Question 1

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 2

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 3

Use the information below for Adams Company to answer the questions that follow.
​
Adams Company is a manufacturing company that has worked on several production jobs during the first quarter of the year. Below is a list of all the jobs for the quarter:
​
​
   Jobs 356, 357, 358, and 359 were completed. Jobs 356 and 357 were sold at a profit of $500 on each job.
-What is the gross profit for Adams Company at the end of the first quarter?

Accepted Answer

A)  $1,685 
B)  $2,685 
C)  $1,000 
D)  $685 
A)  $1,685 
B)  $2,685 
C)  $1,000 
D)  $685

Question 4

Which of the following systems provides for a separate record of the cost of each particular quantity of product that passes through the factory?

Accepted Answer

A)  job order cost system 
B)  general cost system 
C)  replacement cost system 
D)  process cost system 
A)  job order cost system 
B)  general cost system 
C)  replacement cost system 
D)  process cost system

Question 5

Which of the following would be most likely to use process costing?

Accepted Answer

A)  custom furniture manufacturer 
B)  auto body repair shop 
C)  law firm 
D)  lawn fertilizer manufacturer 
A)  custom furniture manufacturer 
B)  auto body repair shop 
C)  law firm 
D)  lawn fertilizer manufacturer

Question 6

Put the following in the order of the flow of manufacturing costs for a company:​
(a)Closing under/overapplied factory overhead to cost of goods sold
(b)Materials purchased
(c)Factory labor used and factory overhead incurred in production
(d)Completed jobs moved to finished goods
(e)Factory overhead applied to jobs according to the predetermined overhead rate
(f)Materials requisitioned to jobs
(g)Selling of finished product
(h)Preparation of financial statements to determine gross profit

Accepted Answer

​
(b)Materials purchased
(f)Materials re

Question 7

Which of the following entries would not be found on the books of a service provider?

Accepted Answer

A)  a debit to Work in Process and a credit to Materials 
B)  a debit to Work in Process and a credit to Wages Payable 
C)  a debit to Work in Process and a credit to Overhead 
D)  a debit to Cost of Services and a credit to Work in Process 
A)  a debit to Work in Process and a credit to Materials 
B)  a debit to Work in Process and a credit to Wages Payable 
C)  a debit to Work in Process and a credit to Overhead 
D)  a debit to Cost of Services and a credit to Work in Process

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

At the end of the period, Carson Company had the following balances in selected accounts:​​ $\begin{array}{lr}
\text { Materials } & 80,000 \
\text { Finished goods } & 190,000 \
\text { Work in process } & 70,000 \
\text { Cost of goods sold } & 1,000,000 \
\text { Factory overhead } & 30,000
\end{array}$ (a)The factory overhead balance is relatively small; prepare the journal entry to close the factory overhead account assuming a debit balance. What does a debit balance mean?
(b)The factory overhead balance is relatively small; prepare the journal entry to close the factory overhead account assuming a credit balance. What does a credit balance mean?

Accepted Answer

(a)Cost of Goods Sold30,000Factory Overh

Question 10

Materials purchased on account during the month totaled $190,000. Materials requisitioned and placed in production totaled $165,000. The journal entry to record the material purchase on account is

Accepted Answer

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

Question 11

The entries to record the cost and sale of a finished good on account is

Accepted Answer

A)  debit Cost of Goods Sold, credit Finished Goods 
B)  debit Cost of Goods Sold, credit Finished Goods, debit Accounts Receivable, credit Sales 
C)  debit Sales Expense, credit Finished Goods, credit Cash, credit Accounts Receivable 
D)  debit Work in Process, credit Finished Goods, debit Accounts Receivable, credit Sales 
A)  debit Cost of Goods Sold, credit Finished Goods 
B)  debit Cost of Goods Sold, credit Finished Goods, debit Accounts Receivable, credit Sales 
C)  debit Sales Expense, credit Finished Goods, credit Cash, credit Accounts Receivable 
D)  debit Work in Process, credit Finished Goods, debit Accounts Receivable, credit Sales

Question 12

Cavy Company estimates that the factory overhead for the following year will be $1,250,000. The company has determined that the basis for applying factory overhead will be machine hours, which is estimated to be 40,000 hours. There are 4,780 machine hours for all of the jobs in the month of April. What amount will be applied to all of the jobs for the month of April?

Accepted Answer

$1,250,000/40,000 ho

Question 13

Selected accounts with amounts omitted are as follows:​   ​​   If the balance of Work in Process on 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 
A)  $390,000 
B)  $170,000 
C)  $525,000 
D)  $580,000

Question 14

Cost accounting systems measure, record, and report product costs.

Accepted Answer

A) True 
 B)False

Question 15

Bar code scanners are now being used to track incoming materials and to electronically transmit these data. Scanners have replaced which of the following?

Accepted Answer

A)  receiving report 
B)  materials requisition 
C)  materials ledger 
D)  job cost sheet 
A)  receiving report 
B)  materials requisition 
C)  materials ledger 
D)  job cost sheet

Question 16

The materials requisition is used to

Accepted Answer

A)  release materials from the storeroom to the factory 
B)  release finished goods to the shipping department 
C)  record the acquisition of materials from a vendor 
D)  record and electronically transmit materials data in place of a receiving report 
A)  release materials from the storeroom to the factory 
B)  release finished goods to the shipping department 
C)  record the acquisition of materials from a vendor 
D)  record and electronically transmit materials data in place of a receiving report

Question 17

The job order costing system is used by service firms to determine revenues, expenses, and ultimately profit.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is not a reason a service firm would use a job order costing system?

Accepted Answer

A)  to help control costs 
B)  to determine client billing 
C)  to determine department costs within the firm 
D)  to determine profit 
A)  to help control costs 
B)  to determine client billing 
C)  to determine department costs within the firm 
D)  to determine profit

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, are reported as direct materials inventory.

Accepted Answer

A) True 
 B)False

Question 20

In a job order cost accounting system, when goods that have been ordered are received, the receiving department personnel count the goods, inspect the goods, and complete a

Accepted Answer

A)  purchase order 
B)  sales invoice 
C)  receiving report 
D)  purchase requisition 
A)  purchase order 
B)  sales invoice 
C)  receiving report 
D)  purchase requisition

Exam 19: Job Order Costing

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

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

Which of the following systems provides for a separate record of the cost of each particular quantity of product that passes through the factory?

Which of the following would be most likely to use process costing?

Which of the following entries would not be found on the books of a service provider?

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?

Materials purchased on account during the month totaled $190,000. Materials requisitioned and placed in production totaled $165,000. The journal entry to record the material purchase on account is

The entries to record the cost and sale of a finished good on account is

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

Cost accounting systems measure, record, and report product costs.

Bar code scanners are now being used to track incoming materials and to electronically transmit these data. Scanners have replaced which of the following?

The materials requisition is used to

The job order costing system is used by service firms to determine revenues, expenses, and ultimately profit.

Which of the following is not a reason a service firm would use a job order costing system?

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, are reported as direct materials inventory.

In a job order cost accounting system, when goods that have been ordered are received, the receiving department personnel count the goods, inspect the goods, and complete a

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

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