Question 1

Which of the following would most likely use a job order costing system?

Accepted Answer

A)   A paper mill
B)   A swimming pool installer
C)   A company that manufactures chlorine for swimming pools
D)   An oil refineryE) A) and C)
F) B) and D)

Question 2

The job order costing system is not used by service organizations.

Accepted Answer

A) True 
 B)False

Question 3

Define and discuss the two main types of cost accounting systems for manufacturing operations. What are their similarities and differences?

Accepted Answer

The two main cost accounting systems are...

Question 4

Which of the following is the correct formula to calculate the predetermined factory overhead rate?

Accepted Answer

A)   Estimated total factory overhead costs divided by estimated activity base.
B)   Actual total factory overhead costs divided by estimated activity base.
C)   Estimated total factory overhead costs divided by actual activity base.
D)   Actual total factory overhead costs divided by actual activity base.E) C) and D)
F) A) and B)

Question 5

The direct labor and overhead costs of providing services to clients are accumulated in a work-in-process account.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following would most likely be a product cost?

Accepted Answer

A)   Salary of VP of sales.
B)   Advertising for a particular product.
C)   Drill bits for a drill press used in the plant assembly area.
D)   Salary of the company receptionist.E) C) and D)
F) A) and C)

Question 7

The entries to record cost and sale of a finished good on account is:

Accepted Answer

A)   debit Cost of Goods Sold, credit Finished Goods
B)   debit Cost of Goods Sold, credit Finished Goods, debit Accounts Receivable, credit Sales
C)   debit Sales Expense, credit Finished Goods, credit Cash, credit Accounts Receivable
D)   debit Work in Process, credit Finished Goods, debit Accounts Receivable, credit SalesE) All of the above
F) C) and D)

Question 8

On January 2nd, Newsprint Manufacturing purchases 5 rolls of paper on account at $125.00 per roll for use within the production process. On January 5th 4 rolls of this paper are issued to Job 010507A in the Printing Department. The Printing Department records $675.00 in direct labor and $1,150.00 of factory overhead to Job 010507A. On January 8th Printing transfers Job 010507A to the Folding Department. The folding department applies $450.00 in direct labor and $655.00 in factory overhead to Job 010507A. Job 010507A is transferred to Finished Goods Inventory on January 9th.

Accepted Answer

(a) Jan 2nd Raw Materials 625.00
Account...

Question 9

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 the ending balance of Work in Process for Zeke Company as of the end of the 1st quarter?

Accepted Answer

A)   $0
B)   $456
C)   $3,208
D)   $2,752E) A) and B)
F) A) and C)

Question 10

The Cavy 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 40,000 hours. The machine hours for the month of April for all of the jobs was 4,780. If the actual factory overhead totaled $141,800, determine the over or under applied amount for the month.

Accepted Answer

A)   $7,575 underapplied
B)   $35,220 underapplied
C)   $7,575 overapplied
D)   $35,220 overappliedE) C) and D)
F) All of the above

Question 11

The Cavy 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 40,000 hours. The machine hours for the month of April for all of the jobs was 4,780. What is the amount that will be applied to all of the jobs for the month of April?

Accepted Answer

4,780 hour...

Question 12

If factory overhead applied exceeds the actual costs, the factory overhead account will have a credit balance.

Accepted Answer

A) True 
 B)False

Question 13

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) A) and C)
F) B) and C)

Question 14

A difference in quantity of materials used on two comparable jobs may be caused by:

Accepted Answer

A)   inadequately trained employees
B)   poor quality materials
C)   employee carelessness
D)   all of the aboveE) A) and B)
F) C) and D)

Question 15

The recording of the jobs shipped and customers billed would include a debit 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 16

Selected accounts with some debits and credits omitted are presented as follows:

If the balance of Work in Process at August 31 is $220,000, what was the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs?

Accepted Answer

A)   $135,000
B)   $10,000
C)   $120,000
D)   $70,000E) B) and C)
F) None of the above

Question 17

For the manufacturing business, inventory which is in the process of being manufactured is referred to as:

Accepted Answer

A)   supplies inventory
B)   work in process inventory
C)   finished goods inventory
D)   direct materials inventoryE) B) and D)
F) B) and C)

Question 18

Generally, period costs are classified as either

Accepted Answer

A)   selling expenses or production expenses.
B)   administrative expense or production expenses.
C)   selling expenses or administrative expenses.
D)   general expenses or selling expenses.E) None of the above
F) B) and D)

Question 19

At the end of April, Cavy Company had completed Job 766 and 765. According to the individual job cost sheets the information is as follows:
 
 Job 765 produced 152 units, and Job 766 consisted of 250 units.

Accepted Answer

Assuming that the predetermined overhead...

Question 20

The Cavy Company estimates that the factory overhead for the following year will be $1,470,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 40,000 hours. Calculate the predetermined overhead rate to apply factory overhead.

Accepted Answer

$1,470,000...

Exam 17: Job Order Costing

At the end of April, Cavy Company had completed Job 766 and 765. According to the individual job cost sheets the information is as follows: Job 765 produced 152 units, and Job 766 consisted of 250 units.

Correct Answer
verified
Assuming that the predetermined overhead...
View Answer

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

Correct Answer
verified

Which of the following is the correct formula to calculate the predetermined factory overhead rate?

Correct Answer
verified

Which of the following would most likely be a product cost?

Correct Answer
verified

Define and discuss the two main types of cost accounting systems for manufacturing operations. What are their similarities and differences?

Correct Answer
verified
The two main cost accounting systems are...
View Answer

Correct Answer
verified

Which of the following would most likely use a job order costing system?

Correct Answer
verified

If factory overhead applied exceeds the actual costs, the factory overhead account will have a credit balance.

Correct Answer
verified

The Cavy Company estimates that the factory overhead for the following year will be $1,470,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 40,000 hours. Calculate the predetermined overhead rate to apply factory overhead.

Correct Answer
verified
$1,470,000...
View Answer

Correct Answer
verified
(a) Jan 2nd Raw Materials 625.00
Account...
View Answer

Generally, period costs are classified as either

Correct Answer
verified

Selected accounts with some debits and credits omitted are presented as follows: If the balance of Work in Process at August 31 is $220,000, what was the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs?

Correct Answer
verified

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

Correct Answer
verified

The direct labor and overhead costs of providing services to clients are accumulated in a work-in-process account.

Correct Answer
verified

Correct Answer
verified
4,780 hour...
View Answer

A difference in quantity of materials used on two comparable jobs may be caused by:

Correct Answer
verified

The entries to record cost and sale of a finished good on account is:

Correct Answer
verified

The job order costing system is not used by service organizations.

Correct Answer
verified

Correct Answer
verified

For the manufacturing business, inventory which is in the process of being manufactured is referred to as:

Correct Answer
verified

Exam 17: Job Order Costing

At the end of April, Cavy Company had completed Job 766 and 765. According to the individual job cost sheets the information is as follows: Job 765 produced 152 units, and Job 766 consisted of 250 units.

Correct AnswerverifiedAssuming that the predetermined overhead...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is the correct formula to calculate the predetermined factory overhead rate?

Correct AnswerverifiedShow Answer

Which of the following would most likely be a product cost?

Correct AnswerverifiedShow Answer

Define and discuss the two main types of cost accounting systems for manufacturing operations. What are their similarities and differences?

Correct AnswerverifiedThe two main cost accounting systems are...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Which of the following would most likely use a job order costing system?

Correct AnswerverifiedShow Answer

If factory overhead applied exceeds the actual costs, the factory overhead account will have a credit balance.

Correct AnswerverifiedShow Answer

The Cavy Company estimates that the factory overhead for the following year will be $1,470,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 40,000 hours. Calculate the predetermined overhead rate to apply factory overhead.

Correct Answerverified$1,470,000...View AnswerShow Answer

Correct Answerverified(a) Jan 2nd Raw Materials 625.00Account...View AnswerShow Answer

Generally, period costs are classified as either

Correct AnswerverifiedShow Answer

Selected accounts with some debits and credits omitted are presented as follows: If the balance of Work in Process at August 31 is $220,000, what was the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The direct labor and overhead costs of providing services to clients are accumulated in a work-in-process account.

Correct AnswerverifiedShow Answer

Correct Answerverified4,780 hour...View AnswerShow Answer

A difference in quantity of materials used on two comparable jobs may be caused by:

Correct AnswerverifiedShow Answer

The entries to record cost and sale of a finished good on account is:

Correct AnswerverifiedShow Answer

The job order costing system is not used by service organizations.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

For the manufacturing business, inventory which is in the process of being manufactured is referred to as:

Correct AnswerverifiedShow Answer

Correct Answer
verified
Assuming that the predetermined overhead...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The two main cost accounting systems are...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
$1,470,000...
View Answer

Correct Answer
verified
(a) Jan 2nd Raw Materials 625.00
Account...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
4,780 hour...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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