Question 1

A job cost record is a document that accumulates direct materials costs, direct labor costs and manufacturing overhead costs assigned to each individual job.

Accepted Answer

A) True 
 B)False

Question 2

The main driver of indirect costs for service firms is usually labor hours.

Accepted Answer

A) True 
 B)False

Question 3

How is the cost of indirect labor used in the factory recorded?

Accepted Answer

A) Credit to manufacturing overhead 
B) Credit to wages payable 
C) Credit to work in process inventory 
D) Credit to wages expense 
A) Credit to manufacturing overhead 
B) Credit to wages payable 
C) Credit to work in process inventory 
D) Credit to wages expense

Question 4

The end goal of process costing and job costing at a manufacturing company is the same: to find the cost of producing one unit of product.

Accepted Answer

A) True 
 B)False

Question 5

Poland's Paints allocates overhead based on machine hours. Selected data for the most recent year follow.   The estimates were made as of the beginning of the year, while the actual results were for the entire year.
The predetermined manufacturing overhead rate per machine hour is closest to

Accepted Answer

A) $10.58. 
B) $12.20. 
C) $10.84. 
D) $11.90. 
A) $10.58. 
B) $12.20. 
C) $10.84. 
D) $11.90.

Question 6

In the flow of costs, which of the following comes second?

Accepted Answer

A) Cost of goods sold 
B) Finished goods inventory 
C) Work in process inventory 
D) Raw materials inventory 
A) Cost of goods sold 
B) Finished goods inventory 
C) Work in process inventory 
D) Raw materials inventory

Question 7

Which of the following entries would be made to record the requisition of $11,000 of direct materials and $6,000 of indirect materials?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 8

Which of the following types of costing is used for many similar products?

Accepted Answer

A) Process costing 
B) Batch costing 
C) Service costing 
D) Job costing 
A) Process costing 
B) Batch costing 
C) Service costing 
D) Job costing

Question 9

Which of these documents informs the storeroom to send specific materials to the factory floor?

Accepted Answer

A) Receiving report 
B) Bill of materials 
C) Purchase order 
D) Materials requisition 
A) Receiving report 
B) Bill of materials 
C) Purchase order 
D) Materials requisition

Question 10

Manufacturing overhead would include

Accepted Answer

A) all manufacturing costs except direct materials and direct labor. 
B) indirect labor costs only. 
C) all manufacturing costs. 
D) indirect materials only. 
A) all manufacturing costs except direct materials and direct labor. 
B) indirect labor costs only. 
C) all manufacturing costs. 
D) indirect materials only.

Question 11

If manufacturing overhead has been overallocated during the year, it means the jobs have been overcosted.

Accepted Answer

A) True 
 B)False

Question 12

The journal entry needed to record the completion of a job includes a

Accepted Answer

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

Question 13

A graphic designer spends 35 hours working with client #130 during May. Her basic annual salary is $61,440, while her annual salary plus benefits totals $80,640 per year. She typically works 40 hours a week for 48 weeks each year. What is the hourly cost to the firm that employs her?

Accepted Answer

A) $32 
B) $1,470 
C) $42 
D) $39 
A) $32 
B) $1,470 
C) $42 
D) $39

Question 14

Manufacturing overhead is underallocated if the amount

Accepted Answer

A) estimated for the period is greater than the amount allocated. 
B) estimated for the period is less than the amount allocated. 
C) allocated during the period is less than the actual amount incurred. 
D) allocated during the period is greater than the actual amount incurred. 
A) estimated for the period is greater than the amount allocated. 
B) estimated for the period is less than the amount allocated. 
C) allocated during the period is less than the actual amount incurred. 
D) allocated during the period is greater than the actual amount incurred.

Question 15

Briefly explain the difference between job order and process costing and give examples of each.

Accepted Answer

A job costing system will accumulate cos

Question 16

When used, raw materials

Accepted Answer

A) would be classified as direct materials. 
B) would be classified as direct labor. 
C) would be classified as indirect materials. 
D) cannot be determined with the information provided. 
A) would be classified as direct materials. 
B) would be classified as direct labor. 
C) would be classified as indirect materials. 
D) cannot be determined with the information provided.

Question 17

Shiloh Company uses a job costing system. The company's schedule of cost of goods manufactured showed the following amounts for September.   Actual manufacturing overhead costs for September amount to $24,000.
What is the amount of work in process inventory on September 30?

Accepted Answer

A) $13,500 
B) $66,000 
C) $73,500 
D) $21,000 
A) $13,500 
B) $66,000 
C) $73,500 
D) $21,000

Question 18

Jason Company manufactures custom engines for use in the lawn and garden equipment industry. The company allocates manufacturing overhead based on machine hours. Selected data for costs incurred for Job 890 are as follows:   What amount of manufacturing overhead would be allocated to Job 612?

