1. Which of the following accounts would NOT likely appear in a job order cost system of a service business?
a. Finished Goods
b. Work in Process
c. Factory Overhead
d. None of these choices are correct.
2. The primary product costs for a service business would include
a. materials.
b. supplies.
c. direct labor.
d. None of these choices are correct.
3. The journal entry to record the direct materials used for the month would include a
a. debit to Factory Overhead.
b. credit to Materials.
c. credit to Cost of Goods Sold.
d. credit to Work in Process.
4. The journal entry to record the direct labor costs for the month would include a debit to
a. Work in Process.
b. Wages Expense.
c. Wages Payable.
d. Factory Overhead.
5. The journal entry to apply overhead for the month would include a
a. debit to Materials.
b. debit to Cost of Goods Sold.
c. credit to Work in Process.
d. credit to Factory Overhead.
6. The cost elements included in manufacturing are:
a. Direct labor, direct raw materials, and purchases.
b. Direct labor, direct materials, and overhead.
c. Applied overhead, purchases, and direct raw materials.
d. Direct materials, overhead, and purchases.
7. When a job is complete, the costs of the completed job are transferred from the work-in-process account to:
a. Direct materials account
b. Ending inventory account
c. Finished goods account
d. Raw materials account
8. A certain set of backpacks requires 60 hours to construct at a rate of $18 per hour. The total direct labor cost would be:
a. $1,260
b. $1,080
c. $980
d. $450
9. If the total estimated overhead cost for Big Bytes, a bakery shop, is $9,600, and the total estimated direct labor hours are 2,400. The overhead rate is:
a. $7 per direct labor hour
b. $2.50 per direct labor hour
c. $2.30 per direct labor hour
d. $4 per direct labor hour
10. If actual overhead is $500 and an applied overhead is $430, then the journal entry to record the under applied overhead is:
a.Cost of goods sold 70
Factory overhead 70
b.Cost of goods sold 930
Factory overhead 930
c.Cost of goods sold 500
Factory overhead 500
d. Cost of goods sold 430
Factory overhead 430
11. A job order cost accounting system accumulates and records product costs by
a. employees.
b. jobs.
c. factory overhead applied.
d. None of these choices are correct.
12. A job order cost system can be used by managers for
a. cost evaluation.
b. control.
c. decision making.
d. All of these choices are correct.
13. The two main types of cost accounting systems for manufacturing businesses are the __________ cost system and the __________ cost system.
a. perpetual; process
b. periodic; perpetual
c. perpetual; job order
d. process; job order
14. A __________ cost system provides product costs for each quantity of product that is manufactured.
a. job order
b. process
c. periodic
d. All of these choices are correct.