Question 1

In calculating a predetermined overhead rate, a recent trend in automated manufacturing operations is to choose an activity base related to

Accepted Answer

A)  direct labor hours. 
B)  indirect labor dollars. 
C)  machine hours. 
D)  raw materials dollars. 
A)  direct labor hours. 
B)  indirect labor dollars. 
C)  machine hours. 
D)  raw materials dollars.

Question 2

In a job order cost system, a credit to Manufacturing Overhead will be accompanied by a debit to

Accepted Answer

A)  Cost of Goods Manufactured. 
B)  Finished Goods Inventory. 
C)  Work in Process Inventory. 
D)  Raw Materials Inventory. 
A)  Cost of Goods Manufactured. 
B)  Finished Goods Inventory. 
C)  Work in Process Inventory. 
D)  Raw Materials Inventory.

Question 3

Under an effective system of internal control, the authorization for issuing materials is made

Accepted Answer

A)  orally. 
B)  on a prenumbered materials requisition slip. 
C)  by the accounting department. 
D)  by anyone on the production line. 
A)  orally. 
B)  on a prenumbered materials requisition slip. 
C)  by the accounting department. 
D)  by anyone on the production line.

Question 4

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 5

At the end of the year, underapplied overhead is usually credited to Cost of Goods Sold.

Accepted Answer

A) True 
 B)False

Question 6

Henson Company applies overhead on the basis of 120% of direct labor cost. Job No. 190 is charged with $140,000 of direct materials costs and $180,000 of manufacturing overhead. The total manufacturing costs for Job No. 190 is

Accepted Answer

A)  $320,000. 
B)  $536,000. 
C)  $348,000. 
D)  $470,000. 
A)  $320,000. 
B)  $536,000. 
C)  $348,000. 
D)  $470,000.

Question 7

The perpetual inventory method cannot be used in a job order cost system.

Accepted Answer

A) True 
 B)False

Question 8

As of December 31, 2019, Nilsen Industries had $2,000 of raw materials inventory. At the beginning of 2019, there was $1,600 of materials on hand. During the year, the company purchased $354,000 of materials; however it paid for only $314,000. How much inventory was requisitioned for use on jobs during 2019?

Accepted Answer

A)  $354,400 
B)  $344,400 
C)  $343,600 
D)  $353,600 
A)  $354,400 
B)  $344,400 
C)  $343,600 
D)  $353,600

Question 9

The Raw Materials Inventory account is

Accepted Answer

A)  a subsidiary account. 
B)  debited for invoice costs and freight costs chargeable to the purchaser. 
C)  debited for purchase discounts taken. 
D)  debited for purchase returns and allowances. 
A)  a subsidiary account. 
B)  debited for invoice costs and freight costs chargeable to the purchaser. 
C)  debited for purchase discounts taken. 
D)  debited for purchase returns and allowances.

Question 10

Time tickets should be approved by

Accepted Answer

A)  the audit committee. 
B)  co-workers. 
C)  the employee's supervisor. 
D)  the payroll department. 
A)  the audit committee. 
B)  co-workers. 
C)  the employee's supervisor. 
D)  the payroll department.

Question 11

If manufacturing overhead has been overapplied 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 Finished Goods Inventory 
C)  debit to Cost of Goods Sold. 
D)  credit to Work in Process Inventory. 
A)  debit to Manufacturing Overhead. 
B)  credit to Finished Goods Inventory 
C)  debit to Cost of Goods Sold. 
D)  credit to Work in Process Inventory.

Question 12

Factory Labor is a(n)

Accepted Answer

A)  expense account. 
B)  control account. 
C)  subsidiary account. 
D)  temporary account. 
A)  expense account. 
B)  control account. 
C)  subsidiary account. 
D)  temporary account.

Question 13

When determining costs of jobs, how does a company account for indirect materials?

Accepted Answer

A)  It is added to work in process as used. 
B)  It remains part of raw materials inventory. 
C)  It is transferred out of raw materials into manufacturing overhead when used. 
D)  It is transferred out of raw materials into work in process as used. 
A)  It is added to work in process as used. 
B)  It remains part of raw materials inventory. 
C)  It is transferred out of raw materials into manufacturing overhead when used. 
D)  It is transferred out of raw materials into work in process as used.

Question 14

Actual manufacturing overhead costs should be charged to the Work in Process Inventory account as they are incurred.

Accepted Answer

A) True 
 B)False

Question 15

Requisitions for direct materials are posted daily to the individual job cost sheets.

Accepted Answer

A) True 
 B)False

Question 16

Cost of goods sold is obtained from

Accepted Answer

A)  analysis of all the control accounts in the cost system. 
B)  the finished goods inventory records. 
C)  the work in process inventory records. 
D)  the Raw Materials Inventory control account. 
A)  analysis of all the control accounts in the cost system. 
B)  the finished goods inventory records. 
C)  the work in process inventory records. 
D)  the Raw Materials Inventory control account.

Question 17

A good system of internal control requires that the job order cost sheet be destroyed as soon as the job is complete.

Accepted Answer

A) True 
 B)False

Question 18

Haight Company incurred direct materials costs of $2,500,000 during the year. Manu-facturing overhead applied was $450,000 and is applied at the rate of 60% of direct labor costs. Haight Company's total manufacturing costs for the year was

Accepted Answer

A)  $3,700,000. 
B)  $3,220,000. 
C)  $2,950,000. 
D)  $4,720,000. 
A)  $3,700,000. 
B)  $3,220,000. 
C)  $2,950,000. 
D)  $4,720,000.

Question 19

Job cost sheets constitute the subsidiary ledger for the

Accepted Answer

A)  Finished Goods Inventory account. 
B)  Cost of Goods Sold account. 
C)  Work In Process Inventory account. 
D)  Cost of Goods Manufactured account. 
A)  Finished Goods Inventory account. 
B)  Cost of Goods Sold account. 
C)  Work In Process Inventory account. 
D)  Cost of Goods Manufactured account.

Question 20

When raw materials are received, there is no effort at this point to associate the cost of materials with specific jobs.

Accepted Answer

A) True 
 B)False

In calculating a predetermined overhead rate, a recent trend in automated manufacturing operations is to choose an activity base related to

In a job order cost system, a credit to Manufacturing Overhead will be accompanied by a debit to

Under an effective system of internal control, the authorization for issuing materials is made

The two basic types of cost accounting systems are

At the end of the year, underapplied overhead is usually credited to Cost of Goods Sold.

Henson Company applies overhead on the basis of 120% of direct labor cost. Job No. 190 is charged with $140,000 of direct materials costs and $180,000 of manufacturing overhead. The total manufacturing costs for Job No. 190 is

The perpetual inventory method cannot be used in a job order cost system.

The Raw Materials Inventory account is

Time tickets should be approved by

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

Factory Labor is a(n)

When determining costs of jobs, how does a company account for indirect materials?

Actual manufacturing overhead costs should be charged to the Work in Process Inventory account as they are incurred.

Requisitions for direct materials are posted daily to the individual job cost sheets.

Cost of goods sold is obtained from

A good system of internal control requires that the job order cost sheet be destroyed as soon as the job is complete.

Haight Company incurred direct materials costs of $2,500,000 during the year. Manu-facturing overhead applied was $450,000 and is applied at the rate of 60% of direct labor costs. Haight Company's total manufacturing costs for the year was

Job cost sheets constitute the subsidiary ledger for the

When raw materials are received, there is no effort at this point to associate the cost of materials with specific jobs.

Managerial Accounting

Process Costing

Activity-Based Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Pricing

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Statement of Cash Flows

Financial Statement Analysis

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Exam 2: Job Order Costing

In calculating a predetermined overhead rate, a recent trend in automated manufacturing operations is to choose an activity base related to

In a job order cost system, a credit to Manufacturing Overhead will be accompanied by a debit to

Under an effective system of internal control, the authorization for issuing materials is made

The two basic types of cost accounting systems are

At the end of the year, underapplied overhead is usually credited to Cost of Goods Sold.

Henson Company applies overhead on the basis of 120% of direct labor cost. Job No. 190 is charged with $140,000 of direct materials costs and $180,000 of manufacturing overhead. The total manufacturing costs for Job No. 190 is

The perpetual inventory method cannot be used in a job order cost system.

The Raw Materials Inventory account is

Time tickets should be approved by

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

Factory Labor is a(n)

When determining costs of jobs, how does a company account for indirect materials?

Actual manufacturing overhead costs should be charged to the Work in Process Inventory account as they are incurred.

Requisitions for direct materials are posted daily to the individual job cost sheets.

Cost of goods sold is obtained from

A good system of internal control requires that the job order cost sheet be destroyed as soon as the job is complete.

Haight Company incurred direct materials costs of $2,500,000 during the year. Manu-facturing overhead applied was $450,000 and is applied at the rate of 60% of direct labor costs. Haight Company's total manufacturing costs for the year was

Job cost sheets constitute the subsidiary ledger for the

When raw materials are received, there is no effort at this point to associate the cost of materials with specific jobs.

Managerial Accounting

Process Costing

Activity-Based Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Pricing

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Statement of Cash Flows

Financial Statement Analysis

Filters