Question 1

Describe the use of the Factory Payroll account in a job order cost accounting system.

Accepted Answer

The Factory Payroll account is a tempora...

Question 2

Any material amount of under- or overapplied factory overhead must always be closed to Cost of Goods Sold at the end of an accounting period.

Accepted Answer

A) True 
 B)False

Question 3

Bard Manufacturing uses a job order cost accounting system. During one month Bard purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Bard incurred a factory payroll of $150,000, paid in cash, of which $40,000 is classified as indirect labor. Bard uses a predetermined overhead application rate of 150% of direct labor cost. The journal entry to record payment of the factory payroll is:

Accepted Answer

A)   Debit Goods in Process Inventory $150,000; credit Factory Payroll $150,000.
B)   Debit Goods in Process Inventory $150,000; credit Cash $150,000.
C)   Debit Factory Payroll $150,000; credit Cash $150,000.
D)   Debit Goods in Process Inventory $110,000; debit Factory Overhead $40,000; credit Factory Payroll $150,000.
E)   Debit Goods in Process Inventory $110,000; debit Factory Overhead $40,000; credit Cash $150,000.F) B) and E)
G) A) and C)

Question 4

M.A.E. charged the following amounts of overhead to jobs during the year: $20,000 to jobs still in process, $60,000 to jobs completed but not sold, and $120,000 to jobs finished and sold. At year-end, M.A.E. Company's Factory Overhead account has a credit balance of $5,000, which is not a material amount. What entry should M.A.E. make at year-end?

Accepted Answer

A)   No entry is needed.
B)   Debit Factory Overhead $5,000; credit Cost of Goods Sold $5,000.
C)   Debit Cost of Goods Sold $5,000; credit Factory Overhead $5,000.
D)   Debit Factory Overhead $5,000; credit Goods in Process Inventory $5,000.
E)   Debit Factory Overhead $5,000; credit Finished Goods Inventory $5,000.F) A) and B)
G) A) and E)

Question 5

In comparison to a general accounting system for a manufacturing company, a cost accounting system places an emphasis on:

Accepted Answer

A)   Periodic inventory counts.
B)   Total costs.
C)   Continually updating costs of materials, goods in process, and finished goods inventories.
D)   Products and average costs.
E)   Large volume operations involving standardized products.F) B) and E)
G) A) and E)

Question 6

A time ticket is a source document used by an employee to record the number of hours worked on a particular job during the work day.

Accepted Answer

A) True 
 B)False

Question 7

The direct materials section of a job cost sheet shows the materials costs assigned to a job, but the direct labor section only shows the total hours of labor allocated to the job.

Accepted Answer

A) True 
 B)False

Question 8

When factory payroll for indirect labor is assigned, __________________ is debited.

Accepted Answer

The answer of When factory payroll for indirect labor is...

Question 9

When materials are used as indirect materials, their cost is debited to the Factory Overhead account.

Accepted Answer

A) True 
 B)False

Question 10

A company charged the following amounts of overhead to jobs during the current year: $12,000 to jobs still in process, $42,000 to jobs completed but not sold, and $66,000 to jobs finished and sold. At year-end, the company's Factory Overhead account has a credit balance of $9,000, which is not a material amount. What entry (if any) should the company make at year-end related to this overhead balance?

Accepted Answer

The answer of A company charged the following amounts of...

Question 11

Selected information from the budget of the Khalid Corp. at the beginning of the year follows:
Calculate the predetermined overhead allocation rate if the company uses the following as a basis:
(a) Direct labor hours.
(b) Direct labor cost.
(c) Machine hours.

Accepted Answer

(a) $132,000/55,000 = $2.40 pe...

Question 12

A system of accounting for production operations that uses a periodic inventory system is called a:

Accepted Answer

A)   Manufacturing accounting system.
B)   Production accounting system.
C)   General accounting system.
D)   Cost accounting system.
E)   Finished goods accounting system.F) A) and B)
G) All of the above

Question 13

A job cost sheet includes:

Accepted Answer

A)   Direct materials, direct labor, operating costs.
B)   Direct materials, overhead, administrative costs.
C)   Direct labor, overhead, selling costs.
D)   Direct material, direct labor, overhead.
E)   Direct materials, direct labor, selling costs.F) A) and B)
G) A) and C)

Question 14

The predetermined overhead allocation rate for Millay Manufacturing is based on estimated direct labor costs of $350,000 and estimated factory overhead of $770,000. Actual costs incurred were:
a. Calculate the predetermined overhead rate and calculate the overhead applied during the year.
b. Determine the amount of over- or underapplied overhead and prepare the journal entry to eliminate the over- or underapplied overhead assuming that it is not material in amount.

Accepted Answer

a. Predetermined overhead rate...

Question 15

A company that uses a job order cost accounting system would make the following entry to record the flow of direct materials into production:

Accepted Answer

A)   debit Goods in Process Inventory, credit Cost of Goods Sold.
B)   debit Goods in Process Inventory, credit Raw Materials Inventory.
C)   debit Goods in Process Inventory, credit Factory Overhead.
D)   debit Factory Overhead, credit Raw Materials Inventory.
E)   debit Finished Goods Inventory, credit Raw Materials Inventory.F) A) and B)
G) C) and D)

Question 16

A company's file of job cost sheets for finished but unsold jobs equals the balance in the Finished Goods Inventory account.