Accepted Answer

A) $5,500 
B) $6,300 
C) $6,600 
D) $5,250 
A) $5,500 
B) $6,300 
C) $6,600 
D) $5,250

Question 19

Peterson Company gathered the following information for the year ended December 31:   What would the predetermined manufacturing overhead rate for the year be using direct labor cost as the allocation base?

Accepted Answer

A) 130% of direct labor cost 
B) 90% of direct labor cost 
C) 111% of direct labor cost 
D) 100% of direct labor cost 
A) 130% of direct labor cost 
B) 90% of direct labor cost 
C) 111% of direct labor cost 
D) 100% of direct labor cost

Question 20

The quantities of incoming shipments of raw materials are counted and recorded on a purchase order.

Accepted Answer

A) True 
 B)False

A job cost record is a document that accumulates direct materials costs, direct labor costs and manufacturing overhead costs assigned to each individual job.

The main driver of indirect costs for service firms is usually labor hours.

How is the cost of indirect labor used in the factory recorded?

The end goal of process costing and job costing at a manufacturing company is the same: to find the cost of producing one unit of product.

Poland's Paints allocates overhead based on machine hours. Selected data for the most recent year follow. The estimates were made as of the beginning of the year, while the actual results were for the entire year. The predetermined manufacturing overhead rate per machine hour is closest to

In the flow of costs, which of the following comes second?

Which of the following entries would be made to record the requisition of $11,000 of direct materials and $6,000 of indirect materials?

Which of the following types of costing is used for many similar products?

Which of these documents informs the storeroom to send specific materials to the factory floor?

Manufacturing overhead would include

If manufacturing overhead has been overallocated during the year, it means the jobs have been overcosted.

The journal entry needed to record the completion of a job includes a

A graphic designer spends 35 hours working with client #130 during May. Her basic annual salary is $61,440, while her annual salary plus benefits totals $80,640 per year. She typically works 40 hours a week for 48 weeks each year. What is the hourly cost to the firm that employs her?

Manufacturing overhead is underallocated if the amount

Briefly explain the difference between job order and process costing and give examples of each.

When used, raw materials

Shiloh Company uses a job costing system. The company's schedule of cost of goods manufactured showed the following amounts for September. Actual manufacturing overhead costs for September amount to $24,000. What is the amount of work in process inventory on September 30?

Jason Company manufactures custom engines for use in the lawn and garden equipment industry. The company allocates manufacturing overhead based on machine hours. Selected data for costs incurred for Job 890 are as follows: What amount of manufacturing overhead would be allocated to Job 612?

Peterson Company gathered the following information for the year ended December 31: What would the predetermined manufacturing overhead rate for the year be using direct labor cost as the allocation base?

The quantities of incoming shipments of raw materials are counted and recorded on a purchase order.

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Activity-Based Costing, Lean Operations, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Performance Evaluation

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters

Exam 3: Job Costing

A job cost record is a document that accumulates direct materials costs, direct labor costs and manufacturing overhead costs assigned to each individual job.

The main driver of indirect costs for service firms is usually labor hours.

How is the cost of indirect labor used in the factory recorded?

The end goal of process costing and job costing at a manufacturing company is the same: to find the cost of producing one unit of product.

Poland's Paints allocates overhead based on machine hours. Selected data for the most recent year follow. The estimates were made as of the beginning of the year, while the actual results were for the entire year. The predetermined manufacturing overhead rate per machine hour is closest to

In the flow of costs, which of the following comes second?

Which of the following entries would be made to record the requisition of $11,000 of direct materials and $6,000 of indirect materials?

Which of the following types of costing is used for many similar products?

Which of these documents informs the storeroom to send specific materials to the factory floor?

Manufacturing overhead would include

If manufacturing overhead has been overallocated during the year, it means the jobs have been overcosted.

The journal entry needed to record the completion of a job includes a

A graphic designer spends 35 hours working with client #130 during May. Her basic annual salary is $61,440, while her annual salary plus benefits totals $80,640 per year. She typically works 40 hours a week for 48 weeks each year. What is the hourly cost to the firm that employs her?

Manufacturing overhead is underallocated if the amount

Briefly explain the difference between job order and process costing and give examples of each.

When used, raw materials

Shiloh Company uses a job costing system. The company's schedule of cost of goods manufactured showed the following amounts for September. Actual manufacturing overhead costs for September amount to $24,000. What is the amount of work in process inventory on September 30?

Jason Company manufactures custom engines for use in the lawn and garden equipment industry. The company allocates manufacturing overhead based on machine hours. Selected data for costs incurred for Job 890 are as follows: What amount of manufacturing overhead would be allocated to Job 612?

Peterson Company gathered the following information for the year ended December 31: What would the predetermined manufacturing overhead rate for the year be using direct labor cost as the allocation base?

The quantities of incoming shipments of raw materials are counted and recorded on a purchase order.

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Activity-Based Costing, Lean Operations, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Performance Evaluation

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters