Question 1

Which types of inventories does a manufacturing business report on the balance sheet?

Accepted Answer

A)  finished goods inventory and work in process inventory only 
B)  direct materials inventory and work in process inventory only 
C)  direct materials inventory, work in process inventory, and finished goods inventory 
D)  direct materials inventory and finished goods inventory only 
A)  finished goods inventory and work in process inventory only 
B)  direct materials inventory and work in process inventory only 
C)  direct materials inventory, work in process inventory, and finished goods inventory 
D)  direct materials inventory and finished goods inventory only

Question 2

The recording of the jobs completed would include a debit to

Accepted Answer

A)  Factory Overhead 
B)  Finished Goods 
C)  Work in Process 
D)  Cost of Goods Sold 
A)  Factory Overhead 
B)  Finished Goods 
C)  Work in Process 
D)  Cost of Goods Sold

Question 3

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 30,000. Actual factory overhead costs incurred were $377,200, and actual direct labor hours were 36,000. What is the amount of over applied or under applied manufacturing overhead at the end of the year?

Accepted Answer

A)  $6,000 over applied 
B)  $6,000 under applied 
C)  $54,800 over applied 
D)  $54,800 under applied 
A)  $6,000 over applied 
B)  $6,000 under applied 
C)  $54,800 over applied 
D)  $54,800 under applied

Question 4

On the balance sheet for a manufacturing business, the cost of direct materials, direct labor, and factory overhead, which have entered into the manufacturing process but are associated with products that have not been finished, is reported as direct materials inventory.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following represents the factory overhead applied to a product?

Accepted Answer

A)  predetermined factory overhead rate times estimated activity base 
B)  actual factory overhead rate times estimated activity base 
C)  predetermined factory overhead rate times actual activity base 
D)  actual factory overhead rate times actual activity base 
A)  predetermined factory overhead rate times estimated activity base 
B)  actual factory overhead rate times estimated activity base 
C)  predetermined factory overhead rate times actual activity base 
D)  actual factory overhead rate times actual activity base

Question 6

The balance of Material Q on May 1 and the receipts and issuances during May are as follows:   Determine the cost of each of the issuances under a perpetual system, using the FIFO method.

Accepted Answer

May 17 issue: 8 × $3

Question 7

A process cost accounting system provides product costs for each of the departments or processes within the factory.

Accepted Answer

A) True 
 B)False

Question 8

Match each of the following phrases with the term a-g) that it most closely describes.
-a subsidiary ledger that maintains a separate account for each type of material

Accepted Answer

A) job order cost system 
B) process cost system 
C) activity-based costing 
D) under applied overhead 
E) over applied overhead
F)finished goods ledger
G)materials ledger 
A) job order cost system 
B) process cost system 
C) activity-based costing 
D) under applied overhead 
E) over applied overhead
F)finished goods ledger
G)materials ledger

Question 9

Job order cost accounting systems may be used for planning and controlling a service business.

Accepted Answer

A) True 
 B)False

Question 10

A process cost accounting system is best used by manufacturers of like units of product that are not distinguishable from each other during a continuous production process.

Accepted Answer

A) True 
 B)False

Question 11

The recording of the application of factory overhead costs to jobs would include a credit to

Accepted Answer

A)  Factory Overhead 
B)  Wages Payable 
C)  Work in Process 
D)  Cost of Goods Sold 
A)  Factory Overhead 
B)  Wages Payable 
C)  Work in Process 
D)  Cost of Goods Sold

Question 12

The controlling account for the cost ledger is

Accepted Answer

A)  Finished Goods 
B)  Materials 
C)  Work in Process 
D)  Cost of Goods Sold 
A)  Finished Goods 
B)  Materials 
C)  Work in Process 
D)  Cost of Goods Sold

Question 13

Adams Company is a manufacturing company that has worked on several production jobs during the first quarter of the year. Below is a list of all the jobs for the quarter:   Jobs 356, 357, 358, and 359 were completed. Jobs 356 and 357 were sold at a profit of $500 on each job.
-What is the ending balance of Work in Process for Adams Company at the end of the first quarter?

Accepted Answer

A)  $0 
B)  $456 
C)  $3,208 
D)  $2,752 
A)  $0 
B)  $456 
C)  $3,208 
D)  $2,752

Question 14

The details concerning the costs incurred on each job order are accumulated in a work in process account and supported by a

Accepted Answer

A)  stock ledger 
B)  materials ledger 
C)  cost ledger 
D)  creditors ledger 
A)  stock ledger 
B)  materials ledger 
C)  cost ledger 
D)  creditors ledger

Question 15

Selected accounts with some amounts omitted are as follows   If the balance of Work in Process at October 31 is $21,000, what was the amount of factory overhead applied in October?

Accepted Answer

A)  $63,300 
B)  $21,300 
C)  $42,300 
D)  $11,300 
A)  $63,300 
B)  $21,300 
C)  $42,300 
D)  $11,300

Question 16

The debit to factory overhead for the cost of indirect materials is obtained from the summary of the materials requisitions.

Accepted Answer

A) True 
 B)False

Question 17

Reynolds Manufacturers Inc. has estimated total factory overhead costs of $95,000 and expected direct labor hours of 9,500 for the current fiscal year. If job number 117 incurred 2,300 direct labor hours, Work in Process will be debited and Factory Overhead will be credited for

Accepted Answer

A)  $21,850 
B)  $2,300 
C)  $95,000 
D)  $23,000 
A)  $21,850 
B)  $2,300 
C)  $95,000 
D)  $23,000

Question 18

Aspen Technologies has the following budget data: $\begin{array}{lr}
\text { Estimated direct labor hours } & 15,000 \
\text { Estimated direct labor dollars } & \$ 90,000 \
\text { Estimated factory overhead costs } & \$ 198,000
\end{array}$ If factory overhead is to be applied based on direct labor hours, the predetermined overhead rate is

Accepted Answer

A)  $7.50 
B)  $13.20 
C)  $2.20 
D)  $16.50 
A)  $7.50 
B)  $13.20 
C)  $2.20 
D)  $16.50

Question 19

The Thomlin Company forecasts that total overhead for the current year will be $15,000,000 with 300,000 total machine hours. Year to date, the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time year to date), the overhead is

Accepted Answer

A)  $1,000,000 over applied 
B)  $1,000,000 under applied 
C)  $500,000 over applied 
D)  $500,000 under applied 
A)  $1,000,000 over applied 
B)  $1,000,000 under applied 
C)  $500,000 over applied 
D)  $500,000 under applied

Question 20

Job cost sheets can provide information to managers for all except

Accepted Answer

A)  the cost impact of materials changes 
B)  the cost impact of continuous improvement in the manufacturing process 
C)  the cost impact of materials price or direct labor rate changes over time 
D)  utilities, managerial salaries, and depreciation of computers in the corporate office 
A)  the cost impact of materials changes 
B)  the cost impact of continuous improvement in the manufacturing process 
C)  the cost impact of materials price or direct labor rate changes over time 
D)  utilities, managerial salaries, and depreciation of computers in the corporate office

Exam 17: Job Order Costing

Which types of inventories does a manufacturing business report on the balance sheet?

The recording of the jobs completed would include a debit to

On the balance sheet for a manufacturing business, the cost of direct materials, direct labor, and factory overhead, which have entered into the manufacturing process but are associated with products that have not been finished, is reported as direct materials inventory.

Which of the following represents the factory overhead applied to a product?

The balance of Material Q on May 1 and the receipts and issuances during May are as follows: Determine the cost of each of the issuances under a perpetual system, using the FIFO method.

A process cost accounting system provides product costs for each of the departments or processes within the factory.

Match each of the following phrases with the term a-g) that it most closely describes. -a subsidiary ledger that maintains a separate account for each type of material

Job order cost accounting systems may be used for planning and controlling a service business.

A process cost accounting system is best used by manufacturers of like units of product that are not distinguishable from each other during a continuous production process.

The recording of the application of factory overhead costs to jobs would include a credit to

The controlling account for the cost ledger is

The details concerning the costs incurred on each job order are accumulated in a work in process account and supported by a

Selected accounts with some amounts omitted are as follows If the balance of Work in Process at October 31 is $21,000, what was the amount of factory overhead applied in October?

The debit to factory overhead for the cost of indirect materials is obtained from the summary of the materials requisitions.

Reynolds Manufacturers Inc. has estimated total factory overhead costs of $95,000 and expected direct labor hours of 9,500 for the current fiscal year. If job number 117 incurred 2,300 direct labor hours, Work in Process will be debited and Factory Overhead will be credited for

Aspen Technologies has the following budget data: Estimated direct labor hours 15,000 Estimated direct labor dollars \ 90,000 Estimated factory overhead costs \ 198,000 If factory overhead is to be applied based on direct labor hours, the predetermined overhead rate is

Job cost sheets can provide information to managers for all except

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting Concepts and Principles

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Lean Principles, Lean Accounting, and Activity Analysis

Filters