Question 1

In a process cost system, costs attach to products and are passed from one process to another.

Accepted Answer

A) True 
 B)False

Question 2

Factory overhead consists of indirect materials, direct labor, and other factory expenses.

Accepted Answer

A) True 
 B)False

Question 3

The key difference between a manufacturing and a merchandising business involves inventory.

Accepted Answer

A) True 
 B)False

Question 4

Materials that enter into and become a significant part of the finished product are called

Accepted Answer

A)  indirect materials. 
B)  operating expenses. 
C)  direct materials. 
D)  administrative expenses. 
A)  indirect materials. 
B)  operating expenses. 
C)  direct materials. 
D)  administrative expenses.

Question 5

The many types of factory overhead costs make it desirable to use a factory overhead subsidiary ledger.

Accepted Answer

A) True 
 B)False

Question 6

Material inventory includes both direct and indirect materials.

Accepted Answer

A) True 
 B)False

Question 7

Match the terms with the definitions.
-The difference between the overhead applied and the actual overhead cost incurred if the amount of applied overhead is less than actual overhead cost incurred.

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 8

Step-in-Time Manufacturing had the following transactions for its job order costing operation:   ​
Required:
Prepare general journal entries to record these transactions.

Accepted Answer

The answer of Step-in-Time Manufacturing had the following transactions for...

Question 9

The purchase of direct and indirect materials on account during the month requires an entry

Accepted Answer

A)  debiting Work in Process and crediting Materials. 
B)  debiting Materials and crediting Accounts Payable. 
C)  debiting Accounts Payable and crediting Materials. 
D)  debiting Materials and crediting Work in Process. 
A)  debiting Work in Process and crediting Materials. 
B)  debiting Materials and crediting Accounts Payable. 
C)  debiting Accounts Payable and crediting Materials. 
D)  debiting Materials and crediting Work in Process.

Question 10

Match the terms with the definitions.
-The system that accumulates manufacturing costs by process, such as cutting, painting, or finishing; and assigns each unit of product passing through the process a share of the costs.

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 11

Match the terms with the definitions.
-All manufacturing costs other than direct materials and direct labor.

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 12

A cost accounting system uses which of the following inventory systems?

Accepted Answer

A)  periodic system 
B)  perpetual system 
C)  both a periodic and perpetual system 
D)  a hands-on system 
A)  periodic system 
B)  perpetual system 
C)  both a periodic and perpetual system 
D)  a hands-on system

Question 13

Indirect materials and indirect labor go through factory overhead into work in process.

Accepted Answer

A) True 
 B)False

Question 14

Manufacturing companies must maintain multiple inventory accounts.

Accepted Answer

A) True 
 B)False

Question 15

The costs incurred to manufacture a product can be classified into three primary elements of manufacturing costs: materials, labor, and factory overhead.

Accepted Answer

A) True 
 B)False

Question 16

To recognize indirect and direct factory labor cost for the month, an entry is made

Accepted Answer

A)  debiting Payroll Expense, debiting Work in Process, and crediting Factory Overhead. 
B)  debiting Work in Process, debiting Factory Overhead, and crediting Payroll Expense. 
C)  debiting Work in Process, debiting Factory Overhead, and crediting Wages Payable. 
D)  debiting Factory Overhead, debiting Payroll Expense, and crediting Accounts Payable. 
A)  debiting Payroll Expense, debiting Work in Process, and crediting Factory Overhead. 
B)  debiting Work in Process, debiting Factory Overhead, and crediting Payroll Expense. 
C)  debiting Work in Process, debiting Factory Overhead, and crediting Wages Payable. 
D)  debiting Factory Overhead, debiting Payroll Expense, and crediting Accounts Payable.

Question 17

The use of a periodic inventory system generally is desirable in accounting for manufacturing inventories.

Accepted Answer

A) True 
 B)False

Exam 26: Manufacturing Accounting: The Job Order Cost System

In a process cost system, costs attach to products and are passed from one process to another.

Factory overhead consists of indirect materials, direct labor, and other factory expenses.

The key difference between a manufacturing and a merchandising business involves inventory.

Materials that enter into and become a significant part of the finished product are called

The many types of factory overhead costs make it desirable to use a factory overhead subsidiary ledger.

Material inventory includes both direct and indirect materials.

Match the terms with the definitions. -The difference between the overhead applied and the actual overhead cost incurred if the amount of applied overhead is less than actual overhead cost incurred.

Step-in-Time Manufacturing had the following transactions for its job order costing operation: ​ Required: Prepare general journal entries to record these transactions.

The purchase of direct and indirect materials on account during the month requires an entry

Match the terms with the definitions. -The system that accumulates manufacturing costs by process, such as cutting, painting, or finishing; and assigns each unit of product passing through the process a share of the costs.

Match the terms with the definitions. -All manufacturing costs other than direct materials and direct labor.

A cost accounting system uses which of the following inventory systems?

Indirect materials and indirect labor go through factory overhead into work in process.

Manufacturing companies must maintain multiple inventory accounts.

The costs incurred to manufacture a product can be classified into three primary elements of manufacturing costs: materials, labor, and factory overhead.

To recognize indirect and direct factory labor cost for the month, an entry is made

The use of a periodic inventory system generally is desirable in accounting for manufacturing inventories.

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

Filters

Step-in-Time Manufacturing had the following transactions for its job order costing operation: Required: Prepare general journal entries to record these transactions.