Question 1

Match each of the following phrases with the term (a-g) that it most closely describes.
-Applied overhead is less than actual overhead incurred

Accepted Answer

A) Job order cost system 
B) Process cost system 
C) Activity-based costing 
D) Underapplied overhead 
E) Overapplied overhead
F)Finished goods ledger
G)Materials ledger 
A) Job order cost system 
B) Process cost system 
C) Activity-based costing 
D) Underapplied overhead 
E) Overapplied overhead
F)Finished goods ledger
G)Materials ledger

Question 2

Match each of the following phrases with the term (a-g) that it most closely describes.
-A subsidiary ledger that maintains a separate account for each type of material

Accepted Answer

A) Job order cost system 
B) Process cost system 
C) Activity-based costing 
D) Underapplied overhead 
E) Overapplied overhead
F)Finished goods ledger
G)Materials ledger 
A) Job order cost system 
B) Process cost system 
C) Activity-based costing 
D) Underapplied overhead 
E) Overapplied overhead
F)Finished goods ledger
G)Materials ledger

Question 3

The journal entry to record the transfer of 1,600 units of Part No. 1177, with a value of $2.50 each, to work in process is

Accepted Answer

The answer of The journal entry to record the transfer...

Question 4

Each document in the cost ledger is called a

Accepted Answer

A)  finished goods sheet 
B)  stock record 
C)  materials requisition 
D)  job cost sheet 
A)  finished goods sheet 
B)  stock record 
C)  materials requisition 
D)  job cost sheet

Question 5

Cavy Company accumulated 560 hours of direct labor on Job 345 and 800 hours on Job 777. The direct labor was incurred at a rate of $20 per direct labor hour for Job 345 and $21 per direct labor for Job 777. Journalize the entry to record the flow of labor costs into production.

Accepted Answer

Work in Process28,00

Question 6

Activity-based costing is a method of accumulating and allocating costs by department.

Accepted Answer

A) True 
 B)False

Question 7

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

Question 8

A law firm would use a job order cost system to accumulate all of the costs associated with a particular client engagement, such as lawyer time, copying charges, filing fees, and overhead.

Accepted Answer

A) True 
 B)False

Question 9

Match each of the following phrases with the term (a-g) that it most closely describes.
-Typically used by companies whose products are indistinguishable from each other

Accepted Answer

A) Job order cost system 
B) Process cost system 
C) Activity-based costing 
D) Underapplied overhead 
E) Overapplied overhead
F)Finished goods ledger
G)Materials ledger 
A) Job order cost system 
B) Process cost system 
C) Activity-based costing 
D) Underapplied overhead 
E) Overapplied overhead
F)Finished goods ledger
G)Materials ledger

Question 10

A process cost accounting system is best used by manufacturers of like units of product that are not distinguishable from each other during a continuous production process.

Accepted Answer

A) True 
 B)False

Question 11

Present entries to record the following summarized operations related to production for a company using a job order cost system:

Accepted Answer

The answer of Present entries to record the following summarized...

Question 12

The basis for recording direct and indirect labor costs incurred is a summary of the period's

Accepted Answer

A)  job order cost sheets 
B)  time tickets 
C)  employees' earnings records 
D)  clock cards 
A)  job order cost sheets 
B)  time tickets 
C)  employees' earnings records 
D)  clock cards

Question 13

The recording of the application of factory overhead costs to jobs would include a credit to

Accepted Answer

A)  Factory Overhead 
B)  Wages Payable 
C)  Work in Process 
D)  Cost of Goods Sold 
A)  Factory Overhead 
B)  Wages Payable 
C)  Work in Process 
D)  Cost of Goods Sold

Question 14

The controlling account for the cost ledger is

Accepted Answer

A)  Finished Goods 
B)  Materials 
C)  Work in Process 
D)  Cost of Goods Sold 
A)  Finished Goods 
B)  Materials 
C)  Work in Process 
D)  Cost of Goods Sold

Question 15

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

Question 16

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

Accepted Answer

A)  clock cards 
B)  in-and-out cards 
C)  time tickets 
D)  payroll register 
A)  clock cards 
B)  in-and-out cards 
C)  time tickets 
D)  payroll register

Question 17

Interim financial statements for a manufacturing business would report overapplied factory overhead as a deferred item on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 18

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

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

Question 19

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 20

Match the costs that follow to the type of product cost (a-c) or designate as not a product cost (d).
-Factory supervisor's salary

Accepted Answer

A) Direct labor 
B) Direct materials 
C) Factory overhead 
D) Not a product cost 
A) Direct labor 
B) Direct materials 
C) Factory overhead 
D) Not a product cost

Exam 19: Job Order Costing

Match each of the following phrases with the term (a-g) that it most closely describes. -Applied overhead is less than actual overhead incurred

Match each of the following phrases with the term (a-g) that it most closely describes. -A subsidiary ledger that maintains a separate account for each type of material

The journal entry to record the transfer of 1,600 units of Part No. 1177, with a value of $2.50 each, to work in process is

Each document in the cost ledger is called a

Cavy Company accumulated 560 hours of direct labor on Job 345 and 800 hours on Job 777. The direct labor was incurred at a rate of $20 per direct labor hour for Job 345 and $21 per direct labor for Job 777. Journalize the entry to record the flow of labor costs into production.

Activity-based costing is a method of accumulating and allocating costs by department.

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

A law firm would use a job order cost system to accumulate all of the costs associated with a particular client engagement, such as lawyer time, copying charges, filing fees, and overhead.

Match each of the following phrases with the term (a-g) that it most closely describes. -Typically used by companies whose products are indistinguishable from each other

A process cost accounting system is best used by manufacturers of like units of product that are not distinguishable from each other during a continuous production process.

Present entries to record the following summarized operations related to production for a company using a job order cost system:

The basis for recording direct and indirect labor costs incurred is a summary of the period's

The recording of the application of factory overhead costs to jobs would include a credit to

The controlling account for the cost ledger is

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

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

Interim financial statements for a manufacturing business would report overapplied factory overhead as a deferred item on the balance sheet.

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

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). -Factory supervisor's salary

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

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

Introduction to Managerial Accounting

Process Cost Systems

Cost-Volume-Profit Analysis

Evaluating Variances From Standard Costs

Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Filters