Question 1

In a job order cost accounting system,when goods that have been ordered are received,the receiving department personnel count,inspect the goods,and complete a

Accepted Answer

A)   purchase order
B)   sales invoice
C)   receiving report
D)   purchase requisitionE) None of the above
F) B) and C)

Question 2

Materials purchased on account during the month totaled $190,000.Materials requisitioned and placed in production totaled $165,000.The journal entry to record the material purchase on account is

Accepted Answer

A)   Materials 165,000Accounts Payable 165,000
B)   Materials 190,000Accounts Payable 190,000
C)   Materials 190,000Cash 190,000
D)   Accounts Payable 190,000Materials 190,000E) A) and B)
F) A) and C)

Question 3

A process cost accounting system provides product costs for each of the departments or processes within the factory.

Accepted Answer

A) True 
 B)False

Question 4

Sanders Inc.has applied $567,988 of overhead to jobs in the cost ledger.Actual overhead at the end of the year is $575,000.The adjustment for over or underapplied overhead is

Accepted Answer

A)   $7,012 overapplied,increase Cost of Goods Sold
B)   $7,012 underapplied,increase Cost of Goods Sold
C)   $7,012 overapplied,decrease Cost of Goods Sold
D)   $7,012 underapplied,decrease Cost of Goods SoldE) A) and C)
F) B) and C)

Question 5

The document that serves as the basis for recording direct labor on a job cost sheet is the clock card.

Accepted Answer

A) True 
 B)False

Question 6

The journal entry to record the purchase of $45,000 of raw materials is

Accepted Answer

A)   Materials 45,000Accounts Receivable 45,000
B)   Materials 45,000Accounts Payable 45,000
C)   Inventory 45,000Accounts Receivable 30,000
D)   Inventory 45,000Cash 45,000E) B) and C)
F) All of the above

Question 7

The journal entry to record the transfer of 1,600 units of part number 1177 with a value of $2.50 each,to work in process is

Accepted Answer

A)   Materials 4,000Work in Process 4,000
B)   Work in Process 4,000Factory Overhead 4,000
C)   Work in Process 4,000Materials 4,000
D)   Work in Process 4,000Cash 4,000E) C) and D)
F) A) and D)

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

At the end of July,the first month of the current fiscal year,the factory overhead account had a debit balance.Which of the following describes the nature of this balance and how it would be reported on the interim balance sheet?

Accepted Answer

A)   overapplied,deferred credit
B)   underapplied,deferred debit
C)   underapplied,deferred credit
D)   overapplied,deferred debitE) C) and D)
F) All of the above

Question 10

The debit to factory overhead for the cost of indirect materials is obtained from the summary of the materials requisitions.

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

The cost of production of completed and transferred goods during the period amounted to $540,000,and the finished products shipped to customers had total production costs of $375,000.The entry to record the transfer of costs from work in process to finished goods is

Accepted Answer

A)   Finished Goods 375,000Work in Process 375,000
B)   Finished Goods 540,000Work in Process 540,000
C)   Work in Process 540,000Finished Goods 540,000
D)   Work in Process 375,000Finished Goods 375,000E) B) and C)
F) A) and B)

Question 13

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

Question 14

A job order 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 15

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

Question 16

What is the balance of Sales for Adams Company at the end of the first quarter?

Accepted Answer

A)   $1,685
B)   $2,685
C)   $1,000
D)   $685E) All of the above
F) B) and C)

Question 17

What is the ending balance of Work in Process for Adams Company at the end of the first quarter?

Accepted Answer

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

Question 18

The Thomlin Company forecasts that total overhead for the current year will be $15,000,000 with 300,000 total machine hours.Year to date,the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours.If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead,as of this point in time (year to date) ,the overhead is

Accepted Answer

A)   $1,000,000 overapplied
B)   $1,000,000 underapplied
C)   $500,000 overapplied
D)   $500,000 underappliedE) A) and B)
F) C) and D)

Question 19

The amount of time spent by an employee on an individual job are recorded on

Accepted Answer

A)   pay stubs
B)   in-and-out cards
C)   time tickets
D)   employees' earnings recordsE) C) and D)
F) B) and C)

Question 20

Aspen Technologies has the following budget data: ​
 If factory overhead is to be applied based on direct labor hours,the predetermined overhead rate is

Accepted Answer

A)   $7.50
B)   $13.20
C)   $2.20
D)   $16.50E) All of the above
F) B) and D)

Exam 16: Job Order Costing

What is the balance of Sales for Adams Company at the end of the first quarter?

Correct Answer
verified

What is the ending balance of Work in Process for Adams Company at the end of the first quarter?

Correct Answer
verified

A job order 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

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

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

Materials purchased on account during the month totaled $190,000.Materials requisitioned and placed in production totaled $165,000.The journal entry to record the material purchase on account is

Correct Answer
verified

A process cost accounting system provides product costs for each of the departments or processes within the factory.

Correct Answer
verified

The document that serves as the basis for recording direct labor on a job cost sheet is the clock card.

Correct Answer
verified

The debit to factory overhead for the cost of indirect materials is obtained from the summary of the materials requisitions.

Correct Answer
verified

At the end of July,the first month of the current fiscal year,the factory overhead account had a debit balance.Which of the following describes the nature of this balance and how it would be reported on the interim balance sheet?

Correct Answer
verified

The amount of time spent by an employee on an individual job are recorded on

Correct Answer
verified

Correct Answer
verified

Aspen Technologies has the following budget data: If factory overhead is to be applied based on direct labor hours,the predetermined overhead rate is

Correct Answer
verified

Sanders Inc.has applied $567,988 of overhead to jobs in the cost ledger.Actual overhead at the end of the year is $575,000.The adjustment for over or underapplied overhead is

Correct Answer
verified

The journal entry to record the transfer of 1,600 units of part number 1177 with a value of $2.50 each,to work in process is

Correct Answer
verified

In a job order cost accounting system,when goods that have been ordered are received,the receiving department personnel count,inspect the goods,and complete a

Correct Answer
verified

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

Correct Answer
verified

The cost of production of completed and transferred goods during the period amounted to $540,000,and the finished products shipped to customers had total production costs of $375,000.The entry to record the transfer of costs from work in process to finished goods is

Correct Answer
verified

The journal entry to record the purchase of $45,000 of raw materials is

Correct Answer
verified

Exam 16: Job Order Costing

What is the balance of Sales for Adams Company at the end of the first quarter?

Correct AnswerverifiedShow Answer

What is the ending balance of Work in Process for Adams Company at the end of the first quarter?

Correct AnswerverifiedShow Answer

A job order 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

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Materials purchased on account during the month totaled $190,000.Materials requisitioned and placed in production totaled $165,000.The journal entry to record the material purchase on account is

Correct AnswerverifiedShow Answer

A process cost accounting system provides product costs for each of the departments or processes within the factory.

Correct AnswerverifiedShow Answer

The document that serves as the basis for recording direct labor on a job cost sheet is the clock card.

Correct AnswerverifiedShow Answer

The debit to factory overhead for the cost of indirect materials is obtained from the summary of the materials requisitions.

Correct AnswerverifiedShow Answer

At the end of July,the first month of the current fiscal year,the factory overhead account had a debit balance.Which of the following describes the nature of this balance and how it would be reported on the interim balance sheet?

Correct AnswerverifiedShow Answer

The amount of time spent by an employee on an individual job are recorded on

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Aspen Technologies has the following budget data: ​ If factory overhead is to be applied based on direct labor hours,the predetermined overhead rate is

Correct AnswerverifiedShow Answer

Sanders Inc.has applied $567,988 of overhead to jobs in the cost ledger.Actual overhead at the end of the year is $575,000.The adjustment for over or underapplied overhead is

Correct AnswerverifiedShow Answer

The journal entry to record the transfer of 1,600 units of part number 1177 with a value of $2.50 each,to work in process is

Correct AnswerverifiedShow Answer

In a job order cost accounting system,when goods that have been ordered are received,the receiving department personnel count,inspect the goods,and complete a

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The cost of production of completed and transferred goods during the period amounted to $540,000,and the finished products shipped to customers had total production costs of $375,000.The entry to record the transfer of costs from work in process to finished goods is

Correct AnswerverifiedShow Answer

The journal entry to record the purchase of $45,000 of raw materials is

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

Aspen Technologies has the following budget data: If factory overhead is to be applied based on direct labor hours,the predetermined overhead rate is

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified