Question 1

If Manufacturing Overhead has a debit balance at the end of the period, then

Accepted Answer

A)  overhead has been underapplied. 
B)  the overhead assigned to Work in Process Inventory is more than the overhead incurred. 
C)  overhead has been overapplied. 
D)  management must take corrective action. 
A)  overhead has been underapplied. 
B)  the overhead assigned to Work in Process Inventory is more than the overhead incurred. 
C)  overhead has been overapplied. 
D)  management must take corrective action.

Question 2

If actual overhead is greater than applied manufacturing overhead, then manufacturing overhead is:

Accepted Answer

A)  underapplied. 
B)  overapplied. 
C)  a loss on the income statement under "Other Expenses and Losses." 
D)  considered a miscellaneous expense. 
A)  underapplied. 
B)  overapplied. 
C)  a loss on the income statement under "Other Expenses and Losses." 
D)  considered a miscellaneous expense.

Question 3

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 4

At the beginning of the year, Monroe Company estimates annual overhead costs to be $2,400,000 and that 300,000 machine hours will be operated. Using machine hours as a base, the amount of overhead applied during the year if actual machine hours for the year was 315,000 hours is

Accepted Answer

A)  $2,400,000. 
B)  $2,285,714. 
C)  $1,680,000. 
D)  $2,520,000. 
A)  $2,400,000. 
B)  $2,285,714. 
C)  $1,680,000. 
D)  $2,520,000.

Question 5

Job order cost sheets constitute the subsidiary ledger of the control account Work In Process Inventory.

Accepted Answer

A) True 
 B)False

Question 6

Materials requisition slips are costed

Accepted Answer

A)  by production supervisors. 
B)  by factory personnel who work on the production line. 
C)  after the goods have been sold. 
D)  using any of the inventory costing methods. 
A)  by production supervisors. 
B)  by factory personnel who work on the production line. 
C)  after the goods have been sold. 
D)  using any of the inventory costing methods.

Question 7

The entry to record the acquisition of raw materials on account is

Accepted Answer

A)  Work in Process Inventory Accounts Payable 
B)  Manufacturing Overhead Raw Materials Inventory
Accounts Payable 
C)  Accounts Payable Raw Materials Inventory 
D)  Raw Materials Inventory Accounts Payable 
A)  Work in Process Inventory Accounts Payable 
B)  Manufacturing Overhead Raw Materials Inventory
Accounts Payable 
C)  Accounts Payable Raw Materials Inventory 
D)  Raw Materials Inventory Accounts Payable

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

During 2019, Durham Manufacturing expected Job No. 51 to cost $300,000 of overhead, $500,000 of materials, and $200,000 in labor. Durham applied overhead based on direct labor cost. Actual production required an overhead cost of $295,000, $570,000 in materials used, and $220,000 in labor. All of the goods were completed. What amount was transferred to Finished Goods?

Accepted Answer

A)  $1,090,000 
B)  $1,120,000 
C)  $1,000,000 
D)  $1,085,000 
A)  $1,090,000 
B)  $1,120,000 
C)  $1,000,000 
D)  $1,085,000

Question 10

Recording the acquisition of raw materials is a part of accumulating manufacturing costs.

Accepted Answer

A) True 
 B)False

Question 11

A process cost system would be used for all of the following except the

Accepted Answer

A)  manufacture of cereal. 
B)  refining of petroleum. 
C)  printing of wedding invitations. 
D)  production of automobiles. 
A)  manufacture of cereal. 
B)  refining of petroleum. 
C)  printing of wedding invitations. 
D)  production of automobiles.

Question 12

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 13

Accumulating and assigning manufacturing costs are two important activities in a job order cost system.

Accepted Answer

A) True 
 B)False

Question 14

If the entry to assign factory labor showed only a debit to Work In Process Inventory, then all labor costs were

Accepted Answer

A)  direct labor. 
B)  indirect labor. 
C)  overtime related. 
D)  regular hours. 
A)  direct labor. 
B)  indirect labor. 
C)  overtime related. 
D)  regular hours.

Question 15

A process cost accounting system is appropriate for similar products that are continuously mass produced.

