Question 1

The summary of the time tickets at the end of each month is the basis for recording the direct and indirect labor costs incurred in production.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following information is provided by job cost sheets?

Accepted Answer

A)  Cost of depreciation on office computers
B)  Managerial salary
C)  Cost of utilities
D)  Cost impact of materials changesE) None of the above
F) B) and C)

Question 3

For which of the following businesses would the job order cost system be most appropriate?

Accepted Answer

A)  Custom cabinet manufacturer
B)  Automobile manufacturer
C)  Lumber mill
D)  Meat processorE) C) and D)
F) All of the above

Question 4

Direct materials,work-in-process,and finished goods inventory are most likely to be reported on the balance sheet of a(n) :

Accepted Answer

A)  financial consultant.
B)  apparel boutique.
C)  automobile company.
D)  insurance company.E) A) and B)
F) None of the above

Question 5

Compute factory overhead cost from the following costs:

Accepted Answer

A)  $23,000
B)  $43,000
C)  $70,000
D)  $113,000E) A) and D)
F) B) and C)

Question 6

Which of the following techniques is used by just-in-time manufacturing?

Accepted Answer

A)  It provides specialized training so that employees only do one task and work individually to improve efficiencies in the department.
B)  It organizes the plant in such a way as to reduce product movement from station to station.
C)  It encourages management to make all operating decisions regarding the manufacturing process rather than the line employees in order to streamline the process.
D)  It emphasizes push manufacturing.E) C) and D)
F) A) and C)

Question 7

The direct labor and overhead costs of providing services to clients are accumulated in:

Accepted Answer

A)  finished services expense.
B)  work in process.
C)  administrative salaries expense.
D)  overhead.E) None of the above
F) B) and D)

Question 8

The recording of the factory labor costs incurred for general factory use would include a debit to:

Accepted Answer

A)  Factory Overhead.
B)  Wages Payable.
C)  Wages Expense.
D)  Cost of Goods Sold.E) B) and C)
F) A) and D)

Question 9

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 cost and general accounting systems
D)  Process cost and replacement cost systemsE) B) and C)
F) C) and D)

Question 10

Which of the following would be classified as direct materials for an auto manufacturer?

Accepted Answer

A)  Factory light bulbs
B)  Material used for door panels
C)  Drill bits
D)  SteelE) A) and B)
F) A) and C)

Question 11

If the cost of materials is not a significant portion of the total product cost,the materials may be classified as a part of factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 12

KCT Printing Company uses a job order cost system.

Accepted Answer

(a) (1)Summary of materials requisitions...

Question 13

The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 14

The cost of materials entering directly into the manufacturing process is classified as:

Accepted Answer

A)  direct labor cost.
B)  factory overhead cost.
C)  burden cost.
D)  direct materials cost.E) B) and C)
F) None of the above

Question 15

Use the correct number to designate each item below:

Accepted Answer

^a)³ b)2 c)3 d...

Question 16

Which of the following is not true about why a service firm will use the job order costing system?

Accepted Answer

A)  To help control cost.
B)  To determine client billing.
C)  To determine department costs within the firm.
D)  To determine profit.E) A) and C)
F) B) and C)

Question 17

If the cost of employee wages is not a significant portion of the total product cost,the wages are classified as factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following would be a period costs for a textbooks printing company?

Accepted Answer

A)  Wages of a press operator
B)  Utility costs of the factory
C)  Advertising expenses
D)  Paper costsE) All of the above
F) A) and B)

Question 19

Job order cost systems can be used to compare unit costs of similar jobs to determine if costs are staying within expected ranges.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is considered a part of factory overhead cost?

Accepted Answer

A)  Sales commissions
B)  Depreciation of factory buildings
C)  Depreciation of office equipment
D)  Direct materials usedE) A) and B)
F) A) and C)

Exam 10: Accounting Systems for Manufacturing Businesses

Which of the following information is provided by job cost sheets?

Correct AnswerverifiedShow Answer

Job order cost systems can be used to compare unit costs of similar jobs to determine if costs are staying within expected ranges.

Correct AnswerverifiedShow Answer

The summary of the time tickets at the end of each month is the basis for recording the direct and indirect labor costs incurred in production.

Correct AnswerverifiedShow Answer

Direct materials,work-in-process,and finished goods inventory are most likely to be reported on the balance sheet of a(n) :

Correct AnswerverifiedShow Answer

Which of the following is not true about why a service firm will use the job order costing system?

Correct AnswerverifiedShow Answer

Compute factory overhead cost from the following costs:

Correct AnswerverifiedShow Answer

Which of the following would be a period costs for a textbooks printing company?

Correct AnswerverifiedShow Answer

Use the correct number to designate each item below:

Correct Answerverifieda) 3 b)2 c)3 d...View AnswerShow Answer

Which of the following would be classified as direct materials for an auto manufacturer?

Correct AnswerverifiedShow Answer

Which of the following is considered a part of factory overhead cost?

Correct AnswerverifiedShow Answer

The cost of materials entering directly into the manufacturing process is classified as:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If the cost of employee wages is not a significant portion of the total product cost,the wages are classified as factory overhead cost.

Correct AnswerverifiedShow Answer

The direct labor and overhead costs of providing services to clients are accumulated in:

Correct AnswerverifiedShow Answer

Which of the following techniques is used by just-in-time manufacturing?

Correct AnswerverifiedShow Answer

The recording of the factory labor costs incurred for general factory use would include a debit to:

Correct AnswerverifiedShow Answer

KCT Printing Company uses a job order cost system.

Correct Answerverified(a) (1)Summary of materials requisitions...View AnswerShow Answer

If the cost of materials is not a significant portion of the total product cost,the materials may be classified as a part of factory overhead cost.

Correct AnswerverifiedShow Answer

For which of the following businesses would the job order cost system be most appropriate?

Correct AnswerverifiedShow Answer

The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold.

Correct AnswerverifiedShow Answer

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^a)³ b)2 c)3 d...
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(a) (1)Summary of materials requisitions...
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