Question 1

Materials inventory contains the costs of direct and indirect materials that have NOT yet entered the manufacturing process.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following would most likely be 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 3

An activity-based costing system allocates factory overhead rates to products or
Services using

Accepted Answer

A) a single plantwide rate. 
B) the cost of activities based on an activity rate times the number of activity-based usage quantities. 
C) an allocation of budgeted revenues produced by a product or service . 
D) an end-of-year allocation of costs to products or services. 
A) a single plantwide rate. 
B) the cost of activities based on an activity rate times the number of activity-based usage quantities. 
C) an allocation of budgeted revenues produced by a product or service . 
D) an end-of-year allocation of costs to products or services.

Question 4

A summary of the materials requisitions completed during a period serves as the basis for transferring the cost of the materials from the materials account to

Accepted Answer

A) work in process and cost of goods sold. 
B) work in process and factory overhead. 
C) finished goods and cost of goods sold. 
D) work in process and finished goods. 
A) work in process and cost of goods sold. 
B) work in process and factory overhead. 
C) finished goods and cost of goods sold. 
D) work in process and finished goods.

Question 5

The cost of a manufactured product generally consists of which of the following costs?

Accepted Answer

A) Direct materials cost and factory overhead cost 
B) Direct labor cost and factory overhead cost 
C) Direct labor cost,direct materials cost,and factory overhead cost 
D) Direct materials cost and direct labor cost 
A) Direct materials cost and factory overhead cost 
B) Direct labor cost and factory overhead cost 
C) Direct labor cost,direct materials cost,and factory overhead cost 
D) Direct materials cost and direct labor cost

Question 6

The underapplied factory overhead amount may be transferred to Cost of Goods Sold at the end of the fiscal year.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following manufacturing costs is an indirect cost of producing a product?

Accepted Answer

A) Oil lubricants used for factory machinery 
B) Commissions for sales personnel 
C) Hourly wages of an assembly worker 
D) Memory chips for a microcomputer manufacturer 
A) Oil lubricants used for factory machinery 
B) Commissions for sales personnel 
C) Hourly wages of an assembly worker 
D) Memory chips for a microcomputer manufacturer

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Activity-based costing is a method of accumulating and allocating costs by department.

Accepted Answer

A) True 
 B)False

Question 10

Pull manufacturing is driven by which of the following?

Accepted Answer

A) Customer demand 
B) Forecasting customers' requirements 
C) A production schedule rather than line status 
D) Pushing inventory ahead to the next station 
A) Customer demand 
B) Forecasting customers' requirements 
C) A production schedule rather than line status 
D) Pushing inventory ahead to the next station

Question 11

Increases in the Work in Process account occur when

Accepted Answer

A) materials are received into the storeroom. 
B) factory overhead costs are incurred. 
C) direct labor is recorded from the time sheets. 
D) All of these increase work in process. 
A) materials are received into the storeroom. 
B) factory overhead costs are incurred. 
C) direct labor is recorded from the time sheets. 
D) All of these increase work in process.

Question 12

The finished goods account is the controlling account for the

Accepted Answer

A) sales ledger. 
B) materials ledger. 
C) work in process ledger. 
D) stock ledger. 
A) sales ledger. 
B) materials ledger. 
C) work in process ledger. 
D) stock ledger.

Question 13

Hudson,Inc.has estimated total factory overhead costs of $400,000 and 20,000 direct labor hours for the current fiscal year.If direct labor hours for Job N41 total 1,500,calculate applied factory overhead applied to this job.

Accepted Answer

A) $40,000 
B) $20,000 
C) $3,000 
D) $30,000 
A) $40,000 
B) $20,000 
C) $3,000 
D) $30,000

Question 14

Bell Manufacturers Inc.has estimated total factory overhead costs of $60,000 and 10,000 direct labor hours for the current fiscal year.If job number 117 incurred 2,000 direct labor hours,the work in process account will be increased and factory overhead will be
Decreased for

Accepted Answer

A) $10,000. 
B) $0. 
C) $12,000. 
D) $2,000. 
A) $10,000. 
B) $0. 
C) $12,000. 
D) $2,000.

Question 15

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 16

The cost of materials entering directly into the manufacturing process is classified as

Accepted Answer

A) direct labor cost. 
B) factory overhead cost. 
C) burden cost. 
D) direct materials cost. 
A) direct labor cost. 
B) factory overhead cost. 
C) burden cost. 
D) direct materials cost.

Question 17

As product costs are incurred in the manufacturing process,they are accounted for as assets and reported on the balance sheet as inventory.

Accepted Answer

A) True 
 B)False

Question 18

The following information is available for the first month of operations for Brandt,Inc.:
  
-Calculate direct labor cost for Brandt,Inc.

Accepted Answer

A) $226,000 
B) $206,000 
C) $231,000 
D) $218,000 
A) $226,000 
B) $206,000 
C) $231,000 
D) $218,000

Question 19

Cambridge Corporation applied factory overhead costs of $205,000 to production during the current year.At the end of the year,total overapplied factory overhead is $17,000.What was the amount of actual factory overhead cost incurred during the year?

Accepted Answer

A) $222,000 
B) $200,000 
C) $205,000 
D) $188,000 
A) $222,000 
B) $200,000 
C) $205,000 
D) $188,000

Question 20

In a job order cost accounting system for a service business,materials costs are normally included as part of overhead.

Accepted Answer

A) True 
 B)False

Materials inventory contains the costs of direct and indirect materials that have NOT yet entered the manufacturing process.

Which of the following would most likely be a period cost?

An activity-based costing system allocates factory overhead rates to products or Services using

A summary of the materials requisitions completed during a period serves as the basis for transferring the cost of the materials from the materials account to

The cost of a manufactured product generally consists of which of the following costs?

The underapplied factory overhead amount may be transferred to Cost of Goods Sold at the end of the fiscal year.

Which of the following manufacturing costs is an indirect cost of producing a product?

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

Activity-based costing is a method of accumulating and allocating costs by department.

Pull manufacturing is driven by which of the following?

Increases in the Work in Process account occur when

The finished goods account is the controlling account for the

Hudson,Inc.has estimated total factory overhead costs of $400,000 and 20,000 direct labor hours for the current fiscal year.If direct labor hours for Job N41 total 1,500,calculate applied factory overhead applied to this job.

Bell Manufacturers Inc.has estimated total factory overhead costs of $60,000 and 10,000 direct labor hours for the current fiscal year.If job number 117 incurred 2,000 direct labor hours,the work in process account will be increased and factory overhead will be Decreased for

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

The cost of materials entering directly into the manufacturing process is classified as

As product costs are incurred in the manufacturing process,they are accounted for as assets and reported on the balance sheet as inventory.

The following information is available for the first month of operations for Brandt,Inc.: -Calculate direct labor cost for Brandt,Inc.

Cambridge Corporation applied factory overhead costs of $205,000 to production during the current year.At the end of the year,total overapplied factory overhead is $17,000.What was the amount of actual factory overhead cost incurred during the year?

In a job order cost accounting system for a service business,materials costs are normally included as part of overhead.

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

Materials inventory contains the costs of direct and indirect materials that have NOT yet entered the manufacturing process.

Which of the following would most likely be a period cost?

An activity-based costing system allocates factory overhead rates to products or Services using

A summary of the materials requisitions completed during a period serves as the basis for transferring the cost of the materials from the materials account to

The cost of a manufactured product generally consists of which of the following costs?

The underapplied factory overhead amount may be transferred to Cost of Goods Sold at the end of the fiscal year.

Which of the following manufacturing costs is an indirect cost of producing a product?

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

Activity-based costing is a method of accumulating and allocating costs by department.

Pull manufacturing is driven by which of the following?

Increases in the Work in Process account occur when

The finished goods account is the controlling account for the

Hudson,Inc.has estimated total factory overhead costs of $400,000 and 20,000 direct labor hours for the current fiscal year.If direct labor hours for Job N41 total 1,500,calculate applied factory overhead applied to this job.

Bell Manufacturers Inc.has estimated total factory overhead costs of $60,000 and 10,000 direct labor hours for the current fiscal year.If job number 117 incurred 2,000 direct labor hours,the work in process account will be increased and factory overhead will be Decreased for

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

The cost of materials entering directly into the manufacturing process is classified as

As product costs are incurred in the manufacturing process,they are accounted for as assets and reported on the balance sheet as inventory.

The following information is available for the first month of operations for Brandt,Inc.: -Calculate direct labor cost for Brandt,Inc.

Cambridge Corporation applied factory overhead costs of $205,000 to production during the current year.At the end of the year,total overapplied factory overhead is $17,000.What was the amount of actual factory overhead cost incurred during the year?

In a job order cost accounting system for a service business,materials costs are normally included as part of overhead.

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