Question 1

Match each of the following phrases with the term (a-g)  that it most closely describes.
-A subsidiary ledger that maintains a separate account for each type of material

Accepted Answer

A)  Job order cost system
B)  Process cost system
C)  Activity-based costing
D)  Underapplied overhead
E)  Overapplied overheadF) Finished goods ledgerG) Materials ledgerH) A) and B)
I) B) and C)

Question 2

Which of the following are the two main types of cost accounting systems for manufacturing operations?

Accepted Answer

A)   process cost and general accounting systems
B)   job order cost and process cost systems
C)   job order and general accounting systems
D)   process cost and replacement cost systemsE) B) and C)
F) All of the above

Question 3

The controlling account for the cost ledger is

Accepted Answer

A)   Finished Goods
B)   Materials
C)   Work in Process
D)   Cost of Goods SoldE) A) and B)
F) A) and C)

Question 4

When a job is completed in a service organization, the job costs are transferred to the

Accepted Answer

A)   work in process account
B)   cost of services account
C)   finished goods account
D)   cost of goods sold accountE) A) and B)
F) B) and C)

Question 5

Each document in the cost ledger is called a

Accepted Answer

A)   finished goods sheet
B)   stock record
C)   materials requisition
D)   job cost sheetE) All of the above
F) A) and B)

Question 6

Match the costs that follow to the type of product cost (a-c)  or designate as not a product cost (d) .
-Factory supervisor's salary

Accepted Answer

A)  Direct labor
B)  Direct materials
C)  Factory overhead
D)  Not a product costE) A) and D)
F) All of the above

Question 7

Present entries to record the following summarized operations related to production for a company using a job order cost system:

Accepted Answer

The answer of Present entries to record the following summarized...

Question 8

A widely used activity base for developing factory overhead rates in highly automated settings is

Accepted Answer

A)   direct labor hours
B)   direct labor dollars
C)   direct materials
D)   machine hoursE) A) and B)
F) A) and C)

Question 9

A law firm would use a job order cost system to accumulate all of the costs associated with a particular client engagement, such as lawyer time, copying charges, filing fees, and overhead.

Accepted Answer

A) True 
 B)False

Question 10

The basis for recording direct and indirect labor costs incurred is a summary of the period's

Accepted Answer

A)   job order cost sheets
B)   time tickets
C)   employees' earnings records
D)   clock cardsE) All of the above
F) A) and B)

Question 11

Match each of the following phrases with the term (a-g)  that it most closely describes.
-Applied overhead is less than actual overhead incurred

Accepted Answer

A)  Job order cost system
B)  Process cost system
C)  Activity-based costing
D)  Underapplied overhead
E)  Overapplied overheadF) Finished goods ledgerG) Materials ledgerH) B) and E)
I) A) and E)

Question 12

Match each of the following phrases with the term (a-g)  that it most closely describes.
-Typically used by companies whose products are indistinguishable from each other

Accepted Answer

A)  Job order cost system
B)  Process cost system
C)  Activity-based costing
D)  Underapplied overhead
E)  Overapplied overheadF) Finished goods ledgerG) Materials ledgerH) A) and E)
I) A) and F)

Question 13

The recording of the application of factory overhead costs to jobs would include a credit to

Accepted Answer

A)   Factory Overhead
B)   Wages Payable
C)   Work in Process
D)   Cost of Goods SoldE) B) and C)
F) A) and D)

Question 14

The journal entry to record the transfer of 1,600 units of Part No. 1177, with a value of $2.50 each, to work in process is

Accepted Answer

The answer of The journal entry to record the transfer...

Question 15

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

Accepted Answer

A)   clock cards
B)   in-and-out cards
C)   time tickets
D)   payroll registerE) A) and B)
F) B) and D)

Question 16

Cavy Company accumulated 560 hours of direct labor on Job 345 and 800 hours on Job 777. The direct labor was incurred at a rate of $20 per direct labor hour for Job 345 and $21 per direct labor for Job 777. Journalize the entry to record the flow of labor costs into production.

Accepted Answer

Work in Process28,00...

Question 17

Materials purchased on account during the month amounted to $190,000. Materials requisitioned and placed in production totaled $156,000. The entry to record the transaction for materials requisitioned by the production department is

Accepted Answer

The answer of Materials purchased on account during the month...

Question 18

Interim financial statements for a manufacturing business would report overapplied factory overhead as a deferred item on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 19

A process cost accounting system is best used by manufacturers of like units of product that are not distinguishable from each other during a continuous production process.

Accepted Answer

A) True 
 B)False

Question 20

Activity-based costing is a method of accumulating and allocating costs by department.

Accepted Answer

A) True 
 B)False

Exam 19: Job Order Costing

The journal entry to record the transfer of 1,600 units of Part No. 1177, with a value of $2.50 each, to work in process is

Correct AnswerverifiedShow Answer

The recording of the application of factory overhead costs to jobs would include a credit to

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When a job is completed in a service organization, the job costs are transferred to the

Correct AnswerverifiedShow Answer

Activity-based costing is a method of accumulating and allocating costs by department.

Correct AnswerverifiedShow Answer

Match each of the following phrases with the term (a-g) that it most closely describes. -Applied overhead is less than actual overhead incurred

Correct AnswerverifiedShow Answer

A widely used activity base for developing factory overhead rates in highly automated settings is

Correct AnswerverifiedShow Answer

Present entries to record the following summarized operations related to production for a company using a job order cost system:

Correct AnswerverifiedShow Answer

Each document in the cost ledger is called a

Correct AnswerverifiedShow Answer

Match each of the following phrases with the term (a-g) that it most closely describes. -Typically used by companies whose products are indistinguishable from each other

Correct AnswerverifiedShow Answer

The basis for recording direct and indirect labor costs incurred is a summary of the period's

Correct AnswerverifiedShow Answer

The controlling account for the cost ledger is

Correct AnswerverifiedShow Answer

A law firm would use a job order cost system to accumulate all of the costs associated with a particular client engagement, such as lawyer time, copying charges, filing fees, and overhead.

Correct AnswerverifiedShow Answer

A process cost accounting system is best used by manufacturers of like units of product that are not distinguishable from each other during a continuous production process.

Correct AnswerverifiedShow Answer

Which of the following are the two main types of cost accounting systems for manufacturing operations?

Correct AnswerverifiedShow Answer

Match each of the following phrases with the term (a-g) that it most closely describes. -A subsidiary ledger that maintains a separate account for each type of material

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Match the costs that follow to the type of product cost (a-c) or designate as not a product cost (d) . -Factory supervisor's salary

Correct AnswerverifiedShow Answer

Materials purchased on account during the month amounted to $190,000. Materials requisitioned and placed in production totaled $156,000. The entry to record the transaction for materials requisitioned by the production department is

Correct AnswerverifiedShow Answer

Cavy Company accumulated 560 hours of direct labor on Job 345 and 800 hours on Job 777. The direct labor was incurred at a rate of $20 per direct labor hour for Job 345 and $21 per direct labor for Job 777. Journalize the entry to record the flow of labor costs into production.

Correct AnswerverifiedWork in Process28,00...View AnswerShow Answer

Interim financial statements for a manufacturing business would report overapplied factory overhead as a deferred item on the balance sheet.

Correct AnswerverifiedShow Answer

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Work in Process28,00...
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