Question 1

Those materials used in the manufacturing process that do not become a major part of the finished product are called indirect materials.

Accepted Answer

A) True 
 B)False  True

Question 2

Product cost information is useful in setting selling prices and in determining the profitability of each product.

Accepted Answer

A) True 
 B)False  True

Question 3

The earnings of workers whose services are considered to be indirect labor must be charged directly to the jobs on which they worked.

Accepted Answer

A) True 
 B)False  False

Question 4

A manufacturer makes the items it sells, rather than purchasing them in final form.

Accepted Answer

A) True 
 B)False

Question 5

Items acquired that either become a part of the finished product or are used in the process of manufacturing the finished product are known as

Accepted Answer

A)  materials. 
B)  work in process. 
C)  finished goods. 
D)  cost of goods sold. 
A)  materials. 
B)  work in process. 
C)  finished goods. 
D)  cost of goods sold.

Question 6

The entry to record indirect labor costs incurred during the month would include a debit to

Accepted Answer

A)  Wages Payable. 
B)  Factory Overhead. 
C)  Work in Process. 
D)  Materials. 
A)  Wages Payable. 
B)  Factory Overhead. 
C)  Work in Process. 
D)  Materials.

Question 7

Those materials used in the manufacturing process that do not become a major part of the finished product are called direct materials.

Accepted Answer

A) True 
 B)False

Question 8

Match the terms with the definitions.
-The account that contains the costs of products that have been completed and are ready for sale.

Accepted Answer

A) Work in Process 
B) process cost system 
C) overapplied overhead 
D) direct materials 
E) materials requisition
F)factory overhead subsidiary ledger
G)Finished Goods Inventory
H)materials ledger
I)job order cost system
J)indirect materials
K)job cost sheet 
A) Work in Process 
B) process cost system 
C) overapplied overhead 
D) direct materials 
E) materials requisition
F)factory overhead subsidiary ledger
G)Finished Goods Inventory
H)materials ledger
I)job order cost system
J)indirect materials
K)job cost sheet

Question 9

A subsidiary ledger, called a materials requisition, is used to show the quantity, the cost of materials received and issued, and the resulting balances.

Accepted Answer

A) True 
 B)False

Question 10

A manufacturing business acquires materials in one form and converts or processes them into a different form for final sale.

Accepted Answer

A) True 
 B)False

Question 11

A cost accounting system is a system for accumulating detailed information about the cost of producing a product.

Accepted Answer

A) True 
 B)False

Question 12

A merchandising business acquires and holds inventory in only one form-finished and ready for sale.

Accepted Answer

A) True 
 B)False

Question 13

Wages paid to those employees who devote their time to supervision or to work of a general nature are referred to as

Accepted Answer

A)  indirect materials. 
B)  indirect labor. 
C)  direct materials. 
D)  direct labor. 
A)  indirect materials. 
B)  indirect labor. 
C)  direct materials. 
D)  direct labor.

Question 14

Match the terms with the definitions.
-The subsidiary ledger that shows the quantity, cost, material received and issued, and resulting balance for each type of material.

Accepted Answer

A) Work in Process 
B) process cost system 
C) overapplied overhead 
D) direct materials 
E) materials requisition
F)factory overhead subsidiary ledger
G)Finished Goods Inventory
H)materials ledger
I)job order cost system
J)indirect materials
K)job cost sheet 
A) Work in Process 
B) process cost system 
C) overapplied overhead 
D) direct materials 
E) materials requisition
F)factory overhead subsidiary ledger
G)Finished Goods Inventory
H)materials ledger
I)job order cost system
J)indirect materials
K)job cost sheet

Question 15

Which of the following information would NOT be included on the job cost sheet?

Accepted Answer

A)  cost of direct materials 
B)  cost of direct labor 
C)  cost of factory overhead applied 
D)  cost of indirect labor 
A)  cost of direct materials 
B)  cost of direct labor 
C)  cost of factory overhead applied 
D)  cost of indirect labor

Question 16

Match the terms with the definitions.
-The account that includes all the materials (both direct and indirect) acquired to be used in production.

Accepted Answer

A) cost accounting system 
B) daily time sheet 
C) direct labor 
D) underapplied overhead 
E) factory overhead
F)predetermined overhead rate
G)Materials Inventory
H)finished goods ledger
I)indirect labor
J)job cost ledger 
A) cost accounting system 
B) daily time sheet 
C) direct labor 
D) underapplied overhead 
E) factory overhead
F)predetermined overhead rate
G)Materials Inventory
H)finished goods ledger
I)indirect labor
J)job cost ledger

Question 17

The costs of those employees who devote their time to converting the materials into finished goods are usually referred to as direct labor.

Accepted Answer

A) True 
 B)False

Question 18

Match the terms with the definitions.
-A document for recording the direct materials, direct labor, and factory overhead costs incurred on a specific job.

Accepted Answer

A) Work in Process 
B) process cost system 
C) overapplied overhead 
D) direct materials 
E) materials requisition
F)factory overhead subsidiary ledger
G)Finished Goods Inventory
H)materials ledger
I)job order cost system
J)indirect materials
K)job cost sheet 
A) Work in Process 
B) process cost system 
C) overapplied overhead 
D) direct materials 
E) materials requisition
F)factory overhead subsidiary ledger
G)Finished Goods Inventory
H)materials ledger
I)job order cost system
J)indirect materials
K)job cost sheet

Question 19

The following information is supplied for Lexington Corporation. Prepare a schedule of cost of goods manufactured for the year ended December 31, 20--. $\begin{array}{lr}
\text { Work in process, January } 1,20-- & \$ 85,000 \
\text { Materials inventory, January } 1,20-- & 47,200 \
\text { Materials purchases } & 50,800 \
\text { Materials inventory, December 31, 20-- } & 48,200\\text { Direct labor } & 54,700 \
\text { Factory overhead } & 21,000 \
\text { Work in process, December } 31,20-- & 64,400
\end{array}$

Accepted Answer

The answer of The following information is supplied for Lexington...

Question 20

Using a predetermined overhead rate, an appropriate amount of factory overhead should be added to a job cost sheet.

Accepted Answer

A) True 
 B)False

Exam 26: Manufacturing Accounting: The Job Order Cost System

Those materials used in the manufacturing process that do not become a major part of the finished product are called indirect materials.

Product cost information is useful in setting selling prices and in determining the profitability of each product.

The earnings of workers whose services are considered to be indirect labor must be charged directly to the jobs on which they worked.

A manufacturer makes the items it sells, rather than purchasing them in final form.

Items acquired that either become a part of the finished product or are used in the process of manufacturing the finished product are known as

The entry to record indirect labor costs incurred during the month would include a debit to

Those materials used in the manufacturing process that do not become a major part of the finished product are called direct materials.

Match the terms with the definitions. -The account that contains the costs of products that have been completed and are ready for sale.

A subsidiary ledger, called a materials requisition, is used to show the quantity, the cost of materials received and issued, and the resulting balances.

A manufacturing business acquires materials in one form and converts or processes them into a different form for final sale.

A cost accounting system is a system for accumulating detailed information about the cost of producing a product.

A merchandising business acquires and holds inventory in only one form-finished and ready for sale.

Wages paid to those employees who devote their time to supervision or to work of a general nature are referred to as

Match the terms with the definitions. -The subsidiary ledger that shows the quantity, cost, material received and issued, and resulting balance for each type of material.

Which of the following information would NOT be included on the job cost sheet?

Match the terms with the definitions. -The account that includes all the materials (both direct and indirect) acquired to be used in production.

The costs of those employees who devote their time to converting the materials into finished goods are usually referred to as direct labor.

Match the terms with the definitions. -A document for recording the direct materials, direct labor, and factory overhead costs incurred on a specific job.

Using a predetermined overhead rate, an appropriate amount of factory overhead should be added to a job cost sheet.

Introduction to Accounting

Analyzing Transactions: the Accounting Equation

The Double-Entry Framework

Journalizing and Posting Transactions

Adjusting Entries and the Work Sheet

Financial Statements and the Closing Process

Accounting for Cash

Payroll Accounting: Employee Earnings and Deductions

Payroll Accounting: Employer Taxes and Reports

Accounting for Sales and Cash Receipts

Accounting for Purchases and Cash Payments

Special Journals

Accounting for Merchandise Inventory

Adjustments and the Work Sheet for a Merchandising Business

Financial Statements and Year-End Accounting for a Merchandising Business

Accounting for Accounts Receivable

Accounting for Notes and Interest

Accounting for Long-Term Assets

Accounting for Partnerships

Corporations: Organization and Capital Stocks

Corporations: Earnings, Taxes, Distributions, and the Retained Earnings Statement

Corporations: Bonds

Statement of Cash Flows

Analysis of Financial Statements

Departmental Accounting

Manufacturing Accounting: The Work Sheet and Financial Statements

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