Question 1

What is the ending balance of Work in Process for Adams Company at the end of the first quarter?

Accepted Answer

A)  $0 
B)  $456 
C)  $3,208 
D)  $2,752 
A)  $0 
B)  $456 
C)  $3,208 
D)  $2,752

Question 2

Sanders Inc.has applied $567,988 of overhead to jobs in the cost ledger.Actual overhead at the end of the year is $575,000.The adjustment for over or underapplied overhead is

Accepted Answer

A)  $7,012 overapplied,increase Cost of Goods Sold 
B)  $7,012 underapplied,increase Cost of Goods Sold 
C)  $7,012 overapplied,decrease Cost of Goods Sold 
D)  $7,012 underapplied,decrease Cost of Goods Sold 
A)  $7,012 overapplied,increase Cost of Goods Sold 
B)  $7,012 underapplied,increase Cost of Goods Sold 
C)  $7,012 overapplied,decrease Cost of Goods Sold 
D)  $7,012 underapplied,decrease Cost of Goods Sold

Question 3

A job order cost accounting system provides for a separate record of the cost of each particular quantity of product that passes through the factory.

Accepted Answer

A) True 
 B)False

Question 4

A process cost accounting system provides product costs for each of the departments or processes within the factory.

Accepted Answer

A) True 
 B)False

Question 5

The cost of production of completed and transferred goods during the period amounted to $540,000,and the finished products shipped to customers had total production costs of $375,000.The entry to record the transfer of costs from work in process to finished goods is

Accepted Answer

A)  Finished Goods 375,000
Work in Process 375,000 
B)  Finished Goods 540,000
Work in Process 540,000 
C)  Work in Process 540,000
Finished Goods 540,000 
D)  Work in Process 375,000
Finished Goods 375,000 
A)  Finished Goods 375,000
Work in Process 375,000 
B)  Finished Goods 540,000
Work in Process 540,000 
C)  Work in Process 540,000
Finished Goods 540,000 
D)  Work in Process 375,000
Finished Goods 375,000

Question 6

A service organization will not use the job order costing method because it has no direct materials.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is the correct flow of manufacturing costs?

Accepted Answer

A)  raw materials,work in process,finished goods,cost of goods sold 
B)  raw materials,finished goods,cost of goods sold,work in process 
C)  work in process,finished goods,raw materials,cost of goods sold 
D)  cost of goods sold,raw materials,work in process,finished goods 
A)  raw materials,work in process,finished goods,cost of goods sold 
B)  raw materials,finished goods,cost of goods sold,work in process 
C)  work in process,finished goods,raw materials,cost of goods sold 
D)  cost of goods sold,raw materials,work in process,finished goods

Question 8

What is the balance of Sales for Adams Company at the end of the first quarter?

Accepted Answer

A)  $1,685 
B)  $2,685 
C)  $1,000 
D)  $685 
A)  $1,685 
B)  $2,685 
C)  $1,000 
D)  $685

Question 9

The journal entry to record the transfer of 1,600 units of part number 1177 with a value of $2.50 each,to work in process is

Accepted Answer

A)  Materials 4,000
Work in Process 4,000 
B)  Work in Process 4,000
Factory Overhead 4,000 
C)  Work in Process 4,000
Materials 4,000 
D)  Work in Process 4,000
Cash 4,000 
A)  Materials 4,000
Work in Process 4,000 
B)  Work in Process 4,000
Factory Overhead 4,000 
C)  Work in Process 4,000
Materials 4,000 
D)  Work in Process 4,000
Cash 4,000

Question 10

Factory overhead is applied to production using a predetermined overhead rate.

Accepted Answer

A) True 
 B)False

Question 11

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 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 and general accounting systems 
D)  process cost and replacement cost systems

Question 12

At the end of July,the first month of the current fiscal year,the factory overhead account had a debit balance.Which of the following describes the nature of this balance and how it would be reported on the interim balance sheet?

Accepted Answer

A)  overapplied,deferred credit 
B)  underapplied,deferred debit 
C)  underapplied,deferred credit 
D)  overapplied,deferred debit 
A)  overapplied,deferred credit 
B)  underapplied,deferred debit 
C)  underapplied,deferred credit 
D)  overapplied,deferred debit

Question 13

The document that serves as the basis for recording direct labor on a job cost sheet is the clock card.

Accepted Answer

A) True 
 B)False

Question 14

The Thomlin Company forecasts that total overhead for the current year will be $15,000,000 with 300,000 total machine hours.Year to date,the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours.If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead,as of this point in time (year to date),the overhead is

Accepted Answer

A)  $1,000,000 overapplied 
B)  $1,000,000 underapplied 
C)  $500,000 overapplied 
D)  $500,000 underapplied 
A)  $1,000,000 overapplied 
B)  $1,000,000 underapplied 
C)  $500,000 overapplied 
D)  $500,000 underapplied

Question 15

The amount of time spent by an employee on an individual job are recorded on

Accepted Answer

A)  pay stubs 
B)  in-and-out cards 
C)  time tickets 
D)  employees' earnings records 
A)  pay stubs 
B)  in-and-out cards 
C)  time tickets 
D)  employees' earnings records

Question 16

Materials purchased on account during the month totaled $190,000.Materials requisitioned and placed in production totaled $165,000.The journal entry to record the material purchase on account is

Accepted Answer

A)  Materials 165,000
Accounts Payable 165,000 
B)  Materials 190,000
Accounts Payable 190,000 
C)  Materials 190,000
Cash 190,000 
D)  Accounts Payable 190,000
Materials 190,000 
A)  Materials 165,000
Accounts Payable 165,000 
B)  Materials 190,000
Accounts Payable 190,000 
C)  Materials 190,000
Cash 190,000 
D)  Accounts Payable 190,000
Materials 190,000

Question 17

The debit to factory overhead for the cost of indirect materials is obtained from the summary of the materials requisitions.

Accepted Answer

A) True 
 B)False

Question 18

In a job order cost accounting system,when goods that have been ordered are received,the receiving department personnel count,inspect the goods,and complete a

Accepted Answer

A)  purchase order 
B)  sales invoice 
C)  receiving report 
D)  purchase requisition 
A)  purchase order 
B)  sales invoice 
C)  receiving report 
D)  purchase requisition

Question 19

Aspen Technologies has the following budget data: ​
  If factory overhead is to be applied based on direct labor hours,the predetermined overhead rate is

Accepted Answer

A)  $7.50 
B)  $13.20 
C)  $2.20 
D)  $16.50 
A)  $7.50 
B)  $13.20 
C)  $2.20 
D)  $16.50

Question 20

The journal entry to record the purchase of $45,000 of raw materials is

Accepted Answer

A)  Materials 45,000
Accounts Receivable 45,000 
B)  Materials 45,000
Accounts Payable 45,000 
C)  Inventory 45,000
Accounts Receivable 30,000 
D)  Inventory 45,000
Cash 45,000 
A)  Materials 45,000
Accounts Receivable 45,000 
B)  Materials 45,000
Accounts Payable 45,000 
C)  Inventory 45,000
Accounts Receivable 30,000 
D)  Inventory 45,000
Cash 45,000

Exam 16: Job Order Costing

What is the ending balance of Work in Process for Adams Company at the end of the first quarter?

Sanders Inc.has applied $567,988 of overhead to jobs in the cost ledger.Actual overhead at the end of the year is $575,000.The adjustment for over or underapplied overhead is

A job order cost accounting system provides for a separate record of the cost of each particular quantity of product that passes through the factory.

A process cost accounting system provides product costs for each of the departments or processes within the factory.

The cost of production of completed and transferred goods during the period amounted to $540,000,and the finished products shipped to customers had total production costs of $375,000.The entry to record the transfer of costs from work in process to finished goods is

A service organization will not use the job order costing method because it has no direct materials.

Which of the following is the correct flow of manufacturing costs?

What is the balance of Sales for Adams Company at the end of the first quarter?

The journal entry to record the transfer of 1,600 units of part number 1177 with a value of $2.50 each,to work in process is

Factory overhead is applied to production using a predetermined overhead rate.

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

At the end of July,the first month of the current fiscal year,the factory overhead account had a debit balance.Which of the following describes the nature of this balance and how it would be reported on the interim balance sheet?

The document that serves as the basis for recording direct labor on a job cost sheet is the clock card.

The amount of time spent by an employee on an individual job are recorded on

Materials purchased on account during the month totaled $190,000.Materials requisitioned and placed in production totaled $165,000.The journal entry to record the material purchase on account is

The debit to factory overhead for the cost of indirect materials is obtained from the summary of the materials requisitions.

In a job order cost accounting system,when goods that have been ordered are received,the receiving department personnel count,inspect the goods,and complete a

Aspen Technologies has the following budget data: ​ If factory overhead is to be applied based on direct labor hours,the predetermined overhead rate is

The journal entry to record the purchase of $45,000 of raw materials is

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

Aspen Technologies has the following budget data: If factory overhead is to be applied based on direct labor hours,the predetermined overhead rate is