Question 1

_______________ involves determining the dollar amounts of direct materials, direct labor, and overhead used in production.

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

In a job-order costing system, if costs are incurred to rework a job due to inadequate training of personnel, these costs would be

Accepted Answer

A)  debited to manufacturing overhead control. 
B)  debited to the job. 
C)  credited to manufacturing overhead control. 
D)  credited to the cost of goods sold. 
A)  debited to manufacturing overhead control. 
B)  debited to the job. 
C)  credited to manufacturing overhead control. 
D)  credited to the cost of goods sold.

Question 3

The following information was taken from the job cost sheet for Job 101 for Scott Manufacturing Company:
     Job 101 was sold on account on August 25, 2011, for 160 percent of its cost.
Required:

Accepted Answer

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

Question 4

Why are firms reluctant to use actual costing? How does normal costing solve the problems?

Accepted Answer

Actual costing systems do not provide ac

Question 5

Heterogeneity refers to the

Accepted Answer

A)  nonphysical nature of services as opposed to products. 
B)  fact that production and consumption are inseparable for services. 
C)  greater chances for variation in the performance of services than in the production of products. 
D)  fact that services cannot be inventoried but must be consumed when performed. 
A)  nonphysical nature of services as opposed to products. 
B)  fact that production and consumption are inseparable for services. 
C)  greater chances for variation in the performance of services than in the production of products. 
D)  fact that services cannot be inventoried but must be consumed when performed.

Question 6

The cost of direct materials is assigned to a job by the use of a source document known as a

Accepted Answer

A)  job cost sheet. 
B)  control account. 
C)  production order. 
D)  materials requisition form. 
A)  job cost sheet. 
B)  control account. 
C)  production order. 
D)  materials requisition form.

Question 7

Figure 5 - 8 Griswold Corporation is a job order costing company that uses activity-based costing to apply overhead to jobs.The following overhead activities were budgeted for the year.
  The following information about the jobs was given for September.
  By September 30, Jobs 102 and 103 were completed and sold.The remaining jobs were still in process.
-
Refer to Figure 5-8.The ending work in process would consist of the costs of what jobs?

Accepted Answer

A)  Job 102 + Job 103 
B)  Job 101 + Job 104 
C)  Job 101 + Job 102 + Job 103 + Job 104 
D)  Job 101 + Job 102 + Job 103 
A)  Job 102 + Job 103 
B)  Job 101 + Job 104 
C)  Job 101 + Job 102 + Job 103 + Job 104 
D)  Job 101 + Job 102 + Job 103

Question 8

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 the total cost assigned to Job XY5?

Accepted Answer

A)  $5,1500 
B)  $4,400 
C)  $4,200 
D)  $4,950 
A)  $5,1500 
B)  $4,400 
C)  $4,200 
D)  $4,950

Question 9

Disadvantages of actual costing include

Accepted Answer

A)  actual cost systems cannot provide accurate unit cost information on a timely basis. 
B)  actual cost systems produce unit costs that fluctuate from period to period. 
C)  estimates must be used when calculating the actual overhead rate. 
D)  both a and b. 
A)  actual cost systems cannot provide accurate unit cost information on a timely basis. 
B)  actual cost systems produce unit costs that fluctuate from period to period. 
C)  estimates must be used when calculating the actual overhead rate. 
D)  both a and b.

Question 10

Which of the following costing systems assigns actual costs of materials to inventory?

Accepted Answer

A)  actual costing system 
B)  normal costing system 
C)  standard costing system 
D)  both a and b 
A)  actual costing system 
B)  normal costing system 
C)  standard costing system 
D)  both a and b

Question 11

A job-order costing process would be most applicable for

Accepted Answer

A)  a food processing plant. 
B)  a natural gas processing. 
C)  an airplane manufacturing. 
D)  fertilizer production. 
A)  a food processing plant. 
B)  a natural gas processing. 
C)  an airplane manufacturing. 
D)  fertilizer production.

Question 12

Inseparability refers to the

Accepted Answer

A)  nonphysical nature of services as opposed to products. 
B)  fact that production and consumption are inseparable for services. 
C)  greater chances for variation in the performance of services than in the production of products. 
D)  fact that services cannot be inventoried but must be consumed when performed. 
A)  nonphysical nature of services as opposed to products. 
B)  fact that production and consumption are inseparable for services. 
C)  greater chances for variation in the performance of services than in the production of products. 
D)  fact that services cannot be inventoried but must be consumed when performed.

Question 13

Process costing would be most applicable for

Accepted Answer

A)  an electronics producer. 
B)  custom machining. 
C)  high rise building construction. 
D)  CPA audits. 
A)  an electronics producer. 
B)  custom machining. 
C)  high rise building construction. 
D)  CPA audits.

