Question 1

Which of the following are the two main types of cost accounting systems for manufacturing operations?

Accepted Answer

A)  Process cost and general accounting systems 
B)  Job order cost and process cost systems 
C)  Job order and general accounting systems 
D)  Process cost and replacement cost systems 
A)  Process cost and general accounting systems 
B)  Job order cost and process cost systems 
C)  Job order and general accounting systems 
D)  Process cost and replacement cost systems

Question 2

On the balance sheet for a manufacturing business, the cost of direct materials, direct labor, and factory overhead, which have entered into the manufacturing process but are associated with products that have not been finished, is reported as direct materials inventory.

Accepted Answer

A) True 
 B)False

Question 3

A separate account for each material is found in a

Accepted Answer

A)  general ledger 
B)  materials ledger 
C)  receiving report 
D)  job cost sheet 
A)  general ledger 
B)  materials ledger 
C)  receiving report 
D)  job cost sheet

Question 4

Six selected transactions for the current month are indicated by letters in the following T accounts in a job order cost accounting system:
   Describe each of the six transactions.

Accepted Answer

The answer of Six selected transactions for the current month...

Question 5

At the end of July, the first month of the current fiscal year, the factory overhead account had a debit balance. Which of the following describes the nature of this balance and how it would be reported on the interim balance sheet?

Accepted Answer

A)  Overapplied, deferred credit 
B)  Underapplied, deferred debit 
C)  Underapplied, deferred credit 
D)  Overapplied, deferred debit 
A)  Overapplied, deferred credit 
B)  Underapplied, deferred debit 
C)  Underapplied, deferred credit 
D)  Overapplied, deferred debit

Question 6

Each account in the cost ledger in a job order system is called a job cost sheet.

Accepted Answer

A) True 
 B)False

Question 7

The following are true regarding product costs except

Accepted Answer

A)  product costs are found on the balance sheet until they are sold. 
B)  product costs consist of direct labor, direct materials, and factory overhead. 
C)  product costs can be found in three accounts in the balance sheet. 
D)  product costs include sales and administrative expenses. 
A)  product costs are found on the balance sheet until they are sold. 
B)  product costs consist of direct labor, direct materials, and factory overhead. 
C)  product costs can be found in three accounts in the balance sheet. 
D)  product costs include sales and administrative expenses.

Question 8

If the underapplied factory overhead amount is immaterial, it is transferred to Cost of Goods Sold at the end of the fiscal year.

Accepted Answer

A) True 
 B)False

Question 9

The document that serves as the basis for recording direct labor on a job cost sheet is the time ticket.

Accepted Answer

A) True 
 B)False

Question 10

During June, the receipts and issuances of Material No. A2FO are as follows:

Accepted Answer

@#IMG-DLM&_TB2013_00

Question 11

Costs that are used in generating revenues during the current period, but are not involved in the manufacturing process are often referred to as:

Accepted Answer

A)  period costs 
B)  conversion costs 
C)  factory overhead costs 
D)  product costs 
A)  period costs 
B)  conversion costs 
C)  factory overhead costs 
D)  product costs

Question 12

Which of the following is the correct formula to calculate the predetermined factory overhead rate?

Accepted Answer

A)  Estimated total factory overhead costs divided by estimated activity base. 
B)  Actual total factory overhead costs divided by estimated activity base. 
C)  Estimated total factory overhead costs divided by actual activity base. 
D)  Actual total factory overhead costs divided by actual activity base. 
A)  Estimated total factory overhead costs divided by estimated activity base. 
B)  Actual total factory overhead costs divided by estimated activity base. 
C)  Estimated total factory overhead costs divided by actual activity base. 
D)  Actual total factory overhead costs divided by actual activity base.

Question 13

Which of the following would most likely be a product cost?

Accepted Answer

A)  Salary of VP of sales. 
B)  Advertising for a particular product. 
C)  Drill bits for a drill press used in the plant assembly area. 
D)  Salary of the company receptionist. 
A)  Salary of VP of sales. 
B)  Advertising for a particular product. 
C)  Drill bits for a drill press used in the plant assembly area. 
D)  Salary of the company receptionist.

Question 14

Match each of the following terms with the phrase that most closely describes it. Each answer may be used only once.

Accepted Answer

The answer of Match each of the following terms with...

Question 15

Job cost sheets can provide information to managers for all but the following:

Accepted Answer

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

Question 16

The Cavy Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 40,000 hours. The machine hours for the month of April for all of the jobs was 4,780. What is the amount that will be applied to all of the jobs for the month of April?

Accepted Answer

4,780 hour

Question 17

Record in good journal entry format the following transactions:

Accepted Answer

The answer of Record in good journal entry format the...

Question 18

Which of the following products probably would be manufactured using a job order costing system?

Accepted Answer

A)  Number 2 pencils 
B)  Computer monitors. 
C)  Wedding invitations. 
D)  Paper. 
A)  Number 2 pencils 
B)  Computer monitors. 
C)  Wedding invitations. 
D)  Paper.

Question 19

The cost of production of completed and finished goods during the period amounted to $450,000, and the finished products shipped to customers had total production costs of $357,000. From the following, select the entry to record the transfer of costs from finished goods to cost of goods sold.

Accepted Answer

The answer of The cost of production of completed and...

Question 20

Materials purchased on account during the month amounted to $180,000. Materials requisitioned and placed in production totaled $165,000. From the following, select the entry to record the transaction on the day the materials were requisitioned by the production department.

Accepted Answer

The answer of Materials purchased on account during the month...

Exam 19: Job Order Costing

Which of the following are the two main types of cost accounting systems for manufacturing operations?

On the balance sheet for a manufacturing business, the cost of direct materials, direct labor, and factory overhead, which have entered into the manufacturing process but are associated with products that have not been finished, is reported as direct materials inventory.

A separate account for each material is found in a

Six selected transactions for the current month are indicated by letters in the following T accounts in a job order cost accounting system: Describe each of the six transactions.

At the end of July, the first month of the current fiscal year, the factory overhead account had a debit balance. Which of the following describes the nature of this balance and how it would be reported on the interim balance sheet?

Each account in the cost ledger in a job order system is called a job cost sheet.

The following are true regarding product costs except

If the underapplied factory overhead amount is immaterial, it is transferred to Cost of Goods Sold at the end of the fiscal year.

The document that serves as the basis for recording direct labor on a job cost sheet is the time ticket.

During June, the receipts and issuances of Material No. A2FO are as follows:

Costs that are used in generating revenues during the current period, but are not involved in the manufacturing process are often referred to as:

Which of the following is the correct formula to calculate the predetermined factory overhead rate?

Which of the following would most likely be a product cost?

Match each of the following terms with the phrase that most closely describes it. Each answer may be used only once.

Job cost sheets can provide information to managers for all but the following:

Record in good journal entry format the following transactions:

Which of the following products probably would be manufactured using a job order costing system?

The cost of production of completed and finished goods during the period amounted to $450,000, and the finished products shipped to customers had total production costs of $357,000. From the following, select the entry to record the transfer of costs from finished goods to cost of goods sold.

Materials purchased on account during the month amounted to $180,000. Materials requisitioned and placed in production totaled $165,000. From the following, select the entry to record the transaction on the day the materials were requisitioned by the production department.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, Internal Control, and Cash

Receivables

Fixed Assets and Intangible Assets

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting Concepts and Principles

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Filters