Question 1

Which of the following businesses uses a process costing system?

Accepted Answer

A)  A printing business 
B)  A dental clinic 
C)  An interior designing firm 
D)  An automobile service center 
E)  A refinery 
A)  A printing business 
B)  A dental clinic 
C)  An interior designing firm 
D)  An automobile service center 
E)  A refinery

Question 2

John's Water Slides makes custom water slides for hotels.On September 1, there were three jobs in process, Jobs 812, 813, and 814.Two more jobs were started during September, Jobs 815 and 816.By September 30, Jobs 812, 814, and 816 were finished.The following data has been collected:  
  Overhead is applied at the rate of 120% of direct labor cost.Jobs are sold at cost plus 60%.Selling and administrative expenses for September totaled $2,950.By September 30, Jobs 812 were 816 are sold, but the customer who ordered Job 814 decided he did not want the slide so it is still in the warehouse.
 
- 
What is the cost of goods sold for September?

Accepted Answer

A)  $5,129 
B)  $8,206.40 
C)  $5,720 
D)  $3,575 
E)  $8,586 
A)  $5,129 
B)  $8,206.40 
C)  $5,720 
D)  $3,575 
E)  $8,586

Question 3

A _____________________ is a single overhead rate calculated by using all estimated overhead for a factory divided by the estimated activity level across the entire factory.

Accepted Answer

plantwide

Question 4

Which of the following costs is not included on a job-order cost sheet?

Accepted Answer

A)  direct material costs 
B)  applied plantwide overhead costs 
C)  direct labor costs 
D)  actual plantwide overhead costs 
A)  direct material costs 
B)  applied plantwide overhead costs 
C)  direct labor costs 
D)  actual plantwide overhead costs

Question 5

Following is the departmental data of Alpha Company.If calculated through the direct method, the support department costs assigned to the grinding department are _____.

Accepted Answer

A)   $100,000 
B)   $350,000 
C)  $200,000 
D)   $150,000 
E)   $240,000 
A)   $100,000 
B)   $350,000 
C)  $200,000 
D)   $150,000 
E)   $240,000

Question 6

The ___________________________ is calculated at the beginning of the year by dividing the total estimated annual overhead by the total estimated level of cost driver.

Accepted Answer

predetermi

Question 7

Which of the following is not true about job-order costing?

Accepted Answer

A)  It is used in firms that produce homogeneous products. 
B)  The cost of each job is accumulated on the job-order cost sheet. 
C)  The key document for accumulating manufacturing costs is the job-order cost sheet. 
D)  All of these are correct. 
E)  None of these are correct. 
A)  It is used in firms that produce homogeneous products. 
B)  The cost of each job is accumulated on the job-order cost sheet. 
C)  The key document for accumulating manufacturing costs is the job-order cost sheet. 
D)  All of these are correct. 
E)  None of these are correct.

Question 8

Which of the following costs is not related to selling and general administrative activities?

Accepted Answer

A)  Advertising costs 
B)  Legal costs 
C)  Manufacturing costs 
D)  Period costs 
E)  Any of these 
A)  Advertising costs 
B)  Legal costs 
C)  Manufacturing costs 
D)  Period costs 
E)  Any of these

Question 9

When overhead is debited to Overhead Control, what is the credit?

Accepted Answer

A)  Various payable accounts 
B)  Cost of Goods Sold 
C)  Work in Process 
D)  Finished Goods 
E)  Accounts Receivable 
A)  Various payable accounts 
B)  Cost of Goods Sold 
C)  Work in Process 
D)  Finished Goods 
E)  Accounts Receivable

Question 10

Hill Company uses job-order costing.At the end of the month, the following data was gathered:  
  Hill's selling price is cost plus 50% for each of its products.
 
What is the selling price of Job 806?

Accepted Answer

A)  $682 
B)  $1,320 
C)  $1,440 
D)  $920 
E)  $1,023 
A)  $682 
B)  $1,320 
C)  $1,440 
D)  $920 
E)  $1,023

Question 11

Match each item with the correct statement below. Answers may be used more than once.
-This form may be used to maintain proper control over a firm's inventory of direct materials.

Accepted Answer

A) Job-order cost sheet 
B) Time ticket 
C) Materials requisition form 
A) Job-order cost sheet 
B) Time ticket 
C) Materials requisition form

Question 12

Which of the following is true?

Accepted Answer

A)  The adjusted cost of goods sold is equal to normal cost of goods sold plus or minus the overhead variance. 
B)  If the overhead variance shows overapplied overhead, then that amount would be subtracted from normal cost of goods sold. 
C)  Variances in overhead are expected every month. 
D)  All of these. 
E)  None of these. 
A)  The adjusted cost of goods sold is equal to normal cost of goods sold plus or minus the overhead variance. 
B)  If the overhead variance shows overapplied overhead, then that amount would be subtracted from normal cost of goods sold. 
C)  Variances in overhead are expected every month. 
D)  All of these. 
E)  None of these.

Question 13

In job-order costing, the journal entry for overhead applied at the rate of $3 per direct labor hour when 210 direct labor hours were worked is:

Accepted Answer

A) True 
 B)False

Question 14

Which of the following departments of the automobile industry provides essential services for producing departments but do not actually make the product or service being sold?​

Accepted Answer

A)  ​Maintenance department 
B)  ​Grinding department 
C)  ​Painting department 
D)  ​Assembling department 
E)  ​Fabrication department 
A)  ​Maintenance department 
B)  ​Grinding department 
C)  ​Painting department 
D)  ​Assembling department 
E)  ​Fabrication department

Question 15

The journal entry for $17 of underapplied overhead is:

Accepted Answer

A) True 
 B)False

Question 16

The key feature of job-order costing is that the cost of one job differs from that of another job and must be kept track of separately.

Accepted Answer

A) True 
 B)False

Question 17

Production costs consist of direct materials, direct labor, and overhead.

Accepted Answer

A) True 
 B)False

Question 18

The cost of goods sold before an adjustment for an overhead variance is called ____________________.

Accepted Answer

normal cos

Question 19

Which of the following accounts is credited when the work-in-process account is debited for direct labor?

Accepted Answer

A)  Finished Goods 
B)  Work in Process 
C)  Wages Payable 
D)  Overhead Control 
E)  Accounts Payable 
A)  Finished Goods 
B)  Work in Process 
C)  Wages Payable 
D)  Overhead Control 
E)  Accounts Payable

Question 20

Using normal costing, which costs never enter the work-in-process account?

Accepted Answer

A)  applied overhead 
B)  actual overhead 
C)  direct materials 
D)  direct labor 
E)  None of these. 
A)  applied overhead 
B)  actual overhead 
C)  direct materials 
D)  direct labor 
E)  None of these.

Which of the following businesses uses a process costing system?

A _____________________ is a single overhead rate calculated by using all estimated overhead for a factory divided by the estimated activity level across the entire factory.

Which of the following costs is not included on a job-order cost sheet?

Following is the departmental data of Alpha Company.If calculated through the direct method, the support department costs assigned to the grinding department are _____.

The ___________________________ is calculated at the beginning of the year by dividing the total estimated annual overhead by the total estimated level of cost driver.

Which of the following is not true about job-order costing?

Which of the following costs is not related to selling and general administrative activities?

When overhead is debited to Overhead Control, what is the credit?

Hill Company uses job-order costing.At the end of the month, the following data was gathered: Hill's selling price is cost plus 50% for each of its products. What is the selling price of Job 806?

Match each item with the correct statement below. Answers may be used more than once. -This form may be used to maintain proper control over a firm's inventory of direct materials.

Which of the following is true?

In job-order costing, the journal entry for overhead applied at the rate of $3 per direct labor hour when 210 direct labor hours were worked is:

Which of the following departments of the automobile industry provides essential services for producing departments but do not actually make the product or service being sold?

The journal entry for $17 of underapplied overhead is:

The key feature of job-order costing is that the cost of one job differs from that of another job and must be kept track of separately.

Production costs consist of direct materials, direct labor, and overhead.

The cost of goods sold before an adjustment for an overhead variance is called ____________________.

Which of the following accounts is credited when the work-in-process account is debited for direct labor?

Using normal costing, which costs never enter the work-in-process account?

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

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

Which of the following businesses uses a process costing system?

A _____________________ is a single overhead rate calculated by using all estimated overhead for a factory divided by the estimated activity level across the entire factory.

Which of the following costs is not included on a job-order cost sheet?

Following is the departmental data of Alpha Company.If calculated through the direct method, the support department costs assigned to the grinding department are _____.

The ___________________________ is calculated at the beginning of the year by dividing the total estimated annual overhead by the total estimated level of cost driver.

Which of the following is not true about job-order costing?

Which of the following costs is not related to selling and general administrative activities?

When overhead is debited to Overhead Control, what is the credit?

Hill Company uses job-order costing.At the end of the month, the following data was gathered: Hill's selling price is cost plus 50% for each of its products. What is the selling price of Job 806?

Match each item with the correct statement below. Answers may be used more than once. -This form may be used to maintain proper control over a firm's inventory of direct materials.

Which of the following is true?

In job-order costing, the journal entry for overhead applied at the rate of $3 per direct labor hour when 210 direct labor hours were worked is:

Which of the following departments of the automobile industry provides essential services for producing departments but do not actually make the product or service being sold?​

The journal entry for $17 of underapplied overhead is:

The key feature of job-order costing is that the cost of one job differs from that of another job and must be kept track of separately.

Production costs consist of direct materials, direct labor, and overhead.

The cost of goods sold before an adjustment for an overhead variance is called ____________________.

Which of the following accounts is credited when the work-in-process account is debited for direct labor?

Using normal costing, which costs never enter the work-in-process account?

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

Which of the following departments of the automobile industry provides essential services for producing departments but do not actually make the product or service being sold?