61)
If actual overhead incurred during a period exceeds applied overhead, the difference will be a debit
balance in the Factory Overhead account at the end of the period.
A)
True
B)
False
62)
The Factory Overhead account will have a credit balance at the end of a period if overhead applied
during the period is greater than the overhead incurred.
A)
True
B)
False
63)
The Factory Overhead account will have a debit balance at the end of a period if overhead applied
during the period is greater than the overhead incurred.
A)
True
B)
False
64)
Material amounts of under- or overapplied factory overhead are always closed entirely to Cost of
Goods Sold at the end of an accounting period.
A)
True
B)
False
65)
Underapplied overhead is the amount by which overhead applied to jobs using the predetermined
overhead rate exceeds the actual overhead incurred during a period.
A)
True
B)
False
66)
Overapplied overhead is the amount by which overhead applied to jobs using the predetermined
overhead rate exceeds the actual overhead incurred during a period.
A)
True
B)
False
67)
Overapplied or underapplied overhead should be removed from the Factory Overhead account at
the end of each accounting period.
A)
True
B)
False
68)
If overhead is underapplied, it means that individual jobs have not been charged enough during the
year and the cost of goods sold reported is too low.
A)
True
B)
False
69)
If overhead is overapplied, it means that individual jobs have not been charged enough overhead
during the year and the cost of goods sold reported is too low.
A)
True
B)
False
70)
If overhead is overapplied, it means that individual jobs have been charged too much overhead
during the year and the cost of goods sold reported is too high.
A)
True
B)
False
71)
If overhead is underapplied, it means that individual jobs have been charged too much during the
year and the cost of goods sold reported is too high.
A)
True
B)
False
72)
The schedule of cost of goods manufactured for a job costing system includes total actual factory
overhead.
A)
True
B)
False
73)
Period costs for a manufacturing company, such as selling and administrative expenses, are
recorded directly to Work In Process Inventory when they are incurred.
A)
True
B)
False
74)
Manufacturing costs incurred for jobs completed during an accounting period can bypass the
inventory accounts on the balance sheet and be recorded directly in expense accounts.
A)
True
B)
False
75)
Cost accounting systems used by manufacturing companies are based on the:
A)
Periodic inventory system.
B)
Finished goods inventories.
C)
Perpetual inventory system.
D)
Weighted average inventories.
E)
LIFO inventory system.
76)
A system of accounting for production operations that produces timely information about
inventories and manufacturing costs per unit of product is a:
A)
General accounting system.
B)
Manufacturing accounting system.
C)
Production accounting system.
D)
Finished goods accounting system.
E)
Cost accounting system.
77)
Job order costing systems normally use:
A)
Perpetual inventory systems.
B)
Periodic inventory systems.
C)
Real inventory systems.
D)
Weighted average inventory systems.
E)
General inventory systems.
78)
In comparison to a general accounting system, a cost accounting system for a manufacturing
company places an emphasis on:
A)
Total costs.
B)
Continually updating costs of materials, work in process, and finished goods inventories.
C)
Periodic inventory counts.
D)
Products and average costs.
E)
Large volume operations involving standardized products.
79)
Features of a job costing system include all but which of the following:
A)
Separate manufacturing from other products.
B)
Customization.
C)
Mass production.
D)
Diversity of products produced.
E)
Heterogeneity.
80)
The two basic types of cost accounting systems are:
A)
Job order costing and customized service costing.
B)
Job order costing and perpetual costing.
C)
Job order costing and periodic costing.
D)
Job order costing and customized product costing.
E)
Job order costing and process costing.
81)
The production activities for a customized product represent a(n):
A)
Unit. B) Operation. C) Process. D) Job. E) Pool.
82)
A job order costing system would best fit the needs of a company that makes:
A)
Custom machinery.
B)
Cement.
C)
Shoes and apparel.
D)
Pencils and erasers.
E)
Paint.
83)
Job order production is also known as:
A)
Mass production.
B)
Customized production.
C)
Process production.
D)
Standard costing.
E)
Unit production.
84)
Omega Contractors manufactures each house to customer specifications. It most likely would use:
A)
Process costing.
B)
Activity-based costing.
C)
A periodic inventory system.
D)
Unique costing.
E)
Job order costing.
85)
A type of production that yields customized products or services for each customer is called:
A)
Job order production.
