Question 1

A process cost system would most likely be used by a company that makes

Accepted Answer

A) motion pictures. 
B) repairs to automobiles. 
C) breakfast cereal. 
D) college graduation announcements. 
A) motion pictures. 
B) repairs to automobiles. 
C) breakfast cereal. 
D) college graduation announcements.

Question 2

Haight Company incurred direct materials costs of $2,500,000 during the year. Manufacturing overhead applied was $450,000 and is applied at the rate of 60% of direct labor costs. Haight Company's total manufacturing costs for the year was

Accepted Answer

A) $3,700,000. 
B) $3,220,000. 
C) $2,950,000. 
D) $4,720,000. 
A) $3,700,000. 
B) $3,220,000. 
C) $2,950,000. 
D) $4,720,000.

Question 3

Factory labor costs

Accepted Answer

A) accumulate in advance of utilization. 
B) accumulate in a control account. 
C) include sick pay earned by factory workers. 
D) accumulate in the Factory Labor Expense account. 
A) accumulate in advance of utilization. 
B) accumulate in a control account. 
C) include sick pay earned by factory workers. 
D) accumulate in the Factory Labor Expense account.

Question 4

A materials requisition slip showed that direct materials requested were $66,000 and indirect materials requested were $9,000. The entry to record the transfer of materials from the storeroom is a.$\begin{array}{lr}
\text { Work In Process Inventory }&66,000\
\text {Raw Materials Inventory  }&&66,000\
\end{array}$

b.$\begin{array}{lr}
\text {Direct Materials. }&66,000\
\text { Indirect Materials }&9,000\
\text { Work in Process Inventory }&&75,000\
\end{array}$

c.$\begin{array}{lr}
\text {Manufacturing Overhead }&75,000\
\text { Raw Materials Inventory }&&75,000\
\end{array}$

d.$\begin{array}{lr}
\text { Work In Process Inventory}&66,000\
\text {  Manufacturing Overhead }&9,000\
\text {Raw Materials Inventory }&&75,000\
\end{array}$

Accepted Answer

The answer of A materials requisition slip showed that direct...

Question 5

The two basic types of cost accounting systems are

Accepted Answer

A) job order and job accumulation systems. 
B) job order and process cost systems. 
C) process cost and batch systems. 
D) job order and batch systems. 
A) job order and job accumulation systems. 
B) job order and process cost systems. 
C) process cost and batch systems. 
D) job order and batch systems.

Question 6

The Purchases account is credited for all raw materials purchase returns and allowances.

Accepted Answer

A) True 
 B)False

Question 7

A job order cost system and a process cost system are two alternative methods for valuing inventories.

Accepted Answer

A) True 
 B)False

Question 8

If manufacturing overhead has been overapplied during the year, the adjusting entry at the end of the year will show a

Accepted Answer

A) debit to Manufacturing Overhead. 
B) credit to Finished Goods Inventory 
C) debit to Cost of Goods Sold. 
D) credit to Work in Process Inventory. 
A) debit to Manufacturing Overhead. 
B) credit to Finished Goods Inventory 
C) debit to Cost of Goods Sold. 
D) credit to Work in Process Inventory.

Question 9

Requisitions for direct materials are posted daily to the individual job cost sheets.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is one of the components of cost accounting?

Accepted Answer

A) It involves measuring product costs. 
B) It involves the determination of company profits. 
C) It requires GAAP to be applied. 
D) It requires cost minimizing principles. 
A) It involves measuring product costs. 
B) It involves the determination of company profits. 
C) It requires GAAP to be applied. 
D) It requires cost minimizing principles.

Question 11

Which one of the following is a source document that impacts the job cost sheet?

Accepted Answer

A) Raw materials receiving slips. 
B) Materials purchase orders. 
C) Labor time tickets. 
D) Finished goods shipping documents. 
A) Raw materials receiving slips. 
B) Materials purchase orders. 
C) Labor time tickets. 
D) Finished goods shipping documents.

Question 12

Which of the following would be accounted for using a job order cost system?

Accepted Answer

A) The production of personal computers. 
B) The production of automobiles. 
C) The refining of petroleum. 
D) The construction of a new campus building. 
A) The production of personal computers. 
B) The production of automobiles. 
C) The refining of petroleum. 
D) The construction of a new campus building.

Question 13

A job order cost system is most appropriate when a large volume of uniform products are produced.

Accepted Answer

A) True 
 B)False

Question 14

Debits to Work in Process Inventory are accompanied by a credit to all but which one of the following accounts?

Accepted Answer

A) Raw Materials Inventory 
B) Factory Labor 
C) Manufacturing Overhead 
D) Cost of Goods Sold 
A) Raw Materials Inventory 
B) Factory Labor 
C) Manufacturing Overhead 
D) Cost of Goods Sold

Question 15

At the end of the year, the accountant credits the amount of the overapplied overhead to Cost of Goods Sold.

Accepted Answer

A) True 
 B)False

Question 16

Madison Inc. uses job order costing for its brand new line of sewing machines. The cost incurred for production during 2017 totaled $18,000 of materials, $9,000 of direct labor costs, and $6,000 of manufacturing overhead applied. The company ships all goods as soon as they are completed which results in no finished goods inventory on hand at the end of any year. Beginning work in process totaled $15,000, and the ending balance is $9,000. During the year, the company completed 25 machines. How much is the cost per machine?

Accepted Answer

A) $1,080 
B) $1,560 
C) $1,320 
D) $1,920 
A) $1,080 
B) $1,560 
C) $1,320 
D) $1,920

Question 17

Finished Goods Inventory is charged for the cost of jobs completed during a period.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is not included in factory labor costs?

Accepted Answer

A) Gross earnings. 
B) Employer payroll taxes. 
C) Fringe benefits. 
D) All of these are included. 
A) Gross earnings. 
B) Employer payroll taxes. 
C) Fringe benefits. 
D) All of these are included.

Question 19

An important feature of a job order cost system is that each job

Accepted Answer

A) must be similar to previous jobs completed. 
B) has its own distinguishing characteristics. 
C) must be completed before a new job is accepted. 
D) consists of one unit of output. 
A) must be similar to previous jobs completed. 
B) has its own distinguishing characteristics. 
C) must be completed before a new job is accepted. 
D) consists of one unit of output.

Question 20

Which of the following shows entries only to control accounts? a. Factory Labor
Factory Wages Payable
b. Work in Process
Factory Labor
Raw Materials I nventory
Factory Wages Payable
c. Work in Process
Manufacturing Overhead
Raw Materials Inventory
d. Factory Labor
Raw Materials I nventory
Accounts Payable
Factory Wages Payable

Accepted Answer

The answer of Which of the following shows entries only...

A process cost system would most likely be used by a company that makes

Haight Company incurred direct materials costs of $2,500,000 during the year. Manufacturing overhead applied was $450,000 and is applied at the rate of 60% of direct labor costs. Haight Company's total manufacturing costs for the year was

Factory labor costs

The two basic types of cost accounting systems are

The Purchases account is credited for all raw materials purchase returns and allowances.

A job order cost system and a process cost system are two alternative methods for valuing inventories.

If manufacturing overhead has been overapplied during the year, the adjusting entry at the end of the year will show a

Requisitions for direct materials are posted daily to the individual job cost sheets.

Which of the following is one of the components of cost accounting?

Which one of the following is a source document that impacts the job cost sheet?

Which of the following would be accounted for using a job order cost system?

A job order cost system is most appropriate when a large volume of uniform products are produced.

Debits to Work in Process Inventory are accompanied by a credit to all but which one of the following accounts?

At the end of the year, the accountant credits the amount of the overapplied overhead to Cost of Goods Sold.

Finished Goods Inventory is charged for the cost of jobs completed during a period.

Which of the following is not included in factory labor costs?

An important feature of a job order cost system is that each job

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

A process cost system would most likely be used by a company that makes

Haight Company incurred direct materials costs of $2,500,000 during the year. Manufacturing overhead applied was $450,000 and is applied at the rate of 60% of direct labor costs. Haight Company's total manufacturing costs for the year was

Factory labor costs

The two basic types of cost accounting systems are

The Purchases account is credited for all raw materials purchase returns and allowances.

A job order cost system and a process cost system are two alternative methods for valuing inventories.

If manufacturing overhead has been overapplied during the year, the adjusting entry at the end of the year will show a

Requisitions for direct materials are posted daily to the individual job cost sheets.

Which of the following is one of the components of cost accounting?

Which one of the following is a source document that impacts the job cost sheet?

Which of the following would be accounted for using a job order cost system?

A job order cost system is most appropriate when a large volume of uniform products are produced.

Debits to Work in Process Inventory are accompanied by a credit to all but which one of the following accounts?

At the end of the year, the accountant credits the amount of the overapplied overhead to Cost of Goods Sold.

Finished Goods Inventory is charged for the cost of jobs completed during a period.

Which of the following is not included in factory labor costs?

An important feature of a job order cost system is that each job

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