Question 1

Compute factory overhead cost from the following costs:

Accepted Answer

A) $23,000 
B) $43,000 
C) $70,000 
D) $113,000 
A) $23,000 
B) $43,000 
C) $70,000 
D) $113,000

Question 2

Which of the following would be a period costs for a textbooks printing company?

Accepted Answer

A) Wages of a press operator 
B) Utility costs of the factory 
C) Advertising expenses 
D) Paper costs 
A) Wages of a press operator 
B) Utility costs of the factory 
C) Advertising expenses 
D) Paper costs

Question 3

Direct materials,work-in-process,and finished goods inventory are most likely to be reported on the balance sheet of a(n):

Accepted Answer

A) financial consultant. 
B) apparel boutique. 
C) automobile company. 
D) insurance company. 
A) financial consultant. 
B) apparel boutique. 
C) automobile company. 
D) insurance company.

Question 4

Use the correct number to designate each item below:

Accepted Answer

^a)³ b)2 c)3 d

Question 5

The recording of the factory labor costs incurred for general factory use would include a debit to:

Accepted Answer

A) Factory Overhead. 
B) Wages Payable. 
C) Wages Expense. 
D) Cost of Goods Sold. 
A) Factory Overhead. 
B) Wages Payable. 
C) Wages Expense. 
D) Cost of Goods Sold.

Question 6

Which of the following is considered a part of factory overhead cost?

Accepted Answer

A) Sales commissions 
B) Depreciation of factory buildings 
C) Depreciation of office equipment 
D) Direct materials used 
A) Sales commissions 
B) Depreciation of factory buildings 
C) Depreciation of office equipment 
D) Direct materials used

Question 7

The cost of materials entering directly into the manufacturing process is classified as:

Accepted Answer

A) direct labor cost. 
B) factory overhead cost. 
C) burden cost. 
D) direct materials cost. 
A) direct labor cost. 
B) factory overhead cost. 
C) burden cost. 
D) direct materials cost.

Question 8

The summary of the time tickets at the end of each month is the basis for recording the direct and indirect labor costs incurred in production.

Accepted Answer

A) True 
 B)False

Question 9

If the cost of materials is not a significant portion of the total product cost,the materials may be classified as a part of factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 10

The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 11

Job order cost systems can be used to compare unit costs of similar jobs to determine if costs are staying within expected ranges.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following information is provided by job cost sheets?

Accepted Answer

A) Cost of depreciation on office computers 
B) Managerial salary 
C) Cost of utilities 
D) Cost impact of materials changes 
A) Cost of depreciation on office computers 
B) Managerial salary 
C) Cost of utilities 
D) Cost impact of materials changes

Question 13

For which of the following businesses would the job order cost system be most appropriate?

Accepted Answer

A) Custom cabinet manufacturer 
B) Automobile manufacturer 
C) Lumber mill 
D) Meat processor 
A) Custom cabinet manufacturer 
B) Automobile manufacturer 
C) Lumber mill 
D) Meat processor

Question 14

Which of the following are the two main types of cost accounting systems for manufacturing operations?

Accepted Answer

A) Process cost and general accounting systems 
B) Job order cost and process cost systems 
C) Job order cost and general accounting systems 
D) Process cost and replacement cost systems 
A) Process cost and general accounting systems 
B) Job order cost and process cost systems 
C) Job order cost and general accounting systems 
D) Process cost and replacement cost systems

Question 15

The direct labor and overhead costs of providing services to clients are accumulated in:

Accepted Answer

A) finished services expense. 
B) work in process. 
C) administrative salaries expense. 
D) overhead. 
A) finished services expense. 
B) work in process. 
C) administrative salaries expense. 
D) overhead.

Question 16

KCT Printing Company uses a job order cost system.

Accepted Answer

(a) (1)Summary of materials requisitions

Question 17

Which of the following techniques is used by just-in-time manufacturing?

