Question 1

The basis for recording direct and indirect labor costs incurred is a summary of the period's

Accepted Answer

A)  job order cost sheets.
B)  time tickets.
C)  employees' earnings records.
D)  clock cards.E) A) and B)
F) A) and C)

Question 2

The direct labor and overhead costs of providing services to clients are accumulated in a work-in-process account.

Accepted Answer

A) True 
 B)False

Question 3

Indicate whether each of the following costs of a cabinet manufacturer would be classified as direct materials cost,direct labor cost,factory overhead cost,or period cost.
(a)Plant manager's salary
(b)Office administrative assistant's salary
(c)Depreciation on factory equipment.
(d)Rent on office building.
(e)Varieties of wood
(f)Varnish for coating cabinets
(g)Utilities cost on the factory
(h)Cabinet assembly worker's salary
(i)Advertising costs
(j)Screws and glue used in assembly process

Accepted Answer

(a)factory overhead
(b)period
...

Question 4

The recording of the application of factory overhead costs to jobs would decrease

Accepted Answer

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

Question 5

Heedy Winery accumulates the costs incurred in the labeling process in an activity cost pool.Costs for the labeling process are estimated to be $320,000 for the coming year,and the winery expects to generate 640,000 labels.Production for its top-selling wine is estimated at 160,000 bottles.How much overhead from the labeling process will be allocated to this particular variety of wine?

Accepted Answer

A)  $40,000
B)  $80,000
C)  $160,000
D)  $320,000E) A) and B)
F) B) and D)

Question 6

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) C) and D)
F) B) and D)

Question 7

Job cost sheets can provide information to managers for all but which of the following?

Accepted Answer

A)  Cost impact of materials changes
B)  Cost impact of continuous improvement in the manufacturing process
C)  Cost impact of materials price or direct labor rate changes over time
D)  Utilities,managerial salaries,and depreciation of computers in the corporate officeE) B) and D)
F) A) and D)

Question 8

Inventories of finished products are reported as current assets on the manufacturer's
balance sheet.

Accepted Answer

A) True 
 B)False

Question 9

The following are all product costs EXCEPT

Accepted Answer

A)  direct materials.
B)  sales and administrative expenses.
C)  direct labor.
D)  factory overhead.E) All of the above
F) A) and B)

Question 10

Period costs include all of the following EXCEPT

Accepted Answer

A)  CEO salary.
B)  depreciation on office equipment.
C)  sales commissions.
D)  wages of an assembly worker.E) A) and D)
F) None of the above

Question 11

Which of the following is an example of direct materials cost for an automobile manufacturer?

Accepted Answer

A)  Cost of oil lubricants for factory machinery
B)  Cost of wages of assembly worker
C)  Salary of production supervisor
D)  Cost of interior upholsteryE) All of the above
F) B) and D)

Question 12

Illustrate the effects on the accounts and financial statements of each of the following transactions for a company using a job order cost system:

Accepted Answer

Assets = Liabilities + Stockholders' Equ...

Question 13

Conversion cost is the combination of direct labor cost and factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 14

Matt Industries manufactures toys.Matt uses a job order cost system.The time tickets from September jobs are summarized below.
  
Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $25 per direct labor hour.The direct labor rate is $30 per hour.
(a)Determine the total factory labor costs transferred to Work in Process and Factory Overhead for September.
(b)Determine the amount of factory overhead applied to production for September.

Accepted Answer

(a)Costs transferred to Work i...

Question 15

Product costs include all of the following EXCEPT

Accepted Answer

A)  CEO salary.
B)  depreciation on factory equipment.
C)  wages of an assembly worker.
D)  direct materials.E) C) and D)
F) None of the above

Question 16

Direct labor cost is an example of a product cost.

Accepted Answer

A) True 
 B)False

Question 17

A disadvantage of maintaining high inventory levels includes

Accepted Answer

A)  providing a "buffer" to protect against process problems.
B)  hiding underlying production problems such as unexpected scrap and rework.
C)  maintaining inventory is wasteful and unnecessary.
D)  both hiding underlying production problems and the fact that maintaining inventory is wasteful and unnecessary are disadvantages of maintaining inventory.E) A) and D)
F) None of the above

Question 18

The amount of time spent by each employee and the labor cost incurred for each individual job or for factory overhead are recorded on

Accepted Answer

A)  employees' earnings records.
B)  in-and-out board.
C)  time tickets.
D)  all of these.E) None of the above
F) A) and C)

Question 19

The recording of the jobs shipped and customers billed would increase

Accepted Answer

A)  Accounts Payable.
B)  Cash.
C)  Finished Goods.
D)  Cost of Goods Sold.E) B) and C)
F) A) and B)

Question 20

Materials are transferred from the storeroom to the factory in response to materials requisitions.

Accepted Answer

A) True 
 B)False

Exam 10: Accounting Systems for Manufacturing Businesses

Illustrate the effects on the accounts and financial statements of each of the following transactions for a company using a job order cost system:

Correct Answer
verified
Assets = Liabilities + Stockholders' Equ...
View Answer

The direct labor and overhead costs of providing services to clients are accumulated in a work-in-process account.

Correct Answer
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Job cost sheets can provide information to managers for all but which of the following?

Correct Answer
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The recording of the jobs shipped and customers billed would increase

Correct Answer
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Inventories of finished products are reported as current assets on the manufacturer's balance sheet.

Correct Answer
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Period costs include all of the following EXCEPT

Correct Answer
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Correct Answer
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Correct Answer
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(a)Costs transferred to Work i...
View Answer

Which of the following is an example of direct materials cost for an automobile manufacturer?

Correct Answer
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A disadvantage of maintaining high inventory levels includes

Correct Answer
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The basis for recording direct and indirect labor costs incurred is a summary of the period's

Correct Answer
verified

Conversion cost is the combination of direct labor cost and factory overhead cost.

Correct Answer
verified

The amount of time spent by each employee and the labor cost incurred for each individual job or for factory overhead are recorded on

Correct Answer
verified

The following are all product costs EXCEPT

Correct Answer
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Materials are transferred from the storeroom to the factory in response to materials requisitions.

Correct Answer
verified

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

Correct Answer
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Correct Answer
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(a)factory overhead
(b)period
...
View Answer

Direct labor cost is an example of a product cost.

Correct Answer
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Product costs include all of the following EXCEPT

Correct Answer
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The recording of the application of factory overhead costs to jobs would decrease

Correct Answer
verified

Exam 10: Accounting Systems for Manufacturing Businesses

Illustrate the effects on the accounts and financial statements of each of the following transactions for a company using a job order cost system:

Correct AnswerverifiedAssets = Liabilities + Stockholders' Equ...View AnswerShow Answer

The direct labor and overhead costs of providing services to clients are accumulated in a work-in-process account.

Correct AnswerverifiedShow Answer

Job cost sheets can provide information to managers for all but which of the following?

Correct AnswerverifiedShow Answer

The recording of the jobs shipped and customers billed would increase

Correct AnswerverifiedShow Answer

Inventories of finished products are reported as current assets on the manufacturer's balance sheet.

Correct AnswerverifiedShow Answer

Period costs include all of the following EXCEPT

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answerverified(a)Costs transferred to Work i...View AnswerShow Answer

Which of the following is an example of direct materials cost for an automobile manufacturer?

Correct AnswerverifiedShow Answer

A disadvantage of maintaining high inventory levels includes

Correct AnswerverifiedShow Answer

The basis for recording direct and indirect labor costs incurred is a summary of the period's

Correct AnswerverifiedShow Answer

Conversion cost is the combination of direct labor cost and factory overhead cost.

Correct AnswerverifiedShow Answer

The amount of time spent by each employee and the labor cost incurred for each individual job or for factory overhead are recorded on

Correct AnswerverifiedShow Answer

The following are all product costs EXCEPT

Correct AnswerverifiedShow Answer

Materials are transferred from the storeroom to the factory in response to materials requisitions.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answerverified(a)factory overhead(b)period...View AnswerShow Answer

Direct labor cost is an example of a product cost.

Correct AnswerverifiedShow Answer

Product costs include all of the following EXCEPT

Correct AnswerverifiedShow Answer

The recording of the application of factory overhead costs to jobs would decrease

Correct AnswerverifiedShow Answer

Correct Answer
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Assets = Liabilities + Stockholders' Equ...
View 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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(a)Costs transferred to Work i...
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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
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(a)factory overhead
(b)period
...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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