Question 1

A firm purchased 25 units of materials with a unit price of $2.00 on May 5. On May 15, the firm purchased 25 units with a unit price of $2.10. If the firm uses the LIFO method of inventory pricing, the total cost of 30 units issued on May 20 would be

Accepted Answer

A)   $62.50.
B)   $60.00.
C)   $63.00.
D)   $60.50. (25 x 2.10)  + (5 x 2)  = 62.50.E) A) and B)
F) All of the above

Question 2

Manufacturing overhead includes all of the following except

Accepted Answer

A)   indirect labor.
B)   direct labor.
C)   utilities.
D)   payroll taxes on factory labor.E) All of the above
F) B) and C)

Question 3

At the end of the fiscal year, any overapplied or underapplied overhead is

Accepted Answer

A)   transferred to the Cost of Goods Sold account in an adjustment.
B)   shown on the balance sheet as either a deferred charge or a deferred credit.
C)   allocated to Cost of Goods Sold, Finished Goods Inventory, and Work in Process Inventory.
D)   transferred to the Cost of Goods Manufactured account in an adjustment.E) None of the above
F) B) and C)

Question 4

There is no need for a raw materials inventory account when a just-in-time inventory system is used.

Accepted Answer

A) True 
 B)False

Question 5

Indirect labor is recorded by debiting the _________________________ account.

Accepted Answer

Manufactur...

Question 6

The total direct labor charged to all job cost sheets must agree with the direct labor debited to

Accepted Answer

A)   Time Tickets.
B)   Wages Payable.
C)   Work in Process Inventory.
D)   Wages Expense.E) A) and B)
F) B) and C)

Question 7

Based on the information given, complete the Job Order Cost Sheet for Job A1-13.

Accepted Answer

The answer of Based on the information given, complete the...

Question 8

Job order cost accounting is appropriate

Accepted Answer

A)   when there are continuous operations on standard types of products.
B)   when a company produces more than one product in batches rather than on a continuous basis.
C)   only for goods produced on special order.
D)   for all manufacturing companies.E) A) and D)
F) A) and C)

Question 9

At the end of the year the Manufacturing Overhead account is closed into what account?

Accepted Answer

A)   Work in Process
B)   Finished Goods
C)   Cost of Goods Sold
D)   Manufacturing Overhead ControlE) All of the above
F) A) and C)

Question 10

Based on the information given:
1. Determine the overhead rate for Adams Manufacturing;
2. Prepare the journal entry to apply manufacturing overhead to manufacturing process for the month of October;
3. Determine the balance in the Work in Process account at the end of October.
1. The overhead application rate for the current year is 0.8 times direct labor cost. (352,000/440,000)

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> 3. The balance in t...

Question 11

A job order cost sheet summarizes

Accepted Answer

A)   the direct labor, direct materials used, and actual overhead costs incurred on a specific job.
B)   the direct labor, direct materials used, and applied overhead association with a specific job.
C)   the estimated costs that will be required to complete a specific job.
D)   the direct labor and direct materials used only.E) None of the above
F) All of the above

Question 12

When indirect materials are requisitioned from the materials storeroom and placed in production, an entry is made crediting Raw Materials Inventory and debiting

Accepted Answer

A)   Work in Process Inventory.
B)   Cost of Goods Manufactured.
C)   Manufacturing Overhead Applied.
D)   Manufacturing Overhead.E) A) and B)
F) All of the above

Question 13

At the end of the month, if the total of the credits in the Manufacturing Overhead Applied account is greater than the total of the debits in the Manufacturing Overhead account, overhead has been underapplied.

Accepted Answer

A) True 
 B)False

Question 14

The monthly total of the Overhead Applied section of all job order cost sheets should agree with the balance in the control account Manufacturing Overhead.

Accepted Answer

A) True 
 B)False

Question 15

A raw material subsidiary ledger

Accepted Answer

A)   contains a raw materials card for each item of direct materials only.
B)   contains a raw materials card for each item of indirect materials only.
C)   contains a raw materials card for each item of direct materials and indirect materials.
D)   contains a raw material card for each supplier of raw materials.E) C) and D)
F) All of the above

Question 16

During the year, Job EH-02 for 500 units was begun and completed. Costs entered on the job order cost sheet for this job were $15,400 for materials and $6,500 for labor. The firm applies overhead at the rate of 75 percent of direct labor costs.
1. What is the amount of overhead that should be applied to the job?
2. What is the total cost of the job?
3. What is the unit cost of the units produced?

Accepted Answer

1. $4,875;...

Question 17

When perpetual inventories are maintained in a job order cost system, the balance of the Work in Process Inventory account represents

Accepted Answer

A)   the actual costs incurred for labor, materials, and overhead on all jobs that were started but are not yet complete.
B)   the actual costs for the labor and materials used in uncompleted jobs and estimate of the overhead associated with these jobs.
C)   only the actual costs for the labor and materials used in uncompleted jobs.
D)   only the actual costs for the labor and materials used in completed jobs.E) C) and D)
F) B) and C)

Question 18

When a perpetual inventory system is used, the balance of the Raw Materials Inventory account at the end of an accounting period should reflect the cost of materials on hand.

Accepted Answer

A) True 
 B)False

Question 19

Job order cost sheets constitute a subsidiary ledger that supports

Accepted Answer

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

Question 20

Workers who perform direct labor prepare a series of ____________________ to account for all time spent in the plant.

Accepted Answer

The answer of Workers who perform direct labor prepare a...

Exam 27: Job Order Cost Accounting

A firm purchased 25 units of materials with a unit price of $2.00 on May 5. On May 15, the firm purchased 25 units with a unit price of $2.10. If the firm uses the LIFO method of inventory pricing, the total cost of 30 units issued on May 20 would be

Correct Answer
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A raw material subsidiary ledger

Correct Answer
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There is no need for a raw materials inventory account when a just-in-time inventory system is used.

Correct Answer
verified

Correct Answer
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3. The balance in t...
View Answer

Correct Answer
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1. $4,875;...
View Answer

At the end of the year the Manufacturing Overhead account is closed into what account?

Correct Answer
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At the end of the month, if the total of the credits in the Manufacturing Overhead Applied account is greater than the total of the debits in the Manufacturing Overhead account, overhead has been underapplied.

Correct Answer
verified

At the end of the fiscal year, any overapplied or underapplied overhead is

Correct Answer
verified

When indirect materials are requisitioned from the materials storeroom and placed in production, an entry is made crediting Raw Materials Inventory and debiting

Correct Answer
verified

A job order cost sheet summarizes

Correct Answer
verified

Job order cost sheets constitute a subsidiary ledger that supports

Correct Answer
verified

The monthly total of the Overhead Applied section of all job order cost sheets should agree with the balance in the control account Manufacturing Overhead.

Correct Answer
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The total direct labor charged to all job cost sheets must agree with the direct labor debited to

Correct Answer
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Based on the information given, complete the Job Order Cost Sheet for Job A1-13.

Correct Answer
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Job order cost accounting is appropriate

Correct Answer
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Manufacturing overhead includes all of the following except

Correct Answer
verified

When a perpetual inventory system is used, the balance of the Raw Materials Inventory account at the end of an accounting period should reflect the cost of materials on hand.

Correct Answer
verified

When perpetual inventories are maintained in a job order cost system, the balance of the Work in Process Inventory account represents

Correct Answer
verified

Indirect labor is recorded by debiting the _________________________ account.

Correct Answer
verified
Manufactur...
View Answer

Workers who perform direct labor prepare a series of ____________________ to account for all time spent in the plant.

Correct Answer
verified

Exam 27: Job Order Cost Accounting

A firm purchased 25 units of materials with a unit price of $2.00 on May 5. On May 15, the firm purchased 25 units with a unit price of $2.10. If the firm uses the LIFO method of inventory pricing, the total cost of 30 units issued on May 20 would be

Correct AnswerverifiedShow Answer

A raw material subsidiary ledger

Correct AnswerverifiedShow Answer

There is no need for a raw materials inventory account when a just-in-time inventory system is used.

Correct AnswerverifiedShow Answer

Correct Answerverified 3. The balance in t...View AnswerShow Answer

Correct Answerverified1. $4,875;...View AnswerShow Answer

At the end of the year the Manufacturing Overhead account is closed into what account?

Correct AnswerverifiedShow Answer

At the end of the month, if the total of the credits in the Manufacturing Overhead Applied account is greater than the total of the debits in the Manufacturing Overhead account, overhead has been underapplied.

Correct AnswerverifiedShow Answer

At the end of the fiscal year, any overapplied or underapplied overhead is

Correct AnswerverifiedShow Answer

When indirect materials are requisitioned from the materials storeroom and placed in production, an entry is made crediting Raw Materials Inventory and debiting

Correct AnswerverifiedShow Answer

A job order cost sheet summarizes

Correct AnswerverifiedShow Answer

Job order cost sheets constitute a subsidiary ledger that supports

Correct AnswerverifiedShow Answer

The monthly total of the Overhead Applied section of all job order cost sheets should agree with the balance in the control account Manufacturing Overhead.

Correct AnswerverifiedShow Answer

The total direct labor charged to all job cost sheets must agree with the direct labor debited to

Correct AnswerverifiedShow Answer

Based on the information given, complete the Job Order Cost Sheet for Job A1-13.

Correct AnswerverifiedShow Answer

Job order cost accounting is appropriate

Correct AnswerverifiedShow Answer

Manufacturing overhead includes all of the following except

Correct AnswerverifiedShow Answer

When a perpetual inventory system is used, the balance of the Raw Materials Inventory account at the end of an accounting period should reflect the cost of materials on hand.

Correct AnswerverifiedShow Answer

When perpetual inventories are maintained in a job order cost system, the balance of the Work in Process Inventory account represents

Correct AnswerverifiedShow Answer

Indirect labor is recorded by debiting the _________________________ account.

Correct AnswerverifiedManufactur...View AnswerShow Answer

Workers who perform direct labor prepare a series of ____________________ to account for all time spent in the plant.

Correct AnswerverifiedShow Answer

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3. The balance in t...
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1. $4,875;...
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Manufactur...
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