Question 1

For which of the following businesses would the process cost system be appropriate?

Accepted Answer

A) a custom cabinet maker 
B) a landscaper 
C) a paper mill 
D) a catering firm

Question 2

Which of the following is a product cost?

Accepted Answer

A) salary of a sales manager 
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 3

A widely used activity base for developing factory overhead rates in highly automated settings is

Accepted Answer

A) direct labor hours 
B) direct labor dollars 
C) direct materials 
D) machine hours

Question 4

Job cost sheets can provide information to managers on unit cost trends, the cost impact of continuous improvement in the manufacturing process, the cost impact of materials changes, and the cost impact of direct materials price or direct labor rate changes over time.

Accepted Answer

A) True 
 B)False

Question 5

Selected accounts with amounts omitted are as follows  If the balance of Work in Process at August 31 is $220,000, what was the amount debited to Work in Process for direct materials in August?

Accepted Answer

A) $390,000 
B) $170,000 
C) $525,000 
D) $580,000

Question 6

What is the ending balance of Cost of Goods Sold for Adams Company at the end of the first quarter?

Accepted Answer

A) $456 
B) $2,685 
C) $1,685 
D) $685

Question 7

Flagler Company allocates overhead based on machine hours.It estimated overhead costs for the year to be $420,000.Estimated machine hours were 50,000.Actual hours and costs for the year were 46,000 machine hours and $380,000 of overhead.
Required:
a Calculate the overhead application rate for the year.
b What is the amount of applied overhead for the year?
c What is the amount of under or over applied overhead for the year? Indicate whether it is over or under applied.

Accepted Answer

The answer of Flagler Company allocates overhead based on machine...

Question 8

Match the costs that follow to the type of product cost a-c or designate as not a product cost d.
-factory depreciation

Accepted Answer

A) direct labor 
B) direct materials 
C) factory overhead 
D) not a product cost

Question 9

Information about costs developed through a job order cost system cannot be used to evaluate an organization's cost performance.

Accepted Answer

A) True 
 B)False

Question 10

The following budget data are available for Sharp Company:  If factory overhead is applied based on direct labor hours, the amount of overhead to be applied is

Accepted Answer

A) $180,000 
B) $181,000 
C) $172,500 
D) $184,000

Question 11

Which of the following would not be found in the accounting system of a service provider?

Accepted Answer

A) cost ledger 
B) finished goods ledger 
C) deferred revenue account 
D) job cost sheets

Question 12

During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 for general factory use.In addition, factory overhead charged to production was $32,000.The entry to record the direct labor costs is

Accepted Answer

A)  
B)  
C)  
D)

Question 13

When a job is completed in a service organization, the job costs are transferred to the

Accepted Answer

A) work in process account 
B) cost of services account 
C) finished goods account 
D) cost of goods sold account

Question 14

Materials purchased on account during the month amounted to $190,000.Materials requisitioned and placed in production totaled $156,000.The entry to record the transaction for materials requisitioned by the production department is

Accepted Answer

A)  
B)  
C)  
D)

Question 15

Define and discuss the two main types of cost accounting systems for manufacturing operations.What are their similarities and differences?

Accepted Answer

The answer of Define and discuss the two main types...

Question 16

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

Question 17

Match the costs that follow to the type of product cost a-c or designate as not a product cost d.
-salesmen commissions

Accepted Answer

A) direct labor 
B) direct materials 
C) factory overhead 
D) not a product cost

Question 18

Match each of the following phrases with the term a-g that it most closely describes.
-typically used by companies that make custom products

Accepted Answer

A) job order cost system 
B) process cost system 
C) activity-based costing 
D) under applied overhead 
E) over applied overhead
F)finished goods ledger
G)materials ledger

Question 19

During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 for general factory use.Factory overhead applied to production was $32,000.The entry to record the actual factory overhead costs incurred is

Accepted Answer

A)  
B)  
C)  
D)

Question 20

The following account appears in the ledger after only part of the postings have been completed for July, the first month of the current fiscal year:
Work in Process
  Factory overhead is applied to jobs at the rate of 60% of direct labor cost.The actual factory overhead incurred for July was $75,000.Jobs completed during the month totaled $301,200.
a Prepare the journal entries to record 1 the application of factory overhead to production during July and 2 the jobs completed during July.
b What is the balance of the factory overhead account on July 31?
c Was factory overhead over applied or under applied on July 31?
d Determine the balance of Work in Process on July 31.

Accepted Answer

The answer of The following account appears in the ledger...

Exam 2: Job Order Costing

For which of the following businesses would the process cost system be appropriate?

Which of the following is a product cost?

A widely used activity base for developing factory overhead rates in highly automated settings is

Job cost sheets can provide information to managers on unit cost trends, the cost impact of continuous improvement in the manufacturing process, the cost impact of materials changes, and the cost impact of direct materials price or direct labor rate changes over time.

Selected accounts with amounts omitted are as follows If the balance of Work in Process at August 31 is $220,000, what was the amount debited to Work in Process for direct materials in August?

What is the ending balance of Cost of Goods Sold for Adams Company at the end of the first quarter?

Match the costs that follow to the type of product cost a-c or designate as not a product cost d. -factory depreciation

Information about costs developed through a job order cost system cannot be used to evaluate an organization's cost performance.

The following budget data are available for Sharp Company: If factory overhead is applied based on direct labor hours, the amount of overhead to be applied is

Which of the following would not be found in the accounting system of a service provider?

During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 for general factory use.In addition, factory overhead charged to production was $32,000.The entry to record the direct labor costs is

When a job is completed in a service organization, the job costs are transferred to the

Materials purchased on account during the month amounted to $190,000.Materials requisitioned and placed in production totaled $156,000.The entry to record the transaction for materials requisitioned by the production department is

Define and discuss the two main types of cost accounting systems for manufacturing operations.What are their similarities and differences?

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

Match the costs that follow to the type of product cost a-c or designate as not a product cost d. -salesmen commissions

Match each of the following phrases with the term a-g that it most closely describes. -typically used by companies that make custom products

During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 for general factory use.Factory overhead applied to production was $32,000.The entry to record the actual factory overhead costs incurred is