B)
Job lot production.
C)
Customer orientation production.
D)
Process production.
E)
Just-in-time production.
86)
A company that makes which of the following types of products would best be suited for a job
costing system?
A)
Custom jewelry
B)
Fruit juice
C)
Compact discs
D)
Snack chips
E)
Bathing suits
87)
The target cost for a job using job costing is calculated as:
A)
expected selling price – desired profit.
B)
direct costs + desired profit.
C)
direct costs – desired profit.
D)
expected selling price + desired profit.
E)
expected selling price – direct costs.
88)
A job order production system would be appropriate for a company that produces which one of the
following items?
A)
A landscaping design for a new hospital.
B)
Small gardening tools, including rakes, shovels, and hoes.
C)
Sacks of yard fertilizer.
D)
Packets of flower seeds.
E)
Seedlings for sale in a nursery.
89)
Large aircraft producers such as the Boeing Company normally use:
A)
Mixed costing.
B)
Simple costing.
C)
Process costing.
D)
Full costing.
E)
Job order costing.
33
90)
A document in a job order costing system that is used to record the costs of producing a job is a(n):
A)
Process cost system.
B)
Units-of-production sheet.
C)
Job cost sheet.
D)
Finished goods summary.
E)
Job lot.
91)
A job cost sheet shows information about each of the following items except:
A)
The name of the customer.
B)
The costs incurred by the marketing department in selling the job.
C)
The overhead costs assigned to the job.
D)
The direct materials costs assigned to the job.
E)
The direct labor costs assigned to the job.
92)
The job order cost sheets used by Greene Company revealed the following:
Job. No.
Bal., May 1
May Production Costs
134
$ 1,700
$ 0
135
1,200
300
136 0 900
Job No. 135 was completed during May and Jobs No. 134 and 135 were shipped to customers in
May. What was the company’s cost of goods sold for May and the Work in Process inventory on
May 31?
A) $2,900; $1,200.
B) $1,700; $1,200.
C) $3,200; $900.
D) $4,100; $0.
E) $1,200; $2,900.
93)
Job A3B was ordered by a customer on September 25. During the month of September, Jaycee
Corporation requisitioned $2,500 of direct materials and used $4,000 of direct labor. The job was
not finished by the end of the month, but needed an additional $3,000 of direct materials and
additional direct labor of $6,500 to finish the job in October. The company applies overhead at the
end of each month at a rate of 200% of the direct labor cost incurred. What is the balance in the
Work in Process account at the end of September relative to Job A3B?
A) $11,500 B) $14,500 C) $6,500 D) $5,500 E) $9,500
94)
Job A3B was ordered by a customer on September 25. During the month of September, Jaycee
Corporation requisitioned $2,500 of direct materials and used $4,000 of direct labor. The job was
not finished by the end of the month, but needed an additional $3,000 of direct materials and
additional direct labor of $6,500 to finish the job in October. The company applies overhead at the
end of each month at a rate of 200% of the direct labor cost incurred. What is the total cost of the
job when it is completed in October?
A) $16,000 B) $32,000 C) $22,500 D) $37,000 E) $26,500
95)
Job A3B was ordered by a customer on September 25. During the month of September, Jaycee
Corporation requisitioned $2,500 of direct materials and used $4,000 of direct labor. The job was
not finished by the end of the month, but needed an additional $3,000 of direct materials in
October and additional direct labor of $6,500 to finish the job. The company applies overhead at
the end of each month at a rate of 200% of the direct labor cost. What is the amount of job costs
added to Work in Process Inventory during October?
A) $16,000 B) $37,000 C) $22,500 D) $32,000 E) $26,500
96)
A job cost sheet includes:
A)
Direct material, direct labor, applied overhead.
B)
Direct materials, estimated overhead, administrative costs.
C)
Direct materials, direct labor, selling costs.
D)
Direct labor, actual overhead, selling costs.
E)
Direct materials, direct labor, operating costs.
97)
The balance in the Work in Process Inventory at any point in time is equal to:
A)
The cost of jobs ordered but not yet started into production.
B)
The sum of the costs for all jobs in process but not yet completed.
C)
The costs for jobs finished during the period but not yet sold.
D)
The costs of all jobs started during the period, completed or not.
E)
The sum of the materials, labor and overhead costs paid during the period.