Question 1 of 20 5.0 Points
Which of the following products probably would be manufactured using a job order costing system?
A. Paper
B. Baseball cards
C. Computer monitors
D. Company business cards
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Question 2 of 20 5.0 Points
Applied overhead exceeds actual overhead when the:
A. Overhead account has a credit balance.
B. journal entry to account for the difference involves a debit to Cost of Goods Sold.
C. Overhead account has a debit balance.
D. company has overspent in the overhead cost area.
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Question 3 of 20 5.0 Points
The total of the dollar amounts on the job order cost cards that have not been completed would be equal to the:
A. cost of goods completed.
B. balance in the Finished Goods Inventory account.
C. Cost of Goods Sold account.
D. balance in the Work in Process Inventory account.
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Question 4 of 20 5.0 Points
The basic document for keeping track of costs in a job order costing system is a:
A. job order cost card.
B. labor time card.
C. process cost report.
D. materials requisition form.
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Question 5 of 20 5.0 Points
When direct materials are issued from inventory to production under a job order costing system, an increase is recorded in:
A. Overhead.
B. Work in Process Inventory.
C. Materials Inventory.
D. Finished Goods Inventory.
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Question 6 of 20 5.0 Points
Unit costs for each job are computed by dividing:
A. estimated total costs by planned units to be produced.
B. actual costs by actual units sold.
C. cost of materials, direct labor, and overhead by number of units produced.
D. estimated total costs by actual units produced.
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Question 7 of 20 5.0 Points
In cost-plus contracts, the "plus" represents:
A. sales price.
B. profit, based on the amount of costs incurred.
C. overapplied overhead costs.
D. the amount of any cost overruns.
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Question 8 of 20 5.0 Points
The balance in the Work in Process Inventory account equals the:
A. balance in the Finished Goods inventory account.
B. balance in the Cost of Goods Sold account.
C. total of the balances on the job order cost sheets of uncompleted jobs.
D. balance in the Overhead account.
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Question 9 of 20 5.0 Points
Which of the following entities probably would use a process costing system?
A. An oil refinery
B. A yacht builder
C. A custom furniture company
D. A custom screw manufacturer
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Question 10 of 20 5.0 Points
Process costing is applicable to production operations that:
A. utilize several processes, departments, or work cells in a series.
B. do not assign overhead costs to operations.
C. produce large and unique machines.
D. are found in only a few industries.
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My Answers -
1 C
2 A
3 D
4 A
5 B
6 C
7 B
8 C
9 A
10 A
Please help review my answers
1 C
2 A
3 D
4 A
5 B
6 C
7 B
8 C
9 A
10 A
Sure! Let's review your answers:
Question 1: Which of the following products probably would be manufactured using a job order costing system?
Your answer: C. Computer monitors
Correct answer: C. Computer monitors
Explanation: Job order costing is typically used for custom-made or unique products, so computer monitors can be manufactured using a job order costing system.
Question 2: Applied overhead exceeds actual overhead when the:
Your answer: A. Overhead account has a credit balance.
Correct answer: C. Overhead account has a debit balance.
Explanation: Applied overhead exceeds actual overhead when the overhead account has a debit balance. This means that more overhead has been allocated or applied to production than the actual overhead costs incurred.
Question 3: The total of the dollar amounts on the job order cost cards that have not been completed would be equal to the:
Your answer: D. balance in the Work in Process Inventory account.
Correct answer: D. balance in the Work in Process Inventory account.
Explanation: The job order cost cards keep track of costs for each individual job. The total of the dollar amounts on the job order cost cards that have not been completed represents the costs that are still in progress and are recorded in the Work in Process Inventory account.
Question 4: The basic document for keeping track of costs in a job order costing system is a:
Your answer: A. job order cost card.
Correct answer: A. job order cost card.
Explanation: In a job order costing system, the job order cost card is the basic document used to track and accumulate costs for each individual job.
Question 5: When direct materials are issued from inventory to production under a job order costing system, an increase is recorded in:
Your answer: B. Work in Process Inventory.
Correct answer: B. Work in Process Inventory.
Explanation: When direct materials are issued from inventory to production in a job order costing system, the cost of those materials is added to the Work in Process Inventory account.
Question 6: Unit costs for each job are computed by dividing:
Your answer: C. cost of materials, direct labor, and overhead by number of units produced.
Correct answer: C. cost of materials, direct labor, and overhead by number of units produced.
Explanation: Unit costs for each job are computed by dividing the total cost of materials, direct labor, and overhead by the number of units produced.
Question 7: In cost-plus contracts, the "plus" represents:
Your answer: B. profit, based on the amount of costs incurred.
Correct answer: B. profit, based on the amount of costs incurred.
Explanation: In cost-plus contracts, the "plus" represents the profit that is added to the costs incurred in the project.
Question 8: The balance in the Work in Process Inventory account equals the:
Your answer: C. total of the balances on the job order cost sheets of uncompleted jobs.
Correct answer: C. total of the balances on the job order cost sheets of uncompleted jobs.
Explanation: The balance in the Work in Process Inventory account represents the total cost of all the uncompleted jobs, which is the sum of the balances on the job order cost sheets.
Question 9: Which of the following entities probably would use a process costing system?
Your answer: A. An oil refinery
Correct answer: A. An oil refinery
Explanation: Process costing is commonly used in industries where large quantities of similar products are produced, such as oil refining.
Question 10: Process costing is applicable to production operations that:
Your answer: A. utilize several processes, departments, or work cells in a series.
Correct answer: A. utilize several processes, departments, or work cells in a series.
Explanation: Process costing is applicable to production operations that involve several sequential processes, departments, or work cells where the process flows continuously.