Question 1

The actual __________ costs are not included on a job-order sheet.

Accepted Answer

The answer of The actual __________ costs are not included...

Question 2

The association of production costs with the units produced is called __________ .

Accepted Answer

The answer of The association of production costs with the...

Question 3

Compare and contrast perishability and intangibility in an automobile oil lubrication shop and architectural design firms.

Accepted Answer

Intangibility refers to the nonphysical

Question 4

Why are firms reluctant to use actual costing? How does normal costing solve the problems?

Accepted Answer

Actual costing systems do not provide ac

Question 5

In the Monroe Company, the following Job cards were totaled at the end of the month:
Job 243 $5,750
Job 244 $4,980
Job 245 $3,675
Job 246 $4,250
Job 247 $5,100
Job 248 $3,800
Jobs 243 and 244 were in Finished Goods Inventory at the beginning of the month. Jobs 245 and 246 were in Work-in-process at the beginning of the month. Jobs 247 and 248 were started during the month. At the end of the month, Jobs 243 and 247 were sent to customers; jobs 245, 247, and 248 were completed and sent to finished goods.
What is the cost of goods manufactured for the month?

Accepted Answer

A) $10,730 
B) $10,850 
C) $12,575 
D) none of these 
A) $10,730 
B) $10,850 
C) $12,575 
D) none of these

Question 6

The following information is available pertaining to the Production Division of Clarkson Enterprises: $\begin{array} { l c c c } & \text { Assembly Dept. } & \text { Finishing Dept. } & \text { Total } \ \text { Overhead costs } & \$ 7,500 & \$ 22,500 & \$ 30,000 \ \text { Direct labor hours } & 7,500 & 2,500 & 10,000 \ \text { Machine hours } & 2,500 & 7,500 & 10,000 \end{array}$
Production information pertaining to Job 4X5:
$\begin{array}{lrrr}
&\text { Assembly Dept. }& \text { Finishing Dept. } &\text { Total }\
\text { Prime costs } & \$ 1,250 & \$ 0 & \$ 1,250 \
\text { Direct labor hours } & 250 & 0 & 250 \
\text { Machine hours } & 0 & 0 & 0\
\text { Units produced }&500&0&500
\end{array}$
What is the plantwide overhead rate based on direct labor hours?

Accepted Answer

A) $1.00 
B) $1.50 
C) $3.00 
D) $9.00 
A) $1.00 
B) $1.50 
C) $3.00 
D) $9.00

Question 7

A journal entry debiting Work-in-Process would normally NOT be accompanied by a credit to

Accepted Answer

A) Materials Inventory. 
B) Finished Goods. 
C) Overhead Control. 
D) Wages Payable. 
A) Materials Inventory. 
B) Finished Goods. 
C) Overhead Control. 
D) Wages Payable.

Question 8

For a manufacturer, the three inventory accounts on the balance sheet are

Accepted Answer

A) Materials, Finished Goods, and Cost of Goods Sold. 
B) Materials, Overhead, and Cost of Goods Sold. 
C) Materials, Direct Labor, and Overhead. 
D) Materials, Work-in-Process, and Finished Goods. 
A) Materials, Finished Goods, and Cost of Goods Sold. 
B) Materials, Overhead, and Cost of Goods Sold. 
C) Materials, Direct Labor, and Overhead. 
D) Materials, Work-in-Process, and Finished Goods.

Question 9

The system which assign(s) costs by the job is termed:

Accepted Answer

A) The process costing system 
B) The job-order costing system 
C) The project costing system 
D) Both a and c 
A) The process costing system 
B) The job-order costing system 
C) The project costing system 
D) Both a and c

Question 10

The _____ nature of services leads to a requirement of standardized system to handle repeat customers.

Accepted Answer

A) Heterogenous 
B) Intangible 
C) Inseparable 
D) Perishable 
A) Heterogenous 
B) Intangible 
C) Inseparable 
D) Perishable

Question 11

Homogeneous products refer to

Accepted Answer

A) products similar in nature. 
B) the nonphysical nature of services and opposed to products. 
C) great variation in the nature products. 
D) products that can be inventoried. 
A) products similar in nature. 
B) the nonphysical nature of services and opposed to products. 
C) great variation in the nature products. 
D) products that can be inventoried.

Question 12

In job-order costing, departmental overhead rates and activity-based costing affect only the application of __________ .

Accepted Answer

The answer of In job-order costing, departmental overhead rates and...

Question 13

A job-order costing process would be most applicable for

Accepted Answer

A) a food processing plant. 
B) natural gas processing. 
C) airplane manufacturing. 
D) fertilizer production. 
A) a food processing plant. 
B) natural gas processing. 
C) airplane manufacturing. 
D) fertilizer production.

Question 14

Intangibility refers to the

Accepted Answer

A) nonphysical nature of services as opposed to products. 
B) fact that production and consumption are inseparable for services. 
C) greater chances for variation in the performance of services than in the production of products. 
D) fact that services cannot be inventoried but must be consumed when performed. 
A) nonphysical nature of services as opposed to products. 
B) fact that production and consumption are inseparable for services. 
C) greater chances for variation in the performance of services than in the production of products. 
D) fact that services cannot be inventoried but must be consumed when performed.

Question 15

Total manufacturing-related costs incurred by Alloy Company in October for all its jobs is as follows: $$\begin{array} { l r } 
\text { Direct materials } & \$ 1000 \
\text { Insurance of factory building } & 160 \
\text { Direct labor } & 1,400 \
\text { Property taxes-factory building } & 700 \
\text { Other factory overhead costs } & 1,550 \
\text { Factory overhead applied } & 1,950
\end{array}$$ Assuming Alloy uses a normal costing system and applies overhead based on a predetermined rate, what is the credit to Overhead Control to close the account at the end of the year?

Accepted Answer

A) $560 
B) $460 
C) $1,250 
D) $1,320 
A) $560 
B) $460 
C) $1,250 
D) $1,320

Question 16

On March 9, 2018, Job XX4 was completed. The job cost sheet showed a total of $6,000 in direct materials and $8,000 in direct labor at a rate of $20 per direct labor hour. Factory overhead is applied at $30 per direct labor hour. The debit to Finished Goods Inventory to record the completion of Job XX4 is

Accepted Answer

A) $17,000. 
B) $11,000. 
C) $6,000. 
D) $26,000. 
A) $17,000. 
B) $11,000. 
C) $6,000. 
D) $26,000.

Question 17

Activity level is the average activity usage over the long term and normal activity level is the production level for one year.

Accepted Answer

A) True 
 B)False

Question 18

In a job-order costing system, actual overhead costs never enter the work-in-process inventory accounts

Accepted Answer

A) True 
 B)False

Question 19

What are the source documents used in a job-order costing system? How do the source documents relate to the job cost sheet? How do these documents inform work in process?

Accepted Answer

The materials requisition form and job t

Question 20

Orange Corporation manufactures custom-made wallets. The following data pertains to Job GH7: $\begin{array}{lr}
\text { Direct materials placed into production } & \$ 5,000 \
\text { Direct labor hours worked } & 75 \text { hours } \
\text { Direct labor rate per hour } & \$ 35 \
\text { Machine hours worked } & 200 \text { hours }
\end{array}$
Factory overhead is applied using a plant-wide rate based on direct labor hours. Factory overhead was budgeted at $100,000 for the year, and the direct labor hours were estimated to be 25,000. Job GH7 consists of 60 units.
What is overhead cost assigned to Job GH7?

Accepted Answer

A) $240 
B) $400 
C) $210 
D) $160 
A) $240 
B) $400 
C) $210 
D) $160

The actual __________ costs are not included on a job-order sheet.

The association of production costs with the units produced is called __________ .

Compare and contrast perishability and intangibility in an automobile oil lubrication shop and architectural design firms.

Why are firms reluctant to use actual costing? How does normal costing solve the problems?

A journal entry debiting Work-in-Process would normally NOT be accompanied by a credit to

For a manufacturer, the three inventory accounts on the balance sheet are

The system which assign(s) costs by the job is termed:

The _____ nature of services leads to a requirement of standardized system to handle repeat customers.

Homogeneous products refer to

In job-order costing, departmental overhead rates and activity-based costing affect only the application of __________ .

A job-order costing process would be most applicable for

Intangibility refers to the

Activity level is the average activity usage over the long term and normal activity level is the production level for one year.

In a job-order costing system, actual overhead costs never enter the work-in-process inventory accounts

What are the source documents used in a job-order costing system? How do the source documents relate to the job cost sheet? How do these documents inform work in process?

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

Exam 5: Product and Service Costing: Job-Order System

The actual __________ costs are not included on a job-order sheet.

The association of production costs with the units produced is called __________ .

Compare and contrast perishability and intangibility in an automobile oil lubrication shop and architectural design firms.

Why are firms reluctant to use actual costing? How does normal costing solve the problems?

A journal entry debiting Work-in-Process would normally NOT be accompanied by a credit to

For a manufacturer, the three inventory accounts on the balance sheet are

The system which assign(s) costs by the job is termed:

The _____ nature of services leads to a requirement of standardized system to handle repeat customers.

Homogeneous products refer to

In job-order costing, departmental overhead rates and activity-based costing affect only the application of __________ .

A job-order costing process would be most applicable for

Intangibility refers to the

Activity level is the average activity usage over the long term and normal activity level is the production level for one year.

In a job-order costing system, actual overhead costs never enter the work-in-process inventory accounts

What are the source documents used in a job-order costing system? How do the source documents relate to the job cost sheet? How do these documents inform work in process?

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters