Question 1

Which of the following is a characteristic of normal costing?

Accepted Answer

A) Actual overhead costs are not assigned directly to jobs. 
B) Predetermined rates are not used to assign overhead. 
C) Applied overhead is not calculated on a job-specific basis. 
D) Plant-wide and departmental rates cannot be used to assign overhead. 
A) Actual overhead costs are not assigned directly to jobs. 
B) Predetermined rates are not used to assign overhead. 
C) Applied overhead is not calculated on a job-specific basis. 
D) Plant-wide and departmental rates cannot be used to assign overhead. A

Question 2

What account increases when raw materials are purchased on account?

Accepted Answer

A) expenses 
B) liabilities 
C) equity 
D) revenue 
A) expenses 
B) liabilities 
C) equity 
D) revenue B

Question 3

The three manufacturing cost elements are direct materials,direct labour,and overhead.

Accepted Answer

A) True 
 B)False  True

Question 4

Big Red Truck Company designs and builds fire trucks.During June,it had applied overhead of $125,000.Overhead is applied at the rate of 80% of direct labour cost.Direct labour wages average $10 per hour. How many direct labour hours did Big Red Truck Company have for the month of June?

Accepted Answer

A) 4,500 
B) 10,500 
C) 12,500 
D) 156,250 
A) 4,500 
B) 10,500 
C) 12,500 
D) 156,250

Question 5

Which of the following costs are easy to trace to individual jobs?

Accepted Answer

A) direct materials and overhead 
B) direct materials and direct labour 
C) direct labour and overhead 
D) overhead and indirect labour 
A) direct materials and overhead 
B) direct materials and direct labour 
C) direct labour and overhead 
D) overhead and indirect labour

Question 6

For which of the following are time tickets filled out?

Accepted Answer

A) indirect labourers 
B) direct labourers 
C) managers 
D) supervisors 
A) indirect labourers 
B) direct labourers 
C) managers 
D) supervisors

Question 7

Match the following cost flows with the proper event in a job-costing firm:
-Direct materials,direct labour and applied overhead are totalled to yield manufacturing cost of job

Accepted Answer

A) Completion of job 
B) End of each accounting period 
C) Materials are removed from storage into production 
D) Product is sold 
E) End of year 
A) Completion of job 
B) End of each accounting period 
C) Materials are removed from storage into production 
D) Product is sold 
E) End of year

Question 8

HiTech Housing uses job-order costing. At the end of the month, the following data were gathered:
HiTech Housing's selling price is cost plus 50% for each of its houses.
 $\begin{array}{lrrr}
\text { Job \# } & \text { Total Cost } & \text { Complete? } & \text { Sold? } \
529 & \$ 409 & \text { no } & \text { no } \
530 & \$ 513 & \text { yes } & \text { no }\
531 & \$ 115 & \text { no } & \text { no } \
532 & \$ 790 & \text { yes } & \text { yes } \
533 & \$ 650 & \text { yes } & \text { no } \
534 & \$ 540 & \text { no } & \text { no } \
535 & \$ 90 & \text { no } & \text { no } \
536 & \$ 970 & \text { yes } & \text { yes } \
537 & \$ 179 & \text { no } & \text { no } \
538 & \$ 400 & \text { no } & \text { no }
\end{array}$
-Refer to the Figure.What is the selling price of Job 536?

Accepted Answer

A) $790 
B) $970 
C) $1,185 
D) $1,455 
A) $790 
B) $970 
C) $1,185 
D) $1,455

Question 9

Which of the following events would require two separate journal entries?

Accepted Answer

A) selling a good 
B) transferring a good to finished goods 
C) purchasing raw materials 
D) hiring an hourly employee 
A) selling a good 
B) transferring a good to finished goods 
C) purchasing raw materials 
D) hiring an hourly employee

Question 10

Michelle's has the following transactions for the month of October:
1.Purchased materials on account for $111,482.
2.Materials requisitioned for $82,383.
3.Direct labour of $51,000 was incurred (but not yet paid).
4.Actual overhead for the month was $33,000. It has not been paid yet (charge to various payables).
5.Overhead is applied to production at the rate of 70% of direct labour.
6.Jobs totalling $56,000 were transferred from work in process to finished goods.
7.Jobs costing $41,000 were sold.Balances at the beginning of the month were:
 $\begin{array}{lr}
\text { Materials } & \$ 17,890 \
\text { Work in process } & 0 \
\text { Finished goods } & 8,321
\end{array}$
-Refer to the Figure.What is the journal entry to record applied overhead for the month?

Accepted Answer

A) Work in Process 35,700Overhead Control 35,700 
B) Various Payables 35,700Overhead Control 35,700 
C) Overhead Control 35,700Work in Process 35,700 
D) Overhead Control 35,700Various Payables 35,700 
A) Work in Process 35,700Overhead Control 35,700 
B) Various Payables 35,700Overhead Control 35,700 
C) Overhead Control 35,700Work in Process 35,700 
D) Overhead Control 35,700Various Payables 35,700

Question 11

Match each item with the correct statement below.
-The difference between actual overhead and applied overhead

Accepted Answer

A) Predetermined overhead rate 
B) Plantwide overhead rate 
C) Departmental overhead rate 
D) Overhead variance 
E) Overapplied overhead
F)Underapplied overhead
G)Applied overhead
H)Normal cost of goods sold 
A) Predetermined overhead rate 
B) Plantwide overhead rate 
C) Departmental overhead rate 
D) Overhead variance 
E) Overapplied overhead
F)Underapplied overhead
G)Applied overhead
H)Normal cost of goods sold

Question 12

What form requires the job number and the type,quantity,and unit price of direct materials issued?

Accepted Answer

A) time ticket 
B) materials requisition form 
C) job-order cost sheet 
D) labour summary sheet 
A) time ticket 
B) materials requisition form 
C) job-order cost sheet 
D) labour summary sheet

Question 13

Valley Water Slides makes custom water slides for hotels. On September 1, three jobs were in process: Jobs 812, 813, and 814. Two more jobs, Jobs 815 and 816, were started during September. By September 30, Jobs 812, 814, and 816 were finished. The following data were collected:
Overhead is applied at the rate of 120% of direct labour cost. Jobs are sold at cost plus 60%. Selling and administrative expenses for September totalled $2,950. By September 30, Jobs 812 were 816 are sold, but the customer who ordered Job 814 cancelled the order so the slide is still in the warehouse. $\begin{array}{lrrrrr} 
& \text { Job 812 } & \text { Job 813 } & \text { Job 814 } & \text { Job 815 } & \text { Job 816 } \
9 / 1 \mathrm{Bal} \text { ance } & \$ 615 & \$ 830 & \$ 945 & \ldots & \ldots\
\text { Direct Materials } & 750 & 235 & 1,280 & \$ 200 & \$ 915 \
\text { Direct Labour } & 420 & 115 & 560 & 320 & 875
\end{array}$
-Refer to the Figure.What is the cost of goods sold for September?

Accepted Answer

A) $3,575.00 
B) $5,129.00 
C) $5,720.00 
D) $8,206.40 
A) $3,575.00 
B) $5,129.00 
C) $5,720.00 
D) $8,206.40

Question 14

Match each item with the correct statement below.
-An approach that assigns the actual costs of direct materials and direct labour to products but uses a predetermined rate to assign overhead costs

Accepted Answer

A) Actual cost system 
B) Job-order cost system 
C) Normal cost system 
D) Process-costing system 
A) Actual cost system 
B) Job-order cost system 
C) Normal cost system 
D) Process-costing system

Question 15

The following information was taken from the job cost sheet for Job 101 for Scott Manufacturing Company:
 $\begin{array}{ll}
\text { Date started: } & \text { July 5 } \
\text { Date completed: } & \text { August 21 }
\end{array}$ Job 101 was sold on account on August 25 for 160% of its cost.
Required:
   A. Prepare the journal entries to record the costs incurred for Job 101 in the current year for
direct materials, direct labour, and factory overhead.
B. Prepare the journal entry to record the completion of Job 101 .
C. What is the predetermined factory overhead rate for Scott?
D. Prepare the journal entries to record the sale of Job 101 .

Accepted Answer

The answer of The following information was taken from the...

Question 16

Which of the following methods of measuring costs associated with production is more widely used in practice?

