Question 1

The existence of under- or overapplied overhead at the end of the year:

Accepted Answer

A)  requires an adjustment to Cost of Goods Sold.
B)  indicates that an error has been made.
C)  requires a retroactive adjustment to the cost of all jobs completed.
D)  is written off as a bad estimate expense.E) All of the above
F) None of the above

Question 2

In a job order cost system, it would be correct in recording the purchase of raw materials to debit

Accepted Answer

A)  Work in Process Inventory.
B)  Work in Process and Manufacturing Overhead.
C)  Raw Materials Inventory.
D)  Finished Goods Inventory.E) None of the above
F) B) and C)

Question 3

Overapplied manufacturing overhead exists when overhead assigned to work in process is

Accepted Answer

A)  more than overhead incurred and there is a debit balance in Manufacturing Overhead at the end of a period.
B)  less than overhead incurred and there is a debit balance in Manufacturing Overhead at the end of a period.
C)  more than overhead incurred and there is a credit balance in Manufacturing Overhead at the end of a period.
D)  less than overhead incurred and there is a credit balance in Manufacturing Overhead at the end of a period.E) None of the above
F) A) and C)

Question 4

Which of the following is not a control account?

Accepted Answer

A)  Manufacturing Overhead
B)  Raw materials inventory
C)  Accounts Receivable
D)  All of these are control accountsE) None of the above
F) A) and B)

Question 5

The perpetual inventory method cannot be used in a job order cost system.

Accepted Answer

A) True 
 B)False

Question 6

Manufacturing Overhead would not have a subsidiary account for

Accepted Answer

A)  utilities.
B)  property taxes.
C)  insurance.
D)  raw materials inventory.E) None of the above
F) B) and D)

Question 7

Companies assign manufacturing overhead to work in process on an estimated basis through the use of a(n)

Accepted Answer

A)  actual overhead rate.
B)  estimated overhead rate.
C)  assigned overhead rate.
D)  predetermined overhead rate.E) A) and B)
F) A) and C)

Question 8

If, at the end of the year, Manufacturing Overhead has been overapplied, it means that

Accepted Answer

A)  actual overhead costs were greater than the overhead assigned to jobs.
B)  actual overhead costs were less than the overhead assigned to jobs.
C)  overhead has not been applied to jobs still in process.
D)  cost of goods will have to be increased by the amount of the overapplied overhead.E) A) and B)
F) None of the above

Question 9

The cost of raw materials purchased is credited to Raw Materials Inventory when materials are received.

Accepted Answer

A) True 
 B)False

Question 10

In a job order cost system, a credit to Manufacturing Overhead will be accompanied by a debit to

Accepted Answer

A)  Cost of Goods Manufactured.
B)  Finished Goods Inventory.
C)  Work in Process Inventory.
D)  Raw Materials Inventory.E) A) and B)
F) A) and C)

Question 11

Which one of the following best describes a job cost sheet?

Accepted Answer

A)  It is a form used to record the costs chargeable to a specific job and to determine the total and unit costs of the completed job.
B)  It is used to track manufacturing overhead costs to specific jobs.
C)  It is used by management to understand how direct costs affect profitability.
D)  It is a daily form that management uses for tracking worker productivity on which employee raises are based.E) C) and D)
F) B) and C)

Question 12

Cost accounting is primarily concerned with accumulating information about product costs.

Accepted Answer

A) True 
 B)False

Question 13

Process costing is not used when

Accepted Answer

A)  similar goods are being produced.
B)  large volumes are produced.
C)  jobs have distinguishing characteristics.
D)  a series of connected manufacturing processes is necessary.E) None of the above
F) C) and D)

Question 14

The entry to record the acquisition of raw materials on account is a. Work in Process Inventory
Accounts Payable
b. Manufacturing Overhead
Raw Materials Inventory
Accounts Payable
c. Accounts Payable
Raw Materials I nventory
d. Raw Materials Inventory
Accounts Payable

Accepted Answer

The answer of The entry to record the acquisition of...

Question 15

The two major steps in the flow of costs are

Accepted Answer

A)  allocating and assigning.
B)  acquiring and accumulating.
C)  accumulating and assigning.
D)  accumulating and amortizing.E) A) and B)
F) B) and D)

Question 16

During 2017, Durham Manufacturing expected Job No. 51 to cost $300,000 of overhead, $500,000 of materials, and $200,000 in labor. Durham applied overhead based on direct labor cost. Actual production required an overhead cost of $295,000, $570,000 in materials used, and $220,000 in labor. All of the goods were completed. What amount was transferred to Finished Goods?

Accepted Answer

A)  $1,090,000
B)  $1,120,000
C)  $1,000,000
D)  $1,085,000E) A) and D)
F) B) and D)

Question 17

Barger Company had the following information at December 31: Finished goods inventory, January  1$90,0001 \quad \$ 90,0001$90,000 
Finished goods inventory, December  31126,00031 \quad 126,00031126,000  If the cost of goods manufactured during the year amounted to $1,895,000 and annual sales were $2,994,000, how much is the amount of gross profit for the year?

