Question 1

The sale of a finished good on account would:

Accepted Answer

A) decrease Cost of Goods Sold and increase Finished Goods. 
B) increase Cost of Goods Sold and decrease Finished Goods; increase Accounts Receivable and increase Sales. 
C) increase Sales Expense and decrease Finished Goods; decrease Cash and decrease Accounts Receivable. 
D) increase Work-in-Process and decrease Finished Goods; increase Accounts Receivable and increase Sales. 
A) decrease Cost of Goods Sold and increase Finished Goods. 
B) increase Cost of Goods Sold and decrease Finished Goods; increase Accounts Receivable and increase Sales. 
C) increase Sales Expense and decrease Finished Goods; decrease Cash and decrease Accounts Receivable. 
D) increase Work-in-Process and decrease Finished Goods; increase Accounts Receivable and increase Sales.

Question 2

Which of the following is an example of a factory overhead cost?

Accepted Answer

A) Repair and maintenance cost on the administrative building 
B) Factory heating and lighting cost 
C) Insurance premiums on salespersons' automobiles 
D) President's salary 
A) Repair and maintenance cost on the administrative building 
B) Factory heating and lighting cost 
C) Insurance premiums on salespersons' automobiles 
D) President's salary

Question 3

Inventories of finished products are reported as current assets on a manufacturer's balance sheet.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following manufacturing costs is an indirect cost of producing a product?

Accepted Answer

A) Oil lubricants used for factory machinery 
B) Commissions for sales personnel 
C) Hourly wages of an assembly worker 
D) Memory chips for a microcomputer manufacturer 
A) Oil lubricants used for factory machinery 
B) Commissions for sales personnel 
C) Hourly wages of an assembly worker 
D) Memory chips for a microcomputer manufacturer

Question 5

A job order cost system accumulates costs for each of the departments or processes within the factory.

Accepted Answer

A) True 
 B)False

Question 6

Materials inventory consists of the costs of direct and indirect materials that have not yet entered the manufacturing process.

Accepted Answer

A) True 
 B)False

Question 7

The underapplied factory overhead amount may be transferred to cost of goods sold at the end of the fiscal year.

Accepted Answer

A) True 
 B)False

Question 8

At the end of the fiscal year,if the balance in Factory Overhead is small,it would normally be:

Accepted Answer

A) transferred to Work-in-Process. 
B) transferred to Cost of Goods Sold. 
C) transferred to Finished Goods. 
D) allocated between Work-in-Process and Finished Goods. 
A) transferred to Work-in-Process. 
B) transferred to Cost of Goods Sold. 
C) transferred to Finished Goods. 
D) allocated between Work-in-Process and Finished Goods.

Question 9

Which of the following is an example of direct labor cost for an airplane manufacturer?

Accepted Answer

A) Cost of wages of janitors 
B) Cost of wages of assembly worker 
C) Salary of plant supervisor 
D) Salary of the chairman 
A) Cost of wages of janitors 
B) Cost of wages of assembly worker 
C) Salary of plant supervisor 
D) Salary of the chairman

Question 10

Conversion cost is the combination of direct labor cost and factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 11

Non-manufacturing costs are generally classified into two categories: selling and administrative.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is most likely be a period cost?

Accepted Answer

A) Depreciation on factory lunchroom furniture 
B) Salary of telephone receptionist in the sales office 
C) Salary of a security guard for the factory parking lot 
D) Computer chips used by a computer manufacturer 
A) Depreciation on factory lunchroom furniture 
B) Salary of telephone receptionist in the sales office 
C) Salary of a security guard for the factory parking lot 
D) Computer chips used by a computer manufacturer

Question 13

Manufacturers implement the philosophy of just-in-time processing to produce products with high quality,low cost,and instant availability.

Accepted Answer

A) True 
 B)False

Question 14

Pull manufacturing is driven by:

Accepted Answer

A) customer demand. 
B) forecasting customers' requirements. 
C) a production schedule rather than line status. 
D) pushing inventory ahead to the next station. 
A) customer demand. 
B) forecasting customers' requirements. 
C) a production schedule rather than line status. 
D) pushing inventory ahead to the next station.

Question 15

As product costs are incurred in the manufacturing process,they are accounted for as assets and reported on the balance sheet as inventory.

Accepted Answer

A) True 
 B)False

Question 16

Sales commission is an example of factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 17

The recording of the jobs completed would decrease:

Accepted Answer

A) Factory Overhead. 
B) Finished Goods. 
C) Work-in-Process. 
D) Cost of Goods Sold. 
A) Factory Overhead. 
B) Finished Goods. 
C) Work-in-Process. 
D) Cost of Goods Sold.

Question 18

Which of the following products would most likely be manufactured using a job order costing system?

Accepted Answer

A) Number 2 pencils 
B) Computer monitors 
C) Wedding invitations 
D) Paper 
A) Number 2 pencils 
B) Computer monitors 
C) Wedding invitations 
D) Paper

Question 19

Matt,Inc.,a toy manufacturing company uses job order cost system.The time tickets from September jobs are summarized below.
a.Determine the total factory labor costs transferred to Work in Process and Factory Overhead for September.
b.Determine the amount of factory overhead applied to production for September.

Accepted Answer

a.Costs transferred to Work in Process =

Question 20

In a job order cost accounting system,the effect of the flow of direct materials into production will be:

Accepted Answer

A) increase in Work-in-Process and decrease in Materials Inventory. 
B) increase in Materials Inventory and decrease in Work-in-Process. 
C) increase in Factory Overhead and decrease in Materials Inventory. 
D) increase in Work-in-Process and decrease in Supplies. 
A) increase in Work-in-Process and decrease in Materials Inventory. 
B) increase in Materials Inventory and decrease in Work-in-Process. 
C) increase in Factory Overhead and decrease in Materials Inventory. 
D) increase in Work-in-Process and decrease in Supplies.

The sale of a finished good on account would:

Which of the following is an example of a factory overhead cost?

Inventories of finished products are reported as current assets on a manufacturer's balance sheet.

Which of the following manufacturing costs is an indirect cost of producing a product?

A job order cost system accumulates costs for each of the departments or processes within the factory.

Materials inventory consists of the costs of direct and indirect materials that have not yet entered the manufacturing process.

The underapplied factory overhead amount may be transferred to cost of goods sold at the end of the fiscal year.

At the end of the fiscal year,if the balance in Factory Overhead is small,it would normally be:

Which of the following is an example of direct labor cost for an airplane manufacturer?

Conversion cost is the combination of direct labor cost and factory overhead cost.

Non-manufacturing costs are generally classified into two categories: selling and administrative.

Which of the following is most likely be a period cost?

Manufacturers implement the philosophy of just-in-time processing to produce products with high quality,low cost,and instant availability.

Pull manufacturing is driven by:

As product costs are incurred in the manufacturing process,they are accounted for as assets and reported on the balance sheet as inventory.

Sales commission is an example of factory overhead cost.

The recording of the jobs completed would decrease:

Which of the following products would most likely be manufactured using a job order costing system?

In a job order cost accounting system,the effect of the flow of direct materials into production will be:

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley, internal Control, and Cash

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

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Exam 10: Accounting Systems for Manufacturing Businesses

The sale of a finished good on account would:

Which of the following is an example of a factory overhead cost?

Inventories of finished products are reported as current assets on a manufacturer's balance sheet.

Which of the following manufacturing costs is an indirect cost of producing a product?

A job order cost system accumulates costs for each of the departments or processes within the factory.

Materials inventory consists of the costs of direct and indirect materials that have not yet entered the manufacturing process.

The underapplied factory overhead amount may be transferred to cost of goods sold at the end of the fiscal year.

At the end of the fiscal year,if the balance in Factory Overhead is small,it would normally be:

Which of the following is an example of direct labor cost for an airplane manufacturer?

Conversion cost is the combination of direct labor cost and factory overhead cost.

Non-manufacturing costs are generally classified into two categories: selling and administrative.

Which of the following is most likely be a period cost?

Manufacturers implement the philosophy of just-in-time processing to produce products with high quality,low cost,and instant availability.

Pull manufacturing is driven by:

As product costs are incurred in the manufacturing process,they are accounted for as assets and reported on the balance sheet as inventory.

Sales commission is an example of factory overhead cost.

The recording of the jobs completed would decrease:

Which of the following products would most likely be manufactured using a job order costing system?

In a job order cost accounting system,the effect of the flow of direct materials into production will be:

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley, internal Control, and Cash

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

Filters