Question 1

What form is presented at the storeroom to obtain materials or supplies?

Accepted Answer

A) Materials Request Form 
B) Raw Materials Ledger Card 
C) Materials Requisition Form 
D) Production Order Form 
A) Materials Request Form 
B) Raw Materials Ledger Card 
C) Materials Requisition Form 
D) Production Order Form

Question 2

If a firm applies its manufacturing overhead based on direct labor cost and estimates that for the coming year it will have expected total direct labor costs of $60,000 and total manufacturing overhead costs of $36,000, its overhead application rate will be 60 percent.

Accepted Answer

A) True 
 B)False

Question 3

Direct labor and indirect labor are transferred, respectively, to:

Accepted Answer

A) Manufacturing Overhead and Work in Process. 
B) Work in Process and Finished Goods. 
C) Finished Goods and Work in Process. 
D) Work in Process and Manufacturing Overhead. 
A) Manufacturing Overhead and Work in Process. 
B) Work in Process and Finished Goods. 
C) Finished Goods and Work in Process. 
D) Work in Process and Manufacturing Overhead.

Question 4

The manufacturing overhead recorded in the Work in Process Inventory account is not necessarily the actual overhead incurred.

Accepted Answer

A) True 
 B)False

Question 5

There may not be a raw materials inventory account when a just-in-time inventory system is used.

Accepted Answer

A) True 
 B)False

Question 6

When a perpetual inventory system is used, the balance of the Raw Materials Inventory account at the end of an accounting period should reflect the cost of materials on hand.

Accepted Answer

A) True 
 B)False

Question 7

At the end of the year the Manufacturing Overhead account is closed into what account?

Accepted Answer

A) Work in Process 
B) Cost of Goods Sold 
C) Finished Goods 
D) Manufacturing Overhead Control 
A) Work in Process 
B) Cost of Goods Sold 
C) Finished Goods 
D) Manufacturing Overhead Control

Question 8

Manufacturing overhead includes all of the following except

Accepted Answer

A) indirect labor. 
B) payroll taxes on factory labor. 
C) factory utilities. 
D) direct labor. 
A) indirect labor. 
B) payroll taxes on factory labor. 
C) factory utilities. 
D) direct labor.

Question 9

What is the subsidiary ledger that contains a record for each overhead item called?

Accepted Answer

A) Manufacturing Overhead Control 
B) Manufacturing Overhead Ledger 
C) Manufacturing Overhead Records Book 
D) Manufacturing Overhead Card 
A) Manufacturing Overhead Control 
B) Manufacturing Overhead Ledger 
C) Manufacturing Overhead Records Book 
D) Manufacturing Overhead Card

Question 10

When materials that will become part of a finished product are removed from the storeroom and placed in production,

Accepted Answer

A) Raw Materials Inventory is debited. 
B) Manufacturing Overhead is debited. 
C) Work in Process Inventory is debited. 
D) Work in Process Inventory is credited. 
A) Raw Materials Inventory is debited. 
B) Manufacturing Overhead is debited. 
C) Work in Process Inventory is debited. 
D) Work in Process Inventory is credited.

Question 11

Materials may be withdrawn from the storeroom only on completion of a----------- .

Accepted Answer

materials

Exam 27: Job Order Cost Accounting

What form is presented at the storeroom to obtain materials or supplies?

If a firm applies its manufacturing overhead based on direct labor cost and estimates that for the coming year it will have expected total direct labor costs of $60,000 and total manufacturing overhead costs of $36,000, its overhead application rate will be 60 percent.

Direct labor and indirect labor are transferred, respectively, to:

The manufacturing overhead recorded in the Work in Process Inventory account is not necessarily the actual overhead incurred.

There may not be a raw materials inventory account when a just-in-time inventory system is used.

When a perpetual inventory system is used, the balance of the Raw Materials Inventory account at the end of an accounting period should reflect the cost of materials on hand.

At the end of the year the Manufacturing Overhead account is closed into what account?

Manufacturing overhead includes all of the following except

What is the subsidiary ledger that contains a record for each overhead item called?

When materials that will become part of a finished product are removed from the storeroom and placed in production,

Materials may be withdrawn from the storeroom only on completion of a----------- .

Accounting: The Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and Teh Postclosing Trial Balance

Accounting for Sales and Accounts Receivable

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Financial Statements and Closing Procedures

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analysis

The Statement of Cash Flows

Departmentalized Profit and Cost Centers

Accounting for Manufacturing Activities

Process Cost Accounting

Controlling Manufacturing Costs: Standard Costs

Cost-Revenue Analysis for Decision Making

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