Accepted Answer

A) normal costing 
B) actual costing 
C) authentic costing 
D) ordinary costing 
A) normal costing 
B) actual costing 
C) authentic costing 
D) ordinary costing

Question 17

What are the three steps of overhead application?

Accepted Answer

The answer of What are the three steps of overhead...

Question 18

Match the following cost flows with the proper event in a job-costing firm:
-Cost of materials is removed from materials account and added to work in process

Accepted Answer

A) Completion of job 
B) End of each accounting period 
C) Materials are removed from storage into production 
D) Product is sold 
E) End of year 
A) Completion of job 
B) End of each accounting period 
C) Materials are removed from storage into production 
D) Product is sold 
E) End of year

Question 19

From an operational perspective,which is not a decision that unit costs are used to make?

Accepted Answer

A) hiring a new CEO 
B) evaluating performance on an ongoing basis 
C) establishing a price for a product or service 
D) determining the long-term feasibility of a business strategy 
A) hiring a new CEO 
B) evaluating performance on an ongoing basis 
C) establishing a price for a product or service 
D) determining the long-term feasibility of a business strategy

Question 20

The use of a departmental rate has the advantage of being simple and reduces data collection requirements.

Accepted Answer

A) True 
 B)False

Which of the following is a characteristic of normal costing?

What account increases when raw materials are purchased on account?

The three manufacturing cost elements are direct materials,direct labour,and overhead.

Big Red Truck Company designs and builds fire trucks.During June,it had applied overhead of $125,000.Overhead is applied at the rate of 80% of direct labour cost.Direct labour wages average $10 per hour. How many direct labour hours did Big Red Truck Company have for the month of June?

Which of the following costs are easy to trace to individual jobs?

For which of the following are time tickets filled out?

Match the following cost flows with the proper event in a job-costing firm: -Direct materials,direct labour and applied overhead are totalled to yield manufacturing cost of job

Which of the following events would require two separate journal entries?

Match each item with the correct statement below. -The difference between actual overhead and applied overhead

What form requires the job number and the type,quantity,and unit price of direct materials issued?

Match each item with the correct statement below. -An approach that assigns the actual costs of direct materials and direct labour to products but uses a predetermined rate to assign overhead costs

Which of the following methods of measuring costs associated with production is more widely used in practice?

What are the three steps of overhead application?

Match the following cost flows with the proper event in a job-costing firm: -Cost of materials is removed from materials account and added to work in process

From an operational perspective,which is not a decision that unit costs are used to make?

The use of a departmental rate has the advantage of being simple and reduces data collection requirements.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behaviour

Costvolumeprofit Analysis: a Managerial Planning Tool

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Budgeting, production, cash, and Master Budget

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Filters

Exam 5: Job-Order Costing

Which of the following is a characteristic of normal costing?

What account increases when raw materials are purchased on account?

The three manufacturing cost elements are direct materials,direct labour,and overhead.

Big Red Truck Company designs and builds fire trucks.During June,it had applied overhead of $125,000.Overhead is applied at the rate of 80% of direct labour cost.Direct labour wages average $10 per hour. How many direct labour hours did Big Red Truck Company have for the month of June?

Which of the following costs are easy to trace to individual jobs?

For which of the following are time tickets filled out?

Match the following cost flows with the proper event in a job-costing firm: -Direct materials,direct labour and applied overhead are totalled to yield manufacturing cost of job

Which of the following events would require two separate journal entries?

Match each item with the correct statement below. -The difference between actual overhead and applied overhead

What form requires the job number and the type,quantity,and unit price of direct materials issued?

Match each item with the correct statement below. -An approach that assigns the actual costs of direct materials and direct labour to products but uses a predetermined rate to assign overhead costs

Which of the following methods of measuring costs associated with production is more widely used in practice?

What are the three steps of overhead application?

Match the following cost flows with the proper event in a job-costing firm: -Cost of materials is removed from materials account and added to work in process

From an operational perspective,which is not a decision that unit costs are used to make?

The use of a departmental rate has the advantage of being simple and reduces data collection requirements.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behaviour

Costvolumeprofit Analysis: a Managerial Planning Tool

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Budgeting, production, cash, and Master Budget

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Filters