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202 accounting Quiz on topic 2 job costing, created by stevensae on 05/04/2015.

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topic 2 job costing

topic 2 job costing

Question 1 of 17

1

In a job-order costing system, the journal entry to record the application of overhead cost to jobs would include:

Select one of the following:

  • Credit to MOH account

  • Credit to Work in Process inventory account

  • Debit to Cost of Goods Sold

  • a debit to the Manufacturing Overhead account

Explanation

Question 2 of 17

1

In a job-order costing system, the use of indirect materials would usually be recorded as a debit to:

Select one of the following:

  • Raw Materials

  • Work in Process

  • Manufacturing Overhead

  • Finished goods

Explanation

Question 3 of 17

1

In a job-order costing system, the entry to record depreciation on manufacturing equipment would include:

Select one of the following:

  • a debit to the Work in Process inventory account

  • a debit to the Depreciation Expense account

  • a credit to the Work in Process inventory account

  • a debit to the Manufacturing Overhead account

Explanation

Question 4 of 17

1

When applying manufacturing overhead to jobs, the formula to calculate the amount is as follows:

Select one of the following:

  • Predetermined overhead rate divided by the actual manufacturing overhead incurred on the particular job.

  • Predetermined overhead rate times the actual manufacturing overhead incurred on the particular job.

  • Predetermined overhead rate divided by the actual units of allocation base charged to the particular job.

  • Predetermined overhead rate times the actual units of allocation base charged to the particular job.

Explanation

Question 5 of 17

1

Which of the following companies would be most likely to use a job-order costing system rather than a process costing system?

Select one of the following:

  • Fast food restaurant

  • Shipbuilding

  • Crude oil refining

  • Candy making

Explanation

Question 6 of 17

1

Choice of allocation base should be made based on

Select one of the following:

  • The relative size of the base

  • the base's relation to direct labor

  • the base's activity

  • whether the base actually drives the cost being allocated

Explanation

Question 7 of 17

1

In a job-order costing system, the journal entry to record the application of overhead cost to jobs would include:

Select one of the following:

  • a credit to the Manufacturing Overhead account.

  • a credit to the Work in Process inventory account.

  • a debit to Cost of Goods Sold.

  • a debit to the Manufacturing Overhead account.

Explanation

Question 8 of 17

1

In a job-order costing system, the use of indirect materials would usually be recorded as a debit to:

Select one of the following:

  • raw materials

  • work in process

  • manufacturing overhead

  • finished goods

Explanation

Question 9 of 17

1

Which of the following is not a characteristic of Job-Order costing?

Select one of the following:

  • Many different products are produced each year

  • Products are manufactured to order

  • costs are traced or allocated to jobs

  • cost records must be maintained for each distinct product or job

  • manufacturing costs are assigned to products

Explanation

Question 10 of 17

1

MOH is applied to each job using a predetermined rate

Select one of the following:

  • True
  • False

Explanation

Question 11 of 17

1

Using a predetermined rate makes it possible to __________ total job costs sooner

Select one of the following:

  • Estimate

  • calculate

  • discard

Explanation

Question 12 of 17

1

When is actual overhead for the period known

Select one of the following:

  • the beginning of the period

  • the middle of the period

  • the end of the period

Explanation

Question 13 of 17

1

MOH is under-applied when

Select one of the following:

  • Applied OH is less than actual OH

  • Applied OH is greater than actual OH

Explanation

Question 14 of 17

1

MOH is over-applied when

Select one of the following:

  • Applied OH is less than actual OH

  • Applied OH is greater than actual OH

Explanation

Question 15 of 17

1

If you under-applied overhead you should ______ COGS, WIP, Finished goods

Select one of the following:

  • increase

  • decrease

Explanation

Question 16 of 17

1

If you over-applied overhead you should ______ COGS, WIP, Finished goods

Select one of the following:

  • increase

  • decrease

Explanation

Question 17 of 17

1

Assume that Tiger Co.'s overhead was $60,000 under-applied. This amount would result in an adjustment that would decrease COGS by $60,000.

Select one of the following:

  • True
  • False

Explanation

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