Question 1

A process cost accounting system is best used by manufacturers of like units of product that are not distinguishable from each other during a continuous production process.

Accepted Answer

A) True 
 B)False

Question 2

The entry to record the flow of direct labor costs into production in a job order cost accounting system is to

Accepted Answer

A)  debit Factory Overhead,credit Work in Process 
B)  debit Finished Goods,credit Wages Payable 
C)  debit Work in Process,credit Wages Payable 
D)  debit Factory Overhead,credit Wages Payable 
A)  debit Factory Overhead,credit Work in Process 
B)  debit Finished Goods,credit Wages Payable 
C)  debit Work in Process,credit Wages Payable 
D)  debit Factory Overhead,credit Wages Payable

Question 3

The inventory accounts generally maintained by a manufacturing firm are only finished goods and materials.

Accepted Answer

A) True 
 B)False

Question 4

A manufacturing company applies factory overhead based on direct labor hours.At the beginning of the year,it estimated that factory overhead costs would be $360,000 and direct labor hours would be 30,000.Actual manufacturing overhead costs incurred were $377,200,and actual direct labor hours were 36,000.The entry to apply the factory overhead costs for the year would include a

Accepted Answer

A)  debit to Factory Overhead for $360,000 
B)  credit to Factory Overhead for $432,000 
C)  debit to Factory Overhead for $377,200 
D)  credit to Factory Overhead for $360,000 
A)  debit to Factory Overhead for $360,000 
B)  credit to Factory Overhead for $432,000 
C)  debit to Factory Overhead for $377,200 
D)  credit to Factory Overhead for $360,000

Question 5

During the period,labor costs incurred on account amounted to $175,000,including $150,000 for production orders and $25,000 for general factory use.Factory overhead applied to production was $32,000.The entry to record the actual factory overhead costs incurred is

Accepted Answer

A)  Accounts Payable 25,000
Factory Overhead 25,000 
B)  Factory Overhead 32,000
Accounts Payable 32,000 
C)  Work in Process 25,000
Wages Payable 25,000 
D)  Factory Overhead 25,000
Wages Payable 25,000 
A)  Accounts Payable 25,000
Factory Overhead 25,000 
B)  Factory Overhead 32,000
Accounts Payable 32,000 
C)  Work in Process 25,000
Wages Payable 25,000 
D)  Factory Overhead 25,000
Wages Payable 25,000

Question 6

Each document in the cost ledger is called a

Accepted Answer

A)  finished goods sheet 
B)  stock record 
C)  materials requisition 
D)  job cost sheet 
A)  finished goods sheet 
B)  stock record 
C)  materials requisition 
D)  job cost sheet

Question 7

For which of the following businesses would the job order cost system be appropriate?

Accepted Answer

A)  canned soup processor 
B)  oil refinery 
C)  lumber mill 
D)  hospital 
A)  canned soup processor 
B)  oil refinery 
C)  lumber mill 
D)  hospital

Question 8

All of the following are true regarding product costs except ​

Accepted Answer

A)  product costs are found on the balance sheet until they are sold 
B)  product costs consist of direct labor,direct materials,and factory overhead 
C)  product costs can be found in three accounts on the balance sheet 
D)  product costs include sales and administrative expenses 
A)  product costs are found on the balance sheet until they are sold 
B)  product costs consist of direct labor,direct materials,and factory overhead 
C)  product costs can be found in three accounts on the balance sheet 
D)  product costs include sales and administrative expenses

Question 9

A manufacturing company applies factory overhead based on direct labor hours.At the beginning of the year,it estimated that factory overhead costs would be $360,000 and direct labor hours would be 30,000.Actual manufacturing overhead costs incurred were $377,200,and actual direct labor hours were 36,000.What is the predetermined overhead rate per direct labor hour?

Accepted Answer

A)  $12.00 
B)  $10.00 
C)  $12.57 
D)  $10.48 
A)  $12.00 
B)  $10.00 
C)  $12.57 
D)  $10.48

Question 10

When the goods are sold,their costs are transferred from Work in Process to Finished Goods.

Accepted Answer

A) True 
 B)False

Question 11

If the underapplied factory overhead amount is immaterial,it is transferred to Cost of Goods Sold at the end of the fiscal year.

Accepted Answer

A) True 
 B)False

Question 12

The job order costing system is used by service firms to determine revenues,expenses,and ultimately profit.

Accepted Answer

A) True 
 B)False

Question 13

Depreciation expense on factory equipment is part of factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 14

At the end of April,Cavy Company had completed Jobs 766 and 765.The individual job cost sheets reveal the following information:
​
   Job 765 produced 152 units,and Job 766 consisted of 250 units.
Assuming that the predetermined overhead rate is applied by using machine hours at a rate of $200 per hour,determine the (a)balance on the job cost sheets for each job,and (b)the cost per unit at the end of April.

Accepted Answer

a)Job No.765 = $14,570 ($5,670

Question 15

The finished goods account is the controlling account for the

Accepted Answer

A)  cost ledger 
B)  materials ledger 
C)  work in process ledger 
D)  stock ledger 
A)  cost ledger 
B)  materials ledger 
C)  work in process ledger 
D)  stock ledger

Question 16

Job order cost systems can be used to compare unit costs of similar jobs to determine if costs are staying within expected ranges.

Accepted Answer

A) True 
 B)False

Question 17

A difference in quantity of materials used on two comparable jobs may be caused by

Accepted Answer

A)  inadequately trained employees 
B)  poor quality materials 
C)  employee carelessness 
D)  all of these 
A)  inadequately trained employees 
B)  poor quality materials 
C)  employee carelessness 
D)  all of these

Question 18

The amount of time spent by an employee in the factory is usually recorded on

Accepted Answer

A)  time tickets 
B)  job order cost sheets 
C)  employees' earnings records 
D)  statement of owners' equity 
A)  time tickets 
B)  job order cost sheets 
C)  employees' earnings records 
D)  statement of owners' equity

Question 19

The recording of the factory labor incurred for general factory use would include a debit to

Accepted Answer

A)  Factory Overhead 
B)  Wages Payable 
C)  Wages Expense 
D)  Cost of Goods Sold 
A)  Factory Overhead 
B)  Wages Payable 
C)  Wages Expense 
D)  Cost of Goods Sold

Question 20

The details concerning the costs incurred on each job order are accumulated in a work in process account and supported by a

Accepted Answer

A)  stock ledger 
B)  materials ledger 
C)  cost ledger 
D)  creditors ledger 
A)  stock ledger 
B)  materials ledger 
C)  cost ledger 
D)  creditors ledger

Exam 16: Job Order Costing

A process cost accounting system is best used by manufacturers of like units of product that are not distinguishable from each other during a continuous production process.

The entry to record the flow of direct labor costs into production in a job order cost accounting system is to

The inventory accounts generally maintained by a manufacturing firm are only finished goods and materials.

During the period,labor costs incurred on account amounted to $175,000,including $150,000 for production orders and $25,000 for general factory use.Factory overhead applied to production was $32,000.The entry to record the actual factory overhead costs incurred is

Each document in the cost ledger is called a

For which of the following businesses would the job order cost system be appropriate?

All of the following are true regarding product costs except ​

When the goods are sold,their costs are transferred from Work in Process to Finished Goods.

If the underapplied factory overhead amount is immaterial,it is transferred to Cost of Goods Sold at the end of the fiscal year.

The job order costing system is used by service firms to determine revenues,expenses,and ultimately profit.

Depreciation expense on factory equipment is part of factory overhead cost.

The finished goods account is the controlling account for the

Job order cost systems can be used to compare unit costs of similar jobs to determine if costs are staying within expected ranges.

A difference in quantity of materials used on two comparable jobs may be caused by

The amount of time spent by an employee in the factory is usually recorded on

The recording of the factory labor incurred for general factory use would include a debit to

The details concerning the costs incurred on each job order are accumulated in a work in process account and supported by 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

All of the following are true regarding product costs except