Question 1

In a job order cost accounting system, when goods that have been ordered are received, the receiving department personnel count, inspect the goods, and complete a:

Accepted Answer

A)   purchase order
B)   sales invoice
C)   receiving report
D)   purchase requisitionE) All of the above
F) A) and B)

Question 2

A job order cost system would be appropriate for a crude oil refining business.

Accepted Answer

A) True 
 B)False

Question 3

The recording of the jobs shipped and customers billed would include a credit to:

Accepted Answer

A)   Accounts Payable
B)   Cash
C)   Finished Goods
D)   Cost of Goods SoldE) A) and B)
F) None of the above

Question 4

Which of the following would record the labor costs to an individual job?

Accepted Answer

A)   Clock card
B)   In-and-out cards
C)   Time tickets
D)   Payroll registerE) None of the above
F) C) and D)

Question 5

Costs that are treated as assets until the product is sold are called:

Accepted Answer

A)   product costs
B)   period costs
C)   conversion costs
D)   selling expensesE) C) and D)
F) A) and C)

Question 6

During the period, labor costs incurred on account amounted to $275,000 including $200,000 for production orders and $75,000 for general factory use. In addition, factory overhead charged to production was $32,000. From the following, select the entry to record the direct labor costs.

Accepted Answer

A)   Work in Process 200,000 Wages Payable 200,000
B)   Work in Process 275,000 Wages Payable 275,000
C)   Wages Payable 275,000 Work in Process 275,000
D)   Wages Payable 200,000 Work in Process 200,000E) B) and C)
F) All of the above

Question 7

Job order cost systems can be used to compare unit costs of similar jobs to determine if costs are staying within expected ranges.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following systems provides for a separate record of the cost of each particular quantity of product that passes through the factory?

Accepted Answer

A)   Job order cost system
B)   General cost system
C)   Replacement cost system
D)   Process cost systemE) None of the above
F) A) and B)

Question 9

The following account appears in the ledger after only part of the postings have been completed for July, the first month of the current fiscal year:

Accepted Answer

Factory overhead is applied to...

Question 10

The source of the data for debiting Work-in-Process for direct materials is the:

Accepted Answer

A)   purchase order
B)   purchase requisition
C)   materials requisition
D)   receiving reportE) None of the above
F) B) and C)

Question 11

Zeke Company is a manufacturing company that has worked on several production jobs during the 1st quarter of the year. Below is a list of all the jobs for the quarter:  Job 356, 357, 358 & 359 were completed. Jobs 356 & 357 were sold at a profit of $500 on each job.
What is Gross Margin for Zeke Company as of the end of the 1st quarter?

Accepted Answer

A)   $1,685
B)   $2,685
C)   $1,000
D)   $685E) A) and D)
F) None of the above

Question 12

The Winston Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 50,000 hours. The total machine hours for the year was 54,300. The actual factory overhead for the year was $1,375,000.
a) Determine the total factory overhead amount applied.
b) Calculate the over or under applied amount for the year.
c) Prepare the journal entry to close factory overhead into Cost of Goods Sold.

Accepted Answer

a) 54,300 hours * $25 = $1,357...

Question 13

Which of the following entries would probably not be found on the books of a service provider?

Accepted Answer

A)   Debit Work in Process; credit Materials
B)   Debit Work in Process; credit Wages Payable
C)   Debit Work in Process; credit Overhead
D)   Debit Cost of Services; credit Work in ProcessE) C) and D)
F) A) and B)

Question 14

The proper journal entry to record the purchase of $30,000 of raw materials on account would be:

Accepted Answer

A)   Raw Material Inventory 30,000 Accounts Receivable 30,000
B)   Raw Material Inventory 30,000 Accounts Payable 30,000
C)   Inventory 30,000 Accounts Receivable 30,000
D)   Inventory 30,000 Cash 30,000E) A) and B)
F) A) and D)

Question 15

The cost of production of completed and finished goods during the period amounted to $450,000, and the finished products shipped to customers had total production costs of $357,000. From the following, select the entry to record the transfer of costs from work in process to finished goods.

Accepted Answer

A)   Finished Goods 357,000 Work in Process 357,000
B)   Finished Goods 450,000 Work in Process 450,000
C)   Work in Process 450,000 Finished Goods 450,000
D)   Work in Process 357,000 Finished Goods 357,000E) A) and C)
F) A) and B)

Question 16

Materials are transferred from the storeroom to the factory in response to materials requisitions.

Accepted Answer

A) True 
 B)False

Question 17

The process cost system is appropriate where few products are manufactured and each product is made to customers' specifications.

Accepted Answer

A) True 
 B)False

Question 18

Six selected transactions for the current month are indicated by letters in the following T accounts in a job order cost accounting system:

Accepted Answer

Describe e...

Question 19

Period costs are

Accepted Answer

A)   found on the balance sheet.
B)   not involved in the production process.
C)   classified as direct labor, direct material, or factory overhead.
D)   found on the job order cost sheets.E) A) and B)
F) B) and C)

Question 20

Which types of inventories does a manufacturing business report on the balance sheet?

Accepted Answer

A)   Finished goods inventory and work in process inventory
B)   Direct materials inventory and work in process inventory
C)   Direct materials inventory, work in process inventory, and finished goods inventory
D)   Direct materials inventory and finished goods inventoryE) A) and B)
F) C) and D)

Exam 2: Job Order Costing

Job order cost systems can be used to compare unit costs of similar jobs to determine if costs are staying within expected ranges.

Correct Answer
verified

Period costs are

Correct Answer
verified

Materials are transferred from the storeroom to the factory in response to materials requisitions.

Correct Answer
verified

The recording of the jobs shipped and customers billed would include a credit to:

Correct Answer
verified

Which of the following entries would probably not be found on the books of a service provider?

Correct Answer
verified

A job order cost system would be appropriate for a crude oil refining business.

Correct Answer
verified

Which of the following systems provides for a separate record of the cost of each particular quantity of product that passes through the factory?

Correct Answer
verified

Which of the following would record the labor costs to an individual job?

Correct Answer
verified

Six selected transactions for the current month are indicated by letters in the following T accounts in a job order cost accounting system:

Correct Answer
verified
Describe e...
View Answer

In a job order cost accounting system, when goods that have been ordered are received, the receiving department personnel count, inspect the goods, and complete a:

Correct Answer
verified

The following account appears in the ledger after only part of the postings have been completed for July, the first month of the current fiscal year:

Correct Answer
verified
Factory overhead is applied to...
View Answer

The proper journal entry to record the purchase of $30,000 of raw materials on account would be:

Correct Answer
verified

The cost of production of completed and finished goods during the period amounted to $450,000, and the finished products shipped to customers had total production costs of $357,000. From the following, select the entry to record the transfer of costs from work in process to finished goods.

Correct Answer
verified

The process cost system is appropriate where few products are manufactured and each product is made to customers' specifications.

Correct Answer
verified

The source of the data for debiting Work-in-Process for direct materials is the:

Correct Answer
verified

Which types of inventories does a manufacturing business report on the balance sheet?

Correct Answer
verified

Costs that are treated as assets until the product is sold are called:

Correct Answer
verified

During the period, labor costs incurred on account amounted to $275,000 including $200,000 for production orders and $75,000 for general factory use. In addition, factory overhead charged to production was $32,000. From the following, select the entry to record the direct labor costs.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a) 54,300 hours * $25 = $1,357...
View Answer

Exam 2: Job Order Costing

Job order cost systems can be used to compare unit costs of similar jobs to determine if costs are staying within expected ranges.

Correct AnswerverifiedShow Answer

Period costs are

Correct AnswerverifiedShow Answer

Materials are transferred from the storeroom to the factory in response to materials requisitions.

Correct AnswerverifiedShow Answer

The recording of the jobs shipped and customers billed would include a credit to:

Correct AnswerverifiedShow Answer

Which of the following entries would probably not be found on the books of a service provider?

Correct AnswerverifiedShow Answer

A job order cost system would be appropriate for a crude oil refining business.

Correct AnswerverifiedShow Answer

Which of the following systems provides for a separate record of the cost of each particular quantity of product that passes through the factory?

Correct AnswerverifiedShow Answer

Which of the following would record the labor costs to an individual job?

Correct AnswerverifiedShow Answer

Six selected transactions for the current month are indicated by letters in the following T accounts in a job order cost accounting system:

Correct AnswerverifiedDescribe e...View AnswerShow Answer

In a job order cost accounting system, when goods that have been ordered are received, the receiving department personnel count, inspect the goods, and complete a:

Correct AnswerverifiedShow Answer

The following account appears in the ledger after only part of the postings have been completed for July, the first month of the current fiscal year:

Correct AnswerverifiedFactory overhead is applied to...View AnswerShow Answer

The proper journal entry to record the purchase of $30,000 of raw materials on account would be:

Correct AnswerverifiedShow Answer

The cost of production of completed and finished goods during the period amounted to $450,000, and the finished products shipped to customers had total production costs of $357,000. From the following, select the entry to record the transfer of costs from work in process to finished goods.

Correct AnswerverifiedShow Answer

The process cost system is appropriate where few products are manufactured and each product is made to customers' specifications.

Correct AnswerverifiedShow Answer

The source of the data for debiting Work-in-Process for direct materials is the:

Correct AnswerverifiedShow Answer

Which types of inventories does a manufacturing business report on the balance sheet?

Correct AnswerverifiedShow Answer

Costs that are treated as assets until the product is sold are called:

Correct AnswerverifiedShow Answer

During the period, labor costs incurred on account amounted to $275,000 including $200,000 for production orders and $75,000 for general factory use. In addition, factory overhead charged to production was $32,000. From the following, select the entry to record the direct labor costs.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answerverifieda) 54,300 hours * $25 = $1,357...View AnswerShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Describe e...
View Answer

Correct Answer
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Correct Answer
verified
Factory overhead is applied to...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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a) 54,300 hours * $25 = $1,357...
View Answer