Question 1

In a standard job-order costing system,factory overhead is applied using actual rates times standard input.

Accepted Answer

A) True 
 B)False

Question 2

Discuss actual costing,normal costing,and standard costing.

Accepted Answer

Actual costing,normal costing,or standar

Question 3

Which of the following costing systems allows management to quickly recognize materials,labor,and overhead variances and take measures to correct them?
$\text {\underline{ Actual Cost System.} }$&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp&nbsp$\text {\underline{ Normal CostSystem} }$

Accepted Answer

A) yes yes 
B) yes no 
C) no yes 
D) no no 
A) yes yes 
B) yes no 
C) no yes 
D) no no

Question 4

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.What is the prime cost of Job #8?

Accepted Answer

A) $59,100 
B) $82,850 
C) $86,475 
D) $93,680 
A) $59,100 
B) $82,850 
C) $86,475 
D) $93,680

Question 5

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.Assume the balance in Work in Process Inventory was $18,500 on November 1 and $25,297 on November 30.The balance on November 30 represents one job that contains direct material of $11,250.How many direct labor hours have been worked on this job (rounded to the nearest hour)?

Accepted Answer

A) 751 
B) 1,324 
C) 1,653 
D) 2,976 
A) 751 
B) 1,324 
C) 1,653 
D) 2,976

Question 6

Overapplied overhead that is material in amount is allocated between Finished Goods Inventory,Work in Process,and Cost of Goods Sold at year end.

Accepted Answer

A) True 
 B)False

Question 7

The journal entry to apply overhead to production includes a credit to Manufacturing Overhead control and a debit to

Accepted Answer

A) Finished Goods Inventory. 
B) Work in Process Inventory. 
C) Cost of Goods Sold. 
D) Raw Material Inventory. 
A) Finished Goods Inventory. 
B) Work in Process Inventory. 
C) Cost of Goods Sold. 
D) Raw Material Inventory.

Question 8

In a normal job-order costing system,factory overhead is applied using predetermined rates times standard input.

Accepted Answer

A) True 
 B)False

Question 9

The journal entry to record normal spoilage specifically identified with a particular job includes a credit to Work in Process.

Accepted Answer

A) True 
 B)False

Question 10

When a job is begun,the first document in the job-order process is the ____________.

Accepted Answer

materials

Question 11

What is a "job" as defined in a job-order costing system?

Accepted Answer

A job is a single unit or a group of lik

Question 12

Romano Company
The following information pertains to Romano Company for September:
                   Direct Material       Direct Labor       Overhead               Job #323        $3,200       $4,500       ?               Job #325       ?        5,000       ?               Job #401        5,670       ?       $5,550      
Romano Company applies overhead for Job #323 at 140 percent of direct labor cost and at 150 percent of direct labor cost for Jobs #325 and #401.The total cost of Jobs #323 and #325 is identical.
Refer to Romano Company.What is the amount of direct materials for Job #325?

Accepted Answer

A) $1,950 
B) $1,500 
C) $3,700 
D) $7,500 
A) $1,950 
B) $1,500 
C) $3,700 
D) $7,500

Question 13

In a normal job-order costing system,factory overhead is applied using ____________________ rates times ____________________ input.

Accepted Answer

predetermi

Question 14

The net cost of normal spoilage in a job-order costing system in which spoilage is common to all jobs should be

Accepted Answer

A) assigned directly to the jobs that caused the spoilage. 
B) charged to manufacturing overhead during the period of the spoilage. 
C) charged to a loss account during the period of the spoilage. 
D) allocated only to jobs that are completed during the perioD. 
A) assigned directly to the jobs that caused the spoilage. 
B) charged to manufacturing overhead during the period of the spoilage. 
C) charged to a loss account during the period of the spoilage. 
D) allocated only to jobs that are completed during the perioD.

Question 15

Underapplied overhead resulting from unanticipated and immaterial price increases for overhead items should be written off by

Accepted Answer

A) decreasing Cost of Goods Sold. 
B) increasing Cost of Goods Sold. 
C) decreasing Cost of Goods Sold,Work in Process Inventory,and Finished Goods Inventory. 
D) increasing Cost of Goods Sold,Work in Process Inventory,and Finished Goods Inventory. 
A) decreasing Cost of Goods Sold. 
B) increasing Cost of Goods Sold. 
C) decreasing Cost of Goods Sold,Work in Process Inventory,and Finished Goods Inventory. 
D) increasing Cost of Goods Sold,Work in Process Inventory,and Finished Goods Inventory.

Question 16

A company that produces sugar will use a process costing system to track production costs.

Accepted Answer

A) True 
 B)False

Question 17

Williams Company
Williams Company has a job-order costing system and an overhead application rate of 120 percent of direct labor cost.Job #63 is charged with direct material of $12,000 and overhead of $7,200.Job #64 has direct material of $2,000 and direct labor of $9,000.
Refer to Williams Company.What is the total cost of Job #64?

Accepted Answer

A) $10,800 
B) $11,000 
C) $21,800 
D) $30,200 
A) $10,800 
B) $11,000 
C) $21,800 
D) $30,200

Question 18

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.How much overhead is applied to Work in Process?

Accepted Answer

A) $ 95,000 
B) $ 119,938 
C) $ 162,900 
D) $ 164,938 
A) $ 95,000 
B) $ 119,938 
C) $ 162,900 
D) $ 164,938

Question 19

A journal entry includes a debit to Work in Process Inventory and a credit to Raw Material Inventory.The explanation for this would be that

Accepted Answer

A) indirect material was placed into production. 
B) raw material was purchased on account. 
C) direct material was placed into production. 
D) direct labor was used for production. 
A) indirect material was placed into production. 
B) raw material was purchased on account. 
C) direct material was placed into production. 
D) direct labor was used for production.

Question 20

Davis Company
Davis Company uses a job-order costing system.Assume that Job #504 is the only one in process.The following information is available:
             Budgeted direct labor hours        65,000       Budgeted machine hours        9,000               Budgeted overhead       $350,000       Direct material       $110,500              Direct labor cost         $70,000                    
Refer to Davis Company.What is the overhead application rate if Davis 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) $ 5.38 
D) $38.89 
A) $ 0.20 
B) $ 5.00 
C) $ 5.38 
D) $38.89

In a standard job-order costing system,factory overhead is applied using actual rates times standard input.

Discuss actual costing,normal costing,and standard costing.

Which of the following costing systems allows management to quickly recognize materials,labor,and overhead variances and take measures to correct them? $\text {\underline{ Actual Cost System.} }$ $\text {\underline{ Normal CostSystem} }$

Overapplied overhead that is material in amount is allocated between Finished Goods Inventory,Work in Process,and Cost of Goods Sold at year end.

The journal entry to apply overhead to production includes a credit to Manufacturing Overhead control and a debit to

In a normal job-order costing system,factory overhead is applied using predetermined rates times standard input.

The journal entry to record normal spoilage specifically identified with a particular job includes a credit to Work in Process.

When a job is begun,the first document in the job-order process is the ____________.

What is a "job" as defined in a job-order costing system?

In a normal job-order costing system,factory overhead is applied using rates times input.

The net cost of normal spoilage in a job-order costing system in which spoilage is common to all jobs should be

Underapplied overhead resulting from unanticipated and immaterial price increases for overhead items should be written off by

A company that produces sugar will use a process costing system to track production costs.

A journal entry includes a debit to Work in Process Inventory and a credit to Raw Material Inventory.The explanation for this would be that

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

Budgeted direct labor hours	65,000	Budgeted machine hours	9,000
Budgeted overhead	$350,000	Direct material	$110,500
Direct labor cost	$70,000

Exam 5: Job Order Costing

In a standard job-order costing system,factory overhead is applied using actual rates times standard input.

Discuss actual costing,normal costing,and standard costing.

Overapplied overhead that is material in amount is allocated between Finished Goods Inventory,Work in Process,and Cost of Goods Sold at year end.

The journal entry to apply overhead to production includes a credit to Manufacturing Overhead control and a debit to

In a normal job-order costing system,factory overhead is applied using predetermined rates times standard input.

The journal entry to record normal spoilage specifically identified with a particular job includes a credit to Work in Process.

When a job is begun,the first document in the job-order process is the ____________.

What is a "job" as defined in a job-order costing system?

In a normal job-order costing system,factory overhead is applied using ____________________ rates times ____________________ input.

The net cost of normal spoilage in a job-order costing system in which spoilage is common to all jobs should be

Underapplied overhead resulting from unanticipated and immaterial price increases for overhead items should be written off by

A company that produces sugar will use a process costing system to track production costs.

A journal entry includes a debit to Work in Process Inventory and a credit to Raw Material Inventory.The explanation for this would be that

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

In a normal job-order costing system,factory overhead is applied using rates times input.