Question 1

A debit balance in overhead control implies that actual overhead costs exceed overhead applied.

Accepted Answer

A) True 
 B)False

Question 2

Figure 5-7
The following information is available pertaining to the Production Division of Clarkson Enterprises:
  
-Refer to Figure 5-7. What is the overhead rate for the Finishing Department based on machine hours?

Accepted Answer

A)  $9.00 
B)  $3.00 
C)  $2.25 
D)  $1.00 
A)  $9.00 
B)  $3.00 
C)  $2.25 
D)  $1.00

Question 3

Figure 5-7
The following information is available pertaining to the Production Division of Clarkson Enterprises:
  
-Refer to Figure 5-7. Based on departmental overhead rates, what is the cost of Job 4X5? Departmental overhead rates for the Assembly Department are based on direct labor hours, while departmental overhead rates for the Finishing Department are based on machine hours.

Accepted Answer

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

Question 4

A inventory file is a file of job-order cost sheets.

Accepted Answer

The answer of A inventory file is a file of...

Question 5

When normal costing is used, actual overhead costs are

Accepted Answer

A)  recorded in the work-in-process account. 
B)  recorded in the overhead control account. 
C)  recorded in the finished goods account. 
D)  not recorded. 
A)  recorded in the work-in-process account. 
B)  recorded in the overhead control account. 
C)  recorded in the finished goods account. 
D)  not recorded.

Question 6

What are the source documents used in a job-order costing system? How do the source documents relate to the job cost sheet? How do these documents inform work in process?

Accepted Answer

The materials requisition form and job t

Question 7

Companies operating in job-order industries produce a wide variety of products or jobs that are quite different from each other.

Accepted Answer

A) True 
 B)False

Question 8

The association of production costs with the units produced is called:

Accepted Answer

A)  Job-order costing 
B)  Cost assignment 
C)  Cost measurement 
D)  Cost accumulation 
A)  Job-order costing 
B)  Cost assignment 
C)  Cost measurement 
D)  Cost accumulation

Question 9

If there is a debit balance in overhead control, that implies

Accepted Answer

A)  applied overhead exceeds actual overhead. 
B)  actual overhead costs exceed overhead applied. 
C)  actual overhead has not been closed to cost of goods sold. 
D)  none of the above. 
A)  applied overhead exceeds actual overhead. 
B)  actual overhead costs exceed overhead applied. 
C)  actual overhead has not been closed to cost of goods sold. 
D)  none of the above.

Question 10

Cost accumulation is the determination of the dollar amounts of direct materials, direct labor and overhead costs, and cost measurement is the recognition and recording of costs.

Accepted Answer

A) True 
 B)False

Question 11

Manufacturing overhead consists of all

Accepted Answer

A)  costs other than direct materials. 
B)  manufacturing costs other than direct materials. 
C)  costs other than direct materials and direct labor. 
D)  manufacturing costs other than direct materials and direct labor. 
A)  costs other than direct materials. 
B)  manufacturing costs other than direct materials. 
C)  costs other than direct materials and direct labor. 
D)  manufacturing costs other than direct materials and direct labor.

Question 12

Figure 5 - 3
Robinson Corporation constructs new homes. Assume that Robinson uses a job costing system. During July 2016, the following transactions occurred:
Robinson purchased $4,500 of lumber on account.
Robinson used $3,750 of lumber in production and incurred 50 hours of direct labor hours at $15 per hour. Depreciation of $1,500 on equipment used to build new houses was recorded.
A house that was completed last period at a cost of $150,000 was sold for $180,000 in cash.
-Refer to Figure 5-3. The journal entry to record labor for Robinson would include a

Accepted Answer

A)  debit to Finished Goods of $750. 
B)  debit to Wages Payable of $750. 
C)  credit to Finished Goods of $750. 
D)  debit to Work-in-Process of $750. 
A)  debit to Finished Goods of $750. 
B)  debit to Wages Payable of $750. 
C)  credit to Finished Goods of $750. 
D)  debit to Work-in-Process of $750.

Question 13

Intangibility refers to the

Accepted Answer

A)  nonphysical nature of services as opposed to products. 
B)  fact that production and consumption are inseparable for services. 
C)  greater chances for variation in the performance of services than in the production of products. 
D)  fact that services cannot be inventoried but must be consumed when performed. 
A)  nonphysical nature of services as opposed to products. 
B)  fact that production and consumption are inseparable for services. 
C)  greater chances for variation in the performance of services than in the production of products. 
D)  fact that services cannot be inventoried but must be consumed when performed.

Question 14

Cost flow follows costs from the point they are incurred to the point they are recognized as an expense on the income statement.

Accepted Answer

A) True 
 B)False

Question 15

The process where a single product is produced on a continuous basis is called:

Accepted Answer

A)  process production 
B)  job-order production 
C)  job production 
D)  both a and c 
A)  process production 
B)  job-order production 
C)  job production 
D)  both a and c

Question 16

Figure 5-9
The Omega Company manufactures customized motors on a job-order basis. Job 492 is an order for 100 units. It requires the following:
     After inspection, 2 units required rework which required 8 additional direct labor hours and $60 of materials.
-Refer to Figure 5-9. If the spoilage was considered normal, what is the cost of job 492?

Accepted Answer

A)  $5,500 
B)  $5,640 
C)  $5,760 
D)  $3,000 
A)  $5,500 
B)  $5,640 
C)  $5,760 
D)  $3,000

Question 17

Compare and contrast perishability and intangibility in an automobile oil lubrication shop and architectural design firms.

Accepted Answer

Intangibility refers to the nonphysical

Question 18

In a traditional enterprise, the flow of costs through the system is

Accepted Answer

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

Question 19

Canmore Company has the following data pertaining to 2016:   Factory overhead rate is 125 percent of direct labor costs.
What is the ending materials inventory balance for Canmore in 2016?

Accepted Answer

A)  $50,000 
B)  $62,500 
C)  $12,500 
D)  $37,500 
A)  $50,000 
B)  $62,500 
C)  $12,500 
D)  $37,500

Question 20

Which of the following firms would make extensive use of a job-order costing?

Accepted Answer

A)  dental and medical services 
B)  canned foods 
C)  discount brokers 
D)  petroleum 
A)  dental and medical services 
B)  canned foods 
C)  discount brokers 
D)  petroleum

A debit balance in overhead control implies that actual overhead costs exceed overhead applied.

Figure 5-7 The following information is available pertaining to the Production Division of Clarkson Enterprises: -Refer to Figure 5-7. What is the overhead rate for the Finishing Department based on machine hours?

A inventory file is a file of job-order cost sheets.

When normal costing is used, actual overhead costs are

What are the source documents used in a job-order costing system? How do the source documents relate to the job cost sheet? How do these documents inform work in process?

Companies operating in job-order industries produce a wide variety of products or jobs that are quite different from each other.

The association of production costs with the units produced is called:

If there is a debit balance in overhead control, that implies

Cost accumulation is the determination of the dollar amounts of direct materials, direct labor and overhead costs, and cost measurement is the recognition and recording of costs.

Manufacturing overhead consists of all

Intangibility refers to the

Cost flow follows costs from the point they are incurred to the point they are recognized as an expense on the income statement.

The process where a single product is produced on a continuous basis is called:

Compare and contrast perishability and intangibility in an automobile oil lubrication shop and architectural design firms.

In a traditional enterprise, the flow of costs through the system is

Canmore Company has the following data pertaining to 2016: Factory overhead rate is 125 percent of direct labor costs. What is the ending materials inventory balance for Canmore in 2016?

Which of the following firms would make extensive use of a job-order costing?

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

A debit balance in overhead control implies that actual overhead costs exceed overhead applied.

Figure 5-7 The following information is available pertaining to the Production Division of Clarkson Enterprises: -Refer to Figure 5-7. What is the overhead rate for the Finishing Department based on machine hours?

A inventory file is a file of job-order cost sheets.

When normal costing is used, actual overhead costs are

What are the source documents used in a job-order costing system? How do the source documents relate to the job cost sheet? How do these documents inform work in process?

Companies operating in job-order industries produce a wide variety of products or jobs that are quite different from each other.

The association of production costs with the units produced is called:

If there is a debit balance in overhead control, that implies

Cost accumulation is the determination of the dollar amounts of direct materials, direct labor and overhead costs, and cost measurement is the recognition and recording of costs.

Manufacturing overhead consists of all

Intangibility refers to the

Cost flow follows costs from the point they are incurred to the point they are recognized as an expense on the income statement.

The process where a single product is produced on a continuous basis is called:

Compare and contrast perishability and intangibility in an automobile oil lubrication shop and architectural design firms.

In a traditional enterprise, the flow of costs through the system is

Canmore Company has the following data pertaining to 2016: Factory overhead rate is 125 percent of direct labor costs. What is the ending materials inventory balance for Canmore in 2016?

Which of the following firms would make extensive use of a job-order costing?

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