Question 1

Which one of the following is NEVER part of recording the issuance of raw materials in a job-order cost system?

Accepted Answer

A)  debit Work in Process Inventory
B)  debit Finished Goods Inventory
C)  debit Manufacturing Overhead
D)  credit Raw Materials InventoryE) A) and C)
F) A) and D)

Question 2

Halitosis Company completed job 45 at a cost of $43,765 and later sold it for $90,000 cash.Which one of the following is one effect of selling the job?

Accepted Answer

A)  debit Finished Goods Inventory $90,000
B)  credit Finished Goods Inventory $43,765
C)  credit Finished Goods Inventory $90,000
D)  debit Finished Goods Inventory $43,750E) B) and C)
F) All of the above

Question 3

Use the following information for questions 
Payne Company developed the following data for the current year:
   Beginning work in process inventory $68,000 Direct materials used104,000 Actual overhead88,000 Overhead applied 92,000 Cost of goods manufactured 450,000 Total manufacturing costs. 428,000\begin{array}{cc}  	ext { Beginning work in process inventory } &\$68,000\ 	ext {  Direct materials used} &104,000\ 	ext {  Actual overhead} &88,000\ 	ext { Overhead applied } &92,000\ 	ext { Cost of goods manufactured } &450,000\ 	ext { Total manufacturing costs. } &428,000\\end{array} Beginning work in process inventory  Direct materials used Actual overhead Overhead applied  Cost of goods manufactured  Total manufacturing costs. ​$68,000104,00088,00092,000450,000428,000​

-How much is Payne Company's ending work in process inventory for the year?

Accepted Answer

A)  $46,000
B)  $242,000
C)  $42,000
D)  $186,000 E) B) and D)
F) B) and C)

Question 4

Which one of the following might a job-order cost system most likely attempt to calculate?

Accepted Answer

A)  a cost per overhead hour
B)  a cost per product produced
C)  a cost per job or batch
D)  a cost per dollar of revenueE) C) and D)
F) None of the above

Question 5

Which one of the following is an important feature of a job-order cost system?

Accepted Answer

A)  Each must be completed before a new product order is accepted.
B)  Each consists of features which distinguish it from the next.
C)  Each job uses similar processes to produce.
D)  Each job has characteristics similar to the next.E) None of the above
F) A) and B)

Question 6

At the end of the year, Manufacturing Overhead has been over-applied.What occurred to create this situation?

Accepted Answer

A)  The company incurred more total job costs than the amount budgeted for the job.
B)  The actual manufacturing overhead costs were less than the manufacturing overhead assigned to jobs.
C)  The company incurred more manufacturing overhead costs than the manufacturing overhead assigned to jobs.
D)  Estimated manufacturing overhead was less than actual manufacturing overhead costs.E) A) and D)
F) None of the above

Question 7

A company incurred more manufacturing overhead costs than the amount of overhead allocated to these jobs during the year.Which statement is true?

Accepted Answer

A)  The company spent more money on overhead costs during the year than it should have.
B)  The company should defer some of the overhead costs to the next accounting period.
C)  Overhead is under applied.
D)  Overhead is over-applied.E) C) and D)
F) A) and D)

Question 8

Barger-Volvov Company had the following information at December 31, 2020:   Finished goods inventory, January 1,2020 $15,000 Finished goods inventory, December 31, 2020 $21,000\begin{array}{cc}  	ext { Finished goods inventory, January 1,2020 } &\$15,000\ 	ext { Finished goods inventory, December 31, 2020 } &\$21,000\\end{array} Finished goods inventory, January 1,2020  Finished goods inventory, December 31, 2020 ​$15,000$21,000​ 
 If the cost of goods manufactured during the year amounted to $332,500 and annual sales were $499,000, how much is the amount of gross profit for the year?

Accepted Answer

A)  $166,500
B)  $151,500
C)  $326,500
D)  $172,500 E) B) and C)
F) C) and D)

Question 9

Which one of the following is a control account?

Accepted Answer

A)  Utilities Expense
B)  Factory Wages Payable
C)  Manufacturing Overhead
D)  Cost of Goods SoldE) C) and D)
F) All of the above

Question 10

If a manufacturing company acquires raw materials, to what account is the cost of raw materials purchased debited?

Accepted Answer

A)  Raw Materials Purchases
B)  Raw Materials Inventory
C)  Purchases
D)  Work in ProcessE) B) and D)
F) A) and B)

Question 11

Harna, Inc.uses a job-order cost system.During the year the company decreased Manufacturing Overhead by $300,000.Which of the following most likely should be recorded at the same time?

Accepted Answer

A)  a debit to Work in Process Inventory
B)  a credit to Raw Materials Inventory
C)  a debit to Cost of Goods Manufactured
D)  a credit to Finished Goods InventoryE) None of the above
F) B) and C)

Question 12

Assume that variable overhead is over applied by $100 and fixed overhead is under applied by $50.The effect on cost of goods sold is

Accepted Answer

A)  $150 increase.
B)  $150 decrease.
C)  $50 increase.
D)  $50 decrease.E) None of the above
F) A) and C)

Question 13

Which are the two types of cost accounting systems?

Accepted Answer

A)  a process cost system and a production cost system
B)  a job cost system and a process cost system
C)  a job-order cost system and a manufacturing cost system
D)  a query cost system and a manufacturing cost systemE) All of the above
F) B) and C)

Question 14

Which of the following is NOT viewed as part of accumulating manufacturing costs in a job-order cost system?

