Question 1

Which of the following activities is a manager likely to carry out everyday?

Accepted Answer

A) Establishing selling prices for products 
B) Ensuring quality of products produced 
C) Estimating overhead costs to be incurred 
D) Preparing financial statements for a period 
A) Establishing selling prices for products 
B) Ensuring quality of products produced 
C) Estimating overhead costs to be incurred 
D) Preparing financial statements for a period

Question 2

Which of the following is a characteristic of a job order costing system?

Accepted Answer

A) Uses several Work in Process Inventory accounts 
B) Uses job cost cards to keep track of each job in process 
C) Assigns costs to specific processes 
D) Recognizes cost of materials when products are sold 
A) Uses several Work in Process Inventory accounts 
B) Uses job cost cards to keep track of each job in process 
C) Assigns costs to specific processes 
D) Recognizes cost of materials when products are sold

Question 3

Which of the following is the entry to record indirect labor costs incurred?

Accepted Answer

A)   
B)   
C)   
D)   
A)   
B)   
C)   
D)

Question 4

Which of the following products would probably use a job order costing system?

Accepted Answer

A) Pens 
B) Instant coffee 
C) Computer monitors 
D) Advertisements 
A) Pens 
B) Instant coffee 
C) Computer monitors 
D) Advertisements

Question 5

If there is a credit balance in the Payroll Payable at the end of the accounting period,it represents

Accepted Answer

A) the amount by which applied payroll was greater than actual payroll. 
B) the amount by which actual payroll was greater than applied payroll. 
C) labor costs which have not been paid. 
D) an amount that should be charged to Cost of Goods Sold. 
A) the amount by which applied payroll was greater than actual payroll. 
B) the amount by which actual payroll was greater than applied payroll. 
C) labor costs which have not been paid. 
D) an amount that should be charged to Cost of Goods Sold.

Question 6

The Work in Process Inventory account in a job order costing system consists of

Accepted Answer

A) time conversion cards. 
B) job conversion cards. 
C) job order cost cards. 
D) product cost cards. 
A) time conversion cards. 
B) job conversion cards. 
C) job order cost cards. 
D) product cost cards.

Question 7

Which of the following is related to performing in the management process?

Accepted Answer

A) Comparison of job estimates with actual job costs 
B) Preparation of financial statement 
C) Computation of a job's cost per unit 
D) Selection of a predetermined overhead rate 
A) Comparison of job estimates with actual job costs 
B) Preparation of financial statement 
C) Computation of a job's cost per unit 
D) Selection of a predetermined overhead rate

Question 8

In a service organization using a job order costing system,actual overhead will be the same as applied overhead.

Accepted Answer

A) True 
 B)False

Question 9

Regardless of the cost accounting system used,when the products are completed,they are transferred from work in process inventory to finished goods inventory.

Accepted Answer

A) True 
 B)False

Question 10

A job order costing system is used by companies that manufacture large amounts of similar products.

Accepted Answer

A) True 
 B)False

Question 11

Job order cost cards for incomplete jobs make up the ending balance of the Finished Goods Inventory account.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is true of performance evaluation reports?

Accepted Answer

A) Performance evaluation reports help service organizations determine inventory balances. 
B) Both external and internal users use performance evaluation reports. 
C) They are prepared before establishing the selling price of a product. 
D) Their modification will increase product sales. 
A) Performance evaluation reports help service organizations determine inventory balances. 
B) Both external and internal users use performance evaluation reports. 
C) They are prepared before establishing the selling price of a product. 
D) Their modification will increase product sales.

Question 13

Delaware Inc.incurred the following costs in October,2014,for producing 5,000 good units of personalized photo frames.   The company sold 4,500 units.Determine the product unit cost of photo frames.

Accepted Answer

A) $8.56 
B) $7.70 
C) $5.00 
D) $5.56 
A) $8.56 
B) $7.70 
C) $5.00 
D) $5.56

Question 14

Which of the following is a manager likely to do while preparing internal performance evaluation reports?

Accepted Answer

A) Review possible one-time order opportunities 
B) Record adjusting journal entries 
C) Determine human resource needs for the following period 
D) Compare actual costs with targeted costs 
A) Review possible one-time order opportunities 
B) Record adjusting journal entries 
C) Determine human resource needs for the following period 
D) Compare actual costs with targeted costs

Question 15

Johnson Technology specializes in graphic design and video production.In October 2014,the company incurred the following costs for providing services to one of its clients.   
-Johnson Technology's contract with the client discloses a 20% profit margin on the cost incurred.Determine the profit earned by the company by providing services.

Accepted Answer

A) $3,500 
B) $700 
C) $4,200 
D) $360 
A) $3,500 
B) $700 
C) $4,200 
D) $360

Question 16

Costs for individual jobs are maintained on material cost cards when job order costing is in use.

Accepted Answer

A) True 
 B)False

Question 17

The balance in the Work in Process Inventory account on October 1 was $14,000,and the balance on October 31 was $85,400.Costs incurred during the month were as follows: direct materials,$55,820;direct labor,$58,420;and overhead,$40,000.What amount was transferred to the Finished Goods Inventory account during October?

Accepted Answer

A) $82,840 
B) $154,240 
C) $239,640 
D) $140,240 
A) $82,840 
B) $154,240 
C) $239,640 
D) $140,240

Question 18

Cardsheet Company The following partially completed T accounts summarize the transactions of Cardsheet Company for last year:
 
-The cost of direct materials used in production is

Accepted Answer

A) $15,000. 
B) $11,000. 
C) $29,000. 
D) $62,300. 
A) $15,000. 
B) $11,000. 
C) $29,000. 
D) $62,300.

Question 19

In a job order costing system,costs are traced to a specific job order.

Accepted Answer

A) True 
 B)False

Question 20

The type of product costing system used by a company is dictated by the

Accepted Answer

A) cost flow assumptions made by the company. 
B) production process of the product. 
C) inventory system used by the company. 
D) selling price of the product. 
A) cost flow assumptions made by the company. 
B) production process of the product. 
C) inventory system used by the company. 
D) selling price of the product.

Exam 18: Costing Systems: Job Order Costing

Which of the following activities is a manager likely to carry out everyday?

Which of the following is a characteristic of a job order costing system?

Which of the following is the entry to record indirect labor costs incurred?

Which of the following products would probably use a job order costing system?

If there is a credit balance in the Payroll Payable at the end of the accounting period,it represents

The Work in Process Inventory account in a job order costing system consists of

Which of the following is related to performing in the management process?

In a service organization using a job order costing system,actual overhead will be the same as applied overhead.

Regardless of the cost accounting system used,when the products are completed,they are transferred from work in process inventory to finished goods inventory.

A job order costing system is used by companies that manufacture large amounts of similar products.

Job order cost cards for incomplete jobs make up the ending balance of the Finished Goods Inventory account.

Which of the following is true of performance evaluation reports?

Delaware Inc.incurred the following costs in October,2014,for producing 5,000 good units of personalized photo frames. The company sold 4,500 units.Determine the product unit cost of photo frames.

Which of the following is a manager likely to do while preparing internal performance evaluation reports?

Costs for individual jobs are maintained on material cost cards when job order costing is in use.

Cardsheet Company The following partially completed T accounts summarize the transactions of Cardsheet Company for last year: -The cost of direct materials used in production is

In a job order costing system,costs are traced to a specific job order.

The type of product costing system used by a company is dictated by the

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Adjusting the Accounts

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Long -Term Assets

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting and Cost Concepts

Costing Systems Process Costing

Value-Based Systems: Activity-Based Costing and Lean Accounting

Cost-Volume-Profit Analysis

The Budgeting Process

Flexible Budgets and Performance Analysis

Standard Costing and Variance Analysis

Short-Run Decision Analysis and Capital Budgeting

Filters