Question 1

The following partially completed T accounts summarize the transactions of Carlton Company for last year:  The cost of direct materials used in production is

Accepted Answer

A)  $12,000. 
B)  $13,000. 
C)  $16,000. 
D)  $20,000.

Question 2

Bear Country produces hand-carved wooden bears and uses a job order costing system. The following are data on the three jobs worked on in the company's first month of operations:
  Overhead cost is applied to job orders on the basis of direct labor hours at a predetermined rate of $10 per hour. The Smokey and Rocky bears were completed during the month, and the Curious bears remained in work in process at the end of the month. 
a. Compute the cost transferred to finished goods during the month.
b. Compute the unit cost for a Rocky bear.

Accepted Answer

The answer of Bear Country produces hand-carved wooden bears and...

Question 3

Product costs appear on the income statement in the form of

Accepted Answer

A)  cost of goods sold. 
B)  materials inventory. 
C)  sales commissions. 
D)  none of these.

Question 4

In a process costing system, each product is assigned the same amount of costs.

Accepted Answer

A) True 
 B)False

Question 5

Under a job order costing system, the dollar amount of the entry involved in the transfer of goods from work in process to finished goods is the total of the costs charged to all jobs

Accepted Answer

A)  started during the period. 
B)  completed and sold during the period. 
C)  completed during the period. 
D)  started and completed during the period.

Question 6

After a job is completed, the product unit cost can be determined from the job order cost card.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following characteristics applies to process costing, but does not apply to job order costing?

Accepted Answer

A)  The need for averaging 
B)  The use of equivalent units 
C)  Separate, identifiable jobs 
D)  The use of predetermined overhead rates

Question 8

When Dimock Construction's Designer House #10 is completed, Dimock's

Accepted Answer

A)  work in process is increased. 
B)  total assets are increased. 
C)  work in process is decreased. 
D)  total assets are decreased.

Question 9

Which of the following is not a characteristic of a job order costing system?

Accepted Answer

A)  Uses only one Work in Process Inventory account 
B)  Uses job cost cards to keep track of each job in process 
C)  Assigns costs to specific batches of products 
D)  Measures costs for a set time period

Question 10

In a job order costing system, indirect labor costs incurred are charged to the Work in Process Inventory account.

Accepted Answer

A) True 
 B)False

Question 11

The following information is available at the end of the period for the completed Job 713:  What is the unit cost for Job 713?

Accepted Answer

A)  $3.76 
B)  $3.71 
C)  $3.82 
D)  $3.91

Question 12

To prepare financial statements at the end of the accounting period, the actual overhead cost for the period and the estimated overhead that was applied during the period must be reconciled in a job order costing system.

Accepted Answer

A) True 
 B)False

Question 13

A company that manufactures potato chips would probably use a process costing system.

Accepted Answer

A) True 
 B)False

Question 14

Explain the similarities and differences between job order costing and process costing. Focus on the characteristics of each type of system.

Accepted Answer

The answer of Explain the similarities and differences between job...

Question 15

In a job order costing system, a separate job order cost card is used for each individual job.

Accepted Answer

A) True 
 B)False

Question 16

The type of product costing system used by a company is dictated by the

Accepted Answer

A)  project manager. 
B)  production process. 
C)  company president. 
D)  plant supervisor.

Question 17

The following partially completed T accounts summarize the transactions of Carlton Company for last year:  The indirect labor cost is

Accepted Answer

A)  $6,000. 
B)  $13,000. 
C)  $16,000. 
D)  $31,000.

Question 18

A company should use process costing rather than job order costing if

Accepted Answer

A)  production is only partially completed during the accounting period. 
B)  the product is produced in batches only as orders are received. 
C)  the product is composed of mass-produced homogeneous units. 
D)  the product goes through single stage of production.

Question 19

Which of the following entities probably would use a process costing system?

Accepted Answer

A)  An oil refinery 
B)  A yacht builder 
C)  A custom furniture company 
D)  A custom screw manufacturer

Question 20

In a job order costing system, product costs are traced to work cells.

Accepted Answer

A) True 
 B)False

Exam 20: Costing Systems: Job Order Costing

The following partially completed T accounts summarize the transactions of Carlton Company for last year: The cost of direct materials used in production is

Product costs appear on the income statement in the form of

In a process costing system, each product is assigned the same amount of costs.

Under a job order costing system, the dollar amount of the entry involved in the transfer of goods from work in process to finished goods is the total of the costs charged to all jobs

After a job is completed, the product unit cost can be determined from the job order cost card.

Which of the following characteristics applies to process costing, but does not apply to job order costing?

When Dimock Construction's Designer House #10 is completed, Dimock's

Which of the following is not a characteristic of a job order costing system?

In a job order costing system, indirect labor costs incurred are charged to the Work in Process Inventory account.

The following information is available at the end of the period for the completed Job 713: What is the unit cost for Job 713?

To prepare financial statements at the end of the accounting period, the actual overhead cost for the period and the estimated overhead that was applied during the period must be reconciled in a job order costing system.

A company that manufactures potato chips would probably use a process costing system.

Explain the similarities and differences between job order costing and process costing. Focus on the characteristics of each type of system.

In a job order costing system, a separate job order cost card is used for each individual job.

The type of product costing system used by a company is dictated by the

The following partially completed T accounts summarize the transactions of Carlton Company for last year: The indirect labor cost is

A company should use process costing rather than job order costing if

Which of the following entities probably would use a process costing system?

In a job order costing system, product costs are traced to work cells.