Accepted Answer

A) It provides specialized training so that employees only do one task and work individually to improve efficiencies in the department. 
B) It organizes the plant in such a way as to reduce product movement from station to station. 
C) It encourages management to make all operating decisions regarding the manufacturing process rather than the line employees in order to streamline the process. 
D) It emphasizes push manufacturing. 
A) It provides specialized training so that employees only do one task and work individually to improve efficiencies in the department. 
B) It organizes the plant in such a way as to reduce product movement from station to station. 
C) It encourages management to make all operating decisions regarding the manufacturing process rather than the line employees in order to streamline the process. 
D) It emphasizes push manufacturing.

Question 18

If the cost of employee wages is not a significant portion of the total product cost,the wages are classified as factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following would be classified as direct materials for an auto manufacturer?

Accepted Answer

A) Factory light bulbs 
B) Material used for door panels 
C) Drill bits 
D) Steel 
A) Factory light bulbs 
B) Material used for door panels 
C) Drill bits 
D) Steel

Question 20

Which of the following is not true about why a service firm will use the job order costing system?

Accepted Answer

A) To help control cost. 
B) To determine client billing. 
C) To determine department costs within the firm. 
D) To determine profit. 
A) To help control cost. 
B) To determine client billing. 
C) To determine department costs within the firm. 
D) To determine profit.

Compute factory overhead cost from the following costs:

Which of the following would be a period costs for a textbooks printing company?

Direct materials,work-in-process,and finished goods inventory are most likely to be reported on the balance sheet of a(n):

Use the correct number to designate each item below:

The recording of the factory labor costs incurred for general factory use would include a debit to:

Which of the following is considered a part of factory overhead cost?

The cost of materials entering directly into the manufacturing process is classified as:

The summary of the time tickets at the end of each month is the basis for recording the direct and indirect labor costs incurred in production.

If the cost of materials is not a significant portion of the total product cost,the materials may be classified as a part of factory overhead cost.

The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold.

Job order cost systems can be used to compare unit costs of similar jobs to determine if costs are staying within expected ranges.

Which of the following information is provided by job cost sheets?

For which of the following businesses would the job order cost system be most appropriate?

Which of the following are the two main types of cost accounting systems for manufacturing operations?

The direct labor and overhead costs of providing services to clients are accumulated in:

KCT Printing Company uses a job order cost system.

Which of the following techniques is used by just-in-time manufacturing?

If the cost of employee wages is not a significant portion of the total product cost,the wages are classified as factory overhead cost.

Which of the following would be classified as direct materials for an auto manufacturer?

Which of the following is not true about why a service firm will use the job order costing system?

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

Compute factory overhead cost from the following costs:

Which of the following would be a period costs for a textbooks printing company?

Direct materials,work-in-process,and finished goods inventory are most likely to be reported on the balance sheet of a(n):

Use the correct number to designate each item below:

The recording of the factory labor costs incurred for general factory use would include a debit to:

Which of the following is considered a part of factory overhead cost?

The cost of materials entering directly into the manufacturing process is classified as:

The summary of the time tickets at the end of each month is the basis for recording the direct and indirect labor costs incurred in production.

If the cost of materials is not a significant portion of the total product cost,the materials may be classified as a part of factory overhead cost.

The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold.

Job order cost systems can be used to compare unit costs of similar jobs to determine if costs are staying within expected ranges.

Which of the following information is provided by job cost sheets?

For which of the following businesses would the job order cost system be most appropriate?

Which of the following are the two main types of cost accounting systems for manufacturing operations?

The direct labor and overhead costs of providing services to clients are accumulated in:

KCT Printing Company uses a job order cost system.

Which of the following techniques is used by just-in-time manufacturing?

If the cost of employee wages is not a significant portion of the total product cost,the wages are classified as factory overhead cost.

Which of the following would be classified as direct materials for an auto manufacturer?

Which of the following is not true about why a service firm will use the job order costing system?

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