Question 1

Which of the following costs is usually NOT easily traceable to finished units of product?

Accepted Answer

A)  direct labor 
B)  direct materials 
C)  manufacturing overhead 
D)  all of the above 
A)  direct labor 
B)  direct materials 
C)  manufacturing overhead 
D)  all of the above

Question 2

Cost assignment is the assignment of costs to products or services once the costs have been accumulated and measured.

Accepted Answer

A) True 
 B)False

Question 3

Unit cost is important information for which of the following?

Accepted Answer

A)  valuing inventory 
B)  determining income 
C)  decision making 
D)  all of the above 
A)  valuing inventory 
B)  determining income 
C)  decision making 
D)  all of the above

Question 4

The collection of all job cost sheets defines a

Accepted Answer

A)  materials file. 
B)  finished goods file. 
C)  cost of goods file. 
D)  work-in-process file. 
A)  materials file. 
B)  finished goods file. 
C)  cost of goods file. 
D)  work-in-process file.

Question 5

Which of the following transactions in a job-order costing system requires the procedure of merely moving a job- order cost sheet from one file to another?

Accepted Answer

A)  applying factory overhead to jobs 
B)  closing overapplied factory overhead 
C)  delivering a completed job to a customer 
D)  moving the job from one production department to another 
A)  applying factory overhead to jobs 
B)  closing overapplied factory overhead 
C)  delivering a completed job to a customer 
D)  moving the job from one production department to another

Question 6

In job-order costing, departmental overhead rates and activity-based costing affect only the application of overhead.

Accepted Answer

A) True 
 B)False

Question 7

The defective units due to the exacting nature of a particular job is called .

Accepted Answer

The answer of The defective units due to the exacting...

Question 8

The uniqueness of the products or units for cost accounting purposes relates to their common costs.

Accepted Answer

A) True 
 B)False

Question 9

In an activity­based costing system activity cost is applied to each job by multiplying productivity rate by the job's use of the associated driver.

Accepted Answer

A) True 
 B)False

Question 10

Samuelson Company has the following selected debit balance accounts at the end of the current year: Work-in- Process, $25,000; Finished Goods, $12,500; Cost of Goods Sold, $37,500; and Factory Overhead, $6,000. The pro- rated amount charged to Cost of Goods Sold for factory overhead will be

Accepted Answer

A)  $25,000. 
B)  $3,000. 
C)  $37,500. 
D)  $6,000. 
A)  $25,000. 
B)  $3,000. 
C)  $37,500. 
D)  $6,000.

Question 11

Figure 5 - 4
Lanyard Company uses a job-order costing system to account for product costs. The following information pertains to 2016:
   Factory overhead rate is $18 per direct labor hour.
-Refer to Figure 5-4. What is the total amount credited to Materials Inventory for Lanyard in 2016?

Accepted Answer

A)  $480,000 
B)  $170,000 
C)  $140,000 
D)  $110,000 
A)  $480,000 
B)  $170,000 
C)  $140,000 
D)  $110,000

Question 12

The entry that captures the flow of material from the storeroom to work-in-process is called the inventory account.

Accepted Answer

The answer of The entry that captures the flow of...

Question 13

The maximum output that can be realized if everything operates efficiently is referred to as:

Accepted Answer

A)  Expected activity level 
B)  Normal activity level 
C)  Theoretical activity level 
D)  Practical activity level 
A)  Expected activity level 
B)  Normal activity level 
C)  Theoretical activity level 
D)  Practical activity level

Question 14

A journal entry debiting Work-in-Process would normally NOT be accompanied by a credit to

Accepted Answer

A)  Materials Inventory. 
B)  Finished Goods. 
C)  Overhead Control. 
D)  Wages Payable. 
A)  Materials Inventory. 
B)  Finished Goods. 
C)  Overhead Control. 
D)  Wages Payable.

Question 15

On March 9, 2016, Job XX4 was completed. The job cost sheet showed a total of $6,000 in direct materials and $8,000 in direct labor at a rate of $20 per direct labor hour. Factory overhead is applied at $30 per direct labor hour.
The debit to Finished Goods Inventory to record the completion of Job XX4 is

Accepted Answer

A)  $17,000. 
B)  $11,000. 
C)  $6,000. 
D)  $26,000. 
A)  $17,000. 
B)  $11,000. 
C)  $6,000. 
D)  $26,000.

Question 16

Normal costing uses which cost in work in process?

Accepted Answer

A)  applied direct materials 
B)  actual overhead 
C)  applied overhead 
D)  budgeted overhead 
A)  applied direct materials 
B)  actual overhead 
C)  applied overhead 
D)  budgeted overhead

Question 17

The activity level is the production level a firm expects to attain for the coming year.

Accepted Answer

The answer of The activity level is the production level...