Accepted Answer

A) True 
 B)False

Question 17

The overhead cost applied to a job during a period is recorded with a credit to Factory Overhead and a debit to:

Accepted Answer

A)   Jobs Overhead Expense.
B)   Cost of Goods Sold.
C)   Finished Goods Inventory.
D)   Indirect Labor.
E)   Goods in Process Inventory.F) A) and D)
G) A) and C)

Question 18

The amount by which the overhead applied to jobs during a period exceeds the overhead incurred during the period is known as:

Accepted Answer

A)   Adjusted overhead.
B)   Estimated overhead.
C)   Predetermined overhead.
D)   Underapplied overhead.
E)   Overapplied overhead.F) All of the above
G) None of the above

Question 19

The production activities for a customized product represent a(n) :

Accepted Answer

A)   Operation.
B)   Job.
C)   Unit.
D)   Pool.
E)   Process.F) A) and C)
G) A) and B)

Question 20

The collection of job cost sheets for all jobs in process makes up the subsidiary ledger controlled by the _____________________ inventory.

Accepted Answer

The answer of The collection of job cost sheets for...

Exam 19: Job Order Cost Accounting

A system of accounting for production operations that uses a periodic inventory system is called a:

Correct Answer
verified

The direct materials section of a job cost sheet shows the materials costs assigned to a job, but the direct labor section only shows the total hours of labor allocated to the job.

Correct Answer
verified

The collection of job cost sheets for all jobs in process makes up the subsidiary ledger controlled by the _____________________ inventory.

Correct Answer
verified

A company's file of job cost sheets for finished but unsold jobs equals the balance in the Finished Goods Inventory account.

Correct Answer
verified

In comparison to a general accounting system for a manufacturing company, a cost accounting system places an emphasis on:

Correct Answer
verified

Correct Answer
verified

Selected information from the budget of the Khalid Corp. at the beginning of the year follows: Calculate the predetermined overhead allocation rate if the company uses the following as a basis: (a) Direct labor hours. (b) Direct labor cost. (c) Machine hours.

Correct Answer
verified
(a) $132,000/55,000 = $2.40 pe...
View Answer

The amount by which the overhead applied to jobs during a period exceeds the overhead incurred during the period is known as:

Correct Answer
verified

Correct Answer
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A job cost sheet includes:

Correct Answer
verified

Any material amount of under- or overapplied factory overhead must always be closed to Cost of Goods Sold at the end of an accounting period.

Correct Answer
verified

A company that uses a job order cost accounting system would make the following entry to record the flow of direct materials into production:

Correct Answer
verified

Describe the use of the Factory Payroll account in a job order cost accounting system.

Correct Answer
verified
The Factory Payroll account is a tempora...
View Answer

When materials are used as indirect materials, their cost is debited to the Factory Overhead account.

Correct Answer
verified

The production activities for a customized product represent a(n) :

Correct Answer
verified

When factory payroll for indirect labor is assigned, __________________ is debited.

Correct Answer
verified

Correct Answer
verified
a. Predetermined overhead rate...
View Answer

A time ticket is a source document used by an employee to record the number of hours worked on a particular job during the work day.

Correct Answer
verified

Correct Answer
verified

The overhead cost applied to a job during a period is recorded with a credit to Factory Overhead and a debit to:

Correct Answer
verified

Exam 19: Job Order Cost Accounting

A system of accounting for production operations that uses a periodic inventory system is called a:

Correct AnswerverifiedShow Answer

The direct materials section of a job cost sheet shows the materials costs assigned to a job, but the direct labor section only shows the total hours of labor allocated to the job.

Correct AnswerverifiedShow Answer

The collection of job cost sheets for all jobs in process makes up the subsidiary ledger controlled by the _____________________ inventory.

Correct AnswerverifiedShow Answer

A company's file of job cost sheets for finished but unsold jobs equals the balance in the Finished Goods Inventory account.

Correct AnswerverifiedShow Answer

In comparison to a general accounting system for a manufacturing company, a cost accounting system places an emphasis on:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Selected information from the budget of the Khalid Corp. at the beginning of the year follows: Calculate the predetermined overhead allocation rate if the company uses the following as a basis: (a) Direct labor hours. (b) Direct labor cost. (c) Machine hours.

Correct Answerverified(a) $132,000/55,000 = $2.40 pe...View AnswerShow Answer

The amount by which the overhead applied to jobs during a period exceeds the overhead incurred during the period is known as:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A job cost sheet includes:

Correct AnswerverifiedShow Answer

Any material amount of under- or overapplied factory overhead must always be closed to Cost of Goods Sold at the end of an accounting period.

Correct AnswerverifiedShow Answer

A company that uses a job order cost accounting system would make the following entry to record the flow of direct materials into production:

Correct AnswerverifiedShow Answer

Describe the use of the Factory Payroll account in a job order cost accounting system.

Correct AnswerverifiedThe Factory Payroll account is a tempora...View AnswerShow Answer

When materials are used as indirect materials, their cost is debited to the Factory Overhead account.

Correct AnswerverifiedShow Answer

The production activities for a customized product represent a(n) :

Correct AnswerverifiedShow Answer

When factory payroll for indirect labor is assigned, __________________ is debited.

Correct AnswerverifiedShow Answer

Correct Answerverifieda. Predetermined overhead rate...View AnswerShow Answer

A time ticket is a source document used by an employee to record the number of hours worked on a particular job during the work day.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The overhead cost applied to a job during a period is recorded with a credit to Factory Overhead and a debit to:

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
(a) $132,000/55,000 = $2.40 pe...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The Factory Payroll account is a tempora...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
verified
a. Predetermined overhead rate...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
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