Process Inventory. 
D) Raw Materials Inventory. 
A) Cost of Goods Manufactured. 
B) Finished Goods Inventory. 
C) Work in Process Inventory. 
D) Raw Materials Inventory.

Question 9

Manufacturing Overhead would not have a subsidiary account for

Accepted Answer

A) utilities. 
B) property taxes. 
C) insurance. 
D) raw materials inventory. 
A) utilities. 
B) property taxes. 
C) insurance. 
D) raw materials inventory.

Question 10

The cost of raw materials purchased is credited to Raw Materials Inventory when materials are received.

Accepted Answer

A) True 
 B)False

Question 11

During 2017, Durham Manufacturing expected Job No. 51 to cost $300,000 of overhead, $500,000 of materials, and $200,000 in labor. Durham applied overhead based on direct labor cost. Actual production required an overhead cost of $295,000, $570,000 in materials used, and $220,000 in labor. All of the goods were completed. What amount was transferred to Finished Goods?

Accepted Answer

A) $1,090,000 
B) $1,120,000 
C) $1,000,000 
D) $1,085,000 
A) $1,090,000 
B) $1,120,000 
C) $1,000,000 
D) $1,085,000

Question 12

Under an effective system of internal control, the authorization for issuing materials is made

Accepted Answer

A) orally. 
B) on a prenumbered materials requisition slip. 
C) by the accounting department. 
D) by anyone on the production line. 
A) orally. 
B) on a prenumbered materials requisition slip. 
C) by the accounting department. 
D) by anyone on the production line.

Question 13

Which of the following is not a control account?

Accepted Answer

A) Manufacturing Overhead 
B) Raw materials inventory 
C) Accounts Receivable 
D) All of these are control accounts 
A) Manufacturing Overhead 
B) Raw materials inventory 
C) Accounts Receivable 
D) All of these are control accounts

Question 14

Process costing is not used when

Accepted Answer

A) similar goods are being produced. 
B) large volumes are produced. 
C) jobs have distinguishing characteristics. 
D) a series of connected manufacturing processes is necessary. 
A) similar goods are being produced. 
B) large volumes are produced. 
C) jobs have distinguishing characteristics. 
D) a series of connected manufacturing processes is necessary.

Question 15

The existence of under- or overapplied overhead at the end of the year:

Accepted Answer

A) requires an adjustment to Cost of Goods Sold. 
B) indicates that an error has been made. 
C) requires a retroactive adjustment to the cost of all jobs completed. 
D) is written off as a bad estimate expense. 
A) requires an adjustment to Cost of Goods Sold. 
B) indicates that an error has been made. 
C) requires a retroactive adjustment to the cost of all jobs completed. 
D) is written off as a bad estimate expense.

Question 16

Barger Company had the following information at December 31: Finished goods inventory, January $1 \quad \$ 90,000$
Finished goods inventory, December $31 \quad 126,000$ If the cost of goods manufactured during the year amounted to $1,895,000 and annual sales were $2,994,000, how much is the amount of gross profit for the year?

Accepted Answer

A) $1,099,000 
B) $1,009,000 
C) $1,859,000 
D) $1,135,000 
A) $1,099,000 
B) $1,009,000 
C) $1,859,000 
D) $1,135,000

Question 17

Companies assign manufacturing overhead to work in process on an estimated basis through the use of a(n)

Accepted Answer

A) actual overhead rate. 
B) estimated overhead rate. 
C) assigned overhead rate. 
D) predetermined overhead rate. 
A) actual overhead rate. 
B) estimated overhead rate. 
C) assigned overhead rate. 
D) predetermined overhead rate.

Question 18

If, at the end of the year, Manufacturing Overhead has been overapplied, it means that

Accepted Answer

A) actual overhead costs were greater than the overhead assigned to jobs. 
B) actual overhead costs were less than the overhead assigned to jobs. 
C) overhead has not been applied to jobs still in process. 
D) cost of goods will have to be increased by the amount of the overapplied overhead. 
A) actual overhead costs were greater than the overhead assigned to jobs. 
B) actual overhead costs were less than the overhead assigned to jobs. 
C) overhead has not been applied to jobs still in process. 
D) cost of goods will have to be increased by the amount of the overapplied overhead.

Question 19

A process cost system would be used for all of the following except the

Accepted Answer

A) manufacture of cereal. 
B) refining of petroleum. 
C) printing of wedding invitations. 
D) production of automobiles. 
A) manufacture of cereal. 
B) refining of petroleum. 
C) printing of wedding invitations. 
D) production of automobiles.

Question 20

Cost accounting is primarily concerned with accumulating information about product costs.

Accepted Answer

A) True 
 B)False

The perpetual inventory method cannot be used in a job order cost system.

The two major steps in the flow of costs are

Which one of the following best describes a job cost sheet?

The entry to record the acquisition of raw materials on account is a. Work in Process Inventory Accounts Payable b. Manufacturing Overhead Raw Materials Inventory Accounts Payable c. Accounts Payable Raw Materials I nventory d. Raw Materials Inventory Accounts Payable

In a job order cost system, it would be correct in recording the purchase of raw materials to debit

Overapplied manufacturing overhead exists when overhead assigned to work in process is

In a job order cost system, a credit to Manufacturing Overhead will be accompanied by a debit to

Manufacturing Overhead would not have a subsidiary account for

The cost of raw materials purchased is credited to Raw Materials Inventory when materials are received.

Under an effective system of internal control, the authorization for issuing materials is made

Which of the following is not a control account?

Process costing is not used when

The existence of under- or overapplied overhead at the end of the year:

Companies assign manufacturing overhead to work in process on an estimated basis through the use of a(n)

If, at the end of the year, Manufacturing Overhead has been overapplied, it means that

A process cost system would be used for all of the following except the

Cost accounting is primarily concerned with accumulating information about product costs.

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Managerial Accounting

Process Costing

Activity-Based Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

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Exam 14: Job Order Costing

The perpetual inventory method cannot be used in a job order cost system.

The two major steps in the flow of costs are

Which one of the following best describes a job cost sheet?

The entry to record the acquisition of raw materials on account is a. Work in Process Inventory Accounts Payable b. Manufacturing Overhead Raw Materials Inventory Accounts Payable c. Accounts Payable Raw Materials I nventory d. Raw Materials Inventory Accounts Payable

In a job order cost system, it would be correct in recording the purchase of raw materials to debit

Overapplied manufacturing overhead exists when overhead assigned to work in process is

In a job order cost system, a credit to Manufacturing Overhead will be accompanied by a debit to

Manufacturing Overhead would not have a subsidiary account for

The cost of raw materials purchased is credited to Raw Materials Inventory when materials are received.

Under an effective system of internal control, the authorization for issuing materials is made

Which of the following is not a control account?

Process costing is not used when

The existence of under- or overapplied overhead at the end of the year:

Companies assign manufacturing overhead to work in process on an estimated basis through the use of a(n)

If, at the end of the year, Manufacturing Overhead has been overapplied, it means that

A process cost system would be used for all of the following except the

Cost accounting is primarily concerned with accumulating information about product costs.

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Managerial Accounting

Process Costing

Activity-Based Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Filters