Question 1

Job costing systems accumulate the costs for each individual job.

Accepted Answer

A) True 
 B)False

Question 2

An example of an industry that uses process costing might be a

Accepted Answer

A) custom printer. 
B) homebuilder. 
C) shipbuilder. 
D) company that makes cement. 
A) custom printer. 
B) homebuilder. 
C) shipbuilder. 
D) company that makes cement.

Question 3

Shiloh Company uses a job costing system.The company's schedule of cost of goods manufactured showed the following amounts for September.
 
Actual manufacturing overhead costs for September amount to $24,000.
What is the amount of work in process inventory on September 30?

Accepted Answer

A) $13,500 
B) $66,000 
C) $73,500 
D) $21,000 
A) $13,500 
B) $66,000 
C) $73,500 
D) $21,000

Question 4

Deco Corporation uses a job costing system.On January 1,Deco Corporation's work in process inventory account had a balance of $75,000.During the year,materials requisitioned for use in production amounted to $120,000,of which $82,000 represented direct materials.Factory wages for the period were $231,000,of which $219,000 were for direct labor.Manufacturing overhead is allocated on the basis of 85% of direct labor cost.Actual overhead cost for the year was $125,000.Jobs costing $345,000 were completed during the year.
The December 31 work in process inventory balance is

Accepted Answer

A) $426,000. 
B) $217,150. 
C) $156,000. 
D) $168,000. 
A) $426,000. 
B) $217,150. 
C) $156,000. 
D) $168,000.

Question 5

Ohio Steel uses a job costing system.Ohio Steel uses estimated direct labor hours of 100,000 and estimated manufacturing overhead costs of $320,000 in establishing its predetermined manufacturing overhead rate.Actual results for the year showed:
 
The number of direct labor hours worked during the period was

Accepted Answer

A) 109,375. 
B) 93,257. 
C) 100,000. 
D) 102,000. 
A) 109,375. 
B) 93,257. 
C) 100,000. 
D) 102,000.

Question 6

Payroll-related costs for factory employees who do not work directly on the product are considered

Accepted Answer

A) direct labor. 
B) selling expenses. 
C) manufacturing overhead. 
D) administrative costs. 
A) direct labor. 
B) selling expenses. 
C) manufacturing overhead. 
D) administrative costs.

Question 7

How is the cost of indirect materials used in the factory recorded?

Accepted Answer

A) Debit to Work-in-Process Inventory account 
B) Debit to Manufacturing Overhead account 
C) Debit to Raw Materials Inventory account 
D) Debit to Direct Materials Expense 
A) Debit to Work-in-Process Inventory account 
B) Debit to Manufacturing Overhead account 
C) Debit to Raw Materials Inventory account 
D) Debit to Direct Materials Expense

Question 8

Job 140 requires $12,000 of direct materials,$6,700 of direct labor,550 direct labor hours,and 270 machine hours.It also requires 9 hours of inspection at $40 per hour.Manufacturing overhead is computed at $28 per direct labor hour used and $42 per machine hour used.
The total amount of overhead allocated is

Accepted Answer

A) $34,100. 
B) $26,740. 
C) $45,440. 
D) $15,400. 
A) $34,100. 
B) $26,740. 
C) $45,440. 
D) $15,400.

Question 9

Which of these documents informs the storeroom to send specific materials to the factory floor?

Accepted Answer

A) Receiving report 
B) Bill of materials 
C) Purchase order 
D) Materials requisition 
A) Receiving report 
B) Bill of materials 
C) Purchase order 
D) Materials requisition

Question 10

The ________ substantiates the total of the raw materials inventory account shown on the company's balance sheet.

Accepted Answer

A) bill of materials 
B) raw materials records 
C) materials requisition 
D) labor time record 
A) bill of materials 
B) raw materials records 
C) materials requisition 
D) labor time record

Question 11

State whether each company below would be more likely to use a job costing system or a process costing system.

Accepted Answer

A)process costing
B)

Question 12

A graphic designer spends 35 hours working with client #130 during May.Her basic annual salary is $61,440,while her annual salary plus benefits totals $80,640 per year.She typically works 40 hours a week for 48 weeks each year.What is the hourly cost to the firm that employs her?

Accepted Answer

A) $32 
B) $1,470 
C) $42 
D) $39 
A) $32 
B) $1,470 
C) $42 
D) $39

Question 13

Manufacturing overhead has an overallocated balance of $7,500;raw materials inventory balance is $62,000;work in process inventory is $34,000;finished goods inventory is $25,000;and cost of goods sold is $135,000.After adjusting for the overallocated manufacturing overhead,what is cost of goods sold?

Accepted Answer

A) $127,500 
B) $7,500 
C) $142,500 
D) $135,000 
A) $127,500 
B) $7,500 
C) $142,500 
D) $135,000

Question 14

Under a perpetual inventory system,the journal entry needed to record the sale of a job includes a

Accepted Answer

A) debit to Cost of Goods Sold account and credit to Sales Revenue account. 
B) debit to Finished Goods Inventory account and credit to Cost of Goods Sold account. 
C) debit to Sales Revenue account and credit to Accounts Receivable account. 
D) debit to Accounts Receivable account and credit to Sales Revenue account. 
A) debit to Cost of Goods Sold account and credit to Sales Revenue account. 
B) debit to Finished Goods Inventory account and credit to Cost of Goods Sold account. 
C) debit to Sales Revenue account and credit to Accounts Receivable account. 
D) debit to Accounts Receivable account and credit to Sales Revenue account.

Question 15

Manufacturers follow four steps to implement a manufacturing overhead allocation system.In the last step,the company estimates the total amount of manufacturing overhead costs for the year.

Accepted Answer

A) True 
 B)False

Question 16

Solid Oak Bureau Company uses job costing.Solid Oak Bureau Company has two departments,Trimming and Finishing.Manufacturing overhead is allocated based on direct labor cost in the Trimming Department and direct labor hours in the Finishing Department.The following additional information is available:
 
Actual data for completed Job No.650 is as follows:
 
What is the predetermined manufacturing overhead rate for the Trimming Department?

Accepted Answer

A) 77% of direct labor cost 
B) 107% of direct labor cost 
C) 130% of direct labor cost 
D) 100% of direct labor cost 
A) 77% of direct labor cost 
B) 107% of direct labor cost 
C) 130% of direct labor cost 
D) 100% of direct labor cost

Question 17

Ryan's Paints allocates overhead based on machine hours.Selected data for the most recent year follow.
 
The estimates were made as of the beginning of the year,while the actual results were for the entire year.
The amount of manufacturing overhead allocated for the year based on machine hours would have been

Accepted Answer

A) $239,500. 
B) $264,375. 
C) $235,000. 
D) $244,000. 
A) $239,500. 
B) $264,375. 
C) $235,000. 
D) $244,000.

Question 18

How is the cost of direct materials used in production recorded?

Accepted Answer

A) Debit to Manufacturing Overhead account 
B) Debit to Raw Materials Inventory account 
C) Debit to Work-in-Process Inventory account 
D) Debit to Direct Materials Expense account 
A) Debit to Manufacturing Overhead account 
B) Debit to Raw Materials Inventory account 
C) Debit to Work-in-Process Inventory account 
D) Debit to Direct Materials Expense account

Question 19

________ is the system for assigning costs to unique cost objects.

Accepted Answer

A) Time costing 
B) Process costing 
C) Job costing 
D) Service costing 
A) Time costing 
B) Process costing 
C) Job costing 
D) Service costing

Question 20

Manufacturers follow four steps to implement a manufacturing overhead allocation system.Which step is not performed before the year begins?

Accepted Answer

A) Allocate some manufacturing overhead to each individual job. 
B) Select an allocation base and estimate the total amount that will be used during the year. 
C) Estimate total manufacturing overhead costs for the coming year. 
D) Calculate a predetermined manufacturing overhead rate. 
A) Allocate some manufacturing overhead to each individual job. 
B) Select an allocation base and estimate the total amount that will be used during the year. 
C) Estimate total manufacturing overhead costs for the coming year. 
D) Calculate a predetermined manufacturing overhead rate.

Job costing systems accumulate the costs for each individual job.

An example of an industry that uses process costing might be a

Shiloh Company uses a job costing system.The company's schedule of cost of goods manufactured showed the following amounts for September. Actual manufacturing overhead costs for September amount to $24,000. What is the amount of work in process inventory on September 30?

Payroll-related costs for factory employees who do not work directly on the product are considered

How is the cost of indirect materials used in the factory recorded?

Which of these documents informs the storeroom to send specific materials to the factory floor?

The ________ substantiates the total of the raw materials inventory account shown on the company's balance sheet.

State whether each company below would be more likely to use a job costing system or a process costing system.

A graphic designer spends 35 hours working with client #130 during May.Her basic annual salary is $61,440,while her annual salary plus benefits totals $80,640 per year.She typically works 40 hours a week for 48 weeks each year.What is the hourly cost to the firm that employs her?

Under a perpetual inventory system,the journal entry needed to record the sale of a job includes a

Manufacturers follow four steps to implement a manufacturing overhead allocation system.In the last step,the company estimates the total amount of manufacturing overhead costs for the year.

How is the cost of direct materials used in production recorded?

________ is the system for assigning costs to unique cost objects.

Manufacturers follow four steps to implement a manufacturing overhead allocation system.Which step is not performed before the year begins?

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Activity-Based Costing, lean Operations, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Performance Evaluation

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters

Exam 3: Job Costing

Job costing systems accumulate the costs for each individual job.

An example of an industry that uses process costing might be a

Shiloh Company uses a job costing system.The company's schedule of cost of goods manufactured showed the following amounts for September. Actual manufacturing overhead costs for September amount to $24,000. What is the amount of work in process inventory on September 30?

Payroll-related costs for factory employees who do not work directly on the product are considered

How is the cost of indirect materials used in the factory recorded?

Which of these documents informs the storeroom to send specific materials to the factory floor?

The ________ substantiates the total of the raw materials inventory account shown on the company's balance sheet.

State whether each company below would be more likely to use a job costing system or a process costing system.

A graphic designer spends 35 hours working with client #130 during May.Her basic annual salary is $61,440,while her annual salary plus benefits totals $80,640 per year.She typically works 40 hours a week for 48 weeks each year.What is the hourly cost to the firm that employs her?

Under a perpetual inventory system,the journal entry needed to record the sale of a job includes a

Manufacturers follow four steps to implement a manufacturing overhead allocation system.In the last step,the company estimates the total amount of manufacturing overhead costs for the year.

How is the cost of direct materials used in production recorded?

________ is the system for assigning costs to unique cost objects.

Manufacturers follow four steps to implement a manufacturing overhead allocation system.Which step is not performed before the year begins?

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Activity-Based Costing, lean Operations, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Performance Evaluation

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters