Question 1

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.E) None of the above
F) A) and D)

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) B) and C)
F) All of the above

Question 3

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.E) A) and D)
F) B) and C)

Question 4

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 5

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

Accepted Answer

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Question 6

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 systemsE) B) and C)
F) All of the above

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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 officeE) None of the above
F) C) and D)

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

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 11

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 12

A separate account for each material is found in a

Accepted Answer

A)   general ledger
B)   materials ledger
C)   receiving report
D)   job cost sheetE) A) and B)
F) C) and D)

Question 13

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 costsE) A) and D)
F) All of the above

Question 14

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 15

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.E) A) and C)
F) None of the above

Question 16

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 17

Record in good journal entry format the following transactions:

Accepted Answer

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

Question 18

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.E) A) and D)
F) C) and D)

Question 19

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 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

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.

Correct Answer
verified

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

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

Correct Answer
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Correct Answer
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4,780 hour...
View Answer

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

Correct Answer
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The following are true regarding product costs except

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

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

Correct Answer
verified

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

Correct Answer
verified

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.

Correct Answer
verified

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

Correct Answer
verified

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.

Correct Answer
verified

A separate account for each material is found in a

Correct Answer
verified

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.

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

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

Correct Answer
verified

Record in good journal entry format the following transactions:

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified
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View Answer

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

Correct Answer
verified

Exam 19: Job Order Costing

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answerverified4,780 hour...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

The following are true regarding product costs except

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

A separate account for each material is found in a

Correct AnswerverifiedShow Answer

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.

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

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

Correct AnswerverifiedShow Answer

Record in good journal entry format the following transactions:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct Answerverified_TB2013_00...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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4,780 hour...
View Answer

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_TB2013_00...
View Answer

Correct Answer
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