ACC 212 Exam 1 Chapter 3
2. A document that would track and summarize the direct materials, direct labor, and overhead costs for each job is known as a: A) purchase order B) job cost sheet C) purchase requisition D) materials requisition
B
11. Indirect materials are charged to specific jobs. True False?
false
. A document that tracks the costs of products and summarizes the cost information for each job is a: A) receiving report B) job cost sheet C) purchase requisition D) purchase order
B
9. When completed goods are sold, the transaction is recorded as a debit to Cost of Goods Sold and a credit to Finished Goods. True False?
true
When materials have been received and checked in, they are then stored in the: A) loading dock B) finished goods distribution center C) administrative offices D) materials stores warehouse
D
The cost system that smooths out the fluctuations in product cost due to monthly differences in manufacturing overhead cost and the allocation base is the: A) normal cost system B) actual cost system C) job cost sheet D) universal cost tracking system
A
Which form listed below is a useful tool for accumulating the cost of products and for controlling the movement of materials in a factory? A) purchase order B) job cost sheet C) purchase requisition D) materials requisition
D
The formula for computing the predetermined overhead rate is: Predetermined overhead rate = Estimated total manufacturing overhead cost Estimated total amount of the allocation base. True False?
True
12. When a job is completed, the goods are transferred from the production department to the finished goods warehouse and the journal entry would include a debit to Work in Process. True False? b
false
5. The cost of a completed job in a job-order costing system typically consists of the actual direct materials cost of the job, the actual direct labor cost of the job, and the manufacturing overhead cost applied to the job. True False?
true
. The entry to record the cost incurred for the utilities for the plant would include a debit to: A) Manufacturing Overhead Incurred B) Work-in-Process Inventory C) Cash D) None of these answers is correct
A
3. The information found on a typical job cost sheet includes: A) direct material, direct labor, and overhead costs B) direct material and direct labor costs only C) direct material costs only D) direct labor costs and overhead only
A
Any differences between the goods ordered and the goods received will be shown on the A) receiving report B) purchase requisition C) job cost sheet D) purchase order
A
Copies of a purchase order would not be sent to: A) the customer B) the receiving department C) accounts payable D) the vendor
A
Departmental overhead rates are generally preferred to plant-wide overhead rates when: A. the activities of the various departments in the plant are not homogeneous. B. the activities of the various departments in the plant are homogeneous. C. most of the overhead costs are fixed. D. all departments in the plant are heavily automated.
A
The accounts payable department matches all documents received to determine how much should be paid. Which one of the following documents used is externally generated? A) vendor invoice B) purchase requisition C) receiving report D) purchase order
A
The document that is sent to the vendor that specifies the quantity, type, and cost of materials needed is called a: A) receiving report B) purchase order C) purchase requisition D) materials requisition
A
The entry to allocate overhead to the goods being produced would include a credit to: A) Manufacturing Overhead Applied B) Manufacturing Overhead Expense C) Work-in-Process Inventory D) Manufacturing Overhead Payable
A
. A job cost sheet not only keeps track of current production, but it also: A) allows management to track total manufacturing overhead on an annual basis B) provides historical information for future management decision-making C) serves as a purchase order for other vendors D) provides marketing data for the sales force
B
. Information that tells how long an employee worked on a particular task is taken from the __________ and transferred to the __________. A) labor requisition form; job cost sheet B) labor time ticket; job cost sheet C) job cost sheet; labor time ticket D) paycheck stub; labor time ticket
B
Copies of a completed purchase requisition are forwarded to: A) accounts payable only B) the purchasing department and accounts payable C) the receiving department only D) the purchasing department only
B
Emco Company uses direct labor cost as a basis for computing its predetermined overhead rate. In computing the predetermined overhead rate for last year, the company misclassified a portion of direct labor cost as indirect labor. The effect of this misclassification will be to: A. understate the predetermined overhead rate. B. overstate the predetermined overhead rate. C. have no effect on the predetermined overhead rate. D. cannot be determined from the information given.
B
In process costing, the number of units that would have been completed if all production efforts resulted in completed units is known as: A) universal cost tracking units B) equivalent units C) work-in-process units D) completed units
B
Overapplied manufacturing overhead means that: A. the applied manufacturing overhead cost was less than the actual manufacturing overhead cost. B. the applied manufacturing overhead cost was greater than the actual manufacturing overhead cost. C. the estimated manufacturing overhead cost was less than the actual manufacturing overhead cost. D. the estimated manufacturing overhead cost was less than the applied manufacturing overhead cost.
B
The accounts payable clerk must match information found on the externally generated __________ to information from the internally generated documents. A) purchase requisition B) invoice C) receiving report D) purchase order
B
The department that acquires the materials needed by a manufacturing firm is called the: A) production department B) purchasing department C) receiving department D) storage department
B
The entry to record the arrival of materials into the firm is: A) DR Accounts Payable CR Raw Materials B) DR Raw Materials CR Accounts Payable C) DR Work-in-Process CR Accounts Payable D) DR Raw Materials CR Work-in-Process
B
The entry to record the materials started into production for a specific job is: A) DR Raw materials CR Work-in-process B) DR Work-in-process CR Raw Materials C) DR Work-in-process CR Accounts payable D) DR Raw materials CR Accounts payable
B
There are two acceptable methods for closing out any balance of underapplied or overapplied manufacturing overhead. One method involves allocation of the balance among several accounts, whereas the other closes any balance directly to: A. Finished Goods inventory. B. Cost of Goods Sold. C. Cost of Goods Manufactured. D. Work in Process inventory.
B
When an order has been received, the receiving clerk creates the __________ based on information from the __________. A) purchase requisition; materials requisition B) receiving report; purchase order C) receiving report; materials requisition D) purchase order; receiving report
B
When goods have been sold, the entry will contain a debit to: A) Manufacturing Overhead Cost Incurred B) Cost of Goods Sold C) Finished Goods Inventory D) Work-in-Process Inventory
B
When ordered goods are received by the firm, the receiving clerk compares the goods received to the: A) purchase requisition B) purchase order C) materials requisition D) job cost sheet
B
When product costs reflect the actual direct material costs, actual direct labor costs, and estimated overhead costs, the cost system being used is a(n): A) actual cost system B) normal cost system C) direct-common cost system D) actual-estimated cost system
B
When production workers need raw materials to be transferred into production, the production manager will complete a: A) purchase requisition B) materials requisition C) purchases order D) job cost sheet
B
When the firm completes goods and transfers them to finished goods, the entry is: A) DR Finished Goods CR Cost of Goods Sold B) DR Finished Goods CR Work-in-Process Inventory C) DR Work-in-Process Inventory CR Finished Goods Inventory D) DR Manufacturing Overhead Cost Incurred CR Finished Goods Inventory
B
When the goods are completed and transferred from work-in-process, the entry will contain a debit to: A) Work-in-Process Inventory B) Finished Goods Inventory C) Cost of Goods Sold D) Manufacturing Overhead Cost Incurred
B
When the overhead rate is determined on an annual basis before the period production actually begins, the rate calculated is referred to as a(n): A) None of these answers is correct. B) predetermined overhead rate C) estimated overhead cost rate D) actual overhead rate
B
A document which is used to track how much an employee works on each job in a factory is called the: A) labor requisition B) payroll stubs C) labor time ticket D) job cost sheet
C
If the amount of overhead allocated to production exceeds the actual amount, the allocated overhead is __________; if the amount is less than the actual overhead amount, the allocated overhead is __________. A) over applied; not taken into consideration B) not taken into consideration; under applied C) over applied; under applied D) under applied; over applied
C
In a job-order costing system, the use of indirect materials that have been previously purchased is recorded as a credit to: A. Work in Process inventory. B. Manufacturing Overhead. C. Raw Materials inventory. D. Finished Goods inventory.
