Question 1

In a job costing system the cost object is a job.

Accepted Answer

A) True 
 B)False

Question 2

Which of these is not an uncertainty in measuring job costs?

Accepted Answer

A)  Whether and how to trace direct costs 
B)  The choice of overhead cost pools 
C)  The choice of allocation bases 
D)  None of the above, i.e. all are uncertainties in measuring job costs 
A)  Whether and how to trace direct costs 
B)  The choice of overhead cost pools 
C)  The choice of allocation bases 
D)  None of the above, i.e. all are uncertainties in measuring job costs

Question 3

Inspection for spoilage should always be carried out at the end of the production process and not at an earlier period.

Accepted Answer

A) True 
 B)False

Question 4

The balance of overhead over or under applied for the period, if it is a material amount:

Accepted Answer

A)  is pro-rated over cost of goods sold, and finished goods 
B)  is assigned to cost of goods sold 
C)  is carried forward to become the opening balance in the next accounting period 
D)  is pro-rated over cost of goods sold, work in process and finished goods 
A)  is pro-rated over cost of goods sold, and finished goods 
B)  is assigned to cost of goods sold 
C)  is carried forward to become the opening balance in the next accounting period 
D)  is pro-rated over cost of goods sold, work in process and finished goods

Question 5

The following information is available for product K87.   The cost of a job for 1,500 units of product K87, which uses 33 machine hours, is:

Accepted Answer

A)  $2,300 
B)  $2.11 
C)  $3,158 
D)  $1,358 
A)  $2,300 
B)  $2.11 
C)  $3,158 
D)  $1,358

Question 6

Abnormal spoilage costs generally appear in the external financial accounts

Accepted Answer

A)  on the balance sheet as part of work in process 
B)  on the income statement as part of some other item 
C)  on the balance sheet as part of finished goods 
D)  on the income statement as a line item 'loss on abnormal spoilage' 
E) g. cost of goods sold 
A)  on the balance sheet as part of work in process 
B)  on the income statement as part of some other item 
C)  on the balance sheet as part of finished goods 
D)  on the income statement as a line item 'loss on abnormal spoilage' 
E) g. cost of goods sold

Question 7

Inventoriable product costs consist of manufacturing and non-manufacturing costs.

Accepted Answer

A) True 
 B)False

Question 8

Generally all the costs assigned to a job are incremental, i.e. they would not be incurred if the job was not done.

Accepted Answer

A) True 
 B)False

Question 9

Under a job costing system rework costs are often not tracked.

Accepted Answer

A) True 
 B)False

Question 10

The way spoilage is handled in the accounting records depends on whether the spoilage is considered normal or abnormal.

Accepted Answer

A) True 
 B)False

Question 11

The actual allocation rate under a job costing system is; actual overhead cost divided by actual quantity of allocation base.

Accepted Answer

A) True 
 B)False

Question 12

Tulip uses a job costing system that allocates overhead as a percentage of direct labour costs. The budget for this year was; direct materials $60,000, direct labour $30,000, overhead $45,000. The actual costs for this year were; direct materials $50,000, direct labour $35,000, overhead $45,000. How much overhead was over/under allocated?

Accepted Answer

A)  $0 
B)  $150 overallocated 
C)  $21,550 underallocated 
D)  $7,500 overallocated 
A)  $0 
B)  $150 overallocated 
C)  $21,550 underallocated 
D)  $7,500 overallocated

Question 13

In a job costing system the accounting entry to record the payment of factory wages for the month is:

Accepted Answer

A)  debit cost of goods sold; credit bank 
B)  debit work in process; credit overhead control account 
C)  debit factory wages; credit work in process 
D)  none of the above 
A)  debit cost of goods sold; credit bank 
B)  debit work in process; credit overhead control account 
C)  debit factory wages; credit work in process 
D)  none of the above

Question 14

Chloes Sportswear manufactures a specialty line of mini skirts using a job order cost system. During June, the following costs were incurred in completing Job F28: direct materials $12,700; direct labour $3,200; non-factory administrative costs $1,200; and selling costs $5,600. Factory overhead was applied at the rate of $8.60 per machine hour and Job F28 required 190 machine hours. If Job F28 resulted in 1300 good mini skirts, the cost of goods sold per unit would be

Accepted Answer

A)  $14.41 
B)  $13.49 
C)  $18.71 
D)  $11.03 
A)  $14.41 
B)  $13.49 
C)  $18.71 
D)  $11.03

Question 15

The cost credited to the work in process account and debited to the finished good account is known as:

Accepted Answer

A)  total manufacturing costs 
B)  cost of goods sold 
C)  cost of goods manufactured 
D)  cost of goods available for sale 
A)  total manufacturing costs 
B)  cost of goods sold 
C)  cost of goods manufactured 
D)  cost of goods available for sale

Question 16

In a job costing system the accounting entry made at the time job 664 is delivered to the customer is:

Accepted Answer

A)  debit to cost of goods sold; credit to finished goods inventory 
B)  debit to finished goods inventory; credit to work in process 
C)  debit to sales; credit to work in process 
D)  debit to cost of goods sold; credit to work in process 
A)  debit to cost of goods sold; credit to finished goods inventory 
B)  debit to finished goods inventory; credit to work in process 
C)  debit to sales; credit to work in process 
D)  debit to cost of goods sold; credit to work in process

Question 17

The cost of normal spoilage arising from the requirements of a specific job:

Accepted Answer

A)  is charged to general overhead 
B)  is charged to the job 
C)  is charged to the income statement as a loss 
D)  none of the above 
A)  is charged to general overhead 
B)  is charged to the job 
C)  is charged to the income statement as a loss 
D)  none of the above

Question 18

In job costing the allocation of overhead results in a debit to:

Accepted Answer

A)  the overhead control account 
B)  the work in process inventory account 
C)  the finished goods inventory account 
D)  the cost of goods sold account 
A)  the overhead control account 
B)  the work in process inventory account 
C)  the finished goods inventory account 
D)  the cost of goods sold account

Question 19

The true statement is:

Accepted Answer

A)  Period costs are expensed in the period the product is sold 
B)  Period costs are initially inventoried, then expensed 
C)  Product costs are expensed as the product is produced 
D)  Product costs are expensed in the period the product is sold 
A)  Period costs are expensed in the period the product is sold 
B)  Period costs are initially inventoried, then expensed 
C)  Product costs are expensed as the product is produced 
D)  Product costs are expensed in the period the product is sold

Question 20

Fixed and variable overhead costs are combined in one cost pool.

Accepted Answer

A) True 
 B)False

In a job costing system the cost object is a job.

Which of these is not an uncertainty in measuring job costs?

Inspection for spoilage should always be carried out at the end of the production process and not at an earlier period.

The balance of overhead over or under applied for the period, if it is a material amount:

The following information is available for product K87. The cost of a job for 1,500 units of product K87, which uses 33 machine hours, is:

Abnormal spoilage costs generally appear in the external financial accounts

Inventoriable product costs consist of manufacturing and non-manufacturing costs.

Generally all the costs assigned to a job are incremental, i.e. they would not be incurred if the job was not done.

Under a job costing system rework costs are often not tracked.

The way spoilage is handled in the accounting records depends on whether the spoilage is considered normal or abnormal.

The actual allocation rate under a job costing system is; actual overhead cost divided by actual quantity of allocation base.

In a job costing system the accounting entry to record the payment of factory wages for the month is:

The cost credited to the work in process account and debited to the finished good account is known as:

In a job costing system the accounting entry made at the time job 664 is delivered to the customer is:

The cost of normal spoilage arising from the requirements of a specific job:

In job costing the allocation of overhead results in a debit to:

The true statement is:

Fixed and variable overhead costs are combined in one cost pool.

The Role of Accounting Information in Management Decision Making

Cost Concepts, Behaviour and Estimation

A Costing Framework and Cost Allocation

Cost-Volume-Profit Cvp Analysis

Process Costing Systems

Absorption, Variable and Throughput Costing

Activity Analysis: Costing and Management

Relevant Costs for Decision Making

Standard Costs, Flexible Budgets and Variance Analysis

Operational Budgets

Strategy and Control

Planning and Budgeting for Strategic Success

Capital Budgeting and Strategic Investment Decisions

The Strategic Management of Costs and Revenues

Strategic Management Control: a Lean Perspective

Responsibility Accounting, Performance Evaluation and Transfer Pricing

The Balanced Scorecard and Strategy Maps

Rewards, Incentives and Risk Management

Sustainability Management Accounting

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Exam 5: Job Costing Systems

In a job costing system the cost object is a job.

Which of these is not an uncertainty in measuring job costs?

Inspection for spoilage should always be carried out at the end of the production process and not at an earlier period.

The balance of overhead over or under applied for the period, if it is a material amount:

The following information is available for product K87. The cost of a job for 1,500 units of product K87, which uses 33 machine hours, is:

Abnormal spoilage costs generally appear in the external financial accounts

Inventoriable product costs consist of manufacturing and non-manufacturing costs.

Generally all the costs assigned to a job are incremental, i.e. they would not be incurred if the job was not done.

Under a job costing system rework costs are often not tracked.

The way spoilage is handled in the accounting records depends on whether the spoilage is considered normal or abnormal.

The actual allocation rate under a job costing system is; actual overhead cost divided by actual quantity of allocation base.

In a job costing system the accounting entry to record the payment of factory wages for the month is:

The cost credited to the work in process account and debited to the finished good account is known as:

In a job costing system the accounting entry made at the time job 664 is delivered to the customer is:

The cost of normal spoilage arising from the requirements of a specific job:

In job costing the allocation of overhead results in a debit to:

The true statement is:

Fixed and variable overhead costs are combined in one cost pool.

The Role of Accounting Information in Management Decision Making

Cost Concepts, Behaviour and Estimation

A Costing Framework and Cost Allocation

Cost-Volume-Profit Cvp Analysis

Process Costing Systems

Absorption, Variable and Throughput Costing

Activity Analysis: Costing and Management

Relevant Costs for Decision Making

Standard Costs, Flexible Budgets and Variance Analysis

Operational Budgets

Strategy and Control

Planning and Budgeting for Strategic Success

Capital Budgeting and Strategic Investment Decisions

The Strategic Management of Costs and Revenues

Strategic Management Control: a Lean Perspective

Responsibility Accounting, Performance Evaluation and Transfer Pricing

The Balanced Scorecard and Strategy Maps

Rewards, Incentives and Risk Management

Sustainability Management Accounting

Filters