Question 1

Selected account balances of Samaritan Company for 2014 are as follows:
   Required:

Accepted Answer

The answer of Selected account balances of Samaritan Company for...

Question 2

The system which assign(s) costs by the job is termed:

Accepted Answer

A)  The process costing system 
B)  The job-order costing system 
C)  The project costing system 
D)  Both a and c 
A)  The process costing system 
B)  The job-order costing system 
C)  The project costing system 
D)  Both a and c

Question 3

A debit balance in overhead control implies that actual overhead costs exceed overhead applied.

Accepted Answer

A) True 
 B)False

Question 4

In an activity-based costing system activity cost is applied to each job by multiplying productivity rate by the job's use of the associated driver.

Accepted Answer

A) True 
 B)False

Question 5

The recognition and recording of costs is called:

Accepted Answer

A)  Cost assignment 
B)  Cost measurement 
C)  Cost accumulation 
D)  Job order costing 
A)  Cost assignment 
B)  Cost measurement 
C)  Cost accumulation 
D)  Job order costing

Question 6

Which of the following would NOT use a process costing system?

Accepted Answer

A)  electrical wire 
B)  cotton yarn 
C)  newsprint 
D)  satellites 
A)  electrical wire 
B)  cotton yarn 
C)  newsprint 
D)  satellites

Question 7

The collection of all job-order cost sheets defines a work-in-process inventory file.

Accepted Answer

A) True 
 B)False

Question 8

Costs of normal spoilage are included in overhead and applied to all good units produced.

Accepted Answer

A) True 
 B)False

Question 9

Figure 5 - 6 In the Monroe Company, the following Job cards were totaled at the end of the month:
Job 243 $5,750
Job 244 $4,980
Job 245 $3,675
Job 246 $4,250
Job 247 $5,100
Job 248 $3,800
Jobs 243 and 244 were in Finished Goods Inventory at the beginning of the month. Jobs 245 and 246 were in Work-in-process at the beginning of the month. Jobs 247 and 248 were started during the month. At the end of the month, Jobs 243 and 247 were sent to customers; jobs 245, 247, and 248 were completed and sent to finished goods.
Refer to Figure 5-6. What is the cost of goods sold for the month?

Accepted Answer

A)  $10,730 
B)  $10,850 
C)  $12,575 
D)  none of these 
A)  $10,730 
B)  $10,850 
C)  $12,575 
D)  none of these

Question 10

Canmore Company has the following data pertaining to 2014:   Factory overhead rate is 125 percent of direct labor costs.
What is the ending materials inventory balance for Canmore in 2014?

Accepted Answer

A)  $50,000 
B)  $62,500 
C)  $12,500 
D)  $37,500 
A)  $50,000 
B)  $62,500 
C)  $12,500 
D)  $37,500

Question 11

Figure 5-9 The Omega Company manufactures customized motors on a job-order basis. Job 492 is an order for 100 units. It requires the following:
  After inspection, 2 units required rework which required 8 additional direct labor hours and $60 of materials.
Refer to Figure 5-9. If the rework is considered normal spoilage, what is the journal entry for overhead control?

Accepted Answer

A)  no journal entry is needed 
B)  materials $ 60 payroll $80
Overhead control $140 
C)  overhead control $ 140 materials $60
Payroll $80 
D)  none of the above 
A)  no journal entry is needed 
B)  materials $ 60 payroll $80
Overhead control $140 
C)  overhead control $ 140 materials $60
Payroll $80 
D)  none of the above

Question 12

Figure 5-9 The Omega Company manufactures customized motors on a job-order basis. Job 492 is an order for 100 units. It requires the following:
  After inspection, 2 units required rework which required 8 additional direct labor hours and $60 of materials.
Refer to Figure 5-9. If the spoilage was considered normal, what is the cost of job 492?

Accepted Answer

A)  $5,500 
B)  $5,640 
C)  $5,760 
D)  $3,000 
A)  $5,500 
B)  $5,640 
C)  $5,760 
D)  $3,000

Question 13

The absolute maximum production activity of a manufacturing firm is called:

Accepted Answer

A)  Expected activity level 
B)  Normal activity level 
C)  Theoretical activity level 
D)  Practical activity level 
A)  Expected activity level 
B)  Normal activity level 
C)  Theoretical activity level 
D)  Practical activity level

Question 14

Companies operating in job-order industries produce a wide variety of products or jobs that are quite different from each other.

Accepted Answer

A) True 
 B)False

Question 15

The average activity that a firm experiences in the long term (more than one year) is called:

Accepted Answer

A)  Expected activity level 
B)  Normal activity level 
C)  Theoretical activity level 
D)  Practical activity level 
A)  Expected activity level 
B)  Normal activity level 
C)  Theoretical activity level 
D)  Practical activity level

Question 16

Compare and contrast perishability and intangibility in an automobile oil lubrication shop and architectural design firms.

Accepted Answer

Intangibility refers to the nonphysical

Question 17

A normal costing system records which costs in work in process?

Accepted Answer

A)  actual direct materials, actual direct labor, actual manufacturing overhead 
B)  applied direct materials, applied direct labor, applied manufacturing overhead 
C)  applied materials and labor and actual manufacturing overhead 
D)  actual materials and labor and applied manufacturing overhead 
A)  actual direct materials, actual direct labor, actual manufacturing overhead 
B)  applied direct materials, applied direct labor, applied manufacturing overhead 
C)  applied materials and labor and actual manufacturing overhead 
D)  actual materials and labor and applied manufacturing overhead

Question 18

Manufacturing overhead consists of all

Accepted Answer

A)  costs other than direct materials. 
B)  manufacturing costs other than direct materials. 
C)  costs other than direct materials and direct labor. 
D)  manufacturing costs other than direct materials and direct labor. 
A)  costs other than direct materials. 
B)  manufacturing costs other than direct materials. 
C)  costs other than direct materials and direct labor. 
D)  manufacturing costs other than direct materials and direct labor.

Question 19

The __________ form indicates the type and quantity of each material issued to the factory.

Accepted Answer

materials

Question 20

Unit cost is a critical piece of information for a manufacturing business as well as a service company.

Accepted Answer

A) True 
 B)False

Selected account balances of Samaritan Company for 2014 are as follows: Required:

The system which assign(s) costs by the job is termed:

A debit balance in overhead control implies that actual overhead costs exceed overhead applied.

In an activity-based costing system activity cost is applied to each job by multiplying productivity rate by the job's use of the associated driver.

The recognition and recording of costs is called:

Which of the following would NOT use a process costing system?

The collection of all job-order cost sheets defines a work-in-process inventory file.

Costs of normal spoilage are included in overhead and applied to all good units produced.

Canmore Company has the following data pertaining to 2014: Factory overhead rate is 125 percent of direct labor costs. What is the ending materials inventory balance for Canmore in 2014?

The absolute maximum production activity of a manufacturing firm is called:

Companies operating in job-order industries produce a wide variety of products or jobs that are quite different from each other.

The average activity that a firm experiences in the long term (more than one year) is called:

Compare and contrast perishability and intangibility in an automobile oil lubrication shop and architectural design firms.

A normal costing system records which costs in work in process?

Manufacturing overhead consists of all

The __________ form indicates the type and quantity of each material issued to the factory.

Unit cost is a critical piece of information for a manufacturing business as well as a service company.

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

Exam 5: Product and Service Costing: Job-Order System

Selected account balances of Samaritan Company for 2014 are as follows: Required:

The system which assign(s) costs by the job is termed:

A debit balance in overhead control implies that actual overhead costs exceed overhead applied.

In an activity-based costing system activity cost is applied to each job by multiplying productivity rate by the job's use of the associated driver.

The recognition and recording of costs is called:

Which of the following would NOT use a process costing system?

The collection of all job-order cost sheets defines a work-in-process inventory file.

Costs of normal spoilage are included in overhead and applied to all good units produced.

Canmore Company has the following data pertaining to 2014: Factory overhead rate is 125 percent of direct labor costs. What is the ending materials inventory balance for Canmore in 2014?

The absolute maximum production activity of a manufacturing firm is called:

Companies operating in job-order industries produce a wide variety of products or jobs that are quite different from each other.

The average activity that a firm experiences in the long term (more than one year) is called:

Compare and contrast perishability and intangibility in an automobile oil lubrication shop and architectural design firms.

A normal costing system records which costs in work in process?

Manufacturing overhead consists of all

The __________ form indicates the type and quantity of each material issued to the factory.

Unit cost is a critical piece of information for a manufacturing business as well as a service company.

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters