Question 1

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 2

A law firm would use a job order cost system to accumulate all of the costs associated with a particular client engagement,such as lawyer time,copying charges,filing fees,and overhead.

Accepted Answer

A) True 
 B)False

Question 3

What is the ending balance of Cost of Goods Sold for Adams Company at the end of the first quarter?

Accepted Answer

A)  $456 
B)  $2,685 
C)  $1,685 
D)  $685 
A)  $456 
B)  $2,685 
C)  $1,685 
D)  $685

Question 4

Cavy Company estimates that total factory overhead costs will be $660,000 for the year.Direct labor hours are estimated to be 100,000.
​
Determine (a)the predetermined factory overhead rate; (b)the amount of factory overhead applied to Job 345 if the amount of direct labor hours is 560 and Job 777 if the amount of direct labor hours is 800; and (c)prepare the journal entry to apply factory overhead for April according to the predetermined overhead rate.

Accepted Answer

(a)$660,000 / 100,000 = $6.60

Question 5

Recording jobs shipped and customers billed would include a credit to

Accepted Answer

A)  Accounts Payable 
B)  Cash 
C)  Finished Goods 
D)  Cost of Goods Sold 
A)  Accounts Payable 
B)  Cash 
C)  Finished Goods 
D)  Cost of Goods Sold

Question 6

A job order cost system would be appropriate for a crude oil refining business.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following would record the labor costs to an individual job?

Accepted Answer

A)  clock cards 
B)  in-and-out cards 
C)  time tickets 
D)  a payroll register 
A)  clock cards 
B)  in-and-out cards 
C)  time tickets 
D)  a payroll register

Question 8

The materials requisition serves as the source document for debiting the accounts in the materials ledger.

Accepted Answer

A) True 
 B)False

Question 9

Job cost sheets can provide information to managers on unit cost trends,the cost impact of continuous improvement in the manufacturing process,the cost impact of materials changes,and the cost impact of direct materials price or direct labor rate changes over time.

Accepted Answer

A) True 
 B)False

Question 10

The following budget data are available for Sharp Company: ​
  If factory overhead is applied based on direct labor hours,the amount of overhead to be applied is

Accepted Answer

A)  $180,000 
B)  $181,000 
C)  $172,500 
D)  $184,000 
A)  $180,000 
B)  $181,000 
C)  $172,500 
D)  $184,000

Question 11

Selected accounts with a credit amount omitted are as follows ​
  ​
  What was the balance of Work in Process as of April 30?

Accepted Answer

A)  $8,100 
B)  $35,000 
C)  $29,900 
D)  $22,900 
A)  $8,100 
B)  $35,000 
C)  $29,900 
D)  $22,900

Question 12

The Cavy Company accumulated 560 hours of direct labor on Job 345 and 800 hours on Job 777.The direct labor was incurred at a rate of $20 per direct labor hour for Job 345 and $21 per direct labor for Job 777.Journalize the entry to record the flow of labor costs into production.

Accepted Answer

*(560 × $2

Question 13

Which of the following is a period cost?

Accepted Answer

A)  depreciation on factory lunchroom furniture 
B)  salary of telephone receptionist in the sales office 
C)  salary of a security guard for the factory parking lot 
D)  computer chips used by a computer manufacturer 
A)  depreciation on factory lunchroom furniture 
B)  salary of telephone receptionist in the sales office 
C)  salary of a security guard for the factory parking lot 
D)  computer chips used by a computer manufacturer

Question 14

Perpetual inventory controlling accounts and subsidiary ledgers are maintained for materials,work in process,and finished goods in job order costing systems.

Accepted Answer

A) True 
 B)False

Question 15

The recording of the application of factory overhead costs to jobs would include a credit to

Accepted Answer

A)  Factory Overhead 
B)  Wages Payable 
C)  Work in Process 
D)  Cost of Goods Sold 
A)  Factory Overhead 
B)  Wages Payable 
C)  Work in Process 
D)  Cost of Goods Sold

Question 16

Match the costs that follow to the type of product cost (a-c)or designate as not a product cost (d).
-maintenance supplies

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 17

During April,Cavy Company incurred factory overhead as follows:
​
   Record the entry for factory overhead incurred during April.

Accepted Answer

The answer of During April,Cavy Company incurred factory overhead as...

Question 18

Each account in the work in process subsidiary ledger in a job order costing system is called a job cost sheet.

Accepted Answer

A) True 
 B)False

Question 19

Selected accounts with amounts omitted are as follows ​
  ​
  If the balance of Work in Process on August 31 is $220,000,what was the amount debited to Work in Process for direct materials in August?

Accepted Answer

A)  $390,000 
B)  $170,000 
C)  $525,000 
D)  $580,000 
A)  $390,000 
B)  $170,000 
C)  $525,000 
D)  $580,000

Question 20

The source document for the data for debiting Work in Process for direct materials is a

Accepted Answer

A)  purchase order 
B)  purchase requisition 
C)  materials requisition 
D)  receiving report 
A)  purchase order 
B)  purchase requisition 
C)  materials requisition 
D)  receiving report

Exam 16: Job Order Costing

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

A law firm would use a job order cost system to accumulate all of the costs associated with a particular client engagement,such as lawyer time,copying charges,filing fees,and overhead.

What is the ending balance of Cost of Goods Sold for Adams Company at the end of the first quarter?

Recording jobs shipped and customers billed would include a credit to

A job order cost system would be appropriate for a crude oil refining business.

Which of the following would record the labor costs to an individual job?

The materials requisition serves as the source document for debiting the accounts in the materials ledger.

Job cost sheets can provide information to managers on unit cost trends,the cost impact of continuous improvement in the manufacturing process,the cost impact of materials changes,and the cost impact of direct materials price or direct labor rate changes over time.

The following budget data are available for Sharp Company: ​ If factory overhead is applied based on direct labor hours,the amount of overhead to be applied is

Selected accounts with a credit amount omitted are as follows ​ ​ What was the balance of Work in Process as of April 30?

The Cavy Company accumulated 560 hours of direct labor on Job 345 and 800 hours on Job 777.The direct labor was incurred at a rate of $20 per direct labor hour for Job 345 and $21 per direct labor for Job 777.Journalize the entry to record the flow of labor costs into production.

Which of the following is a period cost?

Perpetual inventory controlling accounts and subsidiary ledgers are maintained for materials,work in process,and finished goods in job order costing systems.

The recording of the application of factory overhead costs to jobs would include a credit to

Match the costs that follow to the type of product cost (a-c)or designate as not a product cost (d). -maintenance supplies

During April,Cavy Company incurred factory overhead as follows: ​ Record the entry for factory overhead incurred during April.

Each account in the work in process subsidiary ledger in a job order costing system is called a job cost sheet.

Selected accounts with amounts omitted are as follows ​ ​ If the balance of Work in Process on August 31 is $220,000,what was the amount debited to Work in Process for direct materials in August?

The source document for the data for debiting Work in Process for direct materials is a

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

The following budget data are available for Sharp Company: If factory overhead is applied based on direct labor hours,the amount of overhead to be applied is

Selected accounts with a credit amount omitted are as follows What was the balance of Work in Process as of April 30?

During April,Cavy Company incurred factory overhead as follows: Record the entry for factory overhead incurred during April.

Selected accounts with amounts omitted are as follows If the balance of Work in Process on August 31 is $220,000,what was the amount debited to Work in Process for direct materials in August?