Question 1

Which of the following would record the labor costs to an individual job?

Accepted Answer

A)   clock cards
B)   in-and-out cards
C)   time tickets
D)   a payroll registerE) A) and B)
F) None of the above

Question 2

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 debitE) C) and D)
F) A) and B)

Question 3

Which of the following is a period cost?

Accepted Answer

A)   depreciation on factory lunchroom furniture
B)   salary of telephone receptionist in the sales office
C)   salary of a security guard for the factory parking lot
D)   computer chips used by a computer manufacturerE) A) and C)
F) A) and B)

Question 4

In a job order cost accounting system used by a service business, which of the following items would normally not be included as part of overhead?

Accepted Answer

A)   materials
B)   direct labor
C)   rent
D)   suppliesE) A) and D)
F) A) and C)

Question 5

Crain Company budgeted 35,000 direct labor hours and incurred 40,000 direct labor hours. It incurred $780,000 of overhead and estimated overhead was $735,000. 
What is Crain's predetermined overhead rate? Was overhead overapplied or underapplied for the year? By how much?

Accepted Answer

Predetermined overhead rate:  $735,000/3...

Question 6

Recording jobs shipped and customers billed would include a debit to

Accepted Answer

A)   Accounts Payable
B)   Cash
C)   Finished Goods
D)   Cost of Goods SoldE) None of the above
F) All of the above

Question 7

As product costs are incurred in the manufacturing process, they are accounted for as assets and reported on the balance sheet as inventory.

Accepted Answer

A) True 
 B)False

Question 8

Discuss how job order cost information is used in decision making.  What are some possible reasons that actual cost of materials would exceed expected costs for a job?

Accepted Answer

Since a job order cost system provides p...

Question 9

The amount of time spent by an employee in the factory is usually recorded on

Accepted Answer

A)   time tickets
B)   job order cost sheets
C)   employees' earnings records
D)   statement of owners' equityE) A) and B)
F) None of the above

Question 10

A receiving report is prepared when purchased materials are first received by the manufacturing department.

Accepted Answer

A) True 
 B)False

Question 11

A manufacturer may employ a job order cost system for some of its products and a process cost system for others.

Accepted Answer

A) True 
 B)False

Question 12

Period costs are classified as either

Accepted Answer

A)   selling expenses or production expenses
B)   administrative expense or production expenses
C)   selling expenses or administrative expenses
D)   general expenses or selling expensesE) All of the above
F) A) and C)

Question 13

Period costs are

Accepted Answer

A)   found on the balance sheet
B)   not involved in the production process
C)   classified as direct labor, direct material, or factory overhead
D)   found on the job order cost sheetsE) All of the above
F) None of the above

Question 14

The materials requisition serves as the source document for debiting the accounts in the materials ledger.

Accepted Answer

A) True 
 B)False

Question 15

A manufacturing business reports just two types of inventory on its balance sheet: work in process inventory and finished goods inventory.

Accepted Answer

A) True 
 B)False

Question 16

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 30,000. Actual factory overhead costs incurred were $377,200, and actual direct labor hours were 36,000. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year?

Accepted Answer

A)   $6,000 overapplied
B)   $6,000 underapplied
C)   $54,800 overapplied
D)   $54,800 underappliedE) None of the above
F) B) and C)

Question 17

Recording jobs completed would include a credit to

Accepted Answer

A)   Factory Overhead
B)   Finished Goods
C)   Work in Process
D)   Cost of Goods SoldE) B) and C)
F) A) and B)

Question 18

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 were 4,780. If the actual factory overhead totaled $141,800, determine the over- or underapplied amount for the month.

Accepted Answer

A)   $7,575 underapplied
B)   $35,220 underapplied
C)   $7,575 overapplied
D)   $35,220 overappliedE) A) and D)
F) B) and C)

Question 19

A job order cost accounting system provides for a separate record of the cost of each particular quantity of product that passes through the factory.

Accepted Answer

A) True 
 B)False

Question 20

The journal entry to record the purchase of $45,000 of raw materials is

Accepted Answer

A)   Materials                                              45,000         Accounts Receivable                                  45,000
B)   Materials                                               45,000         Accounts Payable                                       45,000
C)   Inventory                                             45,000         Accounts Receivable                                   30,000
D)   Inventory                                             45,000         Cash                                                          45,000E) B) and C)
F) None of the above

Exam 2: Job Order Costing

In a job order cost accounting system used by a service business, which of the following items would normally not be included as part of overhead?

