Accounting ch.16- MC

Each document in the cost ledger of a service business is called a a. finished goods sheet b. job cost sheet c. stock record d. materials requisition

b. job cost sheet

Which of the following describes cost allocation? a. serves as the basis for recording materials used b. process by which factory overhead is assigned to a cost object c. completed when materials that have been ordered are received and inspected d. serves as the basis for recording direct labor on a job cost sheet

b. process by which factory overhead is assigned to a cost object

Costs that are treated as assets until the product is sold are a. selling expenses b. product costs c. administrative expenses d. period costs

b. product cost

In job order costing, the amount of time spent by an employee on an individual job is recorded on a(n) a. in-and-out card b. time ticket c. pay stub d. employees' earnings record

b. time ticket

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 a. $12,400 b. $1,240 c. $12.40 d. $124

c. $12.40

In job order costing, the journal entry for the flow of direct labor costs into production consists of a a. debit to Work in Process and a credit to Wages Payable b. debit to Factory Overhead and a credit to Work in Process c. debit to Finished Goods and a credit to Wages Payable d. debit to Factory Overhead and a credit to Wages Payable

a. debit to work in process and a credit to wages payable

When Job 117 was completed, direct materials totaled $15,872; direct labor, $24,690; and factory overhead, $18,224. A total of 2,261 units were produced at a per-unit cost of a. $58,786 b. $26 c. $2,261 d. $40,562

b. $26

Adams Company is a manufacturing company that has worked on several production jobs during the first quarter of the year. The jobs for the quarter are as follows: Line Item Description Balance Job 356 $ 450 Job 357 1,235 Job 358 378 Job 359 689 Job 360 456 Jobs 356, 357, 358, and 359 were completed. Jobs 356 and 357 were sold at a profit of $500 on each job. What is the ending balance of Work in Process for Adams Company at the end of the first quarter? a. $3,208 b. $2,752 c. $456 d. $0

c. $456

If the balance of Work in Process on August 31 is $216,300, what was the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs? a. $118,400 b. $15,800 c. $166,500 d. $12,870

d. $12,870

In job order costing, when goods that have been ordered are received, the receiving department personnel count the goods, inspect the goods, and complete a a. sales invoice b. purchase order c. purchase requisition d. receiving report

d. receiving report