Question 1

Which of the following statements is true?

Accepted Answer

A)  There will be many different jobs on a job-order cost sheet. 
B)  Direct labor is allocated to jobs along with overhead using a cost driver. 
C)  Work-in-process consists of all complete work. 
D)  Time tickets are used to post the cost of direct labor to individual jobs. 
E)  None of these. 
A)  There will be many different jobs on a job-order cost sheet. 
B)  Direct labor is allocated to jobs along with overhead using a cost driver. 
C)  Work-in-process consists of all complete work. 
D)  Time tickets are used to post the cost of direct labor to individual jobs. 
E)  None of these.

Question 2

Match each item with the correct statement below.
-The amount by which applied overhead exceeds actual overhead

Accepted Answer

A) predetermined overhead rate 
B) plantwide overhead rate 
C) departmental overhead rate 
D) overhead variance 
E) overapplied overhead
F)underapplied overhead
G)applied overhead
H)normal cost of goods sold 
A) predetermined overhead rate 
B) plantwide overhead rate 
C) departmental overhead rate 
D) overhead variance 
E) overapplied overhead
F)underapplied overhead
G)applied overhead
H)normal cost of goods sold

Question 3

Match each item with the correct statement below.
-A costing system in which costs are collected and assigned to units of production for each individual job

Accepted Answer

A) actual cost system 
B) job-order costing system 
C) normal cost system 
D) process-costing system 
A) actual cost system 
B) job-order costing system 
C) normal cost system 
D) process-costing system

Question 4

Actual overhead is reconciled with applied overhead at the beginning of the period.

Accepted Answer

A) True 
 B)False

Question 5

Match each item with the correct statement below.
-The amount by which actual overhead exceeds applied overhead

Accepted Answer

A) predetermined overhead rate 
B) plantwide overhead rate 
C) departmental overhead rate 
D) overhead variance 
E) overapplied overhead
F)underapplied overhead
G)applied overhead
H)normal cost of goods sold 
A) predetermined overhead rate 
B) plantwide overhead rate 
C) departmental overhead rate 
D) overhead variance 
E) overapplied overhead
F)underapplied overhead
G)applied overhead
H)normal cost of goods sold

Question 6

What items may be on a materials requisition form to maintain proper control over a firm's inventory of direct materials?

Accepted Answer

A)  cost of supplies 
B)  cost of lubricants for production machinery 
C)  the date and a signature 
D)  All of these are correct. 
E)  None of these are correct. 
A)  cost of supplies 
B)  cost of lubricants for production machinery 
C)  the date and a signature 
D)  All of these are correct. 
E)  None of these are correct.

Question 7

Which of the following is the order in which cost elements flow through accounts until they are recognized as an expense?

Accepted Answer

A)  Work-in-Process, Finished Goods, Cost of Goods Sold 
B)  Raw Materials, Work-in-Process, Purchase Returns 
C)  Finished Goods, Cost of Goods Sold, Work-in-Process 
D)  Work-in-Process, Unsold Goods, Finished Goods 
A)  Work-in-Process, Finished Goods, Cost of Goods Sold 
B)  Raw Materials, Work-in-Process, Purchase Returns 
C)  Finished Goods, Cost of Goods Sold, Work-in-Process 
D)  Work-in-Process, Unsold Goods, Finished Goods

Question 8

Match each item with the correct statement below.
-Estimated overhead for a single department divided by the estimated activity level for that same department

Accepted Answer

A) predetermined overhead rate 
B) plantwide overhead rate 
C) departmental overhead rate 
D) overhead variance 
E) overapplied overhead
F)underapplied overhead
G)applied overhead
H)normal cost of goods sold 
A) predetermined overhead rate 
B) plantwide overhead rate 
C) departmental overhead rate 
D) overhead variance 
E) overapplied overhead
F)underapplied overhead
G)applied overhead
H)normal cost of goods sold

Question 9

The _____________________ is subsidiary to the work-in-process account and is the primary document for accumulating all costs related to a particular job.

Accepted Answer

job-order

Question 10

All completed job-order cost sheets of a firm can serve as a subsidiary ledger for the:

Accepted Answer

A)  raw materials. 
B)  purchase orders. 
C)  work-in-process inventory. 
D)  finished goods inventory. 
E)  damaged inventory. 
A)  raw materials. 
B)  purchase orders. 
C)  work-in-process inventory. 
D)  finished goods inventory. 
E)  damaged inventory.

Question 11

Following is the departmental data of Omega Solution Company.If calculated using the sequential method, the cost of power department allocated to the Assembly department is _____.

Accepted Answer

A)   $15,000 
B)   $35,000 
C)   $20,000 
D)  $60,000 
E)   $24,000 
A)   $15,000 
B)   $35,000 
C)   $20,000 
D)  $60,000 
E)   $24,000

Question 12

Match each item with the correct statement below.
-An approach that assigns the actual costs of direct materials and direct labor to products but uses a predetermined rate to assign overhead costs

Accepted Answer

A) actual cost system 
B) job-order costing system 
C) normal cost system 
D) process-costing system 
A) actual cost system 
B) job-order costing system 
C) normal cost system 
D) process-costing system

Question 13

Trust Construction builds custom houses for individual buyers.On April 1, it had one job, started with a beginning Work-in-Process of $70,000.During April the job was finished and sold.Direct labor for the job in April was $90,000 and direct materials used were $66,000.Overhead is computed at a rate of 55% of direct labor.There is a markup of 40% on all sales.What was the selling price of the house?

Accepted Answer

A)  $385,700 
B)  $200,750 
C)  $98,862 
D)  $272,600 
E)  $340,087 
A)  $385,700 
B)  $200,750 
C)  $98,862 
D)  $272,600 
E)  $340,087

Question 14

Which of the following are fairly easy to trace to individual jobs?

Accepted Answer

A)  Direct materials and maintenance 
B)  Direct materials and direct labor 
C)  Direct labor and overhead 
D)  Overhead and indirect labor 
E)  Depreciation on machinery and overhead 
A)  Direct materials and maintenance 
B)  Direct materials and direct labor 
C)  Direct labor and overhead 
D)  Overhead and indirect labor 
E)  Depreciation on machinery and overhead

Question 15

Match the following cost flows with the proper event in a job-costing firm:
-the costs of job are transferred from the work-in-process account to finished goods account

Accepted Answer

A) completion of job 
B) end of each accounting period 
C) materials are moved from storage into production 
D) product is sold 
E) end of year 
A) completion of job 
B) end of each accounting period 
C) materials are moved from storage into production 
D) product is sold 
E) end of year

Question 16

The difference between actual overhead and applied overhead is called a (n) _________________.

Accepted Answer

The answer of The difference between actual overhead and applied...

Question 17

Match each item with the correct statement below.
-A costing system that accumulates production costs by process or by department for a given period of time

Accepted Answer

A) actual cost system 
B) job-order costing system 
C) normal cost system 
D) process-costing system 
A) actual cost system 
B) job-order costing system 
C) normal cost system 
D) process-costing system

Question 18

Using a time ticket, the cost accounting department can enter the cost of direct materials onto the correct job-order cost sheet.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is the assignment process used with normal costing?

Accepted Answer

A)  Actual direct materials, actual direct labor and actual overhead cost are assigned to products. 
B)  Actual direct materials cost is assigned to products, but direct labor and overhead costs are assigned using predetermined rates. 
C)  Actual direct labor cost is assigned to products, but direct material and overhead costs are assigned using predetermined rates. 
D)  Actual direct material and direct labor costs are assigned to products, but overhead costs are assigned using predetermined rates. 
E)  All manufacturing costs are assigned using predetermined rates. 
A)  Actual direct materials, actual direct labor and actual overhead cost are assigned to products. 
B)  Actual direct materials cost is assigned to products, but direct labor and overhead costs are assigned using predetermined rates. 
C)  Actual direct labor cost is assigned to products, but direct material and overhead costs are assigned using predetermined rates. 
D)  Actual direct material and direct labor costs are assigned to products, but overhead costs are assigned using predetermined rates. 
E)  All manufacturing costs are assigned using predetermined rates.

Question 20

In a normal costing system, actual overhead is used to arrive at the cost of goods manufactured.

Accepted Answer

A) True 
 B)False

Which of the following statements is true?

