Question 1

_______________ is the recognition and recording of costs.

Accepted Answer

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

Question 2

Total manufacturing-related costs incurred for Miller Company in October for all jobs is as follows:   Assuming Miller uses a normal costing system and applies overhead based on a predetermined rate, what is the credit to Overhead Control to close the account at the end of the year?

Accepted Answer

A)  $900 
B)  $350 
C)  $1,450 
D)  $1,650 
A)  $900 
B)  $350 
C)  $1,450 
D)  $1,650

Question 3

Figure 5-7 The following information is available pertaining to the Production Division:
 
- Refer to Figure 5-7.What are the total overhead costs assigned to Job 4X5, assuming the Mixing and Finishing Departments use direct labor hours and machine hours for their bases, respectively?

Accepted Answer

A)  $62.50 
B)  $1,500.00 
C)  $750.00 
D)  $250.00 
A)  $62.50 
B)  $1,500.00 
C)  $750.00 
D)  $250.00

Question 4

Which of the following costs is NOT included on a job-order cost sheet?

Accepted Answer

A)  direct material costs 
B)  applied factory overhead costs 
C)  direct labor costs 
D)  actual factory overhead costs 
A)  direct material costs 
B)  applied factory overhead costs 
C)  direct labor costs 
D)  actual factory overhead costs

Question 5

Figure 5 - 2 The Kraig Corporation manufactures custom-made purses.The following data pertains to Job XY5:
  Factory overhead is applied using a plant-wide rate based on direct labor hours.Factory overhead was budgeted at $60,000 for the year and the direct labor hours were estimated to be 15,000.Job XY5 consists of 50 units.
-
Refer to Figure 5-2.What is the materials cost per unit for Job XY5?

Accepted Answer

A)  $4 
B)  $40 
C)  $80 
D)  $267 
A)  $4 
B)  $40 
C)  $80 
D)  $267

Question 6

In developing unit costs, overhead costs should be assigned using activity drivers.Which would be the likely activity driver for a production process using a lathe?

Accepted Answer

A)  units produced 
B)  direct labor hours 
C)  machine hours 
D)  direct materials cost 
A)  units produced 
B)  direct labor hours 
C)  machine hours 
D)  direct materials cost

Question 7

On April 9, 2011, Job XX4 was completed.The job cost sheet showed a total of $4,000 in direct materials and $6,000 in direct labor at a rate of $20 per direct labor hour.Factory overhead is applied at $30 per direct labor hour.The debit to Finished Goods Inventory to record the completion of Job XX4 is

Accepted Answer

A)  $13,000. 
B)  $9,000. 
C)  $4,000. 
D)  $19,000. 
A)  $13,000. 
B)  $9,000. 
C)  $4,000. 
D)  $19,000.

Question 8

Figure 5 - 3 Olson Corporation constructs new homes.Assume that Olson uses a job costing system.During May 2011, the following transactions occurred:
Olson purchased $4,500 of lumber on account.
Olson used $3,750 of lumber in production and incurred 50 hours of direct labor hours at $15 per hour.
Depreciation of $1,500 on equipment used to build new houses was recorded.
A house that was completed last period at a cost of $150,000 was sold for $180,000 in cash.
-
Refer to Figure 5-3.The journal entry to record the requisition of lumber for Olson would include a

Accepted Answer

A)  debit to Work-in-Process of $4,500. 
B)  debit to Materials Inventory of $3,750. 
C)  credit to Finished Goods of $3,750. 
D)  debit to Work-in-Process of $3,750. 
A)  debit to Work-in-Process of $4,500. 
B)  debit to Materials Inventory of $3,750. 
C)  credit to Finished Goods of $3,750. 
D)  debit to Work-in-Process of $3,750.

Question 9

Figure 5-7 The following information is available pertaining to the Production Division:
  
-Refer to Figure 5-7.What is the plantwide overhead rate based on direct labor hours?

Accepted Answer

A)  $3.00 
B)  $1.50 
C)  $9.00 
D)  $1.00 
A)  $3.00 
B)  $1.50 
C)  $9.00 
D)  $1.00

Question 10

The effect of uniform production levels on unit production costs can be achieved

Accepted Answer

A)  by using a factory overhead rate based on different production levels for each year. 
B)  by using a factory overhead rate based on selling price. 
C)  by closing the factory overhead at the end of the accounting period. 
D)  by using a factory overhead rate based on long-run normal production activity level. 
A)  by using a factory overhead rate based on different production levels for each year. 
B)  by using a factory overhead rate based on selling price. 
C)  by closing the factory overhead at the end of the accounting period. 
D)  by using a factory overhead rate based on long-run normal production activity level.

Question 11

The cost of spoilage is added to a job when it is considered to be

Accepted Answer

A)  a result of the process, no matter what job is being worked on. 
B)  a normal consequence of working on that job. 
C)  abnormal. 
D)  all of these. 
A)  a result of the process, no matter what job is being worked on. 
B)  a normal consequence of working on that job. 
C)  abnormal. 
D)  all of these.

Question 12

A journal entry debiting Work-in-Process would normally NOT be accompanied by a credit to

Accepted Answer

A)  Materials Inventory. 
B)  Finished Goods. 
C)  Overhead Control. 
D)  Wages Payable. 
A)  Materials Inventory. 
B)  Finished Goods. 
C)  Overhead Control. 
D)  Wages Payable.

Question 13

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 14

Direct labor costs are assigned to individual jobs using a source document known as a

Accepted Answer

A)  job-order cost sheet. 
B)  payroll check. 
C)  time sheet. 
D)  requisition form. 
A)  job-order cost sheet. 
B)  payroll check. 
C)  time sheet. 
D)  requisition form.

Question 15

Moore Company completed the following transactions with respect to its manufacturing operations during December 2011:
   Required:
Prepare journal entries for each of the transactions that occurred during December 2011.

Accepted Answer

The answer of Moore Company completed the following transactions with...

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 _______________ indicates the type and quantity of each material issued to the factory.

Accepted Answer

A)  control account 
B)  materials requisition form 
C)  production list 
D)  work ticket 
A)  control account 
B)  materials requisition form 
C)  production list 
D)  work ticket

Question 18

Figure 5 - 4 Walter Company uses a job-order costing system to account for product costs.The following information pertains to 2011:
  Factory overhead rate is $18 per direct labor hour.
-
Refer to Figure 5-4.What is the total amount credited to Materials Inventory for Walter in 2011?

Accepted Answer

A)  $480,000 
B)  $170,000 
C)  $140,000 
D)  $110,000 
A)  $480,000 
B)  $170,000 
C)  $140,000 
D)  $110,000

Question 19

Why are unit costs important? Why do full-cost unit costs change from accounting period to accounting period.

Accepted Answer

Unit costs are important for valuing inv

Question 20

Manufacturers producing unique or customized products would employ a(n)

Accepted Answer

A)  process costing system. 
B)  job-costing system. 
C)  homogeneous costing system. 
D)  all of these. 
A)  process costing system. 
B)  job-costing system. 
C)  homogeneous costing system. 
D)  all of these.

_______________ is the recognition and recording of costs.

Total manufacturing-related costs incurred for Miller Company in October for all jobs is as follows: Assuming Miller uses a normal costing system and applies overhead based on a predetermined rate, what is the credit to Overhead Control to close the account at the end of the year?

Figure 5-7 The following information is available pertaining to the Production Division: - Refer to Figure 5-7.What are the total overhead costs assigned to Job 4X5, assuming the Mixing and Finishing Departments use direct labor hours and machine hours for their bases, respectively?

Which of the following costs is NOT included on a job-order cost sheet?

In developing unit costs, overhead costs should be assigned using activity drivers.Which would be the likely activity driver for a production process using a lathe?

Figure 5-7 The following information is available pertaining to the Production Division: -Refer to Figure 5-7.What is the plantwide overhead rate based on direct labor hours?

The effect of uniform production levels on unit production costs can be achieved

The cost of spoilage is added to a job when it is considered to be

A journal entry debiting Work-in-Process would normally NOT be accompanied by a credit to

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

Direct labor costs are assigned to individual jobs using a source document known as a

Moore Company completed the following transactions with respect to its manufacturing operations during December 2011: Required: Prepare journal entries for each of the transactions that occurred during December 2011.

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

A _______________ indicates the type and quantity of each material issued to the factory.

Figure 5 - 4 Walter Company uses a job-order costing system to account for product costs.The following information pertains to 2011: Factory overhead rate is $18 per direct labor hour. - Refer to Figure 5-4.What is the total amount credited to Materials Inventory for Walter in 2011?

Why are unit costs important? Why do full-cost unit costs change from accounting period to accounting period.

Manufacturers producing unique or customized products would employ a(n)

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

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

_______________ is the recognition and recording of costs.

Total manufacturing-related costs incurred for Miller Company in October for all jobs is as follows: Assuming Miller uses a normal costing system and applies overhead based on a predetermined rate, what is the credit to Overhead Control to close the account at the end of the year?

Figure 5-7 The following information is available pertaining to the Production Division: - Refer to Figure 5-7.What are the total overhead costs assigned to Job 4X5, assuming the Mixing and Finishing Departments use direct labor hours and machine hours for their bases, respectively?

Which of the following costs is NOT included on a job-order cost sheet?

In developing unit costs, overhead costs should be assigned using activity drivers.Which would be the likely activity driver for a production process using a lathe?

Figure 5-7 The following information is available pertaining to the Production Division: -Refer to Figure 5-7.What is the plantwide overhead rate based on direct labor hours?

The effect of uniform production levels on unit production costs can be achieved

The cost of spoilage is added to a job when it is considered to be

A journal entry debiting Work-in-Process would normally NOT be accompanied by a credit to

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

Direct labor costs are assigned to individual jobs using a source document known as a

Moore Company completed the following transactions with respect to its manufacturing operations during December 2011: Required: Prepare journal entries for each of the transactions that occurred during December 2011.

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

A _______________ indicates the type and quantity of each material issued to the factory.

Figure 5 - 4 Walter Company uses a job-order costing system to account for product costs.The following information pertains to 2011: Factory overhead rate is $18 per direct labor hour. - Refer to Figure 5-4.What is the total amount credited to Materials Inventory for Walter in 2011?

Why are unit costs important? Why do full-cost unit costs change from accounting period to accounting period.

Manufacturers producing unique or customized products would employ a(n)

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

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