Question 18

Figure 5 - 2
The Cameron Corporation manufactures custom-made purses. The following data pertains to Job XY5:
Direct materials placed into production $4,000
Direct labor hours worked 50 hours
Direct labor rate per hour $ 15
Machine hours worked 100 hours
Factory overhead is applied using a plant-wide rate based on direct labor hours. Factory overhead was budgeted at
$80,000 for the year and the direct labor hours were estimated to be 20,000. Job XY5 consists of 50 units.
-Refer to Figure 5-2. What is the materials cost per unit for Job XY5?

Accepted Answer

A)  $267 
B)  $80 
C)  $40 
D)  $4 
A)  $267 
B)  $80 
C)  $40 
D)  $4

Question 19

Direct labor costs are assigned to individual jobs using a source document known as a

Accepted Answer

A)  job-order cost sheet. 
B)  payroll check. 
C)  time sheet. 
D)  requisition form. 
A)  job-order cost sheet. 
B)  payroll check. 
C)  time sheet. 
D)  requisition form.

Question 20

Figure 5-7
The following information is available pertaining to the Production Division of Clarkson Enterprises:
  
-Refer to Figure 5-7. Using the plantwide overhead rate based on direct labor hours what is the cost of Job 4X5?

Accepted Answer

A)  $1,250 
B)  $2,000 
C)  $8,750 
D)  $31,250 
A)  $1,250 
B)  $2,000 
C)  $8,750 
D)  $31,250

Which of the following costs is usually NOT easily traceable to finished units of product?

Cost assignment is the assignment of costs to products or services once the costs have been accumulated and measured.

Unit cost is important information for which of the following?

The collection of all job cost sheets defines a

Which of the following transactions in a job-order costing system requires the procedure of merely moving a job- order cost sheet from one file to another?

In job-order costing, departmental overhead rates and activity-based costing affect only the application of overhead.

The defective units due to the exacting nature of a particular job is called .

The uniqueness of the products or units for cost accounting purposes relates to their common costs.

In an activitybased costing system activity cost is applied to each job by multiplying productivity rate by the job's use of the associated driver.

Samuelson Company has the following selected debit balance accounts at the end of the current year: Work-in- Process, $25,000; Finished Goods, $12,500; Cost of Goods Sold, $37,500; and Factory Overhead, $6,000. The pro- rated amount charged to Cost of Goods Sold for factory overhead will be

Figure 5 - 4 Lanyard Company uses a job-order costing system to account for product costs. The following information pertains to 2016: Factory overhead rate is $18 per direct labor hour. -Refer to Figure 5-4. What is the total amount credited to Materials Inventory for Lanyard in 2016?

The entry that captures the flow of material from the storeroom to work-in-process is called the inventory account.

The maximum output that can be realized if everything operates efficiently is referred to as:

A journal entry debiting Work-in-Process would normally NOT be accompanied by a credit to

Normal costing uses which cost in work in process?

The activity level is the production level a firm expects to attain for the coming year.

Direct labor costs are assigned to individual jobs using a source document known as a

Figure 5-7 The following information is available pertaining to the Production Division of Clarkson Enterprises: -Refer to Figure 5-7. Using the plantwide overhead rate based on direct labor hours what is the cost of Job 4X5?

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility, Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

Exam 5: Product and Service Costing: Job-Order System

Which of the following costs is usually NOT easily traceable to finished units of product?

Cost assignment is the assignment of costs to products or services once the costs have been accumulated and measured.

Unit cost is important information for which of the following?

The collection of all job cost sheets defines a

Which of the following transactions in a job-order costing system requires the procedure of merely moving a job- order cost sheet from one file to another?

In job-order costing, departmental overhead rates and activity-based costing affect only the application of overhead.

The defective units due to the exacting nature of a particular job is called .

The uniqueness of the products or units for cost accounting purposes relates to their common costs.

In an activity­based costing system activity cost is applied to each job by multiplying productivity rate by the job's use of the associated driver.

Samuelson Company has the following selected debit balance accounts at the end of the current year: Work-in- Process, $25,000; Finished Goods, $12,500; Cost of Goods Sold, $37,500; and Factory Overhead, $6,000. The pro- rated amount charged to Cost of Goods Sold for factory overhead will be

Figure 5 - 4 Lanyard Company uses a job-order costing system to account for product costs. The following information pertains to 2016: Factory overhead rate is $18 per direct labor hour. -Refer to Figure 5-4. What is the total amount credited to Materials Inventory for Lanyard in 2016?

The entry that captures the flow of material from the storeroom to work-in-process is called the inventory account.

The maximum output that can be realized if everything operates efficiently is referred to as:

A journal entry debiting Work-in-Process would normally NOT be accompanied by a credit to

Normal costing uses which cost in work in process?

The activity level is the production level a firm expects to attain for the coming year.

Direct labor costs are assigned to individual jobs using a source document known as a

Figure 5-7 The following information is available pertaining to the Production Division of Clarkson Enterprises: -Refer to Figure 5-7. Using the plantwide overhead rate based on direct labor hours what is the cost of Job 4X5?

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility, Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

In an activitybased costing system activity cost is applied to each job by multiplying productivity rate by the job's use of the associated driver.