Question 1

In a job-order costing system,the use of indirect material would usually be reflected in the general ledger as an increase in

Accepted Answer

A) stores control. 
B) work in process control. 
C) manufacturing overhead applied. 
D) manufacturing overhead control. 
A) stores control. 
B) work in process control. 
C) manufacturing overhead applied. 
D) manufacturing overhead control.

Question 2

Robertson Company.
Robertson Company uses a job-order costing system and the following information is available from its records.The company has three jobs in process: #8,#12,and #15.
Raw matenial used                                                            $130,000
Direct lab or per hour                                                        $\$ 9.50$
Overhead applied bared on direct lab or cost                     $125 \%$ 
Direct material was requisitioned as follows for each job respectively: 25 percent,30 percent,and 30 percent;the balance of the requisitions was considered indirect.Direct labor hours per job are 2,800;3,300;and 4,000;respectively.Indirect labor is $45,000.Other actual overhead costs totaled $50,000.
Refer to Robertson Company.Assume the balance in Work in Process Inventory was $21,500 on April 1 and $29,520 on April 30.The balance on April 30 represents one job that contains direct material of $12,375.How many direct labor hours have been worked on this job (rounded to the nearest hour)?

Accepted Answer

A) 802 
B) 1,381 
C) 1,805 
D) 3,107 
A) 802 
B) 1,381 
C) 1,805 
D) 3,107

Question 3

Knowing specific job costs enables managers to effectively perform which of the following tasks?

Accepted Answer

A) estimate costs of future jobs. 
B) establish realistic job selling prices. 
C) evaluate job performance. 
D) all answers are correct. 
A) estimate costs of future jobs. 
B) establish realistic job selling prices. 
C) evaluate job performance. 
D) all answers are correct.

Question 4

In a job-order costing system,the net cost of normal spoilage is equal to

Accepted Answer

A) estimated disposal value plus the cost of spoiled work. 
B) the cost of spoiled work minus estimated spoilage cost. 
C) the units of spoiled work times the predetermined overhead rate. 
D) the cost of spoiled work minus the estimated disposal value. 
A) estimated disposal value plus the cost of spoiled work. 
B) the cost of spoiled work minus estimated spoilage cost. 
C) the units of spoiled work times the predetermined overhead rate. 
D) the cost of spoiled work minus the estimated disposal value.

Question 5

Trinity Corporation manufactures products on a job-order basis.The job cost sheet for Job #902 shows the following for June:
             Direct material       $6,000               Direct labor (100 hours @ $8.50)       $935               Machine hours incurred       50               Predetermined overhead rate per machine hour       $28      
At the end of June,what total cost appears on the job cost sheet for Job #902?

Accepted Answer

A) $ 6,935 
B) $ 6,985 
C) $ 8,335 
D) $10,015 
A) $ 6,935 
B) $ 6,985 
C) $ 8,335 
D) $10,015

Question 6

Hodges Company uses a job-order costing system and has the following information for the first week of June:
 1.$$\text { Direct labor and materials used }$$
             Job No.         Direct Material          Direct Labor Hours               498       $1,500       116               506        960       16               507        415       18               508        345       42               509       652       24               5011        308       10               512        835       30               Total       $5,015       256       
 2.$\text { The directlabor wage rate is } \$ 4 \text { per hour }$ 
 3. $\text { The overhead rate is } \$ 5 \text { per direct labor hour }$ 
 4.$\text { Actual overthead costs for the week } \$ 1.480$ 
 5. $\text { Jobs completed: Nos. } 498,506 \text {, and } 509$ 
 6. $\text { The factory had no wotk in process at the begining of the week }$
 
Required:
 a. $\text { Prepare a summary that }  \text {will show the total cost assigne do each job }$ 
 b.$\text { Compute the anount of overhe ad over- of underapplied duming the week }$ 
 c. Calculate the cost of the work in process at the end of the week

Accepted Answer

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 2.@#LAT-DLM& 
 3. @#LAT-DLM& 
 4.@#LAT-DLM& 
 5. @#LAT-DLM& 
 6. @#LAT-DLM&

Question 7

In a job-order costing system,the subsidiary ledger for Finished Goods Inventory is comprised of

Accepted Answer

A) all job-order cost sheets. 
B) job-order cost sheets for all uncompleted jobs. 
C) job-order cost sheets for all completed jobs not yet sold. 
D) job-order cost sheets for all ordered,uncompleted,and completed jobs. 
A) all job-order cost sheets. 
B) job-order cost sheets for all uncompleted jobs. 
C) job-order cost sheets for all completed jobs not yet sold. 
D) job-order cost sheets for all ordered,uncompleted,and completed jobs.

Question 8

Three methods of job-cost valuation are normal,standard,and ______

Accepted Answer

The answer of Three methods of job-cost valuation are normal,standard,and...

Question 9

Chapman Company
Chapman Company uses a job-order costing system.At the beginning of March,the company had two jobs in process with the following costs:
                   Direct Material        Direct Labor       Overhead               Job #456       $3,400       $510       $255               Job #461        1,100        289       ?      
Chapman pays its workers $8.50 per hour and applies overhead on a direct labor hour basis.
Refer to Chapman Company.What is the overhead application rate per direct labor hour?

Accepted Answer

A) $ 0.50 
B) $ 2.00 
C) $ 4.25 
D) $30.00 
A) $ 0.50 
B) $ 2.00 
C) $ 4.25 
D) $30.00

Question 10

Moore Company.
Moore Company uses a job-order costing system and the following information is available from its records.The company has three jobs in process: #6,#9,and #13.
Raw matenial used                                                            $120,000
Direct lab or per hour                                                        $\$ 8.50$
Overhead applied bared on direct lab or cost                     $120 \%$
Direct material was requisitioned as follows for each job respectively: 30 percent,25 percent,and 25 percent;the balance of the requisitions was considered indirect.Direct labor hours per job are 2,500;3,100;and 4,200;respectively.Indirect labor is $33,000.Other actual overhead costs totaled $36,000.
Refer to Moore Company.What is the prime cost of Job #6?

Accepted Answer

A) $42,250 
B) $57,250 
C) $73,250 
D) $82,750 
A) $42,250 
B) $57,250 
C) $73,250 
D) $82,750

Question 11

Franklin Company
Franklin Company uses a job-order costing system.Assume that Job #309 is the only one in process.The following information is available:
             Budgeted direct labor hours        72,000       Budgeted machine hours        11,000               Budgeted overhead       $400,000       Direct material       $122,750              Direct labor cost         $80,000                    
Refer to Franklin Company.What is the overhead application rate if Franklin uses a predetermined overhead application rate based on direct labor hours (rounded to the nearest whole dollar)?

Accepted Answer

A) $ 0.20 
B) $ 5.00 
C) $ 5.56 
D) $36.36 
A) $ 0.20 
B) $ 5.00 
C) $ 5.56 
D) $36.36

Question 12

Robertson Company.
Robertson Company uses a job-order costing system and the following information is available from its records.The company has three jobs in process: #8,#12,and #15.
Raw matenial used                                                            $130,000
Direct lab or per hour                                                        $\$ 9.50$
Overhead applied bared on direct lab or cost                     $125 \%$ 
Direct material was requisitioned as follows for each job respectively: 25 percent,30 percent,and 30 percent;the balance of the requisitions was considered indirect.Direct labor hours per job are 2,800;3,300;and 4,000;respectively.Indirect labor is $45,000.Other actual overhead costs totaled $50,000.
Refer to Robertson Company.If Job #15 is completed and transferred,what is the balance in Work in Process Inventory at the end of the period if overhead is applied at the end of the period?

Accepted Answer

A) $191,925 
B) $201,888 
C) $205,284 
D) $208,908 
A) $191,925 
B) $201,888 
C) $205,284 
D) $208,908

Question 13

Which of the following could not be used in job-order costing?

Accepted Answer

A) standards 
B) an average cost per unit for all jobs 
C) normal costing 
D) overhead allocation based on the job's direct labor hours 
A) standards 
B) an average cost per unit for all jobs 
C) normal costing 
D) overhead allocation based on the job's direct labor hours

Question 14

Spoiled units are

Accepted Answer

A) units that cannot be economically reworked to bring them up to standard. 
B) units that can be economically reworked to bring them up to standard. 
C) the same as defective units. 
D) considered abnormal losses. 
A) units that cannot be economically reworked to bring them up to standard. 
B) units that can be economically reworked to bring them up to standard. 
C) the same as defective units. 
D) considered abnormal losses.

Question 15

When production is completed on a job,finished goods are transferred to the _______ account.

Accepted Answer

Finished G

Question 16

As data input functions are automated,Intranet data becomes more

Accepted Answer

A) complicated to access. 
B) manufacturing,but not accounting,oriented. 
C) real-time accessible. 
D) expensive to install,but easier to use. 
A) complicated to access. 
B) manufacturing,but not accounting,oriented. 
C) real-time accessible. 
D) expensive to install,but easier to use.

Question 17

At the end of the last fiscal year,Sheraton Company had the following account balances:
Overupplied ovehend                                    $\$ 6,000$
Cast ar Gands Eald                                      $980,000
Work in Process Irvintory                              $\$ 38,000$
FinishedGoods Inventory                                $ \$ 82,000 $

If the most common treatment of assigning overapplied overhead were used,the final balance in Cost of Goods Sold is:

Accepted Answer

A) $974,000. 
B) $974,660. 
C) $985,340. 
D) $986,000. 
A) $974,000. 
B) $974,660. 
C) $985,340. 
D) $986,000.

Question 18

Production overhead does not include the costs of

Accepted Answer

A) factory depreciation and supplies. 
B) factory employees' cafeteria departments. 
C) production line labor. 
D) the maintenance department for the factory. 
A) factory depreciation and supplies. 
B) factory employees' cafeteria departments. 
C) production line labor. 
D) the maintenance department for the factory.

Question 19

Normal spoilage is considered a period cost.

Accepted Answer

A) True 
 B)False

Question 20

A material requisition form should show all of the following information except

Accepted Answer

A) job number. 
B) quantity required. 
C) unit cost. 
D) purchase order number. 
A) job number. 
B) quantity required. 
C) unit cost. 
D) purchase order number.

In a job-order costing system,the use of indirect material would usually be reflected in the general ledger as an increase in

Knowing specific job costs enables managers to effectively perform which of the following tasks?

In a job-order costing system,the net cost of normal spoilage is equal to

In a job-order costing system,the subsidiary ledger for Finished Goods Inventory is comprised of

Three methods of job-cost valuation are normal,standard,and ______

Which of the following could not be used in job-order costing?

Spoiled units are

When production is completed on a job,finished goods are transferred to the _______ account.

As data input functions are automated,Intranet data becomes more

Production overhead does not include the costs of

Normal spoilage is considered a period cost.

A material requisition form should show all of the following information except

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, Flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting,support Department Allocations,and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters

Direct material	$6,000
Direct labor (100 hours @ $8.50)	$935
Machine hours incurred	50
Predetermined overhead rate per machine hour	$28

Job No.	Direct Material	Direct Labor Hours
498	$1,500	116
506	960	16
507	415	18
508	345	42
509	652	24
5011	308	10
512	835	30
Total	$5,015	256

Budgeted direct labor hours	72,000	Budgeted machine hours	11,000
Budgeted overhead	$400,000	Direct material	$122,750
Direct labor cost	$80,000

Exam 5: Job Order Costing

In a job-order costing system,the use of indirect material would usually be reflected in the general ledger as an increase in

Knowing specific job costs enables managers to effectively perform which of the following tasks?

In a job-order costing system,the net cost of normal spoilage is equal to

In a job-order costing system,the subsidiary ledger for Finished Goods Inventory is comprised of

Three methods of job-cost valuation are normal,standard,and ______

Which of the following could not be used in job-order costing?

Spoiled units are

When production is completed on a job,finished goods are transferred to the _______ account.

As data input functions are automated,Intranet data becomes more

Production overhead does not include the costs of

Normal spoilage is considered a period cost.

A material requisition form should show all of the following information except

Introduction to Cost Accounting

Cost Terminology and Cost Behaviors

Predetermined Overhead Rates, Flexible Budgets, and Absorptionvariable Costing

Activity-Based Management and Activity-Based Costing

Process Costing

Standard Costing and Variance Analysis

The Master Budget

Break-Even Point and Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Allocation of Joint Costs and Accounting for By-Products

Introduction to Cost Management Systems

Responsibility Accounting,support Department Allocations,and Transfer Pricing

Performance Measurement, balanced Scorecards, and Performance Rewards

Capital Budgeting

Managing Costs and Uncertainty

Implementing Quality Concepts

Inventory and Production Management

Emerging Management Practices

Filters