Question 1

All of the following would be entries in assigning accumulated costs to the Work In Process Inventory except:

Accepted Answer

A)  the purchase of raw materials. 
B)  raw materials are used. 
C)  overhead is applied. 
D)  factory labor is used. 
A)  the purchase of raw materials. 
B)  raw materials are used. 
C)  overhead is applied. 
D)  factory labor is used.

Question 2

A job order cost system is most appropriate when a large volume of uniform products are produced.

Accepted Answer

A) True 
 B)False

Question 3

Madison Inc. uses job order costing for its brand new line of sewing machines. The cost incurred for production during 2019 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 4

During 2019, Cotte Manufacturing expected Job No. 59 to cost $300,000 of overhead, $500,000 of materials, and $200,000 in labor. Cotte 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. How much is the amount of over- or underapplied overhead?

Accepted Answer

A)  $5,000 underapplied 
B)  $5,000 overapplied 
C)  $35,000 underapplied 
D)  $35,000 overapplied 
A)  $5,000 underapplied 
B)  $5,000 overapplied 
C)  $35,000 underapplied 
D)  $35,000 overapplied

Question 5

Factory labor costs

Accepted Answer

A)  are accumulated in a control account. 
B)  do not include pension costs. 
C)  include vacation pay. 
D)  are based on workers' net pay. 
A)  are accumulated in a control account. 
B)  do not include pension costs. 
C)  include vacation pay. 
D)  are based on workers' net pay.

Question 6

A copy of the materials requisition slip would not include the:

Accepted Answer

A)  quantity. 
B)  stock number. 
C)  cost per unit. 
D)  name of the supplier. 
A)  quantity. 
B)  stock number. 
C)  cost per unit. 
D)  name of the supplier.

Question 7

There should be a separate job cost sheet for each job.

Accepted Answer

A) True 
 B)False

Question 8

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 9

The following information is available for completed Job No. 402: Direct materials, $120,000; direct labor, $180,000; manufacturing overhead applied, $90,000; units produced, 5,000 units; units sold, 4,000 units. The cost of the finished goods on hand from this job is

Accepted Answer

A)  $60,000. 
B)  $390,000. 
C)  $78,000. 
D)  $312,000. 
A)  $60,000. 
B)  $390,000. 
C)  $78,000. 
D)  $312,000.

Question 10

Simpson Company applies overhead on the basis of 200% of direct labor cost. Job No. 305 is charged with $180,000 of direct materials costs and $200,000 of manufacturing overhead. The total manufacturing costs for Job No. 305 is:

Accepted Answer

A)  $380,000 
B)  $480,000 
C)  $560,000 
D)  $580,000 
A)  $380,000 
B)  $480,000 
C)  $560,000 
D)  $580,000

Question 11

An important feature of a job order cost system is that each job

Accepted Answer

A)  must be similar to previous jobs completed. 
B)  has its own distinguishing characteristics. 
C)  must be completed before a new job is accepted. 
D)  consists of one unit of output. 
A)  must be similar to previous jobs completed. 
B)  has its own distinguishing characteristics. 
C)  must be completed before a new job is accepted. 
D)  consists of one unit of output.

Question 12

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.

Question 13

Jinnah Company applies overhead on the basis of 200% of direct labor cost. Job No. 501 is charged with $240,000 of direct materials costs and $320,000 of manufacturing overhead. The total manufacturing costs for Job No. 501 is

Accepted Answer

A)  $560,000. 
B)  $880,000. 
C)  $720,000. 
D)  $800,000. 
A)  $560,000. 
B)  $880,000. 
C)  $720,000. 
D)  $800,000.

Question 14

A process cost system would most likely be used by a company that makes

Accepted Answer

A)  motion pictures. 
B)  repairs to automobiles. 
C)  breakfast cereal. 
D)  college graduation announcements. 
A)  motion pictures. 
B)  repairs to automobiles. 
C)  breakfast cereal. 
D)  college graduation announcements.

Question 15

During 2019, Tanner Manufacturing expected Job No. 26 to cost $300,000 of overhead, $500,000 of materials, and $200,000 in labor. Tanner applied overhead based on direct labor cost. Actual production required an overhead cost of $290,000, $550,000 in materials used, and $220,000 in labor. All of the goods were completed. What amount was transferred to Finished Goods?

Accepted Answer

A)  $1,000,000 
B)  $1,060,000 
C)  $1,070,000 
D)  $1,100,000 
A)  $1,000,000 
B)  $1,060,000 
C)  $1,070,000 
D)  $1,100,000

Question 16

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 17

Cost accounting is primarily concerned with accumulating information about product costs.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is not a control account?

Accepted Answer

A)  Raw Materials Inventory 
B)  Factory Labor 
C)  Manufacturing Overhead 
D)  All of these are control accounts. 
A)  Raw Materials Inventory 
B)  Factory Labor 
C)  Manufacturing Overhead 
D)  All of these are control accounts.

Question 19

Conceptually, any under- or overapplied overhead at the end of the year should be allocated among all of the following except

Accepted Answer

A)  cost of goods sold. 
B)  ending work in process inventory. 
C)  ending raw materials inventory. 
D)  ending finished goods inventory. 
A)  cost of goods sold. 
B)  ending work in process inventory. 
C)  ending raw materials inventory. 
D)  ending finished goods inventory.

Question 20

A job order cost system identifies costs with a particular job rather than with a set time period.

Accepted Answer

A) True 
 B)False

All of the following would be entries in assigning accumulated costs to the Work In Process Inventory except:

A job order cost system is most appropriate when a large volume of uniform products are produced.

Factory labor costs

A copy of the materials requisition slip would not include the:

There should be a separate job cost sheet for each job.

The following information is available for completed Job No. 402: Direct materials, $120,000; direct labor, $180,000; manufacturing overhead applied, $90,000; units produced, 5,000 units; units sold, 4,000 units. The cost of the finished goods on hand from this job is

Simpson Company applies overhead on the basis of 200% of direct labor cost. Job No. 305 is charged with $180,000 of direct materials costs and $200,000 of manufacturing overhead. The total manufacturing costs for Job No. 305 is:

An important feature of a job order cost system is that each job

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

Jinnah Company applies overhead on the basis of 200% of direct labor cost. Job No. 501 is charged with $240,000 of direct materials costs and $320,000 of manufacturing overhead. The total manufacturing costs for Job No. 501 is

A process cost system would most likely be used by a company that makes

A time ticket does not indicate the

Cost accounting is primarily concerned with accumulating information about product costs.

Which of the following is not a control account?

Conceptually, any under- or overapplied overhead at the end of the year should be allocated among all of the following except

A job order cost system identifies costs with a particular job rather than with a set time period.

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

All of the following would be entries in assigning accumulated costs to the Work In Process Inventory except:

A job order cost system is most appropriate when a large volume of uniform products are produced.

Factory labor costs

A copy of the materials requisition slip would not include the:

There should be a separate job cost sheet for each job.

The following information is available for completed Job No. 402: Direct materials, $120,000; direct labor, $180,000; manufacturing overhead applied, $90,000; units produced, 5,000 units; units sold, 4,000 units. The cost of the finished goods on hand from this job is

Simpson Company applies overhead on the basis of 200% of direct labor cost. Job No. 305 is charged with $180,000 of direct materials costs and $200,000 of manufacturing overhead. The total manufacturing costs for Job No. 305 is:

An important feature of a job order cost system is that each job

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

Jinnah Company applies overhead on the basis of 200% of direct labor cost. Job No. 501 is charged with $240,000 of direct materials costs and $320,000 of manufacturing overhead. The total manufacturing costs for Job No. 501 is

A process cost system would most likely be used by a company that makes

A time ticket does not indicate the

Cost accounting is primarily concerned with accumulating information about product costs.

Which of the following is not a control account?

Conceptually, any under- or overapplied overhead at the end of the year should be allocated among all of the following except

A job order cost system identifies costs with a particular job rather than with a set time period.

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