Chapter 3 Quiz
Which of the following is the correct flow of manufacturing costs? A. Raw materials, work in process, finished goods, cost of goods sold. B. Raw materials, finished goods, cost of goods sold, work in process C. Work in process, finished goods, raw materials, cost of goods sold. D. Cost of goods sold, raw materials, work in process, finished goods
A
Which of the following systems provides for a separate record of the cost of each particular quantity of product that passes through the factory? A. job order cost system B. general cost system C. replacement cost system D. process cost system
A
At the end of the fiscal year, the balance in Factory Overhead is small. The balance transferred to: A. Work in Processtransterred B. Cost of Goods Sold C. Finished Goods D. Allocated between Work in Process and Finished Goods
B
Which of the following would most likely use a job order costing system? A. a paper mill B. a swimming pool installer C. a company that manufactures chlorine for swimming pools D. an oil refinery
B
The details concerning the costs incurred on each job order are accumulated in a working process account and supported by a: A. Stock ledger B. Materials ledger C. Job cost sheet D. Creditors ledger
C
The Thomlin Company forecasts that total overhead for the current year will be $15,500,000 with 250,000 total machine hours. Year to date, the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours. The predetermined overhead rate based on machine hours is: A. $48 per machine hour B. $62 per machine hour C.$45 per machine hour D. $50 per machine hour
B
Which of the following are the two main types of cost accounting systems formanufacturing operations? A. process cost and general accounting systems B. job order cost and process cost systems C. job order and general accounting systems D. process cost and replacement cost systems
B
Which of the following is a period cost? A. Depreciation on factory lunchroom furniture. B. Salary of telephone receptionist in the sales office C. Salary of a security guard for the factory parking lot D. Computer chips used by a computer manufacturer
B
If the amount of actual factory overhead cost incurred exceeds the amount applied, the factory overhead account will be: A. Underapplied B. Understated C. Overapplied D. Overstated
A
Which of the following is not a characteristic of a job order costing system? A. It accumulates cost for each department within the factory. B. It provides a separate record for the cost of each quantity of product that passesthrough the factory. C. It is best suited for industries that manufacture custom goods D. It uses only one work in process account.
A