Correct Answer
verified

Crain Company budgeted 35,000 direct labor hours and incurred 40,000 direct labor hours. It incurred $780,000 of overhead and estimated overhead was $735,000. What is Crain's predetermined overhead rate? Was overhead overapplied or underapplied for the year? By how much?

Correct Answer
verified
Predetermined overhead rate: $735,000/3...
View Answer

A receiving report is prepared when purchased materials are first received by the manufacturing department.

Correct Answer
verified

Correct Answer
verified

Recording jobs completed would include a credit to

Correct Answer
verified

A manufacturer may employ a job order cost system for some of its products and a process cost system for others.

Correct Answer
verified

Correct Answer
verified

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?

Correct Answer
verified

Recording jobs shipped and customers billed would include a debit to

Correct Answer
verified

Period costs are classified as either

Correct Answer
verified

Which of the following is a period cost?

Correct Answer
verified

A job order cost accounting system provides for a separate record of the cost of each particular quantity of product that passes through the factory.

Correct Answer
verified

Period costs are

Correct Answer
verified

The amount of time spent by an employee in the factory is usually recorded on

Correct Answer
verified

The journal entry to record the purchase of $45,000 of raw materials is

Correct Answer
verified

The materials requisition serves as the source document for debiting the accounts in the materials ledger.

Correct Answer
verified

As product costs are incurred in the manufacturing process, they are accounted for as assets and reported on the balance sheet as inventory.

Correct Answer
verified

Which of the following would record the labor costs to an individual job?

Correct Answer
verified

A manufacturing business reports just two types of inventory on its balance sheet: work in process inventory and finished goods inventory.

Correct Answer
verified

Discuss how job order cost information is used in decision making. What are some possible reasons that actual cost of materials would exceed expected costs for a job?

Correct Answer
verified
Since a job order cost system provides p...
View Answer

Exam 2: Job Order Costing

In a job order cost accounting system used by a service business, which of the following items would normally not be included as part of overhead?

Correct AnswerverifiedShow Answer

Crain Company budgeted 35,000 direct labor hours and incurred 40,000 direct labor hours. It incurred $780,000 of overhead and estimated overhead was $735,000. What is Crain's predetermined overhead rate? Was overhead overapplied or underapplied for the year? By how much?

Correct AnswerverifiedPredetermined overhead rate: $735,000/3...View AnswerShow Answer

A receiving report is prepared when purchased materials are first received by the manufacturing department.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Recording jobs completed would include a credit to

Correct AnswerverifiedShow Answer

A manufacturer may employ a job order cost system for some of its products and a process cost system for others.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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?

Correct AnswerverifiedShow Answer

Recording jobs shipped and customers billed would include a debit to

Correct AnswerverifiedShow Answer

Period costs are classified as either

Correct AnswerverifiedShow Answer

Which of the following is a period cost?

Correct AnswerverifiedShow Answer

A job order cost accounting system provides for a separate record of the cost of each particular quantity of product that passes through the factory.

Correct AnswerverifiedShow Answer

Period costs are

Correct AnswerverifiedShow Answer

The amount of time spent by an employee in the factory is usually recorded on

Correct AnswerverifiedShow Answer

The journal entry to record the purchase of $45,000 of raw materials is

Correct AnswerverifiedShow Answer

The materials requisition serves as the source document for debiting the accounts in the materials ledger.

Correct AnswerverifiedShow Answer

As product costs are incurred in the manufacturing process, they are accounted for as assets and reported on the balance sheet as inventory.

Correct AnswerverifiedShow Answer

Which of the following would record the labor costs to an individual job?

Correct AnswerverifiedShow Answer

A manufacturing business reports just two types of inventory on its balance sheet: work in process inventory and finished goods inventory.

Correct AnswerverifiedShow Answer

Discuss how job order cost information is used in decision making. What are some possible reasons that actual cost of materials would exceed expected costs for a job?

Correct AnswerverifiedSince a job order cost system provides p...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified
Predetermined overhead rate: $735,000/3...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified
Since a job order cost system provides p...
View Answer