Question 1

Direct labor cost is an example of a product cost.

Accepted Answer

A) True 
 B)False  True

Question 2

A company may use a job order cost system for some of its products and a process cost system for other products.

Accepted Answer

A) True 
 B)False  True

Question 3

During the year, Bright Corporation applied factory overhead costs of $330,000 to production.At the end of the year, total overapplied factory overhead is $13,000.What was the amount of actual factory overhead cost incurred during the year?

Accepted Answer

A)  $343,000 
B)  $300,000 
C)  $330,000 
D)  $317,000 
A)  $343,000 
B)  $300,000 
C)  $330,000 
D)  $317,000 D

Question 4

Manufacturers implement the philosophy of just-in-time processing to produce products with high quality, low cost, and instant availability.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is an example of direct labor cost for an airplane manufacturer?

Accepted Answer

A)  Cost of wages of janitors 
B)  Cost of wages of assembly worker 
C)  Salary of plant supervisor 
D)  Salary of the chairman 
A)  Cost of wages of janitors 
B)  Cost of wages of assembly worker 
C)  Salary of plant supervisor 
D)  Salary of the chairman

Question 6

Which of the following techniques is used by just-in-time manufacturing?

Accepted Answer

A)  It provides specialized training so that employees only do one task and work individually to improve efficiencies in the department. 
B)  It organizes the plant in such a way as to reduce product movement from station to station. 
C)  It encourages management to make all operating decisions regarding the manufacturing process rather than the line employees in order to streamline the process. 
D)  It emphasizes push manufacturing. 
A)  It provides specialized training so that employees only do one task and work individually to improve efficiencies in the department. 
B)  It organizes the plant in such a way as to reduce product movement from station to station. 
C)  It encourages management to make all operating decisions regarding the manufacturing process rather than the line employees in order to streamline the process. 
D)  It emphasizes push manufacturing.

Question 7

Which of the following businesses is most likely to use process cost accounting system?

Accepted Answer

A)  Custom cabinet manufacturer 
B)  Dress designer 
C)  Lumber mill 
D)  Printing firm 
A)  Custom cabinet manufacturer 
B)  Dress designer 
C)  Lumber mill 
D)  Printing firm

Question 8

The cost of a manufactured product generally consists of direct materials cost, direct labor cost, and factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 9

For a construction contractor, the wages of carpenters would be classified as direct labor cost.

Accepted Answer

A) True 
 B)False

Question 10

The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 11

Conversion cost is the combination of direct labor cost and factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 12

If the cost of direct materials is not a significant portion of the total product cost, it may be classified as:

Accepted Answer

A)  direct labor costs. 
B)  selling and administrative costs. 
C)  miscellaneous costs. 
D)  factory overhead costs. 
A)  direct labor costs. 
B)  selling and administrative costs. 
C)  miscellaneous costs. 
D)  factory overhead costs.

Question 13

Sales commission is an example of factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 14

A summary of the materials requisitions completed during a period serves as the basis for transferring the cost of the materials from the Materials account to:

Accepted Answer

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

Question 15

Robbson Manufacturers has estimated total factory overhead costs of $184,000 and 25,000 direct labor hours for the current fiscal year.If job number 115 incurred 1,200 direct labor hours, the work-in-process account will be increased and factory overhead will be decreased by:

Accepted Answer

A)  $25,000. 
B)  $8,832. 
C)  $7,022. 
D)  $153. 
A)  $25,000. 
B)  $8,832. 
C)  $7,022. 
D)  $153.

Question 16

Period costs are costs that are incurred for the production requirements of a certain period.

Accepted Answer

A) True 
 B)False

Question 17

The amount of time spent by each employee and the labor costs incurred for each individual job or for factory overhead are recorded on the:

Accepted Answer

A)  employees' earnings records. 
B)  in-and-out board. 
C)  time tickets. 
D)  receiving order 
A)  employees' earnings records. 
B)  in-and-out board. 
C)  time tickets. 
D)  receiving order

Question 18

An activity-based costing system allocates factory overhead rates to products or services using:

Accepted Answer

A)  a single plantwide overhead rate. 
B)  the cost of activities based on an activity rate times the number of activity-based usage quantities. 
C)  an allocation of budgeted revenues produced by a product or service. 
D)  an end-of-year allocation of costs to products or services. 
A)  a single plantwide overhead rate. 
B)  the cost of activities based on an activity rate times the number of activity-based usage quantities. 
C)  an allocation of budgeted revenues produced by a product or service. 
D)  an end-of-year allocation of costs to products or services.

Question 19

Job order cost systems can be used to compare unit costs of similar jobs to determine if costs are staying within expected ranges.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is true of a direct materials cost?

