Question 1

The underapplied factory overhead amount may be transferred to cost of goods sold at the end of the fiscal year.

Accepted Answer

A) True 
 B)False

Question 2

The cost of wages paid to employees directly involved in the manufacturing process of converting materials into finished product is classified as:

Accepted Answer

A)  factory overhead cost. 
B)  direct labor cost. 
C)  wages expense. 
D)  direct materials cost. 
A)  factory overhead cost. 
B)  direct labor cost. 
C)  wages expense. 
D)  direct materials cost.

Question 3

Compute factory overhead cost from the following costs: $$\begin{array} { | l | r | } 
\hline \text { Depreciation on factory buil dings } & \$ 45,950 \
\hline \text { Depreciation on office equipment } & 32,980 \
\hline \text { Direct materials used } & 96,840 \
\hline \text { Indirect labor } & 6,580 \
\hline
\end{array}$$

Accepted Answer

A)  $73,000 
B)  $52,530 
C)  $96,840 
D)  $78,930 
A)  $73,000 
B)  $52,530 
C)  $96,840 
D)  $78,930

Question 4

Depreciation expense on factory equipment is part of factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following items would be classified as a part of prime cost?

Accepted Answer

A)  Direct labor cost 
B)  Factory overhead cost 
C)  Selling cost 
D)  Administrative cost 
A)  Direct labor cost 
B)  Factory overhead cost 
C)  Selling cost 
D)  Administrative cost

Question 6

The direct labor and overhead costs of providing services to clients are accumulated in:

Accepted Answer

A)  finished services expense. 
B)  work in process. 
C)  administrative salaries expense. 
D)  overhead. 
A)  finished services expense. 
B)  work in process. 
C)  administrative salaries expense. 
D)  overhead.

Question 7

If the cost of materials is not a significant portion of the total product cost, the materials may be classified as a part of factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is most likely to be a product cost?

Accepted Answer

A)  Salary of the vice president of sales 
B)  Advertising for a particular product 
C)  Drill bits for a drill press used in the plant assembly area 
D)  Salary of the company receptionist 
A)  Salary of the vice president of sales 
B)  Advertising for a particular product 
C)  Drill bits for a drill press used in the plant assembly area 
D)  Salary of the company receptionist

Question 9

The sale of a finished good on account would:

Accepted Answer

A)  decrease Cost of Goods Sold and increase Finished Goods. 
B)  increase Cost of Goods Sold and decrease Finished Goods; increase Accounts Receivable and increase Sales. 
C)  increase Sales Expense and decrease Finished Goods; decrease Cash and decrease Accounts Receivable. 
D)  increase Work-in-Process and decrease Finished Goods; increase Accounts Receivable and increase Sales. 
A)  decrease Cost of Goods Sold and increase Finished Goods. 
B)  increase Cost of Goods Sold and decrease Finished Goods; increase Accounts Receivable and increase Sales. 
C)  increase Sales Expense and decrease Finished Goods; decrease Cash and decrease Accounts Receivable. 
D)  increase Work-in-Process and decrease Finished Goods; increase Accounts Receivable and increase Sales.

Question 10

For a manufacturing business, work-in-process inventories consist of inventories which have _____.

Accepted Answer

A)  not yet entered the manufacturing process 
B)  entered the manufacturing process but not been completed 
C)  entered and completed manufacturing process but have not been sold 
D)  entered and completed manufacturing process and have been sold 
A)  not yet entered the manufacturing process 
B)  entered the manufacturing process but not been completed 
C)  entered and completed manufacturing process but have not been sold 
D)  entered and completed manufacturing process and have been sold

Question 11

Service companies can effectively use activity-based costing to compute product (service) costs.

Accepted Answer

A) True 
 B)False

Question 12

After the goods are completed, their costs are transferred from Work in Process to Finished Goods.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is an example of direct materials cost for an automobile manufacturer?

Accepted Answer

A)  Cost of oil lubricants for factory machinery 
B)  Cost of wages of assembly worker 
C)  Varnish for coating 
D)  Cost of interior upholstery 
A)  Cost of oil lubricants for factory machinery 
B)  Cost of wages of assembly worker 
C)  Varnish for coating 
D)  Cost of interior upholstery

Question 14

Which of the following are the two main types of cost accounting systems for manufacturing operations?

Accepted Answer

A)  Process cost and general accounting systems 
B)  Job order cost and process cost systems 
C)  Job order cost and general accounting systems 
D)  Process cost and replacement cost systems 
A)  Process cost and general accounting systems 
B)  Job order cost and process cost systems 
C)  Job order cost and general accounting systems 
D)  Process cost and replacement cost systems

Question 15

Which of the following would be a period costs for a textbooks printing company?

Accepted Answer

A)  Wages of a press operator 
B)  Utility costs of the factory 
C)  Advertising expenses 
D)  Paper costs 
A)  Wages of a press operator 
B)  Utility costs of the factory 
C)  Advertising expenses 
D)  Paper costs

Question 16

The direct labor and overhead costs of providing services to clients are accumulated in a Work-in-Process account.

Accepted Answer

A) True 
 B)False

Question 17

In job order cost accounting system used by a service business, which of the following items would normally not be included as part of overhead?

Accepted Answer

A)  Materials 
B)  Direct labor 
C)  Rent 
D)  Supplies 
A)  Materials 
B)  Direct labor 
C)  Rent 
D)  Supplies

Question 18

A(n) _____ provides product costs for each quantity of a product that is manufactured.

Accepted Answer

A)  process costing 
B)  job order costing 
C)  activity based costing 
D)  DuPont costing 
A)  process costing 
B)  job order costing 
C)  activity based costing 
D)  DuPont costing

Question 19

The recording of the factory labor costs incurred for general factory use would include a debit to:

Accepted Answer

A)  Factory Overhead. 
B)  Wages Payable. 
C)  Wages Expense. 
D)  Cost of Goods Sold. 
A)  Factory Overhead. 
B)  Wages Payable. 
C)  Wages Expense. 
D)  Cost of Goods Sold.

Question 20

In job order cost accounting system, perpetual inventory records are maintained in controlling accounts and subsidiary ledgers for materials, work in process, and finished goods.

Accepted Answer

A) True 
 B)False

The underapplied factory overhead amount may be transferred to cost of goods sold at the end of the fiscal year.

The cost of wages paid to employees directly involved in the manufacturing process of converting materials into finished product is classified as:

Compute factory overhead cost from the following costs: Depreciation on factory buil dings \ 45,950 Depreciation on office equipment 32,980 Direct materials used 96,840 Indirect labor 6,580

Depreciation expense on factory equipment is part of factory overhead cost.

Which of the following items would be classified as a part of prime cost?

The direct labor and overhead costs of providing services to clients are accumulated in:

If the cost of materials is not a significant portion of the total product cost, the materials may be classified as a part of factory overhead cost.

Which of the following is most likely to be a product cost?

The sale of a finished good on account would:

For a manufacturing business, work-in-process inventories consist of inventories which have _____.

Service companies can effectively use activity-based costing to compute product (service) costs.

After the goods are completed, their costs are transferred from Work in Process to Finished Goods.

Which of the following is an example of direct materials cost for an automobile manufacturer?

Which of the following are the two main types of cost accounting systems for manufacturing operations?

Which of the following would be a period costs for a textbooks printing company?

The direct labor and overhead costs of providing services to clients are accumulated in a Work-in-Process account.

In job order cost accounting system used by a service business, which of the following items would normally not be included as part of overhead?

A(n) _____ provides product costs for each quantity of a product that is manufactured.

The recording of the factory labor costs incurred for general factory use would include a debit to:

In job order cost accounting system, perpetual inventory records are maintained in controlling accounts and subsidiary ledgers for materials, work in process, and finished goods.

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

The underapplied factory overhead amount may be transferred to cost of goods sold at the end of the fiscal year.

The cost of wages paid to employees directly involved in the manufacturing process of converting materials into finished product is classified as:

Compute factory overhead cost from the following costs: Depreciation on factory buil dings \ 45,950 Depreciation on office equipment 32,980 Direct materials used 96,840 Indirect labor 6,580

Depreciation expense on factory equipment is part of factory overhead cost.

Which of the following items would be classified as a part of prime cost?

The direct labor and overhead costs of providing services to clients are accumulated in:

If the cost of materials is not a significant portion of the total product cost, the materials may be classified as a part of factory overhead cost.

Which of the following is most likely to be a product cost?

The sale of a finished good on account would:

For a manufacturing business, work-in-process inventories consist of inventories which have _____.

Service companies can effectively use activity-based costing to compute product (service) costs.

After the goods are completed, their costs are transferred from Work in Process to Finished Goods.

Which of the following is an example of direct materials cost for an automobile manufacturer?

Which of the following are the two main types of cost accounting systems for manufacturing operations?

Which of the following would be a period costs for a textbooks printing company?

The direct labor and overhead costs of providing services to clients are accumulated in a Work-in-Process account.

In job order cost accounting system used by a service business, which of the following items would normally not be included as part of overhead?

A(n) _____ provides product costs for each quantity of a product that is manufactured.

The recording of the factory labor costs incurred for general factory use would include a debit to:

In job order cost accounting system, perpetual inventory records are maintained in controlling accounts and subsidiary ledgers for materials, work in process, and finished goods.

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