Match each item with the correct statement below. -The amount by which applied overhead exceeds actual overhead

Match each item with the correct statement below. -A costing system in which costs are collected and assigned to units of production for each individual job

Actual overhead is reconciled with applied overhead at the beginning of the period.

Match each item with the correct statement below. -The amount by which actual overhead exceeds applied overhead

What items may be on a materials requisition form to maintain proper control over a firm's inventory of direct materials?

Which of the following is the order in which cost elements flow through accounts until they are recognized as an expense?

Match each item with the correct statement below. -Estimated overhead for a single department divided by the estimated activity level for that same department

The _____________________ is subsidiary to the work-in-process account and is the primary document for accumulating all costs related to a particular job.

All completed job-order cost sheets of a firm can serve as a subsidiary ledger for the:

Following is the departmental data of Omega Solution Company.If calculated using the sequential method, the cost of power department allocated to the Assembly department is _____.

Match each item with the correct statement below. -An approach that assigns the actual costs of direct materials and direct labor to products but uses a predetermined rate to assign overhead costs

Which of the following are fairly easy to trace to individual jobs?

Match the following cost flows with the proper event in a job-costing firm: -the costs of job are transferred from the work-in-process account to finished goods account

The difference between actual overhead and applied overhead is called a (n) _________________.

Match each item with the correct statement below. -A costing system that accumulates production costs by process or by department for a given period of time

Using a time ticket, the cost accounting department can enter the cost of direct materials onto the correct job-order cost sheet.

Which of the following is the assignment process used with normal costing?

In a normal costing system, actual overhead is used to arrive at the cost of goods manufactured.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior, Cost Forecasting, and Segmented Income Statements

Activity-Based Costing and Management

Process Costing

Cost-Volume-Profit Analysis

Tactical Decision-Making and Relevant Costing

Profit Planning and Flexible Budgets

Standard Costing and Variance Analysis

Performance Evaluation and Decentralization

Capital Investment Decisions

Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, International Issues, Enterprise Risk Management, the Managerial Accountant in Forensicfraud Accounting

Statement of Cash Flows

Financial Statement Analysis

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Exam 4: Job-Order Costing and Normal Cost Overhead Application

Which of the following statements is true?

Match each item with the correct statement below. -The amount by which applied overhead exceeds actual overhead

Match each item with the correct statement below. -A costing system in which costs are collected and assigned to units of production for each individual job

Actual overhead is reconciled with applied overhead at the beginning of the period.

Match each item with the correct statement below. -The amount by which actual overhead exceeds applied overhead

What items may be on a materials requisition form to maintain proper control over a firm's inventory of direct materials?

Which of the following is the order in which cost elements flow through accounts until they are recognized as an expense?

Match each item with the correct statement below. -Estimated overhead for a single department divided by the estimated activity level for that same department

The _____________________ is subsidiary to the work-in-process account and is the primary document for accumulating all costs related to a particular job.

All completed job-order cost sheets of a firm can serve as a subsidiary ledger for the:

Following is the departmental data of Omega Solution Company.If calculated using the sequential method, the cost of power department allocated to the Assembly department is _____.

Match each item with the correct statement below. -An approach that assigns the actual costs of direct materials and direct labor to products but uses a predetermined rate to assign overhead costs

Which of the following are fairly easy to trace to individual jobs?

Match the following cost flows with the proper event in a job-costing firm: -the costs of job are transferred from the work-in-process account to finished goods account

The difference between actual overhead and applied overhead is called a (n) _________________.

Match each item with the correct statement below. -A costing system that accumulates production costs by process or by department for a given period of time

Using a time ticket, the cost accounting department can enter the cost of direct materials onto the correct job-order cost sheet.

Which of the following is the assignment process used with normal costing?

In a normal costing system, actual overhead is used to arrive at the cost of goods manufactured.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior, Cost Forecasting, and Segmented Income Statements

Activity-Based Costing and Management

Process Costing

Cost-Volume-Profit Analysis

Tactical Decision-Making and Relevant Costing

Profit Planning and Flexible Budgets

Standard Costing and Variance Analysis

Performance Evaluation and Decentralization

Capital Investment Decisions

Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, International Issues, Enterprise Risk Management, the Managerial Accountant in Forensicfraud Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters