Question 1

Period costs include all of the following EXCEPT

Accepted Answer

A) CEO salary. 
B) depreciation on office equipment. 
C) sales commissions. 
D) wages of an assembly worker. 
A) CEO salary. 
B) depreciation on office equipment. 
C) sales commissions. 
D) wages of an assembly worker.

Question 2

Heedy Winery accumulates the costs incurred in the labeling process in an activity cost pool.Costs for the labeling process are estimated to be $320,000 for the coming year,and the winery expects to generate 640,000 labels.Production for its top-selling wine is estimated at 160,000 bottles.How much overhead from the labeling process will be allocated to this particular variety of wine?

Accepted Answer

A) $40,000 
B) $80,000 
C) $160,000 
D) $320,000 
A) $40,000 
B) $80,000 
C) $160,000 
D) $320,000

Question 3

Inventories of finished products are reported as current assets on the manufacturer's
balance sheet.

Accepted Answer

A) True 
 B)False

Question 4

Job cost sheets can provide information to managers for all but which of the following?

Accepted Answer

A) Cost impact of materials changes 
B) Cost impact of continuous improvement in the manufacturing process 
C) Cost impact of materials price or direct labor rate changes over time 
D) Utilities,managerial salaries,and depreciation of computers in the corporate office 
A) Cost impact of materials changes 
B) Cost impact of continuous improvement in the manufacturing process 
C) Cost impact of materials price or direct labor rate changes over time 
D) Utilities,managerial salaries,and depreciation of computers in the corporate office

Question 5

Illustrate the effects on the accounts and financial statements of each of the following transactions for a company using a job order cost system:

Accepted Answer

Assets = Liabilities + Stockholders' Equ

Question 6

Which of the following is considered a part of factory overhead cost?

Accepted Answer

A) Sales commissions 
B) Depreciation of factory buildings 
C) Depreciation of office equipment 
D) Direct materials used 
A) Sales commissions 
B) Depreciation of factory buildings 
C) Depreciation of office equipment 
D) Direct materials used

Question 7

Product costs include all of the following EXCEPT

Accepted Answer

A) CEO salary. 
B) depreciation on factory equipment. 
C) wages of an assembly worker. 
D) direct materials. 
A) CEO salary. 
B) depreciation on factory equipment. 
C) wages of an assembly worker. 
D) direct materials.

Question 8

The amount of time spent by each employee and the labor cost incurred for each individual job or for factory overhead are recorded on

Accepted Answer

A) employees' earnings records. 
B) in-and-out board. 
C) time tickets. 
D) all of these. 
A) employees' earnings records. 
B) in-and-out board. 
C) time tickets. 
D) all of these.

Question 9

The recording of the application of factory overhead costs to jobs would decrease

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 10

Which of the following is an example of direct materials cost for an automobile manufacturer?

Accepted Answer

A) Cost of oil lubricants for factory machinery 
B) Cost of wages of assembly worker 
C) Salary of production supervisor 
D) Cost of interior upholstery 
A) Cost of oil lubricants for factory machinery 
B) Cost of wages of assembly worker 
C) Salary of production supervisor 
D) Cost of interior upholstery

Question 11

The following are all product costs EXCEPT

Accepted Answer

A) direct materials. 
B) sales and administrative expenses. 
C) direct labor. 
D) factory overhead. 
A) direct materials. 
B) sales and administrative expenses. 
C) direct labor. 
D) factory overhead.

Question 12

The recording of the jobs shipped and customers billed would increase

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 13

Matt Industries manufactures toys.Matt uses a job order cost system.The time tickets from September jobs are summarized below.
   
Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $25 per direct labor hour.The direct labor rate is $30 per hour.
(a)Determine the total factory labor costs transferred to Work in Process and Factory Overhead for September.
(b)Determine the amount of factory overhead applied to production for September.

Accepted Answer

(a)Costs transferred to Work i

Question 14

The direct labor and overhead costs of providing services to clients are accumulated in a work-in-process account.

Accepted Answer

A) True 
 B)False

Question 15

Direct labor cost is an example of a product cost.

Accepted Answer

A) True 
 B)False

Question 16

Conversion cost is the combination of direct labor cost and factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 17

The basis for recording direct and indirect labor costs incurred is a summary of the period's

Accepted Answer

A) job order cost sheets. 
B) time tickets. 
C) employees' earnings records. 
D) clock cards. 
A) job order cost sheets. 
B) time tickets. 
C) employees' earnings records. 
D) clock cards.

Question 18

Indicate whether each of the following costs of a cabinet manufacturer would be classified as direct materials cost,direct labor cost,factory overhead cost,or period cost.
(a)Plant manager's salary
(b)Office administrative assistant's salary
(c)Depreciation on factory equipment.
(d)Rent on office building.
(e)Varieties of wood
(f)Varnish for coating cabinets
(g)Utilities cost on the factory
(h)Cabinet assembly worker's salary
(i)Advertising costs
(j)Screws and glue used in assembly process

Accepted Answer

(a)factory overhead
(b)period

Question 19

A disadvantage of maintaining high inventory levels includes

Accepted Answer

A) providing a "buffer" to protect against process problems. 
B) hiding underlying production problems such as unexpected scrap and rework. 
C) maintaining inventory is wasteful and unnecessary. 
D) both hiding underlying production problems and the fact that maintaining inventory is wasteful and unnecessary are disadvantages of maintaining inventory. 
A) providing a "buffer" to protect against process problems. 
B) hiding underlying production problems such as unexpected scrap and rework. 
C) maintaining inventory is wasteful and unnecessary. 
D) both hiding underlying production problems and the fact that maintaining inventory is wasteful and unnecessary are disadvantages of maintaining inventory.

Question 20

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

Accepted Answer

A) True 
 B)False

Period costs include all of the following EXCEPT

Inventories of finished products are reported as current assets on the manufacturer's balance sheet.

Job cost sheets can provide information to managers for all but which of the following?

Illustrate the effects on the accounts and financial statements of each of the following transactions for a company using a job order cost system:

Which of the following is considered a part of factory overhead cost?

Product costs include all of the following EXCEPT

The amount of time spent by each employee and the labor cost incurred for each individual job or for factory overhead are recorded on

The recording of the application of factory overhead costs to jobs would decrease

Which of the following is an example of direct materials cost for an automobile manufacturer?

The following are all product costs EXCEPT

The recording of the jobs shipped and customers billed would increase

The direct labor and overhead costs of providing services to clients are accumulated in a work-in-process account.

Direct labor cost is an example of a product cost.

Conversion cost is the combination of direct labor cost and factory overhead cost.

The basis for recording direct and indirect labor costs incurred is a summary of the period's

A disadvantage of maintaining high inventory levels includes

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

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley,internal Control,and Cash

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

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Exam 10: Accounting Systems for Manufacturing Businesses

Period costs include all of the following EXCEPT

Inventories of finished products are reported as current assets on the manufacturer's balance sheet.

Job cost sheets can provide information to managers for all but which of the following?

Illustrate the effects on the accounts and financial statements of each of the following transactions for a company using a job order cost system:

Which of the following is considered a part of factory overhead cost?

Product costs include all of the following EXCEPT

The amount of time spent by each employee and the labor cost incurred for each individual job or for factory overhead are recorded on

The recording of the application of factory overhead costs to jobs would decrease

Which of the following is an example of direct materials cost for an automobile manufacturer?

The following are all product costs EXCEPT

The recording of the jobs shipped and customers billed would increase

The direct labor and overhead costs of providing services to clients are accumulated in a work-in-process account.

Direct labor cost is an example of a product cost.

Conversion cost is the combination of direct labor cost and factory overhead cost.

The basis for recording direct and indirect labor costs incurred is a summary of the period's

A disadvantage of maintaining high inventory levels includes

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

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley,internal Control,and Cash

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

Filters