Accepted Answer

A)  A direct materials cost is included in factory overhead. 
B)  It is sometimes called factory burden. 
C)  It is not a significant portion of the total product cost. 
D)  It is the cost of any material that is an integral part of the finished product. 
A)  A direct materials cost is included in factory overhead. 
B)  It is sometimes called factory burden. 
C)  It is not a significant portion of the total product cost. 
D)  It is the cost of any material that is an integral part of the finished product.

Direct labor cost is an example of a product cost.

A company may use a job order cost system for some of its products and a process cost system for other products.

During the year, Bright Corporation applied factory overhead costs of $330,000 to production.At the end of the year, total overapplied factory overhead is $13,000.What was the amount of actual factory overhead cost incurred during the year?

Manufacturers implement the philosophy of just-in-time processing to produce products with high quality, low cost, and instant availability.

Which of the following is an example of direct labor cost for an airplane manufacturer?

Which of the following techniques is used by just-in-time manufacturing?

Which of the following businesses is most likely to use process cost accounting system?

The cost of a manufactured product generally consists of direct materials cost, direct labor cost, and factory overhead cost.

For a construction contractor, the wages of carpenters would be classified as direct labor cost.

The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold.

Conversion cost is the combination of direct labor cost and factory overhead cost.

If the cost of direct materials is not a significant portion of the total product cost, it may be classified as:

Sales commission is an example of factory overhead cost.

A summary of the materials requisitions completed during a period serves as the basis for transferring the cost of the materials from the Materials account to:

Robbson Manufacturers has estimated total factory overhead costs of $184,000 and 25,000 direct labor hours for the current fiscal year.If job number 115 incurred 1,200 direct labor hours, the work-in-process account will be increased and factory overhead will be decreased by:

Period costs are costs that are incurred for the production requirements of a certain period.

The amount of time spent by each employee and the labor costs incurred for each individual job or for factory overhead are recorded on the:

An activity-based costing system allocates factory overhead rates to products or services using:

Job order cost systems can be used to compare unit costs of similar jobs to determine if costs are staying within expected ranges.

Which of the following is true of a direct materials cost?

The Role of Accounting in Business

Basic Accounting Systems: Cash Basis

Basic Accounting Systems: Accrual Basis

Accounting for Merchandising Businesses

Internal Control and Cash

Receivables and Inventories

Fixed Assets, Natural Resources, and Intangible Assets

Liabilities and Stockholders Equity

Metric Analysis of Financial Statements

Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Costs

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

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Exam 10: Accounting for Manufacturing Operations

Direct labor cost is an example of a product cost.

A company may use a job order cost system for some of its products and a process cost system for other products.

During the year, Bright Corporation applied factory overhead costs of $330,000 to production.At the end of the year, total overapplied factory overhead is $13,000.What was the amount of actual factory overhead cost incurred during the year?

Manufacturers implement the philosophy of just-in-time processing to produce products with high quality, low cost, and instant availability.

Which of the following is an example of direct labor cost for an airplane manufacturer?

Which of the following techniques is used by just-in-time manufacturing?

Which of the following businesses is most likely to use process cost accounting system?

The cost of a manufactured product generally consists of direct materials cost, direct labor cost, and factory overhead cost.

For a construction contractor, the wages of carpenters would be classified as direct labor cost.

The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold.

Conversion cost is the combination of direct labor cost and factory overhead cost.

If the cost of direct materials is not a significant portion of the total product cost, it may be classified as:

Sales commission is an example of factory overhead cost.

A summary of the materials requisitions completed during a period serves as the basis for transferring the cost of the materials from the Materials account to:

Robbson Manufacturers has estimated total factory overhead costs of $184,000 and 25,000 direct labor hours for the current fiscal year.If job number 115 incurred 1,200 direct labor hours, the work-in-process account will be increased and factory overhead will be decreased by:

Period costs are costs that are incurred for the production requirements of a certain period.

The amount of time spent by each employee and the labor costs incurred for each individual job or for factory overhead are recorded on the:

An activity-based costing system allocates factory overhead rates to products or services using:

Job order cost systems can be used to compare unit costs of similar jobs to determine if costs are staying within expected ranges.

Which of the following is true of a direct materials cost?

The Role of Accounting in Business

Basic Accounting Systems: Cash Basis

Basic Accounting Systems: Accrual Basis

Accounting for Merchandising Businesses

Internal Control and Cash

Receivables and Inventories

Fixed Assets, Natural Resources, and Intangible Assets

Liabilities and Stockholders Equity

Metric Analysis of Financial Statements

Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Costs

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

Filters