Question 1

In a job order cost system, each entry to the Work In Process Inventory account should be accompanied by a posting to one or more job cost sheets.

Accepted Answer

A) True 
 B)False

Question 2

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 3

Kinney Company applies overhead on the basis of 150% of direct labor cost. Job No. 176 is charged with $150,000 of direct materials costs and $180,000 of manufacturing overhead. The total manufacturing costs for Job No. 176 is

Accepted Answer

A)  $330,000. 
B)  $600,000. 
C)  $450,000. 
D)  $405,000. 
A)  $330,000. 
B)  $600,000. 
C)  $450,000. 
D)  $405,000.

Question 4

The Purchases account is credited for all raw materials purchase returns and allowances.

Accepted Answer

A) True 
 B)False

Question 5

In a manufacturing company, the cost of factory labor consists of all of the following except

Accepted Answer

A)  employer payroll taxes. 
B)  fringe benefits incurred by the employer. 
C)  net earnings of factory workers. 
D)  gross earnings of factory workers. 
A)  employer payroll taxes. 
B)  fringe benefits incurred by the employer. 
C)  net earnings of factory workers. 
D)  gross earnings of factory workers.

Question 6

The predetermined overhead rate is based on the relationship between

Accepted Answer

A)  estimated annual costs and actual activity. 
B)  estimated annual costs and expected annual activity. 
C)  actual monthly costs and actual annual activity. 
D)  estimated monthly costs and actual monthly activity. 
A)  estimated annual costs and actual activity. 
B)  estimated annual costs and expected annual activity. 
C)  actual monthly costs and actual annual activity. 
D)  estimated monthly costs and actual monthly activity.

Question 7

When goods are sold, the Cost of Goods Sold account is debited and Work in Process Inventory account is credited.

Accepted Answer

A) True 
 B)False

Question 8

Manufacturing Overhead would not have a subsidiary account for

Accepted Answer

A)  utilities. 
B)  property taxes. 
C)  insurance. 
D)  raw materials inventory. 
A)  utilities. 
B)  property taxes. 
C)  insurance. 
D)  raw materials inventory.

Question 9

If annual overhead costs are expected to be $750,000 and direct labor costs are expected to be $1,000,000, then if the activity base is direct labor costs:

Accepted Answer

A)  $1.33 is the predetermined overhead rate. 
B)  for every dollar of manufacturing overhead, 75 cents of direct labor will be assigned. 
C)  for every dollar of direct labor, 75 cents of manufacturing overhead will be assigned. 
D)  a predetermined overhead rate cannot be determined. 
A)  $1.33 is the predetermined overhead rate. 
B)  for every dollar of manufacturing overhead, 75 cents of direct labor will be assigned. 
C)  for every dollar of direct labor, 75 cents of manufacturing overhead will be assigned. 
D)  a predetermined overhead rate cannot be determined.

Question 10

Manufacturing overhead is applied to each job

Accepted Answer

A)  at the time when the overhead cost is incurred. 
B)  by means of a predetermined overhead rate. 
C)  at the end of the year when actual costs are known. 
D)  only if the overhead costs can be directly traced to that job. 
A)  at the time when the overhead cost is incurred. 
B)  by means of a predetermined overhead rate. 
C)  at the end of the year when actual costs are known. 
D)  only if the overhead costs can be directly traced to that job.

Question 11

Which of the following is not a control account?

Accepted Answer

A)  Manufacturing Overhead 
B)  Raw materials inventory 
C)  Accounts Receivable 
D)  All fo these are control accounts 
A)  Manufacturing Overhead 
B)  Raw materials inventory 
C)  Accounts Receivable 
D)  All fo these are control accounts

Question 12

Which one of the following is a source document that impacts the job cost sheet?

Accepted Answer

A)  Raw materials receiving slips. 
B)  Materials purchase orders. 
C)  Labor time tickets. 
D)  Finished goods shipping documents. 
A)  Raw materials receiving slips. 
B)  Materials purchase orders. 
C)  Labor time tickets. 
D)  Finished goods shipping documents.

Question 13

When the company assigns factory labor costs to jobs, the direct labor cost is debited to

Accepted Answer

A)  Direct Labor. 
B)  Factory Labor. 
C)  Manufacturing Overhead. 
D)  Work in Process Inventory. 
A)  Direct Labor. 
B)  Factory Labor. 
C)  Manufacturing Overhead. 
D)  Work in Process Inventory.

Question 14

The two major steps in the flow of costs are

Accepted Answer

A)  allocating and assigning. 
B)  acquiring and accumulating. 
C)  accumulating and assigning. 
D)  accumulating and amortizing. 
A)  allocating and assigning. 
B)  acquiring and accumulating. 
C)  accumulating and assigning. 
D)  accumulating and amortizing.

Question 15

Debits to Work in Process Inventory are accompanied by a credit to all but which one of the following accounts?

Accepted Answer

A)  Raw Materials Inventory 
B)  Factory Labor 
C)  Manufacturing Overhead 
D)  Cost of Goods Sold 
A)  Raw Materials Inventory 
B)  Factory Labor 
C)  Manufacturing Overhead 
D)  Cost of Goods Sold

Question 16

Factory labor should be assigned to selling and administrative expenses on a proportionate basis.

Accepted Answer

A) True 
 B)False

Question 17

The principal accounting record used in assigning costs to jobs is

Accepted Answer

A)  a job cost sheet. 
B)  the cost of goods manufactured schedule. 
C)  the Manufacturing Overhead control account. 
D)  the stores ledger cards. 
A)  a job cost sheet. 
B)  the cost of goods manufactured schedule. 
C)  the Manufacturing Overhead control account. 
D)  the stores ledger cards.

Question 18

Which of the following is not viewed as part of assigning manufacturing costs in a job order cost system?

Accepted Answer

A)  Manufacturing overhead is applied 
B)  Raw materials are used 
C)  Manufacturing overhead is incurred 
D)  Completed goods are recognized 
A)  Manufacturing overhead is applied 
B)  Raw materials are used 
C)  Manufacturing overhead is incurred 
D)  Completed goods are recognized

Question 19

Overapplied overhead means that actual manufacturing overhead costs were greater than the manufacturing overhead costs applied to jobs.

Accepted Answer

A) True 
 B)False

Question 20

Usually, under- or overapplied overhead is considered to be an adjustment to

Accepted Answer

A)  work in process. 
B)  finished goods. 
C)  finished goods and cost of goods sold. 
D)  cost of goods sold. 
A)  work in process. 
B)  finished goods. 
C)  finished goods and cost of goods sold. 
D)  cost of goods sold.

In a job order cost system, each entry to the Work In Process Inventory account should be accompanied by a posting to one or more job cost sheets.

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

Kinney Company applies overhead on the basis of 150% of direct labor cost. Job No. 176 is charged with $150,000 of direct materials costs and $180,000 of manufacturing overhead. The total manufacturing costs for Job No. 176 is

The Purchases account is credited for all raw materials purchase returns and allowances.

In a manufacturing company, the cost of factory labor consists of all of the following except

The predetermined overhead rate is based on the relationship between

When goods are sold, the Cost of Goods Sold account is debited and Work in Process Inventory account is credited.

Manufacturing Overhead would not have a subsidiary account for

If annual overhead costs are expected to be $750,000 and direct labor costs are expected to be $1,000,000, then if the activity base is direct labor costs:

Manufacturing overhead is applied to each job

Which of the following is not a control account?

Which one of the following is a source document that impacts the job cost sheet?

When the company assigns factory labor costs to jobs, the direct labor cost is debited to

The two major steps in the flow of costs are

Debits to Work in Process Inventory are accompanied by a credit to all but which one of the following accounts?

Factory labor should be assigned to selling and administrative expenses on a proportionate basis.

The principal accounting record used in assigning costs to jobs is

Which of the following is not viewed as part of assigning manufacturing costs in a job order cost system?

Overapplied overhead means that actual manufacturing overhead costs were greater than the manufacturing overhead costs applied to jobs.

Usually, under- or overapplied overhead is considered to be an adjustment to

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 a job order cost system, each entry to the Work In Process Inventory account should be accompanied by a posting to one or more job cost sheets.

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

Kinney Company applies overhead on the basis of 150% of direct labor cost. Job No. 176 is charged with $150,000 of direct materials costs and $180,000 of manufacturing overhead. The total manufacturing costs for Job No. 176 is

The Purchases account is credited for all raw materials purchase returns and allowances.

In a manufacturing company, the cost of factory labor consists of all of the following except

The predetermined overhead rate is based on the relationship between

When goods are sold, the Cost of Goods Sold account is debited and Work in Process Inventory account is credited.

Manufacturing Overhead would not have a subsidiary account for

If annual overhead costs are expected to be $750,000 and direct labor costs are expected to be $1,000,000, then if the activity base is direct labor costs:

Manufacturing overhead is applied to each job

Which of the following is not a control account?

Which one of the following is a source document that impacts the job cost sheet?

When the company assigns factory labor costs to jobs, the direct labor cost is debited to

The two major steps in the flow of costs are

Debits to Work in Process Inventory are accompanied by a credit to all but which one of the following accounts?

Factory labor should be assigned to selling and administrative expenses on a proportionate basis.

The principal accounting record used in assigning costs to jobs is

Which of the following is not viewed as part of assigning manufacturing costs in a job order cost system?

Overapplied overhead means that actual manufacturing overhead costs were greater than the manufacturing overhead costs applied to jobs.

Usually, under- or overapplied overhead is considered to be an adjustment to

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