Accepted Answer

A)  Factory labour is incurred.
B)  Manufacturing overhead is incurred.
C)  Cost of goods sold is recognized.
D)  Raw materials are purchased.E) None of the above
F) All of the above

Question 15

During 2020, Crema Manufacturing expected Job 59 to cost $300,000 of overhead, $500,000 of material, and $200,000 in labour.Crema applied overhead based on direct labour cost.Actual production required an overhead cost of $280,000, $550,000 in materials used; and $220,000 in labour.All of the goods were completed.How much is the amount of over-/under-applied overhead?

Accepted Answer

A)  $50,000 under applied
B)  $50,000 over-applied
C)  $20,000 under applied
D)  $20,000 over-appliedE) None of the above
F) A) and B)

Question 16

Which of the following is credited when a job is completed?

Accepted Answer

A)  Cost of Goods Sold
B)  Work in Process Inventory
C)  Manufacturing Overhead
D)  Finished Goods InventoryE) None of the above
F) A) and D)

Question 17

A company completed all postings for its job costs for the year.Which of the following should have the same totals at year end?

Accepted Answer

A)  the cost of materials purchased and the total of the Raw Materials Inventory control account
B)  the total of the amount in the Work in Process subsidiary ledger and the Work in Process Inventory control account total
C)  the total of the accounts in the Work in Process subsidiary ledger and the Raw Materials Inventory control account total
D)  the cost of materials charged to Work in Process Inventory and the total of the accounts in the Work in Process subsidiary ledgerE) A) and B)
F) None of the above

Question 18

As of December 31, 2020, GloryBe Industries had $1,000 of raw materials inventory.At the beginning of 2020, there was $800 of materials on hand.During the year, the company purchased $122,000 of materials, however paid for only $117,000.How much inventory was requisitioned for use on jobs during 2020?

Accepted Answer

A)  $122,200
B)  $117,200
C)  $116,800
D)  $121,800E) A) and B)
F) All of the above

Question 19

Where might you find under-applied overhead on the monthly financial statements?

Accepted Answer

A)  As part of Manufacturing Overhead Expense in the operating expenses section on the Income Statement
B)  As part of "Other Revenues and Gains" on the Income Statement
C)  Included with Cost of Goods Sold on the Income Statement
D)  As a prepaid expense in the current asset section of the Balance SheetE) A) and D)
F) None of the above

Exam 3: Job Order Costing

Which of the following is credited when a job is completed?

Correct Answer
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Halitosis Company completed job 45 at a cost of $43,765 and later sold it for $90,000 cash.Which one of the following is one effect of selling the job?

Correct Answer
verified

Which of the following is NOT viewed as part of accumulating manufacturing costs in a job-order cost system?

Correct Answer
verified

Correct Answer
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Which one of the following is NEVER part of recording the issuance of raw materials in a job-order cost system?

Correct Answer
verified

Which one of the following is a control account?

Correct Answer
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Which are the two types of cost accounting systems?

Correct Answer
verified

Where might you find under-applied overhead on the monthly financial statements?

Correct Answer
verified

Assume that variable overhead is over applied by $100 and fixed overhead is under applied by $50.The effect on cost of goods sold is

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 company completed all postings for its job costs for the year.Which of the following should have the same totals at year end?

Correct Answer
verified

If a manufacturing company acquires raw materials, to what account is the cost of raw materials purchased debited?

Correct Answer
verified

Harna, Inc.uses a job-order cost system.During the year the company decreased Manufacturing Overhead by $300,000.Which of the following most likely should be recorded at the same time?

Correct Answer
verified

Which one of the following is an important feature of a job-order cost system?

Correct Answer
verified

At the end of the year, Manufacturing Overhead has been over-applied.What occurred to create this situation?

Correct Answer
verified

A company incurred more manufacturing overhead costs than the amount of overhead allocated to these jobs during the year.Which statement is true?

Correct Answer
verified

Which one of the following might a job-order cost system most likely attempt to calculate?

Correct Answer
verified

Exam 3: Job Order Costing

Which of the following is credited when a job is completed?

Correct AnswerverifiedShow Answer

Halitosis Company completed job 45 at a cost of $43,765 and later sold it for $90,000 cash.Which one of the following is one effect of selling the job?

Correct AnswerverifiedShow Answer

Which of the following is NOT viewed as part of accumulating manufacturing costs in a job-order cost system?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which one of the following is NEVER part of recording the issuance of raw materials in a job-order cost system?

Correct AnswerverifiedShow Answer

Which one of the following is a control account?

Correct AnswerverifiedShow Answer

Which are the two types of cost accounting systems?

Correct AnswerverifiedShow Answer

Where might you find under-applied overhead on the monthly financial statements?

Correct AnswerverifiedShow Answer

Assume that variable overhead is over applied by $100 and fixed overhead is under applied by $50.The effect on cost of goods sold is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A company completed all postings for its job costs for the year.Which of the following should have the same totals at year end?

Correct AnswerverifiedShow Answer

If a manufacturing company acquires raw materials, to what account is the cost of raw materials purchased debited?

Correct AnswerverifiedShow Answer

Harna, Inc.uses a job-order cost system.During the year the company decreased Manufacturing Overhead by $300,000.Which of the following most likely should be recorded at the same time?

Correct AnswerverifiedShow Answer

Which one of the following is an important feature of a job-order cost system?

Correct AnswerverifiedShow Answer

At the end of the year, Manufacturing Overhead has been over-applied.What occurred to create this situation?

Correct AnswerverifiedShow Answer

A company incurred more manufacturing overhead costs than the amount of overhead allocated to these jobs during the year.Which statement is true?

Correct AnswerverifiedShow Answer

Which one of the following might a job-order cost system most likely attempt to calculate?

Correct AnswerverifiedShow Answer

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