MBA 700 Test #3
Juarez Builders incurred $285,000 of labor costs for construction jobs completed during the month of August, of which $212,000 was direct and $73,000 was indirect supervisory costs. The correct journal entry to record the $73,000 indirect labor for the month is:
Debit Factory Overhead; credit Factory Wages Payable
Materials requisitioned to Work In Process and Manufacturing Overhead departments amounted totally to $20,000, of which $15,000 belongs to Direct Materials and the remaining belongs to Indirect Materials. A Journal Entry to record this transaction would include:
Debit to Work in Process by $15,000
Which of the following is not a feature of job order production?
High production volume.
Large custom aircraft manufacturers normally use:
Job order costing
Which of the following product situations is better suited to job order costing than to process costing?
The costs are easily traced to a specific product.
A document used to assign direct labor costs to individual jobs and track how much time employees spend on each job is called a:
Time ticket
A job order costing system is most likely used by which of the following?
an accounting firm specializing in tax returns
Which of the following is a prime cost?
direct labor
The activity base for service industries is most likely to be ________.
direct labor hours
During production, to what are the costs in job order costing applied?
each individual product
Which of the following is a conversion cost?
factory depreciation expenses
Which document lists the total direct labor used in a specific job?
job cost sheet
Which document lists the total direct materials used in a specific job?
job cost sheet
Which document shows the cost of direct materials, direct labor, and overhead applied for each specific job?
job cost sheet
In a job order cost system, indirect labor incurred is debited to which account?
manufacturing overhead
In a job order cost system, utility expense incurred is debited to which account?
manufacturing overhead
In a job order cost system, which account shows the overhead used by the company?
manufacturing overhead
Which document lists the inventory that will be removed from the raw materials inventory?
materials requisition form
In a job order cost system, raw materials purchased are debited to which account?
raw materials inventory
The balance in the Work in Process Inventory account at any point in time equals:
the sum of the manufacturing costs for all jobs in process but not yet completed.
Assigning indirect costs to specific jobs is completed by which of the following?
using the predetermined overhead rate
In a job order cost system, overhead applied is debited to which account?
work in process inventory
