Question 1

Each document in the cost ledger is called a

Accepted Answer

A)  finished goods sheet 
B)  stock record 
C)  materials requisition 
D)  job cost sheet 
A)  finished goods sheet 
B)  stock record 
C)  materials requisition 
D)  job cost sheet D

Question 2

Which of the following would most likely use a job order costing system?

Accepted Answer

A)  a paper mill 
B)  a swimming pool installer 
C)  a company that manufactures chlorine for swimming pools 
D)  an oil refinery 
A)  a paper mill 
B)  a swimming pool installer 
C)  a company that manufactures chlorine for swimming pools 
D)  an oil refinery B

Question 3

Adams Company is a manufacturing company that has worked on several production jobs during the first quarter of the year.  Below is a list of all the jobs for the quarter:   Jobs 356, 357, 358, and 359 were completed.  Jobs 356 and 357 were sold at a profit of $500 on each job.
What is the balance of Sales for Adams Company at the end of the first quarter?

Accepted Answer

A)  $1,685 
B)  $2,685 
C)  $1,000 
D)  $685 
A)  $1,685 
B)  $2,685 
C)  $1,000 
D)  $685 B

Question 4

Which of the following are the two main types of cost accounting systems for manufacturing operations?

Accepted Answer

A)  process cost and general accounting systems 
B)  job order cost and process cost systems 
C)  job order and general accounting systems 
D)  process cost and replacement cost systems 
A)  process cost and general accounting systems 
B)  job order cost and process cost systems 
C)  job order and general accounting systems 
D)  process cost and replacement cost systems

Question 5

The Cavy Company accumulated 560 hours of direct labor on Job 345 and 800 hours on Job 777. The direct labor was incurred at a rate of $20 per direct labor hour for Job 345 and $21 per direct labor for Job 777. Journalize the entry to record the flow of labor costs into production.

Accepted Answer

The answer of The Cavy Company accumulated 560 hours of...

Question 6

Cost accounting systems measure, record, and report product costs.

Accepted Answer

A) True 
 B)False

Question 7

At the end of the fiscal year, the balance in Factory Overhead is small. The balance would be

Accepted Answer

A)  transferred to Work in Process 
B)  transferred to Cost of Goods Sold 
C)  transferred to Finished Goods 
D)  allocated between Work in Process and Finished Goods 
A)  transferred to Work in Process 
B)  transferred to Cost of Goods Sold 
C)  transferred to Finished Goods 
D)  allocated between Work in Process and Finished Goods

Question 8

Materials are transferred from the storeroom to the factory in response to materials requisitions.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following entries would not be found on the books of a service provider?

Accepted Answer

A)  a debit to Work in Process, and a credit to Materials 
B)  a debit to Work in Process, and a credit to Wages Payable 
C)  a debit to Work in Process, and a credit to Overhead 
D)  a debit to Cost of Services, and a credit to Work in Process 
A)  a debit to Work in Process, and a credit to Materials 
B)  a debit to Work in Process, and a credit to Wages Payable 
C)  a debit to Work in Process, and a credit to Overhead 
D)  a debit to Cost of Services, and a credit to Work in Process

Question 10

Using the job order cost system, service organizations are able to bill customers on a weekly or monthly basis, even when the job has not been completed.

Accepted Answer

A) True 
 B)False

Question 11

In a job order cost accounting system for a service business, materials costs are normally included as part of overhead.

Accepted Answer

A) True 
 B)False

Question 12

At the end of April, Cavy Company had completed Jobs 766 and 765. The individual job cost sheets reveal the following information:   
Job 765 produced 152 units, and Job 766 consisted of 250 units. 
Assuming that the predetermined overhead rate is applied by using machine hours at a rate of $200 per hour, determine the (a) balance on the job cost sheets for each job, and (b) the cost per unit at the end of April.

Accepted Answer

a) Job No. 765 = $14,570 ($5,6

Question 13

The controlling account for the cost ledger is

Accepted Answer

A)  Finished Goods 
B)  Materials 
C)  Work in Process 
D)  Cost of Goods Sold 
A)  Finished Goods 
B)  Materials 
C)  Work in Process 
D)  Cost of Goods Sold

Question 14

The following budget data are available for Sharp Company:   If factory overhead is to be applied based on direct labor dollars, the predetermined overhead rate is

Accepted Answer

A)  199% 
B)  196% 
C)  $14.92 
D)  $15.65 
A)  199% 
B)  196% 
C)  $14.92 
D)  $15.65

Question 15

Interim financial statements for a manufacturing business would report overapplied factory overhead as a deferred item on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 16

Adams Company is a manufacturing company that has worked on several production jobs during the first quarter of the year.  Below is a list of all the jobs for the quarter:   Jobs 356, 357, 358, and 359 were completed.  Jobs 356 and 357 were sold at a profit of $500 on each job.
What is the ending balance of Finished Goods for Adams Company at the end of the first quarter?

Accepted Answer

A)  $456 
B)  $1,067 
C)  $1,685 
D)  $2,752 
A)  $456 
B)  $1,067 
C)  $1,685 
D)  $2,752

Question 17

The process cost system is appropriate where few products are manufactured and each product is made to customers' specifications.

Accepted Answer

A) True 
 B)False

Question 18

The basis for recording direct and indirect labor costs incurred is a summary of the period's

Accepted Answer

A)  job order cost sheets 
B)  time tickets 
C)  employees' earnings records 
D)  clock cards 
A)  job order cost sheets 
B)  time tickets 
C)  employees' earnings records 
D)  clock cards

Question 19

Recording jobs shipped and customers billed would include a credit to

Accepted Answer

A)  Accounts Payable 
B)  Cash 
C)  Finished Goods 
D)  Cost of Goods Sold 
A)  Accounts Payable 
B)  Cash 
C)  Finished Goods 
D)  Cost of Goods Sold

Question 20

A process cost accounting system provides for a separate record of the cost of each particular quantity of product that passes through the factory.

Accepted Answer

A) True 
 B)False

Each document in the cost ledger is called a

Which of the following would most likely use a job order costing system?

Which of the following are the two main types of cost accounting systems for manufacturing operations?

The Cavy Company accumulated 560 hours of direct labor on Job 345 and 800 hours on Job 777. The direct labor was incurred at a rate of $20 per direct labor hour for Job 345 and $21 per direct labor for Job 777. Journalize the entry to record the flow of labor costs into production.

Cost accounting systems measure, record, and report product costs.

At the end of the fiscal year, the balance in Factory Overhead is small. The balance would be

Materials are transferred from the storeroom to the factory in response to materials requisitions.

Which of the following entries would not be found on the books of a service provider?

Using the job order cost system, service organizations are able to bill customers on a weekly or monthly basis, even when the job has not been completed.

In a job order cost accounting system for a service business, materials costs are normally included as part of overhead.

The controlling account for the cost ledger is

The following budget data are available for Sharp Company: If factory overhead is to be applied based on direct labor dollars, the predetermined overhead rate is

Interim financial statements for a manufacturing business would report overapplied factory overhead as a deferred item on the balance sheet.

The process cost system is appropriate where few products are manufactured and each product is made to customers' specifications.

The basis for recording direct and indirect labor costs incurred is a summary of the period's

Recording jobs shipped and customers billed would include a credit to

A process cost accounting system provides for a separate record of the cost of each particular quantity of product that passes through the factory.

Introduction to Managerial Accounting

Process Cost Systems

Activity Based Costing

Cost Volume Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

Statement of Cash Flows

Financial Statement Analysis

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Exam 2: Job Order Costing

Each document in the cost ledger is called a

Which of the following would most likely use a job order costing system?

Which of the following are the two main types of cost accounting systems for manufacturing operations?

The Cavy Company accumulated 560 hours of direct labor on Job 345 and 800 hours on Job 777. The direct labor was incurred at a rate of $20 per direct labor hour for Job 345 and $21 per direct labor for Job 777. Journalize the entry to record the flow of labor costs into production.

Cost accounting systems measure, record, and report product costs.

At the end of the fiscal year, the balance in Factory Overhead is small. The balance would be

Materials are transferred from the storeroom to the factory in response to materials requisitions.

Which of the following entries would not be found on the books of a service provider?

Using the job order cost system, service organizations are able to bill customers on a weekly or monthly basis, even when the job has not been completed.

In a job order cost accounting system for a service business, materials costs are normally included as part of overhead.

The controlling account for the cost ledger is

The following budget data are available for Sharp Company: If factory overhead is to be applied based on direct labor dollars, the predetermined overhead rate is

Interim financial statements for a manufacturing business would report overapplied factory overhead as a deferred item on the balance sheet.

The process cost system is appropriate where few products are manufactured and each product is made to customers' specifications.

The basis for recording direct and indirect labor costs incurred is a summary of the period's

Recording jobs shipped and customers billed would include a credit to

A process cost accounting system provides for a separate record of the cost of each particular quantity of product that passes through the factory.

Introduction to Managerial Accounting

Process Cost Systems

Activity Based Costing

Cost Volume Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

Statement of Cash Flows

Financial Statement Analysis

Filters