ACCT 2101_CH2_TB_EXAM1

Which of the following would be used to record the labor cost that is traceable to a specific job? A. Raw Materials Inventory would be debited B. Work in Process Inventory would be debited C. Manufacturing Overhead would be debited D. Manufacturing Overhead would be credited

B. Work in Process Inventory would be debited

Which of the following would be used to record the property taxes on a factory building? A. Raw Materials Inventory would be debited B. Work in Process Inventory would be debited C. Manufacturing Overhead would be debited D. Manufacturing Overhead would be credited

C. Manufacturing Overhead would be debited

Which of the following would be used to record the usage of indirect manufacturing resources? A. Raw Materials Inventory would be debited B. Work in Process Inventory would be debited C. Manufacturing Overhead would be debited D. Manufacturing Overhead would be credited

C. Manufacturing Overhead would be debited

Which of the following would be used to record the depreciation of manufacturing equipment? A. Raw Materials Inventory would be debited B. Work in Process Inventory would be debited C. Manufacturing Overhead would be debited D. Manufacturing Overhead would be credited

C. Manufacturing Overhead would be debited

Which of the following would be used to record the factory supervisor's salary? A. Raw Materials Inventory would be debited B. Work in Process Inventory would be debited C. Manufacturing Overhead would be debited D. Manufacturing Overhead would be credited

C. Manufacturing Overhead would be debited

Which of the following would be used to record the labor cost that is not traceable to a specific job? A. Raw Materials Inventory would be debited B. Work in Process Inventory would be debited C. Manufacturing Overhead would be debited D. Manufacturing Overhead would be credited

C. Manufacturing Overhead would be debited

Which of the following would be used to apply manufacturing overhead to production for the period? A. Credit to Raw Materials Inventory B. Credit to Work in Process Inventory C. Debit to Manufacturing Overhead D. Credit to Manufacturing Overhead

D. Credit to Manufacturing Overhead

When units are completed, the cost associated with the job is debited to which account? A. Raw Materials Inventory B. Work in Process Inventory C. Finished Goods Inventory D. Cost of Goods Sold

C. Finished Goods Inventory

Cost of goods manufactured is the amount of cost transferred A. out of Finished Goods Inventory and into Cost of Goods Sold. B. out of Finished Goods Inventory and into Work in Process Inventory. C. out of Work in Process Inventory and into Manufacturing Overhead. D. out of Work in Process Inventory and into Finished Goods Inventory.

D. out of Work in Process Inventory and into Finished Goods Inventory.

Which of the following is incorrect regarding service firms? A. Each client or account is equivalent to a process in a process costing firm. B. The accounting system will track the time and resources spent serving a specific client or account. C Managers of service firms need cost information to price their services, to budget and control costs, and . to determine the profitability of different types of clients. D. The primary driver used to assign costs is billable hours.

A. Each client or account is equivalent to a process in a process costing firm.

In recording the purchase of materials that are not traced to any specific job, which of the following is correct? A. Raw Materials Inventory would be debited B. Work in Process Inventory would be debited C. Manufacturing Overhead would be debited D. Manufacturing Overhead would be credited

A. Raw Materials Inventory would be debited

Manufacturing overhead is applied to each job using which formula? A. Predetermined overhead rate x actual value of the allocation base for the job B. Predetermined overhead rate x estimated value of the allocation base for the job C. Actual overhead rate x estimated value of the allocation base for the job D. Predetermined overhead rate/actual value of the allocation base for the job

A. Predetermined overhead rate x actual value of the allocation base for the job

When direct materials are used in production, which of the following accounts is credited? A. Raw Materials Inventory B. Work in Process Inventory C. Finished Goods Inventory D. Cost of Goods Sold

A. Raw Materials Inventory

When materials are purchased, which of the following accounts is debited? A. Raw Materials Inventory B. Work in Process Inventory C. Finished Goods Inventory D. Cost of Goods Sold

A. Raw Materials Inventory

Which of the following accounts is not affected by applied manufacturing overhead? A. Raw Materials Inventory B. Work in Process Inventory C. Finished Goods Inventory D. Cost of Goods Sold

A. Raw Materials Inventory

When disposed of, underapplied manufacturing overhead will A. increase Cost of Goods Sold. B. increase Finished Goods. C. decrease Cost of Goods Sold. D. decrease Finished Goods.

A. increase Cost of Goods Sold.

Cost of goods sold is the amount of cost transferred A. out of Finished Goods Inventory and into Cost of Goods Sold. B. out of Work in Process Inventory and into Cost of Goods Sold. C. out of Work in Process Inventory and into Manufacturing Overhead. D. out of Work in Process Inventory and into Finished Goods Inventory.

A. out of Finished Goods Inventory and into Cost of Goods Sold.

Which of the following represents the cost of materials purchased but not yet issued to production? A. Raw Materials Inventory B. Work in Process Inventory C. Finished Goods Inventory D. Cost of Goods Sold

A.Raw Materials Inventory

Which of the following would be used to transfer the cost of completed goods during the period? A. Credit to Raw Materials Inventory B. Credit to Work in Process Inventory C. Debit to Manufacturing Overhead D. Credit to Manufacturing Overhead

B. Credit to Work in Process Inventory

Which of the following types of firms would most likely use job order costing? A. Happy-Oh Cereal Company B. Huey, Lewey & Dewie, Attorneys C. SoooSweet Beverage D. C-5 Cement Company

B. Huey, Lewey & Dewie, Attorneys

All the costs assigned to an individual job are summarized on a A. Cost driver sheet. B. Job cost sheet. C. Materials requisition form. D. Labor time ticket.

B. Job cost sheet.

The cost of materials used on a specific job is first captured on which source document? A. Cost driver sheet B. Materials requisition form C. Labor time ticket D. Process cost sheet

B. Materials requisition form

When direct materials are used in production, which of the following accounts is debited? A. Raw Materials Inventory B. Work in Process Inventory C. Finished Goods Inventory D. Cost of Goods Sold

B. Work in Process Inventory

When units are completed, the cost associated with the job is credited to which account? A. Raw Materials Inventory B. Work in Process Inventory C. Finished Goods Inventory D. Cost of Goods Sold

B. Work in Process Inventory

Which of the following represents the accumulated costs of jobs as yet incomplete? A. Raw Materials Inventory B. Work in Process Inventory C. Finished Goods Inventory D. Cost of Goods Sold

B. Work in Process Inventory

When materials are placed into production, A. Raw Materials Inventory is debited if the materials are traced directly to the job. B. Work in Process Inventory is debited if the materials are traced directly to the job. C. Manufacturing Overhead is debited if the materials are traced directly to the job. D Raw Materials Inventory is credited only if the materials are traced directly to the job, otherwise . manufacturing overhead is credited.

B. Work in Process Inventory is debited if the materials are traced directly to the job.

Which of the following would be used to apply manufacturing overhead to production for the period? A. Raw Materials Inventory would be debited B. Work in Process Inventory would be debited C. Manufacturing Overhead would be debited D. Work in Process Inventory would be credited

B. Work in Process Inventory would be debited

Overhead costs are overapplied if the amount applied to Work in Process is A. greater than estimated overhead. B. less than estimated overhead. C. greater than actual overhead incurred. D. less than actual overhead incurred.

C. greater than actual overhead incurred.

When units are sold, the cost associated with the units is credited to which account? A. Raw Materials Inventory B. Work in Process Inventory C. Finished Goods Inventory D. Cost of Goods Sold

C. Finished Goods Inventory

Which of the following represents the cost of jobs completed but not yet sold? A. Raw Materials Inventory B. Work in Process Inventory C. Finished Goods Inventory D. Cost of Goods Sold

C. Finished Goods Inventory

The source document that captures how much time a worker has spent on various jobs during the period is a A. Cost driver sheet. B. Materials requisition form. C. Labor time ticket. D. Job cost sheet.

C. Labor time ticket.

If a company uses a predetermined overhead rate, which of the following statements is correct? A. Manufacturing Overhead will be debited for estimated overhead B. Manufacturing Overhead will be credited for estimated overhead C. Manufacturing Overhead will be debited for actual overhead D. Manufacturing Overhead will be credited for actual overhead

C. Manufacturing Overhead will be debited for actual overhead

If materials being placed into production are not traced to a specific job, A. Raw Materials Inventory would be debited. B. Work in Process Inventory would be debited. C. Manufacturing Overhead would be debited. D. Manufacturing Overhead would be credited.

C. Manufacturing Overhead would be debited.

Which of the following types of firms would most likely use process costing? A. Superior Auto Body & Repair B. Crammond Custom Cabinets C. Sunshine Soft Drinks D. Jackson & Taylor Tax Service

C. Sunshine Soft Drinks

Service firms: A. tend to use a lot of direct materials in addition to billable hours. B. tend to incur few indirect costs that cannot be traced to specific clients or accounts. C. assign indirect costs to individual clients or accounts based on an allocation base such as billable hours. D. use process costing to assign costs to individual clients or accounts.

C. assign indirect costs to individual clients or accounts based on an allocation base such as billable hours.

When disposed of, overapplied manufacturing overhead will A. increase Cost of Goods Sold. B. increase Finished Goods. C. decrease Cost of Goods Sold. D. decrease Finished Goods.

C. decrease Cost of Goods Sold.

When units are sold, the cost associated with the units is debited to which account? A. Raw Materials Inventory B. Work in Process Inventory C. Finished Goods Inventory D. Cost of Goods Sold

D. Cost of Goods Sold

Which of the following represents the cost of the jobs sold during the period? A. Raw Materials Inventory B. Work in Process Inventory C. Finished Goods Inventory D. Cost of Goods Sold

D. Cost of Goods Sold

Which of the following is a characteristic of a manufacturing environment that would use job order costing? A. Standardized production process B. Continuous manufacturing C. Homogenous products D. Differentiated products

D. Differentiated products

A predetermined overhead rate is calculated using which formula? A. Actual manufacturing overhead cost/estimated units in the allocation base B. Estimated units in the allocation base/estimated manufacturing overhead cost C. Estimated manufacturing overhead cost/actual units in the allocation base D. Estimated manufacturing overhead cost/estimated units in the allocation base

D. Estimated manufacturing overhead cost/estimated units in the allocation base

When manufacturing overhead is applied to production, which of the following accounts is credited? A. Raw Materials Inventory B. Work in Process Inventory C. Finished Goods Inventory D. Manufacturing Overhead

D. Manufacturing Overhead

Overhead costs are underapplied if the amount applied to Work in Process is A. greater than estimated overhead. B. less than estimated overhead. C. greater than actual overhead incurred. D. less than actual overhead incurred.

D. less than actual overhead incurre

The most common method for disposing of over- or underapplied overhead is to A. recalculate the overhead rate for the period. B. recalculate the overhead rate for the next period. C. make a direct adjustment to Work in Process Inventory. D. make a direct adjustment to Cost of Goods Sold.

D. make a direct adjustment to Cost of Goods Sold.

Underapplied overhead means A. too little overhead was applied to raw materials. B. actual overhead is greater than estimated overhead. C. finished goods will need to be credited. D. there is a debit balance remaining in the overhead account.

D. there is a debit balance remaining in the overhead account.