Question 1

If factory overhead applied exceeds the actual costs,the factory overhead account will have a credit balance.

Accepted Answer

A) True 
 B)False

Question 2

If factory overhead applied exceeds the actual costs,overhead is said to be underapplied.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following would be most likely to use process costing?

Accepted Answer

A)  a custom furniture manufacturer 
B)  an auto body repair shop 
C)  a law firm 
D)  a lawn fertilizer manufacturer 
A)  a custom furniture manufacturer 
B)  an auto body repair shop 
C)  a law firm 
D)  a lawn fertilizer manufacturer

Question 4

The process cost system is appropriate where few products are manufactured and each product is made to customers' specifications.

Accepted Answer

A) True 
 B)False

Question 5

Period costs are classified as either

Accepted Answer

A)  selling expenses or production expenses 
B)  administrative expense or production expenses 
C)  selling expenses or administrative expenses 
D)  general expenses or selling expenses 
A)  selling expenses or production expenses 
B)  administrative expense or production expenses 
C)  selling expenses or administrative expenses 
D)  general expenses or selling expenses

Question 6

In the job order costing system,the finished goods account is the controlling account for the factory overhead ledger.

Accepted Answer

A) True 
 B)False

Question 7

Materials are transferred from the storeroom to the factory in response to materials requisitions.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A)  a cell phone 
B)  a highlighter pen 
C)  a graduation invitation 
D)  a recliner 
A)  a cell phone 
B)  a highlighter pen 
C)  a graduation invitation 
D)  a recliner

Question 9

Costs that are incurred in generating revenues during the period,but are not involved in the manufacturing process are referred to as

Accepted Answer

A)  period costs 
B)  conversion costs 
C)  factory overhead costs 
D)  product costs 
A)  period costs 
B)  conversion costs 
C)  factory overhead costs 
D)  product costs

Question 10

If the amount of factory overhead cost incurred exceeds the amount applied,the factory overhead account will have a

Accepted Answer

A)  debit balance and be underapplied 
B)  credit balance and be underapplied 
C)  credit balance and be overapplied 
D)  debit balance and be overapplied 
A)  debit balance and be underapplied 
B)  credit balance and be underapplied 
C)  credit balance and be overapplied 
D)  debit balance and be overapplied

Question 11

When Job 117 was completed,direct materials totaled $4,400; direct labor,$5,600; and factory overhead,$2,400.A total of 1,000 units were produced at a per-unit cost of

Accepted Answer

A)  $12,400 
B)  $1,240 
C)  $124 
D)  $12.40 
A)  $12,400 
B)  $1,240 
C)  $124 
D)  $12.40

Question 12

The Cavy Company estimates that the factory overhead for the following year will be $1,250,000.The company has determined that the basis for applying factory overhead will be machine hours,which is estimated to be 40,000 hours.There are 4,780 machine hours for all of the jobs in the month of April.What is the amount that will be applied to all of the jobs for the month of April?

Accepted Answer

$1,250,000 / 40,000

Question 13

Present entries to record the following summarized operations related to production for a company using a job order cost system:

Accepted Answer

The answer of Present entries to record the following summarized...

Question 14

The materials requisition is used to

Accepted Answer

A)  release materials from the storeroom to the factory 
B)  release finished goods to the shipping department 
C)  record the acquisition of materials from a vendor 
D)  record and electronically transmit materials data in place of a receiving report 
A)  release materials from the storeroom to the factory 
B)  release finished goods to the shipping department 
C)  record the acquisition of materials from a vendor 
D)  record and electronically transmit materials data in place of a receiving report

Question 15

During August,the receipts and distributions of Material No.B4G9 are as follows:
​

Accepted Answer

The answer of During August,the receipts and distributions of Material...

Question 16

Reynolds Manufacturers Inc.has estimated total factory overhead costs of $95,000 and expected direct labor hours of 9,500 for the current fiscal year.If job number 117 incurs 2,300 direct labor hours,Work in Process will be debited and Factory Overhead will be credited for

Accepted Answer

A)  $21,850 
B)  $2,300 
C)  $95,000 
D)  $23,000 
A)  $21,850 
B)  $2,300 
C)  $95,000 
D)  $23,000

Question 17

In a job order cost accounting system used by a service business,which of the following items would normally not be included as part of overhead?

Accepted Answer

A)  materials 
B)  direct labor 
C)  rent 
D)  supplies 
A)  materials 
B)  direct labor 
C)  rent 
D)  supplies

Question 18

Match the costs that follow to the type of product cost (a-c)or designate as not a product cost (d).
-assembler's wages

Accepted Answer

A) direct labor 
B) direct materials 
C) factory overhead 
D) not a product cost 
A) direct labor 
B) direct materials 
C) factory overhead 
D) not a product cost

Question 19

The Winston Company estimates that the factory overhead for the following year will be $1,250,000.The company has decided that the basis for applying factory overhead should be machine hours,which is estimated to be 50,000 hours.The total machine hours for the year were 54,300.The actual factory overhead for the year were $1,375,000.Determine the over- or underapplied amount for the year.

Accepted Answer

A)  $17,500 overapplied 
B)  $17,500 underapplied 
C)  $118,250 overapplied 
D)  $118,250 underapplied 
A)  $17,500 overapplied 
B)  $17,500 underapplied 
C)  $118,250 overapplied 
D)  $118,250 underapplied

Question 20

Which of the following is not a reason a service firm would use a job order costing system?

Accepted Answer

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

Exam 16: Job Order Costing

If factory overhead applied exceeds the actual costs,the factory overhead account will have a credit balance.

If factory overhead applied exceeds the actual costs,overhead is said to be underapplied.

Which of the following would be most likely to use process costing?

The process cost system is appropriate where few products are manufactured and each product is made to customers' specifications.

Period costs are classified as either

In the job order costing system,the finished goods account is the controlling account for the factory overhead ledger.

Materials are transferred from the storeroom to the factory in response to materials requisitions.

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

Costs that are incurred in generating revenues during the period,but are not involved in the manufacturing process are referred to as

If the amount of factory overhead cost incurred exceeds the amount applied,the factory overhead account will have a

When Job 117 was completed,direct materials totaled $4,400; direct labor,$5,600; and factory overhead,$2,400.A total of 1,000 units were produced at a per-unit cost of

Present entries to record the following summarized operations related to production for a company using a job order cost system:

The materials requisition is used to

During August,the receipts and distributions of Material No.B4G9 are as follows: ​

Reynolds Manufacturers Inc.has estimated total factory overhead costs of $95,000 and expected direct labor hours of 9,500 for the current fiscal year.If job number 117 incurs 2,300 direct labor hours,Work in Process will be debited and Factory Overhead will be credited for

In a job order cost accounting system used by a service business,which of the following items would normally not be included as part of overhead?

Match the costs that follow to the type of product cost (a-c)or designate as not a product cost (d). -assembler's wages

Which of the following is not a reason a service firm would use a job order costing system?

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current,installment Notes,and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Process Cost Systems

Activity-Based Costing

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

Filters

During August,the receipts and distributions of Material No.B4G9 are as follows: