Question 1

Pull manufacturing is driven by:

Accepted Answer

A)  customer demand. 
B)  forecasting customers' requirements. 
C)  a production schedule rather than line status. 
D)  pushing inventory ahead to the next station. 
A)  customer demand. 
B)  forecasting customers' requirements. 
C)  a production schedule rather than line status. 
D)  pushing inventory ahead to the next station.

Question 2

Bell Manufacturers Inc. has estimated total factory overhead costs of $60,000, and 10,000 direct labor hours for the current fiscal year. If job number 117 incurred 2,000 direct labor hours, the work-in-process account will be increased and factory overhead will be decreased by:

Accepted Answer

A)  $10,000. 
B)  $0. 
C)  $12,000. 
D)  $2,000. 
A)  $10,000. 
B)  $0. 
C)  $12,000. 
D)  $2,000.

Question 3

Job order costing and process costing are:

Accepted Answer

A)  pricing systems. 
B)  cost accounting systems. 
C)  cost flow systems. 
D)  inventory tracking systems. 
A)  pricing systems. 
B)  cost accounting systems. 
C)  cost flow systems. 
D)  inventory tracking systems.

Question 4

Upon completing a job, direct materials totaled $3,000; direct labor, $3,500; and factory overhead, $1,500. Units produced totaled 1,000. What is the per unit cost?

Accepted Answer

A)  $8,000 
B)  $6,500 
C)  $6.50 
D)  $8 
A)  $8,000 
B)  $6,500 
C)  $6.50 
D)  $8

Question 5

Which of the following statements is true of lead time?

Accepted Answer

A)  Total lead time can be divided into acceptable and non-acceptable lead time. 
B)  Lead time is a measure of time that elapses between the sale of a product and delivery to the customer. 
C)  Reducing nonvalue-added lead time reduces costs and improves the speed of production. 
D)  Reducing nonacceptable lead time improves the speed of production, but will not affect product cost. 
A)  Total lead time can be divided into acceptable and non-acceptable lead time. 
B)  Lead time is a measure of time that elapses between the sale of a product and delivery to the customer. 
C)  Reducing nonvalue-added lead time reduces costs and improves the speed of production. 
D)  Reducing nonacceptable lead time improves the speed of production, but will not affect product cost.

Question 6

Using the job order cost system, service business are able to bill clients on a weekly or monthly basis, even when the job has not been completed.

Accepted Answer

A) True 
 B)False

Question 7

Illustrate the effects on the accounts and financial statements of each of the following transactions for a company using a job order cost system:

Accepted Answer

The answer of Illustrate the effects on the accounts and...

Question 8

Direct materials costs are included in the conversion costs of a product.

Accepted Answer

A) True 
 B)False

Question 9

Just-in-time manufacturing practices include all of the following except:

Accepted Answer

A)  eliminating defective or poor-quality products. 
B)  partnering with suppliers to provide high-quality, low-cost, and on-time materials. 
C)  emphasizing push manufacturing to ensure inventory levels that will provide a buffer against production problems. 
D)  employee involvement using teams organized in product cells. 
A)  eliminating defective or poor-quality products. 
B)  partnering with suppliers to provide high-quality, low-cost, and on-time materials. 
C)  emphasizing push manufacturing to ensure inventory levels that will provide a buffer against production problems. 
D)  employee involvement using teams organized in product cells.

Question 10

If the cost of materials is not a significant portion of the total product cost, the materials may be classified as a part of factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following information is not provided by job cost sheets?

Accepted Answer

A)  Cost impact of materials changes 
B)  Cost impact of continuous improvement in the manufacturing process 
C)  Change in materials price or direct labor rate over time 
D)  Utilities, managerial salaries, and depreciation of computers in the corporate office 
A)  Cost impact of materials changes 
B)  Cost impact of continuous improvement in the manufacturing process 
C)  Change in materials price or direct labor rate over time 
D)  Utilities, managerial salaries, and depreciation of computers in the corporate office

Question 12

For which of the following businesses would the job order cost system be most appropriate?

Accepted Answer

A)  Custom cabinet manufacturer 
B)  Automobile manufacturer 
C)  Lumber mill 
D)  Meat processor 
A)  Custom cabinet manufacturer 
B)  Automobile manufacturer 
C)  Lumber mill 
D)  Meat processor

Question 13

The following information is available for the first month of operations for Brandt, Inc.: $\begin{array}{ll}
\$ 570,000 & \text { Sales } \
210,000 & \text { Grossprofit } \
20,000 & \text { Indirect labor } \
5,000 & \text { Indirect materials } \
37,000 & \text { Other factory overhead } \
390,000 & \text { Direct materials cost } \
658,000 & \text { Total manufacturing costs }
\end{array}$
 Calculate direct labor cost for Brandt, Inc.

Accepted Answer

A)  $226,000 
B)  $206,000 
C)  $231,000 
D)  $218,000 
A)  $226,000 
B)  $206,000 
C)  $231,000 
D)  $218,000

Question 14

In a job order cost accounting system, when goods that have been ordered are received, the receiving department personnel inspects the goods and completes the:

Accepted Answer

A)  purchase order. 
B)  sales invoice. 
C)  receiving report. 
D)  purchase requisition. 
A)  purchase order. 
B)  sales invoice. 
C)  receiving report. 
D)  purchase requisition.

Question 15

The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 16

The recording of the jobs shipped and customers billed would increase:

Accepted Answer

A)  Accounts Payable. 
B)  Cash. 
C)  Finished Goods. 
D)  Cost of Goods Sold. 
A)  Accounts Payable. 
B)  Cash. 
C)  Finished Goods. 
D)  Cost of Goods Sold.

Question 17

The recording of the jobs completed would increase:

Accepted Answer

A)  Factory Overhead. 
B)  Finished Goods. 
C)  Work-in-Process. 
D)  Cost of Goods Sold. 
A)  Factory Overhead. 
B)  Finished Goods. 
C)  Work-in-Process. 
D)  Cost of Goods Sold.

Question 18

Which of the following costs are included in the cost of manufacturing a product?

Accepted Answer

A)  Direct materials cost, factory overhead cost, and administrative cost 
B)  Direct labor cost and factory overhead cost 
C)  Direct labor cost, direct materials cost, and factory overhead cost 
D)  Direct materials cost and direct labor cost 
A)  Direct materials cost, factory overhead cost, and administrative cost 
B)  Direct labor cost and factory overhead cost 
C)  Direct labor cost, direct materials cost, and factory overhead cost 
D)  Direct materials cost and direct labor cost

Question 19

Direct materials, work-in-process, and finished goods inventory are most likely to be reported on the balance sheet of a(n):

Accepted Answer

A)  financial consultant. 
B)  apparel boutique. 
C)  automobile company. 
D)  insurance company. 
A)  financial consultant. 
B)  apparel boutique. 
C)  automobile company. 
D)  insurance company.

Question 20

The following information is available for the first month of operations for Crawford, Inc.: $\begin{array}{|l|l|}
\hline\$ 570,000 & \text { Sales } \
\hline 210,000 & \text { Gross profit } \
\hline 20,000 & \text { Indirect labor } \
\hline 9,000 & \text { Indirect materials } \
\hline 7,500 & \text { Other factory overhead } \
\hline 250,000 & \text { Materials purchased } \
\hline 420,000 & \text { Total manufacturing costs } \
\hline 10,000 & \text { Materials irventory, end of period } \
\hline
\end{array}$
 Refer to the information provided for Crawford Inc. Calculate direct materials cost used in production.

Accepted Answer

A)  $231,000 
B)  $240,000 
C)  $250,000 
D)  $249,000 
A)  $231,000 
B)  $240,000 
C)  $250,000 
D)  $249,000

Pull manufacturing is driven by:

Bell Manufacturers Inc. has estimated total factory overhead costs of $60,000, and 10,000 direct labor hours for the current fiscal year. If job number 117 incurred 2,000 direct labor hours, the work-in-process account will be increased and factory overhead will be decreased by:

Job order costing and process costing are:

Upon completing a job, direct materials totaled $3,000; direct labor, $3,500; and factory overhead, $1,500. Units produced totaled 1,000. What is the per unit cost?

Which of the following statements is true of lead time?

Using the job order cost system, service business are able to bill clients on a weekly or monthly basis, even when the job has not been completed.

Illustrate the effects on the accounts and financial statements of each of the following transactions for a company using a job order cost system:

Direct materials costs are included in the conversion costs of a product.

Just-in-time manufacturing practices include all of the following except:

If the cost of materials is not a significant portion of the total product cost, the materials may be classified as a part of factory overhead cost.

Which of the following information is not provided by job cost sheets?

For which of the following businesses would the job order cost system be most appropriate?

In a job order cost accounting system, when goods that have been ordered are received, the receiving department personnel inspects the goods and completes the:

The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold.

The recording of the jobs shipped and customers billed would increase:

The recording of the jobs completed would increase:

Which of the following costs are included in the cost of manufacturing a product?

Direct materials, work-in-process, and finished goods inventory are most likely to be reported on the balance sheet of a(n):

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley, Internal Control, and Cash

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

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Exam 10: Accounting Systems for Manufacturing Businesses

Pull manufacturing is driven by:

Bell Manufacturers Inc. has estimated total factory overhead costs of $60,000, and 10,000 direct labor hours for the current fiscal year. If job number 117 incurred 2,000 direct labor hours, the work-in-process account will be increased and factory overhead will be decreased by:

Job order costing and process costing are:

Upon completing a job, direct materials totaled $3,000; direct labor, $3,500; and factory overhead, $1,500. Units produced totaled 1,000. What is the per unit cost?

Which of the following statements is true of lead time?

Using the job order cost system, service business are able to bill clients on a weekly or monthly basis, even when the job has not been completed.

Illustrate the effects on the accounts and financial statements of each of the following transactions for a company using a job order cost system:

Direct materials costs are included in the conversion costs of a product.

Just-in-time manufacturing practices include all of the following except:

If the cost of materials is not a significant portion of the total product cost, the materials may be classified as a part of factory overhead cost.

Which of the following information is not provided by job cost sheets?

For which of the following businesses would the job order cost system be most appropriate?

In a job order cost accounting system, when goods that have been ordered are received, the receiving department personnel inspects the goods and completes the:

The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold.

The recording of the jobs shipped and customers billed would increase:

The recording of the jobs completed would increase:

Which of the following costs are included in the cost of manufacturing a product?

Direct materials, work-in-process, and finished goods inventory are most likely to be reported on the balance sheet of a(n):

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley, Internal Control, and Cash

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

Filters