Question 14

Unit cost is important information for which of the following?

Accepted Answer

A)  valuing inventory 
B)  determining income 
C)  decision making 
D)  all of these 
A)  valuing inventory 
B)  determining income 
C)  decision making 
D)  all of these

Question 15

Which of the following items is a basic costing system record in a job-order costing system?

Accepted Answer

A)  materials requisition form 
B)  job-order cost sheet 
C)  job time ticket 
D)  all of these 
A)  materials requisition form 
B)  job-order cost sheet 
C)  job time ticket 
D)  all of these

Question 16

Normal costing uses which cost in work in process?

Accepted Answer

A)  applied direct materials 
B)  actual overhead 
C)  applied overhead 
D)  budgeted overhead 
A)  applied direct materials 
B)  actual overhead 
C)  applied overhead 
D)  budgeted overhead

Question 17

Figure 5-9 Alpha Company manufactures customized motors on a job-order basis.Job 492 is an order for 100 units.It requires the following:
Direct materials $3,000
Direct labor ($10/hr) 1,000
Overhead (150% DL$) 1,500
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 abnormal spoilage, what is the journal entry for overhead control?

Accepted Answer

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

Question 18

Which of the following transactions in a job-order costing system requires the procedure of merely moving a job-order cost sheet from one file to another?

Accepted Answer

A)  applying factory overhead to jobs 
B)  closing overapplied factory overhead 
C)  delivering a completed job to a customer 
D)  moving the job from one production department to another 
A)  applying factory overhead to jobs 
B)  closing overapplied factory overhead 
C)  delivering a completed job to a customer 
D)  moving the job from one production department to another

Question 19

Figure 5 - 8 Griswold Corporation is a job order costing company that uses activity-based costing to apply overhead to jobs.The following overhead activities were budgeted for the year.
  The following information about the jobs was given for September.
  By September 30, Jobs 102 and 103 were completed and sold.The remaining jobs were still in process.
-
Refer to Figure 5-8.What is the activity rate for purchasing?

Accepted Answer

A)  $ 1.25 
B)  $ 3.75 
C)  $ 8 
D)  $ 40 
A)  $ 1.25 
B)  $ 3.75 
C)  $ 8 
D)  $ 40

Question 20

Which of the following products would NOT use job-order costing?

Accepted Answer

A)  houses 
B)  chemicals 
C)  ships 
D)  custom-built furniture 
A)  houses 
B)  chemicals 
C)  ships 
D)  custom-built furniture

_______________ involves determining the dollar amounts of direct materials, direct labor, and overhead used in production.

In a job-order costing system, if costs are incurred to rework a job due to inadequate training of personnel, these costs would be

The following information was taken from the job cost sheet for Job 101 for Scott Manufacturing Company: Job 101 was sold on account on August 25, 2011, for 160 percent of its cost. Required:

Why are firms reluctant to use actual costing? How does normal costing solve the problems?

Heterogeneity refers to the

The cost of direct materials is assigned to a job by the use of a source document known as a

Disadvantages of actual costing include

Which of the following costing systems assigns actual costs of materials to inventory?

A job-order costing process would be most applicable for

Inseparability refers to the

Process costing would be most applicable for

Unit cost is important information for which of the following?

Which of the following items is a basic costing system record in a job-order costing system?

Normal costing uses which cost in work in process?

Which of the following transactions in a job-order costing system requires the procedure of merely moving a job-order cost sheet from one file to another?

Which of the following products would NOT use job-order costing?

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

_______________ involves determining the dollar amounts of direct materials, direct labor, and overhead used in production.

In a job-order costing system, if costs are incurred to rework a job due to inadequate training of personnel, these costs would be

The following information was taken from the job cost sheet for Job 101 for Scott Manufacturing Company: Job 101 was sold on account on August 25, 2011, for 160 percent of its cost. Required:

Why are firms reluctant to use actual costing? How does normal costing solve the problems?

Heterogeneity refers to the

The cost of direct materials is assigned to a job by the use of a source document known as a

Disadvantages of actual costing include

Which of the following costing systems assigns actual costs of materials to inventory?

A job-order costing process would be most applicable for

Inseparability refers to the

Process costing would be most applicable for

Unit cost is important information for which of the following?

Which of the following items is a basic costing system record in a job-order costing system?

Normal costing uses which cost in work in process?

Which of the following transactions in a job-order costing system requires the procedure of merely moving a job-order cost sheet from one file to another?

Which of the following products would NOT use job-order costing?

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