Question 1

In job-order costing,payroll taxes paid by the employer for factory employees are commonly accounted for as

Accepted Answer

A) direct labor cost. 
B) manufacturing overhead cost. 
C) indirect labor cost. 
D) administrative cost. 
A) direct labor cost. 
B) manufacturing overhead cost. 
C) indirect labor cost. 
D) administrative cost.

Question 2

Spears Manufacturing Company
Spears Manufacturing Company produces beach chairs.Chair frames are all the same size,but can be made from plastic,wood,or aluminum.Regardless of frame choice,the same sailcloth is used for the seat on all chairs.Spears has set a standard for sailcloth of $9.90 per square yard and each chair requires 1 square yard of material.Spears produced 500 plastic chairs,100 wooden chairs,and 250 aluminum chairs during June.The total cost for 1,000 square yards of sailcloth during the month was $10,000.At the end of the month,50 square yards of sailcloth remained in inventory.
Refer to Spears Manufacturing Company.Spears could set a standard cost for which of the following?
Frame         Predetermined.                Labor
$\text {\underline{ cos t} }$        $\text {\underline{ OH rate} }$                  $\text {\underline{ rate} }$

Accepted Answer

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

Question 3

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 total amount of overhead applied to Job #9?

Accepted Answer

A) $18,250 
B) $26,350 
C) $30,000 
D) $31,620 
A) $18,250 
B) $26,350 
C) $30,000 
D) $31,620

Question 4

Normal spoilage is defined as unacceptable production that

Accepted Answer

A) arises because of a special job or process. 
B) occurs in on-going operations. 
C) is caused specifically by human error. 
D) is in excess of that which is expecteD. 
A) arises because of a special job or process. 
B) occurs in on-going operations. 
C) is caused specifically by human error. 
D) is in excess of that which is expecteD.

Question 5

Underapplied factory overhead that is material in amount is closed to _________,_____________,and _______________ at year end.

Accepted Answer

Work in Process,Fini

Question 6

The document that contains all information about the costs of a specific job is a _______________.

Accepted Answer

job-order

Question 7

When manufacturing overhead is charged to a job,the work in process account is debited.

Accepted Answer

A) True 
 B)False

Question 8

job-order costing and process costing have which of the following characteristics?
$\text {\underline{ Job-order Costing} }$              $\text {\underline{ ProcessCosting} }$

Accepted Answer

A) homogeneous products heterogeneous products
And large quantities and small quantities 
B) homogeneous products heterogeneous products
And small quantities and large quantities 
C) heterogeneous products homogeneous products
And large quantities and large quantities 
D) heterogeneous products homogeneous products
And small quantities and large quantities 
A) homogeneous products heterogeneous products
And large quantities and small quantities 
B) homogeneous products heterogeneous products
And small quantities and large quantities 
C) heterogeneous products homogeneous products
And large quantities and large quantities 
D) heterogeneous products homogeneous products
And small quantities and large quantities

Question 9

The logical explanation for an entry that includes a debit to Manufacturing Overhead control and a credit to Prepaid Insurance is

Accepted Answer

A) the insurance company sent the company a refund of its policy premium. 
B) overhead for insurance was applied to production. 
C) insurance for production equipment expired. 
D) insurance was paid on production equipment. 
A) the insurance company sent the company a refund of its policy premium. 
B) overhead for insurance was applied to production. 
C) insurance for production equipment expired. 
D) insurance was paid on production equipment.

Question 10

Overapplied factory overhead that is material in amount is closed to cost of goods sold at year end.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following would be least likely to be supported by subsidiary accounts or ledgers in a company that employs a job-order costing system?

Accepted Answer

A) Work in Process Inventory 
B) Raw Material Inventory 
C) Accounts Payable 
D) Supplies Inventory 
A) Work in Process Inventory 
B) Raw Material Inventory 
C) Accounts Payable 
D) Supplies Inventory

Question 12

When manufacturing overhead is applied to a job in process,the ___ account is debited

Accepted Answer

The answer of When manufacturing overhead is applied to a...

Question 13

The primary accounting document in a job-order costing system is a(n)

Accepted Answer

A) bill of materials. 
B) job-order cost sheet. 
C) employee time sheet. 
D) materials requisition. 
A) bill of materials. 
B) job-order cost sheet. 
C) employee time sheet. 
D) materials requisition.

Question 14

Discuss the accounting treatment of spoilage in a job-order costing system.

Accepted Answer

If the spoilage is common to all jobs,is

Question 15

Kelley Corporation,began operations on October 1.It employs a job-order costing system.Overhead is charged at a normal rate of $2.50 per direct labor hour.The actual operations for the month of October are summarized as follows:
 a. $\text { Purchases of ray material } 25,000 \text { pieces }@ \$ 1.20 / piece$
b. $\text { Material and labor costs charged to production }$ 
 $\begin{array}{|l|l|l|l|l}
\hline \text { Uob No. } & \text { Units } & \text { Material } & \begin{array}{l}
\text { Direct } \
\text { labor cost }
\end{array} & \begin{array}{l}
\text { Direct } \
\text { labor hours }
\end{array} \
\hline \hline 101 & 10,000 & \$ 4,000 & \$ 36,000 & 3,000 \
\hline 102 & 8,800 & 3,600 & 5,400 & 2,700 \
\hline 103 & 16,000 & 7,000 & 9,000 & 1,500 \
\hline 104 & 8,000 & 3,200 & 4,800 & 2,400 \
\hline 105 & 20,000 & 8,000 & 3,600 & 1,800 \
\hline & & & &
\end{array}$
 
 c. $\text { Achul overhead costs incutred }$ 
 $\begin{array}{ll}
\text { Variable } & \$ 18,500 \
\text { Fixed } & 15,000
\end{array}$ 
 d. $\text { Completedjobs: } 101,102,103 \text {, and } 104$ 
 e. $\text { Sales-\$105.000. All units prochuced on Jobs } 101,102 \text { and } 103 \text { were sold }$ 
Required:Compute the following balances on October 31:
 a. $\text { Material inventory }$ 
 b.  $\text { Wotk in process inventory }$ 
 c.  Finished gods inventory
 d. $\text { Cost of goods sold }$  
 e. $\text { Under- or overapplied overhead }$

Accepted Answer

a.	$30,000 - ($4,000 + $3,600 + $7,000 +

Question 16

A company that manufactures custom bridal gowns will use a ____________________ costing system to track production costs

Accepted Answer

The answer of A company that manufactures custom bridal gowns...

Question 17

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 total cost of Job #309 assuming that overhead is applied at the rate of 130% of direct labor cost (rounded to the nearest whole dollar)?

Accepted Answer

A) $194,800 
B) $274,100 
C) $306,750 
D) $340,075 
A) $194,800 
B) $274,100 
C) $306,750 
D) $340,075

Question 18

In a job-order costing system,the dollar amount of the entry that debits Finished Goods Inventory and credits Work in Process Inventory is the sum of the costs charged to all jobs

Accepted Answer

A) started in process during the period. 
B) in process during the period. 
C) completed and sold during the period. 
D) completed during the perioD. 
A) started in process during the period. 
B) in process during the period. 
C) completed and sold during the period. 
D) completed during the perioD.

Question 19

Standards can be used in a job-order costing system if the products manufactured are similar in nature.

Accepted Answer

A) True 
 B)False

Question 20

Compare and contrast job-order and process costing systems.

Accepted Answer

Job-order costing is characterized by th

In job-order costing,payroll taxes paid by the employer for factory employees are commonly accounted for as

Normal spoilage is defined as unacceptable production that

Underapplied factory overhead that is material in amount is closed to ___,_,and _________ at year end.

The document that contains all information about the costs of a specific job is a _______________.

When manufacturing overhead is charged to a job,the work in process account is debited.

job-order costing and process costing have which of the following characteristics? $\text {\underline{ Job-order Costing} }$ $\text {\underline{ ProcessCosting} }$

The logical explanation for an entry that includes a debit to Manufacturing Overhead control and a credit to Prepaid Insurance is

Overapplied factory overhead that is material in amount is closed to cost of goods sold at year end.

Which of the following would be least likely to be supported by subsidiary accounts or ledgers in a company that employs a job-order costing system?

When manufacturing overhead is applied to a job in process,the ___ account is debited

The primary accounting document in a job-order costing system is a(n)

Discuss the accounting treatment of spoilage in a job-order costing system.

A company that manufactures custom bridal gowns will use a ____________________ costing system to track production costs

In a job-order costing system,the dollar amount of the entry that debits Finished Goods Inventory and credits Work in Process Inventory is the sum of the costs charged to all jobs

Standards can be used in a job-order costing system if the products manufactured are similar in nature.

Compare and contrast job-order and process costing systems.

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	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 job-order costing,payroll taxes paid by the employer for factory employees are commonly accounted for as

Normal spoilage is defined as unacceptable production that

Underapplied factory overhead that is material in amount is closed to _________,_____________,and _______________ at year end.

The document that contains all information about the costs of a specific job is a _______________.

When manufacturing overhead is charged to a job,the work in process account is debited.

job-order costing and process costing have which of the following characteristics? Job-order Costing‾ \text {\underline{ Job-order Costing} } Job-order Costing​ ProcessCosting‾ \text {\underline{ ProcessCosting} } ProcessCosting​

The logical explanation for an entry that includes a debit to Manufacturing Overhead control and a credit to Prepaid Insurance is

Overapplied factory overhead that is material in amount is closed to cost of goods sold at year end.

Which of the following would be least likely to be supported by subsidiary accounts or ledgers in a company that employs a job-order costing system?

When manufacturing overhead is applied to a job in process,the ___ account is debited

The primary accounting document in a job-order costing system is a(n)

Discuss the accounting treatment of spoilage in a job-order costing system.

A company that manufactures custom bridal gowns will use a ____________________ costing system to track production costs

In a job-order costing system,the dollar amount of the entry that debits Finished Goods Inventory and credits Work in Process Inventory is the sum of the costs charged to all jobs

Standards can be used in a job-order costing system if the products manufactured are similar in nature.

Compare and contrast job-order and process costing systems.

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

Underapplied factory overhead that is material in amount is closed to ___,_,and _________ at year end.

job-order costing and process costing have which of the following characteristics? $\text {\underline{ Job-order Costing} }$ $\text {\underline{ ProcessCosting} }$