Question 1

Cost accounting systems used by manufacturing companies are based on the:

Accepted Answer

A)  Periodic inventory system. 
B)  Perpetual inventory system. 
C)  Finished goods inventories. 
D)  Weighted average inventories. 
E)  LIFO inventory system 
A)  Periodic inventory system. 
B)  Perpetual inventory system. 
C)  Finished goods inventories. 
D)  Weighted average inventories. 
E)  LIFO inventory system

Question 2

The production activities for a customized product represent a(n):

Accepted Answer

A)  Operation. 
B)  Job. 
C)  Unit. 
D)  Pool. 
E)  Process. 
A)  Operation. 
B)  Job. 
C)  Unit. 
D)  Pool. 
E)  Process.

Question 3

When materials are used as indirect materials,their cost is debited to the Factory Overhead account.

Accepted Answer

A) True 
 B)False

Question 4

A company's predetermined overhead allocation rate is 130% based on direct labor cost.How much overhead would be allocated to Job No.105 if it required total direct labor costs of $60,000?

Accepted Answer

$60,000 x

Question 5

The job order cost sheets used by Garza Company revealed the following:
$$\begin{array} { c c c } 
\text { Job. No. } & \text { Bal. May 1 } & \text { May Production }  \
&&\text { Costs } \
124 & \$ 1,700 & \$-- \
125 & 1,200 & 300 \
126 &-- & 900
\end{array}$$

Job No.125 was completed during May and Jobs No.124 and 125 were shipped to customers in May.What was the company's cost of goods sold for May and the goods in process inventory on May 31?

Accepted Answer

A)  $3,200; $900 
B)  $2,900; $1,200 
C)  $1,200; $2,900 
D)  $1,700; $1,200 
E)  $4,100; $ 0 
A)  $3,200; $900 
B)  $2,900; $1,200 
C)  $1,200; $2,900 
D)  $1,700; $1,200 
E)  $4,100; $ 0

Question 6

Materials requisitions and time tickets are cost accounting source documents.

Accepted Answer

A) True 
 B)False

Question 7

The amount by which overhead incurred during a period exceeds the overhead applied to jobs is:

Accepted Answer

A)  Balanced overhead. 
B)  Predetermined overhead. 
C)  Actual overhead. 
D)  Underapplied overhead. 
E)  Overapplied overhead. 
A)  Balanced overhead. 
B)  Predetermined overhead. 
C)  Actual overhead. 
D)  Underapplied overhead. 
E)  Overapplied overhead.

Question 8

A document in a job order cost accounting system that is used to record the costs of producing a job is a(n):

Accepted Answer

A)  Job cost sheet. 
B)  Job lot. 
C)  Finished goods summary. 
D)  Process cost system. 
E)  Units-of-production sheet. 
A)  Job cost sheet. 
B)  Job lot. 
C)  Finished goods summary. 
D)  Process cost system. 
E)  Units-of-production sheet.

Question 9

A ______________________ accounting system records manufacturing activities using a periodic inventory system.A ____________________ accounting system records manufacturing activities using a perpetual inventory system.

Accepted Answer

The answer of A ______________________ accounting system records manufacturing activities...

Question 10

Erlander Company uses a job order cost accounting system.On November 1,$15,000 of direct materials and $3,500 of indirect materials were requisitioned for production.Prepare the general journal entry to record this requisition.

Accepted Answer

None

Question 11

The R&R Company's manufacturing costs for August are: direct labor,$13,000; indirect labor,$6,500; direct materials,$15,000; taxes on raw materials and work in process,$800; heat,lights,and power,$1,000; and insurance on plant and equipment,$200.R&R Company's factory overhead incurred for August is:

Accepted Answer

A)  $2,000 
B)  $6,500 
C)  $8,500 
D)  $21,500 
E)  $36,500 
A)  $2,000 
B)  $6,500 
C)  $8,500 
D)  $21,500 
E)  $36,500

Question 12

The ending inventory of finished goods has a total cost of $9,000 and consists of 600 units.If the overhead applied to these goods is $3,000,and the overhead rate is 75% of direct labor,how much direct materials cost was incurred in producing these units?

Accepted Answer

A)  $3,750 
B)  $2,000 
C)  $4,000 
D)  $6,000 
E)  $9,000 
A)  $3,750 
B)  $2,000 
C)  $4,000 
D)  $6,000 
E)  $9,000

Question 13

The file of job cost sheets for completed but undelivered jobs equals the balance in the Goods in Process Inventory account.

Accepted Answer

A) True 
 B)False

Question 14

A company's file of job cost sheets for finished but unsold jobs equals the balance in the Finished Goods Inventory account.

Accepted Answer

A) True 
 B)False

Question 15

Time tickets for factory employees during the month of August are summarized as follows:
 $$\begin{array} { l r } 
\text { Job } 919 & \$ 9,800 \
\text { Job } 920 & 14,650 \
\text { Job } 921 & 12,250 \
\text { Job } 922 & 16,000 \
\text { Total direct labor } & \$ 52,700 \
\text { Indirect labor } & 16,800 \
\text { Total labor cost } & \$ 69,500
\end{array}$$ 
Prepare the necessary journal entries to record factory payroll.

Accepted Answer

None

Question 16

If actual overhead incurred during a period exceeds applied overhead,the difference will be a credit balance in the Factory Overhead account at the end of the period.

Accepted Answer

A) True 
 B)False

Question 17

The following data relates to the Density Company's first operating period.Calculate cost of ending inventory for each product.

Accepted Answer

* Overhead applied:

Question 18

Job order manufacturing systems would be appropriate for companies that produce training films for a specific customer.

Accepted Answer

A) True 
 B)False

Question 19

Labor costs in manufacturing can be:

Accepted Answer

A)  Direct or indirect. 
B)  Indirect or sunk. 
C)  Direct or payroll. 
D)  Indirect or payroll. 
E)  Direct or sunk. 
A)  Direct or indirect. 
B)  Indirect or sunk. 
C)  Direct or payroll. 
D)  Indirect or payroll. 
E)  Direct or sunk.

Question 20

Job order manufacturing systems would be appropriate for companies that produce compact disks or disposable cameras.

Accepted Answer

A) True 
 B)False

Exam 15: Job Order Costing and Analysis

Cost accounting systems used by manufacturing companies are based on the:

The production activities for a customized product represent a(n):

When materials are used as indirect materials,their cost is debited to the Factory Overhead account.

A company's predetermined overhead allocation rate is 130% based on direct labor cost.How much overhead would be allocated to Job No.105 if it required total direct labor costs of $60,000?

Materials requisitions and time tickets are cost accounting source documents.

The amount by which overhead incurred during a period exceeds the overhead applied to jobs is:

A document in a job order cost accounting system that is used to record the costs of producing a job is a(n):

A ______________________ accounting system records manufacturing activities using a periodic inventory system.A ____________________ accounting system records manufacturing activities using a perpetual inventory system.

Erlander Company uses a job order cost accounting system.On November 1,$15,000 of direct materials and $3,500 of indirect materials were requisitioned for production.Prepare the general journal entry to record this requisition.

The ending inventory of finished goods has a total cost of $9,000 and consists of 600 units.If the overhead applied to these goods is $3,000,and the overhead rate is 75% of direct labor,how much direct materials cost was incurred in producing these units?

The file of job cost sheets for completed but undelivered jobs equals the balance in the Goods in Process Inventory account.

A company's file of job cost sheets for finished but unsold jobs equals the balance in the Finished Goods Inventory account.

Time tickets for factory employees during the month of August are summarized as follows: Job 919 \ 9,800 Job 920 14,650 Job 921 12,250 Job 922 16,000 Total direct labor \ 52,700 Indirect labor 16,800 Total labor cost \ 69,500 Prepare the necessary journal entries to record factory payroll.

If actual overhead incurred during a period exceeds applied overhead,the difference will be a credit balance in the Factory Overhead account at the end of the period.

The following data relates to the Density Company's first operating period.Calculate cost of ending inventory for each product.

Job order manufacturing systems would be appropriate for companies that produce training films for a specific customer.

Labor costs in manufacturing can be:

Job order manufacturing systems would be appropriate for companies that produce compact disks or disposable cameras.

Introducing Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash and Internal Controls

Accounts and Notes Receivable

Long-Term Assets

Current Liabilities

Long-Term Liabilities

Corporate Reporting and Analysis

Reporting Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Process Costing

Activity-Based Costing and Analysis

Cost-Volume-Profit Analysis

Variable Costing and Performance Reporting

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Decentralization and Performance Measurement

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Accounting With Special Journals

Time Value of Money

Investments and International Operations

Accounting for Partnerships

Filters

A __ accounting system records manufacturing activities using a periodic inventory system.A accounting system records manufacturing activities using a perpetual inventory system.