C
In computing its predetermined overhead rate, Brady Company included its factory insurance cost twice. This error will result in: A. the ending balance of Finished Goods to be understated. B. the credits to the Manufacturing Overhead account to be understated. C. the Cost of Goods Manufactured to be overstated. D. the Net Operating Income to be overstated.
C
The entry to allocate overhead to the goods being produced would include a debit to: A) Manufacturing Overhead Expense B) Manufacturing Overhead Applied C) Work-in-Process Inventory D) Manufacturing Overhead Payable
C
The entry to record the cost incurred for depreciation on production equipment is: A) DR Work-in-Process CR Accumulated Depreciation B) DR Depreciation Expense CR Accumulated Depreciation C) DR Manufacturing Overhead Incurred CR Accumulated Depreciation D) DR Accumulated Depreciation CR Depreciation Expense
C
When product costs reflect the actual direct material costs, actual direct labor costs, and actual overhead costs, the cost system being used is a(n): A) direct cost system B) common cost system C) actual cost system D) normal costing system
C
When the overhead applied is greater than the cost of overhead incurred, the balance is: A) debited to Work-in-Process Inventory B) credited to Manufacturing Overhead Applied C) debited to Cost of Goods Sold D) debited to Manufacturing Overhead Cost Incurred
C
A materials requisition form is a request to __________ while a purchase requisition form is a request to __________. A) acquire materials; use materials B) use materials; sell materials C) sell materials; use materials D) use materials; acquire materials
D
A production manager would complete a __________ when the factory is running low on certain raw materials: A) purchase order B) receiving report C) materials requisition D) purchase requisition
D
Accounts payable will receive which of the following documents? A) purchase order B) purchase requisition C) receiving report D) All of these answers are correct.
D
In any given month, the actual amount of manufacturing overhead cost a company incurs will be: A) more than the amount allocated to production B) less than the amount allocated to production C) unrelated to the amount allocated to production D) either more or less than the amount allocated to production
D
On the Schedule of Cost of Goods Manufactured, the final Cost of Goods Manufactured figure represents: A. the amount of cost charged to Work in Process during the period. B. the amount of cost transferred from Finished Goods to Cost of Goods Sold during the period. C. the amount of cost placed into production during the period. D. the amount of cost of goods completed during the current year whether they were started before or during the current year.
D
The entry to record the cost of wages earned by the production line workers who actually making the product would include a debit to: A) Wage Expense B) Overhead C) Direct Labor D) Work-in-Process
D
When goods are completed and transferred to finished goods, the entry will contain a credit to: A) Finished Goods Inventory B) Cost of Goods Sold C) Manufacturing Overhead Cost Incurred D) Work-in-Process Inventory
D
If direct labor-hours is used as the allocation base in a job-order costing system, but overhead costs are not caused by direct-labor hours, then jobs with high direct labor requirements will tend to be undercosted relative to jobs with low direct labor requirements.True False?
False
The use of a predetermined overhead rate in a job-order cost system makes it possible to compute the total cost of a job before production is begun. True False?
False
13. Manufacturing overhead is overapplied if actual manufacturing overhead costs for a period are greater than the amount of manufacturing overhead cost that was charged to Work in Process. True False?
false
4. When the predetermined overhead rate is based on direct labor-hours, the amount of overhead applied to a job is proportional to the estimated amount of direct labor-hours for the job.True False?
false
6. Job cost sheets are used to record the costs of preparing routine accounting reports.True False?
false
8. The cost categories that appear on a job cost sheet include selling expense, manufacturing expense, and administrative expense.True False?
false
the sum of all amounts transferred from the Work in Process account to the Finished Goods account represents the Cost of Goods Sold for the period. True False?
false
7. In a job-order cost system, direct labor is assigned to a job using information from the employee time ticket. True False?
true
If the actual manufacturing overhead cost for a period exceeds the manufacturing overhead cost applied, then manufacturing overhead would be considered to be underapplied. True False?
true