Accepted Answer

A)  $1,099,000
B)  $1,009,000
C)  $1,859,000
D)  $1,135,000 E) A) and B)
F) A) and C)

Question 18

A process cost system would be used for all of the following except the

Accepted Answer

A)  manufacture of cereal.
B)  refining of petroleum.
C)  printing of wedding invitations.
D)  production of automobiles.E) B) and C)
F) B) and D)

Question 19

Under an effective system of internal control, the authorization for issuing materials is made

Accepted Answer

A)  orally.
B)  on a prenumbered materials requisition slip.
C)  by the accounting department.
D)  by anyone on the production line.E) None of the above
F) A) and C)

Question 20

Chmelar Manufacturing Company developed the following data:   Beginning work in process inventory $120,000 Direct materials used 720,000 Actual overhead 840,000 Overhead applied 810,000 Cost of goods manufactured 1,920,000 Ending work in process 90,000\begin{array} { l r } 	ext { Beginning work in process inventory } & \$ 120,000 \	ext { Direct materials used } & 720,000 \	ext { Actual overhead } & 840,000 \	ext { Overhead applied } & 810,000 \	ext { Cost of goods manufactured } & 1,920,000 \	ext { Ending work in process } & 90,000\end{array} Beginning work in process inventory  Direct materials used  Actual overhead  Overhead applied  Cost of goods manufactured  Ending work in process ​$120,000720,000840,000810,0001,920,00090,000​  How much are total manufacturing costs for the period?

Accepted Answer

A)  $2,370,000
B)  $1,890,000
C)  $1,650,000
D)  $1,830,000 E) None of the above
F) B) and D)

Exam 14: Job Order Costing

The perpetual inventory method cannot be used in a job order cost system.

Correct Answer
verified

A process cost system would be used for all of the following except the

Correct Answer
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Process costing is not used when

Correct Answer
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If, at the end of the year, Manufacturing Overhead has been overapplied, it means that

Correct Answer
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The two major steps in the flow of costs are

Correct Answer
verified

Under an effective system of internal control, the authorization for issuing materials is made

Correct Answer
verified

In a job order cost system, it would be correct in recording the purchase of raw materials to debit

Correct Answer
verified

The existence of under- or overapplied overhead at the end of the year:

Correct Answer
verified

The entry to record the acquisition of raw materials on account is a. Work in Process Inventory Accounts Payable b. Manufacturing Overhead Raw Materials Inventory Accounts Payable c. Accounts Payable Raw Materials I nventory d. Raw Materials Inventory Accounts Payable

Correct Answer
verified

Companies assign manufacturing overhead to work in process on an estimated basis through the use of a(n)

Correct Answer
verified

Correct Answer
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Which one of the following best describes a job cost sheet?

Correct Answer
verified

In a job order cost system, a credit to Manufacturing Overhead will be accompanied by a debit to

Correct Answer
verified

Which of the following is not a control account?

Correct Answer
verified

Manufacturing Overhead would not have a subsidiary account for

Correct Answer
verified

Correct Answer
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Overapplied manufacturing overhead exists when overhead assigned to work in process is

Correct Answer
verified

Correct Answer
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The cost of raw materials purchased is credited to Raw Materials Inventory when materials are received.

Correct Answer
verified

Cost accounting is primarily concerned with accumulating information about product costs.

Correct Answer
verified

Exam 14: Job Order Costing

The perpetual inventory method cannot be used in a job order cost system.

Correct AnswerverifiedShow Answer

A process cost system would be used for all of the following except the

Correct AnswerverifiedShow Answer

Process costing is not used when

Correct AnswerverifiedShow Answer

If, at the end of the year, Manufacturing Overhead has been overapplied, it means that

Correct AnswerverifiedShow Answer

The two major steps in the flow of costs are

Correct AnswerverifiedShow Answer

Under an effective system of internal control, the authorization for issuing materials is made

Correct AnswerverifiedShow Answer

In a job order cost system, it would be correct in recording the purchase of raw materials to debit

Correct AnswerverifiedShow Answer

The existence of under- or overapplied overhead at the end of the year:

Correct AnswerverifiedShow Answer

The entry to record the acquisition of raw materials on account is a. Work in Process Inventory Accounts Payable b. Manufacturing Overhead Raw Materials Inventory Accounts Payable c. Accounts Payable Raw Materials I nventory d. Raw Materials Inventory Accounts Payable

Correct AnswerverifiedShow Answer

Companies assign manufacturing overhead to work in process on an estimated basis through the use of a(n)

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which one of the following best describes a job cost sheet?

Correct AnswerverifiedShow Answer

In a job order cost system, a credit to Manufacturing Overhead will be accompanied by a debit to

Correct AnswerverifiedShow Answer

Which of the following is not a control account?

Correct AnswerverifiedShow Answer

Manufacturing Overhead would not have a subsidiary account for

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Overapplied manufacturing overhead exists when overhead assigned to work in process is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The cost of raw materials purchased is credited to Raw Materials Inventory when materials are received.

Correct AnswerverifiedShow Answer

Cost accounting is primarily concerned with accumulating information about product costs.

Correct AnswerverifiedShow Answer

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