Cost Accounting Test 1

Which of the following is not a characteristic of a job order costing system?

It accumulates cost for each department within the factory.

During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 for general factory use (indirect labor). In addition, factory overhead charged to production was $32,000. The journal entry to record the direct labor costs is

Work in Process 150,000 Wages Payable 150,000

For a manufacturing business, products that are in the process of being manufactured are referred to as

work in process inventory

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 30,000. Actual manufacturing overhead costs incurred were $377,200, and actual direct labor hours were 36,000. What is the predetermined overhead rate per direct labor hour?

$12.00

Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as

factory overhead cost

Which of the following terms is used to describe the process of developing the organization's objectives and translating those into courses of action?

planning

When Job 117 was completed, direct materials totaled $4,400; direct labor, $5,600; and factory overhead, $2,400. A total of 1,000 units were produced at a per-unit cost of

$12.40

Compute conversion costs given the following data: direct materials, $347,500; direct labor, $196,300; factory overhead, $187,900; and selling expenses, $45,290.

$384,200

Which of the following is part of factory overhead cost?

depreciation of factory equipment and machines

In a job order cost accounting system, the journal entry to record the flow of direct materials into production consists of a

debit to Work in Process and a credit to Materials