Question 1

The current year's advertising costs are normally considered as product costs.

Accepted Answer

A) True 
 B)False

Question 2

Non-manufacturing costs are generally classified into two categories: selling and administrative.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following costs appear on a balance sheet?

Accepted Answer

A)  Selling expenses 
B)  Product Costs 
C)  Period Costs 
D)  Opportunity costs 
A)  Selling expenses 
B)  Product Costs 
C)  Period Costs 
D)  Opportunity costs

Question 4

Which of the following is true of job order cost systems?

Accepted Answer

A)  Examples of companies that use job order cost systems would be oil refineries, paper producers, chemical processors, and food processors. 
B)  Job order cost systems are not widely used. 
C)  Job order cost systems are often used by companies that manufacture custom products for customers or batches of similar products. 
D)  Job order cost systems provide product costs for each manufacturing department or process. 
A)  Examples of companies that use job order cost systems would be oil refineries, paper producers, chemical processors, and food processors. 
B)  Job order cost systems are not widely used. 
C)  Job order cost systems are often used by companies that manufacture custom products for customers or batches of similar products. 
D)  Job order cost systems provide product costs for each manufacturing department or process.

Question 5

Indirect labor is included in factory overhead.

Accepted Answer

A) True 
 B)False

Question 6

Direct materials, work-in-process, and finished goods inventory are most likely to be reported on the balance sheet of a(n):

Accepted Answer

A)  financial consultant. 
B)  apparel boutique. 
C)  automobile company. 
D)  insurance company. 
A)  financial consultant. 
B)  apparel boutique. 
C)  automobile company. 
D)  insurance company.

Question 7

As product costs are incurred in the manufacturing process, they are accounted for as assets and reported on the balance sheet as inventory.

Accepted Answer

A) True 
 B)False

Question 8

A job order cost system provides for a separate record of the costs for each particular quantity of product that is manufactured.

Accepted Answer

A) True 
 B)False

Question 9

A _____ is prepared when materials that have been ordered are received and inspected.

Accepted Answer

A)  supplier's invoice 
B)  materials ledger 
C)  receiving report 
D)  materials requisition 
A)  supplier's invoice 
B)  materials ledger 
C)  receiving report 
D)  materials requisition

Question 10

The following information is available for the first month of operations for Bluemoon, Inc.: $\begin{array}{|l|r|}
\hline \text { Sales } & \$ 850,000 \
\hline \text { Gross profit } & 330,000 \
\hline \text { Indirect labor } & 35,000 \
\hline \text { Indirect materials } & 14,000 \
\hline \text { Other factory overhead } & 9,000 \
\hline \text { Materials purchased } & 360,000 \
\hline \text { Total manufacturing costs } & 670,000 \
\hline \text { Materials inventory, end of period } & 20,000 \
\hline
\end{array}$ ? Based on the information provided for Bluemoon, Inc., calculate the cost of goods sold.

Accepted Answer

A)  $670,000 
B)  $418,000 
C)  $520,000 
D)  $650,000 
A)  $670,000 
B)  $418,000 
C)  $520,000 
D)  $650,000

Question 11

The recording of the jobs completed would decrease:

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 12

For an automotive repair shop, the wages of mechanics would be classified as direct labor cost.

Accepted Answer

A) True 
 B)False

Question 13

Loise Inc., a manufacturing company, forecasts that total overhead for the current year will be $19,250,000, and total machine hours will be 350,000 hours.However, the actual overhead is $6,095,000, and the actual machine hours are 142,000 hours.If the company uses a predetermined overhead rate based on machine hours for applying overhead, what is the predetermined overhead rate?

Accepted Answer

A)  $23 per machine hour 
B)  $192 per machine hour 
C)  $55 per machine hour 
D)  $43 per machine hour 
A)  $23 per machine hour 
B)  $192 per machine hour 
C)  $55 per machine hour 
D)  $43 per machine hour

Question 14

One of the ways in which just-in-time processing is accomplished in manufacturing and non-manufacturing processes is by:

Accepted Answer

A)  moving a product from process to process as each function is completed. 
B)  combining processing functions into work centers and cross-training workers to perform more than one function. 
C)  having production supervisors attempt to enter enough materials into manufacturing to keep all manufacturing departments operating. 
D)  having workers typically perform one function on a continuous basis. 
A)  moving a product from process to process as each function is completed. 
B)  combining processing functions into work centers and cross-training workers to perform more than one function. 
C)  having production supervisors attempt to enter enough materials into manufacturing to keep all manufacturing departments operating. 
D)  having workers typically perform one function on a continuous basis.

Question 15

Upon completing a job, direct materials totaled $4,500; direct labor, $2,500; and factory overhead, $3,500.Units produced totaled 2,100.What is the per unit cost?

Accepted Answer

A)  $2 
B)  $1 
C)  $3 
D)  $5 
A)  $2 
B)  $1 
C)  $3 
D)  $5

Question 16

Which of the following is a period cost?

Accepted Answer

A)  Power 
B)  Depreciation on factory equipment 
C)  Sales commissions 
D)  Wages of an assembly worker 
A)  Power 
B)  Depreciation on factory equipment 
C)  Sales commissions 
D)  Wages of an assembly worker

Question 17

The summary of the time tickets at the end of each month is the basis for recording the direct and indirect labor costs incurred in production.

Accepted Answer

A) True 
 B)False

Question 18

Hudson, Inc.has estimated total factory overhead costs of $400,000 and 20,000 direct labor hours for the current fiscal year.If direct labor hours for the year totals 18,000 and actual factory overhead totals $350,000, what is the amount of overapplied or underapplied overhead for the year?

Accepted Answer

A)  $10,000 overapplied 
B)  $10,000 underapplied 
C)  $50,000 underapplied 
D)  $50,000 overapplied 
A)  $10,000 overapplied 
B)  $10,000 underapplied 
C)  $50,000 underapplied 
D)  $50,000 overapplied

Question 19

The recording of the jobs shipped and customers billed would increase:

Accepted Answer

A)  Accounts Payable. 
B)  Cash. 
C)  Finished Goods. 
D)  Cost of Goods Sold. 
A)  Accounts Payable. 
B)  Cash. 
C)  Finished Goods. 
D)  Cost of Goods Sold.

Question 20

A manufacturing business converts materials into finished products through the use of machinery and labor.

Accepted Answer

A) True 
 B)False

The current year's advertising costs are normally considered as product costs.

Non-manufacturing costs are generally classified into two categories: selling and administrative.

Which of the following costs appear on a balance sheet?

Which of the following is true of job order cost systems?

Indirect labor is included in factory overhead.

Direct materials, work-in-process, and finished goods inventory are most likely to be reported on the balance sheet of a(n):

As product costs are incurred in the manufacturing process, they are accounted for as assets and reported on the balance sheet as inventory.

A job order cost system provides for a separate record of the costs for each particular quantity of product that is manufactured.

A _____ is prepared when materials that have been ordered are received and inspected.

The recording of the jobs completed would decrease:

For an automotive repair shop, the wages of mechanics would be classified as direct labor cost.

One of the ways in which just-in-time processing is accomplished in manufacturing and non-manufacturing processes is by:

Upon completing a job, direct materials totaled $4,500; direct labor, $2,500; and factory overhead, $3,500.Units produced totaled 2,100.What is the per unit cost?

Which of the following is a period cost?

The summary of the time tickets at the end of each month is the basis for recording the direct and indirect labor costs incurred in production.

Hudson, Inc.has estimated total factory overhead costs of $400,000 and 20,000 direct labor hours for the current fiscal year.If direct labor hours for the year totals 18,000 and actual factory overhead totals $350,000, what is the amount of overapplied or underapplied overhead for the year?

The recording of the jobs shipped and customers billed would increase:

A manufacturing business converts materials into finished products through the use of machinery and labor.

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 current year's advertising costs are normally considered as product costs.

Non-manufacturing costs are generally classified into two categories: selling and administrative.

Which of the following costs appear on a balance sheet?

Which of the following is true of job order cost systems?

Indirect labor is included in factory overhead.

Direct materials, work-in-process, and finished goods inventory are most likely to be reported on the balance sheet of a(n):

As product costs are incurred in the manufacturing process, they are accounted for as assets and reported on the balance sheet as inventory.

A job order cost system provides for a separate record of the costs for each particular quantity of product that is manufactured.

A _____ is prepared when materials that have been ordered are received and inspected.

The recording of the jobs completed would decrease:

For an automotive repair shop, the wages of mechanics would be classified as direct labor cost.

One of the ways in which just-in-time processing is accomplished in manufacturing and non-manufacturing processes is by:

Upon completing a job, direct materials totaled $4,500; direct labor, $2,500; and factory overhead, $3,500.Units produced totaled 2,100.What is the per unit cost?

Which of the following is a period cost?

The summary of the time tickets at the end of each month is the basis for recording the direct and indirect labor costs incurred in production.

Hudson, Inc.has estimated total factory overhead costs of $400,000 and 20,000 direct labor hours for the current fiscal year.If direct labor hours for the year totals 18,000 and actual factory overhead totals $350,000, what is the amount of overapplied or underapplied overhead for the year?

The recording of the jobs shipped and customers billed would increase:

A manufacturing business converts materials into finished products through the use of machinery and labor.

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