Question 1

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

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

Question 2

Recording jobs shipped and customers billed would include a credit to

Accepted Answer

A)  Accounts Payable 
B)  Cash 
C)  Finished Goods 
D)  Cost of Goods Sold 
A)  Accounts Payable 
B)  Cash 
C)  Finished Goods 
D)  Cost of Goods Sold

Question 3

The document authorizing the issuance of materials from the storeroom is a

Accepted Answer

A)  materials requisition 
B)  purchase requisition 
C)  receiving report 
D)  purchase order 
A)  materials requisition 
B)  purchase requisition 
C)  receiving report 
D)  purchase order

Question 4

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

Accepted Answer

A)  cell phone 
B)  highlighter pen 
C)  graduation invitation 
D)  recliner 
A)  cell phone 
B)  highlighter pen 
C)  graduation invitation 
D)  recliner

Question 5

Cavy Company estimates that the factory overhead for the following year will be $1,470,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 40,000 hours. Calculate the predetermined overhead rate to apply factory overhead.

Accepted Answer

$1,470,000

Question 6

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 sheets 
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 sheets

Question 7

The amount of time spent by an employee on an individual job is recorded on

Accepted Answer

A)  pay stubs 
B)  in-and-out cards 
C)  time tickets 
D)  employees' earnings records 
A)  pay stubs 
B)  in-and-out cards 
C)  time tickets 
D)  employees' earnings records

Question 8

In the job order costing system, the finished goods account is the controlling account for the factory overhead ledger.

Accepted Answer

A) True 
 B)False

Question 9

Which types of inventories does a manufacturing business report on the balance sheet?

Accepted Answer

A)  finished goods inventory and work in process inventory only 
B)  direct materials inventory and work in process inventory only 
C)  direct materials inventory, work in process inventory, and finished goods inventory 
D)  direct materials inventory and finished goods inventory only 
A)  finished goods inventory and work in process inventory only 
B)  direct materials inventory and work in process inventory only 
C)  direct materials inventory, work in process inventory, and finished goods inventory 
D)  direct materials inventory and finished goods inventory only

Question 10

Period costs are costs that are incurred for the production requirements of a certain period.

Accepted Answer

A) True 
 B)False

Question 11

The direct labor and overhead costs of providing services to clients are accumulated in

Accepted Answer

A)  finished services expense 
B)  work in process 
C)  administrative salaries expense 
D)  overhead 
A)  finished services expense 
B)  work in process 
C)  administrative salaries expense 
D)  overhead

Question 12

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 13

Use the budget data shown below for Sharp Company to answer the questions that follow:
 $$\begin{array} { l r } 
\text { Estimated direct labor hours } & 12,000 \
\text { Estimated direct labor dollars } & \$ 90,000 \
\text { Estimated factory overhead costs } & \$ 179,000 \
\text { Actual direct labor hours } & 11,500 \
\text { Actual direct labor dollars } & \$ 92,000 \
\text { Actual factory overhead costs } & \$ 180,000
\end{array}$$
-If factory overhead is applied based on direct labor hours, the amount of overhead to be applied is

Accepted Answer

A)  $180,000 
B)  $181,000 
C)  $172,500 
D)  $184,000 
A)  $180,000 
B)  $181,000 
C)  $172,500 
D)  $184,000

Question 14

When Job 117 was completed, direct materials totaled $4,400; direct labor, $5,600; and factory overhead, $2,400. A total of 1,000 units were produced at a per-unit cost of

Accepted Answer

A)  $12,400 
B)  $1,240 
C)  $124 
D)  $12.40 
A)  $12,400 
B)  $1,240 
C)  $124 
D)  $12.40

Question 15

For which of the following businesses would the job order cost system be appropriate?

Accepted Answer

A)  canned soup processor 
B)  oil refinery 
C)  lumber mill 
D)  hospital 
A)  canned soup processor 
B)  oil refinery 
C)  lumber mill 
D)  hospital

Question 16

Job order cost accounting systems can be used only for companies that manufacture a product.

Accepted Answer

A) True 
 B)False

Question 17

In a job order cost accounting system, the entry to record the flow of direct materials into production is to

Accepted Answer

A)  debit Work in Process, credit Materials 
B)  debit Materials, credit Work in Process 
C)  debit Factory Overhead, credit Materials 
D)  debit Work in Process, credit Supplies 
A)  debit Work in Process, credit Materials 
B)  debit Materials, credit Work in Process 
C)  debit Factory Overhead, credit Materials 
D)  debit Work in Process, credit Supplies

Question 18

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

Question 19

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

$1,250,000/40,000 = $31.25$31.

Question 20

Selected accounts with some amounts omitted are as follows:​   ​   If the balance of Work in Process on October 31 is $21,000, what was the amount of factory overhead applied in October?

Accepted Answer

A)  $63,300 
B)  $21,300 
C)  $42,300 
D)  $11,300 
A)  $63,300 
B)  $21,300 
C)  $42,300 
D)  $11,300

Exam 19: Job Order Costing

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

Recording jobs shipped and customers billed would include a credit to

The document authorizing the issuance of materials from the storeroom is a

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

Cavy Company estimates that the factory overhead for the following year will be $1,470,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 40,000 hours. Calculate the predetermined overhead rate to apply factory overhead.

Period costs are

The amount of time spent by an employee on an individual job is recorded on

In the job order costing system, the finished goods account is the controlling account for the factory overhead ledger.

Which types of inventories does a manufacturing business report on the balance sheet?

Period costs are costs that are incurred for the production requirements of a certain period.

The direct labor and overhead costs of providing services to clients are accumulated in

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.

When Job 117 was completed, direct materials totaled $4,400; direct labor, $5,600; and factory overhead, $2,400. A total of 1,000 units were produced at a per-unit cost of

For which of the following businesses would the job order cost system be appropriate?

Job order cost accounting systems can be used only for companies that manufacture a product.

In a job order cost accounting system, the entry to record the flow of direct materials into production is to

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

Selected accounts with some amounts omitted are as follows:​ ​ If the balance of Work in Process on October 31 is $21,000, what was the amount of factory overhead applied in October?

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

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.

Selected accounts with some amounts omitted are as follows: If the balance of Work in Process on October 31 is $21,000, what was the amount of factory overhead applied in October?