Question 1

The job cost sheet does not show

Accepted Answer

A) costs chargeable to a specific job. 
B) the total costs of a completed job. 
C) the unit cost of a completed job. 
D) the cost of goods sold. 
A) costs chargeable to a specific job. 
B) the total costs of a completed job. 
C) the unit cost of a completed job. 
D) the cost of goods sold.

Question 2

Manufacturing costs are generally incurred in one period and recorded in a subsequent period.

Accepted Answer

A) True 
 B)False

Question 3

Total manufacturing costs for a period consists of the costs of direct materials used, the cost of direct labor incurred, and the manufacturing overhead applied during the period.

Accepted Answer

A) True 
 B)False

Question 4

A time ticket does not indicate the

Accepted Answer

A) employee's name. 
B) account to be charged. 
C) number of personal exemptions claimed by the employee. 
D) job number. 
A) employee's name. 
B) account to be charged. 
C) number of personal exemptions claimed by the employee. 
D) job number.

Question 5

A company expected its annual overhead costs to be $1,500,000 and direct labor costs to be $1,000,000.Actual overhead was $1,450,000, and actual labor costs totaled $1,100,000.How much is the company's predetermined overhead rate to the nearest cent?

Accepted Answer

A) $1.45 
B) $1.31 
C) $1.50 
D) $1.37 
A) $1.45 
B) $1.31 
C) $1.50 
D) $1.37

Question 6

The Manufacturing Overhead account shows debits of $30,000, $24,000, and $28,000 and one credit for $86,000.Based on this information, manufacturing overhead

Accepted Answer

A) has been overapplied. 
B) has been underapplied. 
C) has not been applied. 
D) shows a zero balance. 
A) has been overapplied. 
B) has been underapplied. 
C) has not been applied. 
D) shows a zero balance.

Question 7

The two basic types of cost accounting systems are

Accepted Answer

A) job order and job accumulation systems. 
B) job order and process cost systems. 
C) process cost and batch systems. 
D) job order and batch systems. 
A) job order and job accumulation systems. 
B) job order and process cost systems. 
C) process cost and batch systems. 
D) job order and batch systems.

Question 8

Which of the following is one of the components of cost accounting?

Accepted Answer

A) It involves measuring product costs. 
B) It involves the determination of company profits. 
C) It requires GAAP to be applied. 
D) It requires cost minimizing principles. 
A) It involves measuring product costs. 
B) It involves the determination of company profits. 
C) It requires GAAP to be applied. 
D) It requires cost minimizing principles.

Question 9

Records of individual items of raw materials would not be maintained

Accepted Answer

A) electronically. 
B) manually. 
C) on stores ledger cards. 
D) in the Raw Materials Inventory account. 
A) electronically. 
B) manually. 
C) on stores ledger cards. 
D) in the Raw Materials Inventory account.

Question 10

A job order cost system and a process cost system are two alternative methods for valuing inventories.

Accepted Answer

A) True 
 B)False

Question 11

Simmons Inc.applies overhead to production at a predetermined rate of 90% based on direct labor cost.Job No.250, the only job still in process at the end of August, has been charged with manufacturing overhead of $8,100.What was the amount of direct materials charged to Job 250 assuming the balance in Work in Process inventory is $30,000?

Accepted Answer

A) $ 8,100. 
B) $ 9,000. 
C) $12,900. 
D) $30,000. 
A) $ 8,100. 
B) $ 9,000. 
C) $12,900. 
D) $30,000.

Question 12

Greer Company developed the following data for the current year: $\begin{array}{lr}
\text { Beginning work in process inventory } & \$ 136,000 \
\text { Direct materials used } & 208,000 \
\text { Actual overhead } & 176,000 \
\text { Overhead applied } & 184,000 \
\text { Cost of goods manufactured } & 900,000 \
\text { Total manufacturing costs } & 856,000
\end{array}$ How much is Greer Company's direct labor cost for the year?

Accepted Answer

A) $508,000 
B) $600,000 
C) $464,000 
D) $328,000 
A) $508,000 
B) $600,000 
C) $464,000 
D) $328,000

Question 13

In a job order cost accounting system, the Raw Materials Inventory account is

Accepted Answer

A) an expense. 
B) a control account. 
C) not used. 
D) a period cost. 
A) an expense. 
B) a control account. 
C) not used. 
D) a period cost.

Question 14

Minton Company provided the following information from its accounting records for 2017: $\begin{array}{lr}
\text { Expected production } & 60,000 \text { labor hours } \
\text { Actual production } & 56,000 \text { labor hours } \
\text { Budgeted overhead } & \$ 1,800,000 \
\text { Actual overhead } & \$ 1,740,000
\end{array}$ How much is the overhead application rate if Minton Company bases it on direct labor hours?

Accepted Answer

A) $30.00 per hour 
B) $29.00 per hour 
C) $32.14 per hour 
D) $31.07 per hour 
A) $30.00 per hour 
B) $29.00 per hour 
C) $32.14 per hour 
D) $31.07 per hour

Question 15

If, at the end of the year, Manufacturing Overhead has been overapplied, it means that

Accepted Answer

A) actual overhead costs were greater than the overhead assigned to jobs. 
B) actual overhead costs were less than the overhead assigned to jobs. 
C) overhead has not been applied to jobs still in process. 
D) cost of goods will have to be increased by the amount of the overapplied overhead. 
A) actual overhead costs were greater than the overhead assigned to jobs. 
B) actual overhead costs were less than the overhead assigned to jobs. 
C) overhead has not been applied to jobs still in process. 
D) cost of goods will have to be increased by the amount of the overapplied overhead.

Question 16

When raw materials are purchased, the Work in Process Inventory account is debited.

Accepted Answer

A) True 
 B)False

Question 17

Overhead application is recorded with a

Accepted Answer

A) credit to Work in Process Inventory. 
B) credit to Manufacturing Overhead. 
C) debit to Manufacturing Overhead. 
D) credit to job cost sheets. 
A) credit to Work in Process Inventory. 
B) credit to Manufacturing Overhead. 
C) debit to Manufacturing Overhead. 
D) credit to job cost sheets.

Question 18

Madison Inc.uses job order costing for its brand new line of sewing machines.The cost incurred for production during 2017 totaled $18,000 of materials, $9,000 of direct labor costs, and $6,000 of manufacturing overhead applied.The company ships all goods as soon as they are completed which results in no finished goods inventory on hand at the end of any year.Beginning work in process totaled $15,000, and the ending balance is $9,000.During the year, the company completed 25 machines.How much is the cost per machine?

Accepted Answer

A) $1,080 
B) $1,560 
C) $1,320 
D) $1,920 
A) $1,080 
B) $1,560 
C) $1,320 
D) $1,920

Question 19

If manufacturing overhead has been underapplied during the year, the adjusting entry at the end of the year will show a

Accepted Answer

A) debit to Manufacturing Overhead. 
B) credit to Cost of Goods Sold. 
C) debit to Work in Process Inventory. 
D) debit to Cost of Goods Sold. 
A) debit to Manufacturing Overhead. 
B) credit to Cost of Goods Sold. 
C) debit to Work in Process Inventory. 
D) debit to Cost of Goods Sold.

Question 20

The existence of under- or overapplied overhead at the end of the year:

Accepted Answer

A) requires an adjustment to Cost of Goods Sold. 
B) indicates that an error has been made. 
C) requires a retroactive adjustment to the cost of all jobs completed. 
D) is written off as a bad estimate expense. 
A) requires an adjustment to Cost of Goods Sold. 
B) indicates that an error has been made. 
C) requires a retroactive adjustment to the cost of all jobs completed. 
D) is written off as a bad estimate expense.

The job cost sheet does not show

Manufacturing costs are generally incurred in one period and recorded in a subsequent period.

Total manufacturing costs for a period consists of the costs of direct materials used, the cost of direct labor incurred, and the manufacturing overhead applied during the period.

A time ticket does not indicate the

A company expected its annual overhead costs to be $1,500,000 and direct labor costs to be $1,000,000.Actual overhead was $1,450,000, and actual labor costs totaled $1,100,000.How much is the company's predetermined overhead rate to the nearest cent?

The Manufacturing Overhead account shows debits of $30,000, $24,000, and $28,000 and one credit for $86,000.Based on this information, manufacturing overhead

The two basic types of cost accounting systems are

Which of the following is one of the components of cost accounting?

Records of individual items of raw materials would not be maintained

A job order cost system and a process cost system are two alternative methods for valuing inventories.

In a job order cost accounting system, the Raw Materials Inventory account is

If, at the end of the year, Manufacturing Overhead has been overapplied, it means that

When raw materials are purchased, the Work in Process Inventory account is debited.

Overhead application is recorded with a

If manufacturing overhead has been underapplied during the year, the adjusting entry at the end of the year will show a

The existence of under- or overapplied overhead at the end of the year:

Introduction to Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: the Big Picture

Managerial Accounting

Time Value of Money

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Exam 2: A Further Look at Financial Statements

The job cost sheet does not show

Manufacturing costs are generally incurred in one period and recorded in a subsequent period.

Total manufacturing costs for a period consists of the costs of direct materials used, the cost of direct labor incurred, and the manufacturing overhead applied during the period.

A time ticket does not indicate the

A company expected its annual overhead costs to be $1,500,000 and direct labor costs to be $1,000,000.Actual overhead was $1,450,000, and actual labor costs totaled $1,100,000.How much is the company's predetermined overhead rate to the nearest cent?

The Manufacturing Overhead account shows debits of $30,000, $24,000, and $28,000 and one credit for $86,000.Based on this information, manufacturing overhead

The two basic types of cost accounting systems are

Which of the following is one of the components of cost accounting?

Records of individual items of raw materials would not be maintained

A job order cost system and a process cost system are two alternative methods for valuing inventories.

In a job order cost accounting system, the Raw Materials Inventory account is

If, at the end of the year, Manufacturing Overhead has been overapplied, it means that

When raw materials are purchased, the Work in Process Inventory account is debited.

Overhead application is recorded with a

If manufacturing overhead has been underapplied during the year, the adjusting entry at the end of the year will show a

The existence of under- or overapplied overhead at the end of the year:

Introduction to Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: the Big Picture

Managerial Accounting

Time Value of Money

Filters