Question 1

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.

Question 2

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 above

Question 3

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 4

The inventory accounts generally maintained by a manufacturing firm are only finished goods and materials.

Accepted Answer

A) True 
 B)False

Question 5

In a job order cost accounting system for a service business, materials costs are normally included as part of overhead.

Accepted Answer

A) True 
 B)False

Question 6

Match each of the following terms with the phrase that most closely describes it. Each answer may be used only once.

Accepted Answer

The answer of Match each of the following terms with...

Question 7

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 expenses

Question 8

As product costs are incurred in the manufacturing process, they are accounted for as assets and reported on the balance sheet as inventory.

Accepted Answer

A) True 
 B)False

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 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)   $685

Question 10

Perpetual inventory controlling accounts and subsidiary ledgers are maintained for materials, work in process, and finished goods in cost accounting systems.

Accepted Answer

A) True 
 B)False

Question 11

A service organization will not use the job order costing method because it has no direct materials.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is the correct flow of manufacturing costs?

Accepted Answer

A)   Raw materials, work in process, finished goods, cost of goods sold
B)   Raw materials, finished goods, cost of goods sold, work in process.
C)   Work in process, finished goods, raw materials, cost of goods sold
D)   Cost of goods sold, raw materials, work in process, finished goods.

Question 13

The period costs of a textbook publisher would include:

Accepted Answer

A)   wages of a press operator
B)   factory utility costs
C)   advertising expenses
D)   paper costs

Question 14

Which of the following is not a characteristic of a job order costing system?

Accepted Answer

A)   It accumulates cost for each department within the factory.
B)   It provides a separate record for the cost of each quantity of product that passes through the factory.
C)   It is best suited for industries that manufactures custom goods.
D)   Uses only one work in process account.

Question 15

A process cost accounting system provides for a separate record of the cost of each particular quantity of product that passes through the factory.

Accepted Answer

A) True 
 B)False

Question 16

When the goods are sold, their costs are transferred from Work in Process to Finished Goods.

Accepted Answer

A) True 
 B)False

Question 17

Information about costs developed through a job order cost system can not be used to evaluate an organization's cost performance.

Accepted Answer

A) True 
 B)False

Question 18

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)   $70,000

Question 19

The materials requisition is used to

Accepted Answer

A)   release materials from the storeroom to the factory
B)   release finished goods to the shipping department
C)   record the acquisition of materials from a vendor
D)   record and electronically transmit materials data in place of a receiving report

Question 20

Factory overhead is applied to production using a predetermined overhead rate.

Accepted Answer

A) True 
 B)False

Exam 19: Job Order Costing

The period costs of a textbook publisher would include:

Correct Answer
verified

A service organization will not use the job order costing method because it has no direct materials.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

A process cost accounting system provides for a separate record of the cost of each particular quantity of product that passes through the factory.

Correct Answer
verified

In a job order cost accounting system for a service business, materials costs are normally included as part of overhead.

Correct Answer
verified

Perpetual inventory controlling accounts and subsidiary ledgers are maintained for materials, work in process, and finished goods in cost accounting systems.

Correct Answer
verified

The inventory accounts generally maintained by a manufacturing firm are only finished goods and materials.

Correct Answer
verified

Correct Answer
verified

Which of the following is not a characteristic of a job order costing system?

Correct Answer
verified

The materials requisition is used to

Correct Answer
verified

Information about costs developed through a job order cost system can not be used to evaluate an organization's cost performance.

Correct Answer
verified

As product costs are incurred in the manufacturing process, they are accounted for as assets and reported on the balance sheet as inventory.

Correct Answer
verified

Match each of the following terms with the phrase that most closely describes it. Each answer may be used only once.

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

Generally, period costs are classified as either

Correct Answer
verified

Factory overhead is applied to production using a predetermined overhead rate.

Correct Answer
verified

Which of the following is the correct flow of manufacturing costs?

Correct Answer
verified

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

Correct Answer
verified

When the goods are sold, their costs are transferred from Work in Process to Finished Goods.

Correct Answer
verified

Exam 19: Job Order Costing

The period costs of a textbook publisher would include:

Correct AnswerverifiedShow Answer

A service organization will not use the job order costing method because it has no direct materials.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A process cost accounting system provides for a separate record of the cost of each particular quantity of product that passes through the factory.

Correct AnswerverifiedShow Answer

In a job order cost accounting system for a service business, materials costs are normally included as part of overhead.

Correct AnswerverifiedShow Answer

Perpetual inventory controlling accounts and subsidiary ledgers are maintained for materials, work in process, and finished goods in cost accounting systems.

Correct AnswerverifiedShow Answer

The inventory accounts generally maintained by a manufacturing firm are only finished goods and materials.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is not a characteristic of a job order costing system?

Correct AnswerverifiedShow Answer

The materials requisition is used to

Correct AnswerverifiedShow Answer

Information about costs developed through a job order cost system can not be used to evaluate an organization's cost performance.

Correct AnswerverifiedShow Answer

As product costs are incurred in the manufacturing process, they are accounted for as assets and reported on the balance sheet as inventory.

Correct AnswerverifiedShow Answer

Match each of the following terms with the phrase that most closely describes it. Each answer may be used only once.

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

Generally, period costs are classified as either

Correct AnswerverifiedShow Answer

Factory overhead is applied to production using a predetermined overhead rate.

Correct AnswerverifiedShow Answer

Which of the following is the correct flow of manufacturing costs?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When the goods are sold, their costs are transferred from Work in Process to Finished Goods.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified