Question 1

A process cost system would most likely be used by a company that makes

Accepted Answer

A) motion pictures. 
B) repairs to automobiles. 
C) breakfast cereal. 
D) college graduation announcements. 
A) motion pictures. 
B) repairs to automobiles. 
C) breakfast cereal. 
D) college graduation announcements.

Question 2

Which of the following is one of the components of cost accounting?

Accepted Answer

A) It involves measuring product costs. 
B) It involves the determination of company profits. 
C) It requires GAAP to be applied. 
D) It requires cost minimizing principles. 
A) It involves measuring product costs. 
B) It involves the determination of company profits. 
C) It requires GAAP to be applied. 
D) It requires cost minimizing principles.

Question 3

Madison Inc.uses job order costing for its brand new line of sewing machines.The cost incurred for production during 2022 totaled $18000 of materials $9000 of direct labor costs and $6000 of manufacturing overhead applied.The company ships all goods as soon as they are completed which results in no finished goods inventory on hand at the end of any year.Beginning work in process totaled $15000 and the ending balance is $9000.During the year the company completed 25 machines.How much is the cost per machine?

Accepted Answer

A) $1080 
B) $1560 
C) $1320 
D) $1920 
A) $1080 
B) $1560 
C) $1320 
D) $1920

Question 4

Greer Company developed the following data for the current year: $\begin{array}{lr}
\text { Beginning work in process inventory } & 136,000 \
\text { Direct materials used } & 208,000 \
\text { Actual overhead } & 176,000 \
\text { Overhead applied } & 184,000 \
\text { Cost of goods manufactured } & 900,000 \
\text { Total manufacturing costs } & 856,000
\end{array}$ How much is Greer Company's ending work in process inventory for the year?

Accepted Answer

A) $92000 
B) $484000 
C) $84000 
D) $372000 
A) $92000 
B) $484000 
C) $84000 
D) $372000

Question 5

There should be a separate job cost sheet for each job.

Accepted Answer

A) True 
 B)False

Question 6

Conceptually any under- or overapplied overhead at the end of the year should be allocated among all of the following except

Accepted Answer

A) cost of goods sold. 
B) ending work in process inventory. 
C) ending raw materials inventory. 
D) ending finished goods inventory. 
A) cost of goods sold. 
B) ending work in process inventory. 
C) ending raw materials inventory. 
D) ending finished goods inventory.

Question 7

Which one of the following should be equal to the total of the Work in Process Inventory account at the end of the period?

Accepted Answer

A) The total of the amounts transferred from raw materials for the current period 
B) The sum of the costs shown on the job cost sheets of unfinished jobs 
C) The total of manufacturing overhead applied to work in process for the period 
D) The total manufacturing costs for the period 
A) The total of the amounts transferred from raw materials for the current period 
B) The sum of the costs shown on the job cost sheets of unfinished jobs 
C) The total of manufacturing overhead applied to work in process for the period 
D) The total manufacturing costs for the period

Question 8

Manufacturing costs are generally incurred in one period and recorded in a subsequent period.

Accepted Answer

A) True 
 B)False

Question 9

Job cost sheets constitute the subsidiary ledger for the

Accepted Answer

A) Finished Goods Inventory account. 
B) Cost of Goods Sold account. 
C) Work In Process Inventory account. 
D) Cost of Goods Manufactured account. 
A) Finished Goods Inventory account. 
B) Cost of Goods Sold account. 
C) Work In Process Inventory account. 
D) Cost of Goods Manufactured account.

Question 10

Finished Goods Inventory is increased for the cost of jobs completed during a period.

Accepted Answer

A) True 
 B)False

Question 11

The Manufacturing Overhead shows additions of $30000 $24000 and $28000 and one deduction for $86000.Based on this information manufacturing overhead

Accepted Answer

A) has been overapplied. 
B) has been underapplied. 
C) has not been applied. 
D) shows a zero balance. 
A) has been overapplied. 
B) has been underapplied. 
C) has not been applied. 
D) shows a zero balance.

Question 12

Factory labor costs

Accepted Answer

A) accumulate in advance of utilization. 
B) accumulate in a control account. 
C) include sick pay earned by factory workers. 
D) accumulate in Factory Labor Expense. 
A) accumulate in advance of utilization. 
B) accumulate in a control account. 
C) include sick pay earned by factory workers. 
D) accumulate in Factory Labor Expense.

Question 13

A company assigned overhead to work in process.At year end what does the amount of overapplied overhead mean?

Accepted Answer

A) The overhead applied to work in process is greater than the estimated overhead costs. 
B) The overhead applied to work in process is less than the estimated overhead costs. 
C) The overhead applied to work in process is less than the actual overhead. 
D) The overhead applied to work in process is greater than the overhead incurred. 
A) The overhead applied to work in process is greater than the estimated overhead costs. 
B) The overhead applied to work in process is less than the estimated overhead costs. 
C) The overhead applied to work in process is less than the actual overhead. 
D) The overhead applied to work in process is greater than the overhead incurred.

Question 14

Records of individual items of raw materials would not be maintained

Accepted Answer

A) electronically. 
B) manually. 
C) on stores ledger cards. 
D) in the Raw Materials Inventory account. 
A) electronically. 
B) manually. 
C) on stores ledger cards. 
D) in the Raw Materials Inventory account.

Question 15

Chmelar Manufacturing Company developed the following data: $$\begin{array} { l r } 
\text { Beginning work in process inventory } & \$ 120,000 \
\text { Direct materials used } & 720,000 \
\text { Actual overhead } & 840,000 \
\text { Overhead applied } & 810,000 \
\text { Cost of goods manufactured } & 1,920,000 \
\text { Ending work in process } & 90,000
\end{array}$$ How much are total manufacturing costs for the period?

Accepted Answer

A) $2370000 
B) $1890000 
C) $1650000 
D) $1830000 
A) $2370000 
B) $1890000 
C) $1650000 
D) $1830000

Question 16

When a job is completed and all costs have been accumulated on a job cost sheet the journal entry that should be made is

Accepted Answer

A) Increase Finished Goods Inventory and decrease Raw Materials Inventory Factory Labor and Manufacturing Overhead. 
B) Increase Work in Process Inventory and decrease Raw Materials Inventory Factory Labor and Manufacturing Overhead. 
C) Increase Raw Materials Inventory and decrease Work in Process Inventory. 
D) Increase Finished Goods Inventory and decrease Work in Process Inventory. 
A) Increase Finished Goods Inventory and decrease Raw Materials Inventory Factory Labor and Manufacturing Overhead. 
B) Increase Work in Process Inventory and decrease Raw Materials Inventory Factory Labor and Manufacturing Overhead. 
C) Increase Raw Materials Inventory and decrease Work in Process Inventory. 
D) Increase Finished Goods Inventory and decrease Work in Process Inventory.

Question 17

A job order cost system and a process cost system are two alternative methods for valuing inventories.

Accepted Answer

A) True 
 B)False

Question 18

Cost of raw materials increases Raw Materials Inventory when the

Accepted Answer

A) materials are ordered. 
B) materials are received. 
C) materials are put into production. 
D) bill for the materials is paid. 
A) materials are ordered. 
B) materials are received. 
C) materials are put into production. 
D) bill for the materials is paid.

Question 19

Annual overhead costs are estimated to be $750000 and direct labor costs are estimated to be $1000000 then if the activity base is direct labor costs:

Accepted Answer

A) $1.33 is the predetermined overhead rate. 
B) for every dollar of manufacturing overhead 75 cents of direct labor will be assigned. 
C) for every dollar of direct labor 75 cents of manufacturing overhead will be assigned. 
D) a predetermined overhead rate cannot be determined. 
A) $1.33 is the predetermined overhead rate. 
B) for every dollar of manufacturing overhead 75 cents of direct labor will be assigned. 
C) for every dollar of direct labor 75 cents of manufacturing overhead will be assigned. 
D) a predetermined overhead rate cannot be determined.

Question 20

Manufacturing Overhead would not have a subsidiary account for

Accepted Answer

A) utilities. 
B) property taxes. 
C) insurance. 
D) raw materials inventory. 
A) utilities. 
B) property taxes. 
C) insurance. 
D) raw materials inventory.

A process cost system would most likely be used by a company that makes

Which of the following is one of the components of cost accounting?

There should be a separate job cost sheet for each job.

Conceptually any under- or overapplied overhead at the end of the year should be allocated among all of the following except

Which one of the following should be equal to the total of the Work in Process Inventory account at the end of the period?

Manufacturing costs are generally incurred in one period and recorded in a subsequent period.

Job cost sheets constitute the subsidiary ledger for the

Finished Goods Inventory is increased for the cost of jobs completed during a period.

The Manufacturing Overhead shows additions of $30000 $24000 and $28000 and one deduction for $86000.Based on this information manufacturing overhead

Factory labor costs

A company assigned overhead to work in process.At year end what does the amount of overapplied overhead mean?

Records of individual items of raw materials would not be maintained

When a job is completed and all costs have been accumulated on a job cost sheet the journal entry that should be made is

A job order cost system and a process cost system are two alternative methods for valuing inventories.

Cost of raw materials increases Raw Materials Inventory when the

Annual overhead costs are estimated to be $750000 and direct labor costs are estimated to be $1000000 then if the activity base is direct labor costs:

Manufacturing Overhead would not have a subsidiary account for

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Fraud, Internal Control, and Cash

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities and Stockholders Equity

Financial Analysis: the Big Picture

Managerial Accounting

Cost-Volume-Profit

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Activity Based Costing

Cost-Volume Profit Analysis: Additional Issues

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Exam 11: Incremental Analysis

A process cost system would most likely be used by a company that makes

Which of the following is one of the components of cost accounting?

There should be a separate job cost sheet for each job.

Conceptually any under- or overapplied overhead at the end of the year should be allocated among all of the following except

Which one of the following should be equal to the total of the Work in Process Inventory account at the end of the period?

Manufacturing costs are generally incurred in one period and recorded in a subsequent period.

Job cost sheets constitute the subsidiary ledger for the

Finished Goods Inventory is increased for the cost of jobs completed during a period.

The Manufacturing Overhead shows additions of $30000 $24000 and $28000 and one deduction for $86000.Based on this information manufacturing overhead

Factory labor costs

A company assigned overhead to work in process.At year end what does the amount of overapplied overhead mean?

Records of individual items of raw materials would not be maintained

When a job is completed and all costs have been accumulated on a job cost sheet the journal entry that should be made is

A job order cost system and a process cost system are two alternative methods for valuing inventories.

Cost of raw materials increases Raw Materials Inventory when the

Annual overhead costs are estimated to be $750000 and direct labor costs are estimated to be $1000000 then if the activity base is direct labor costs:

Manufacturing Overhead would not have a subsidiary account for

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Fraud, Internal Control, and Cash

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities and Stockholders Equity

Financial Analysis: the Big Picture

Managerial Accounting

Cost-Volume-Profit

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Activity Based Costing

Cost-Volume Profit Analysis: Additional Issues

Filters