Accepted Answer

A) True 
 B)False

Question 16

In a job order cost system, it would be correct in recording the purchase of raw materials to debit

Accepted Answer

A)  Work in Process Inventory. 
B)  Work in Process and Manufacturing Overhead. 
C)  Raw Materials Inventory. 
D)  Finished Goods Inventory. 
A)  Work in Process Inventory. 
B)  Work in Process and Manufacturing Overhead. 
C)  Raw Materials Inventory. 
D)  Finished Goods Inventory.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

If the manufacturing overhead costs applied to jobs worked on were greater than the actual manufacturing costs incurred during a period, overhead is said to be

Accepted Answer

A)  underapplied. 
B)  overapplied. 
C)  in error. 
D)  prepaid. 
A)  underapplied. 
B)  overapplied. 
C)  in error. 
D)  prepaid.

Question 19

The flow of costs in a job order cost system

Accepted Answer

A)  involves accumulating manufacturing costs incurred and assigning the accumulated costs to work done. 
B)  cannot be measured until all jobs are complete. 
C)  measures product costs for a set time period. 
D)  generally follows a LIFO cost flow assumption. 
A)  involves accumulating manufacturing costs incurred and assigning the accumulated costs to work done. 
B)  cannot be measured until all jobs are complete. 
C)  measures product costs for a set time period. 
D)  generally follows a LIFO cost flow assumption.

Question 20

Overapplied manufacturing overhead exists when overhead assigned to work in process is

Accepted Answer

A)  more than overhead incurred and there is a debit balance in Manufacturing Overhead at the end of a period. 
B)  less than overhead incurred and there is a debit balance in Manufacturing Overhead at the end of a period. 
C)  more than overhead incurred and there is a credit balance in Manufacturing Overhead at the end of a period. 
D)  less than overhead incurred and there is a credit balance in Manufacturing Overhead at the end of a period. 
A)  more than overhead incurred and there is a debit balance in Manufacturing Overhead at the end of a period. 
B)  less than overhead incurred and there is a debit balance in Manufacturing Overhead at the end of a period. 
C)  more than overhead incurred and there is a credit balance in Manufacturing Overhead at the end of a period. 
D)  less than overhead incurred and there is a credit balance in Manufacturing Overhead at the end of a period.

If Manufacturing Overhead has a debit balance at the end of the period, then

If actual overhead is greater than applied manufacturing overhead, then manufacturing overhead is:

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

At the beginning of the year, Monroe Company estimates annual overhead costs to be $2,400,000 and that 300,000 machine hours will be operated. Using machine hours as a base, the amount of overhead applied during the year if actual machine hours for the year was 315,000 hours is

Job order cost sheets constitute the subsidiary ledger of the control account Work In Process Inventory.

Materials requisition slips are costed

The entry to record the acquisition of raw materials on account is

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

Recording the acquisition of raw materials is a part of accumulating manufacturing costs.

A process cost system would be used for all of the following except the

Overhead application is recorded with a

Accumulating and assigning manufacturing costs are two important activities in a job order cost system.

If the entry to assign factory labor showed only a debit to Work In Process Inventory, then all labor costs were

A process cost accounting system is appropriate for similar products that are continuously mass produced.

In a job order cost system, it would be correct in recording the purchase of raw materials to debit

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

If the manufacturing overhead costs applied to jobs worked on were greater than the actual manufacturing costs incurred during a period, overhead is said to be

The flow of costs in a job order cost system

Overapplied manufacturing overhead exists when overhead assigned to work in process is

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

If Manufacturing Overhead has a debit balance at the end of the period, then

If actual overhead is greater than applied manufacturing overhead, then manufacturing overhead is:

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

At the beginning of the year, Monroe Company estimates annual overhead costs to be $2,400,000 and that 300,000 machine hours will be operated. Using machine hours as a base, the amount of overhead applied during the year if actual machine hours for the year was 315,000 hours is

Job order cost sheets constitute the subsidiary ledger of the control account Work In Process Inventory.

Materials requisition slips are costed

The entry to record the acquisition of raw materials on account is

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

Recording the acquisition of raw materials is a part of accumulating manufacturing costs.

A process cost system would be used for all of the following except the

Overhead application is recorded with a

Accumulating and assigning manufacturing costs are two important activities in a job order cost system.

If the entry to assign factory labor showed only a debit to Work In Process Inventory, then all labor costs were

A process cost accounting system is appropriate for similar products that are continuously mass produced.

In a job order cost system, it would be correct in recording the purchase of raw materials to debit

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

If the manufacturing overhead costs applied to jobs worked on were greater than the actual manufacturing costs incurred during a period, overhead is said to be

The flow of costs in a job order cost system

Overapplied manufacturing overhead exists when overhead assigned to work in process is

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