What type of costing system would a manufacturer of plywood use?

What type of costing system would a manufacturer of plywood use?

A) job costing
B) process costing
C) either job costing or process costing
D) both job costing and process costing


Answer: B

Which of the following companies is most likely to use job costing?

A) Exxon Mobil Oil Refinery
B) Elizabeth's Custom Furniture Company
C) DuPont Chemical Company
D) Kellogg's Cereal Company


Answer: B

________ is assigning costs such as direct materials and direct labor to products.

A) Cost assigning
B) Cost tracing
C) Cost allocation
D) None of the these


Answer: B

Which of the following is an example of an industry that would use a process costing system rather than a job costing system?

Which of the following is an example of an industry that would use a process costing system rather than a job costing system?

A) custom furniture
B) unique furniture accessories
C) paint
D) aircraft


Answer: C

What type of costing system would a manufacturer of luxury yachts use?

A) job costing
B) process costing
C) either job costing or process costing
D) both job costing and process costing


Answer: A

What type of businesses can use a job costing system?

A) service and manufacturing businesses
B) Service and merchandising businesses
C) manufacturing and merchandising businesses
D) Service, merchandising, and manufacturing businesses


Answer: D

Which of the following is correct with respect to closing out overapplied manufacturing overhead to Cost of Goods Sold versus

Which of the following is correct with respect to closing out overapplied manufacturing overhead to Cost of Goods Sold versus closing it out to Cost of Goods Sold and Finished Goods and Work in Process inventories?

A. The balance in the Work in Process account after allocation will be higher if the overapplied manufacturing overhead is closed out by allocating it to all appropriate accounts.
B. The balance in the Work in Process account after allocation will be the same under either method.
C. Net operating income will be higher if all of the overapplied manufacturing overhead is closed out to Cost of Goods Sold.
D. Cost of Goods Sold will be lower if the overapplied manufacturing overhead is closed out by allocating it to the inventory accounts as well as to Cost of Goods Sold.



Answer: C

The document used to accumulate the costs of a job is called the:

A) manufacturing overhead document.
B) job cost record.
C) labor time ticket.
D) materials inventory requisition form.


Answer: B

Overapplied manufacturing overhead occurs when:

A. applied overhead exceeds actual overhead.
B. applied overhead exceeds estimated overhead.
C. actual overhead exceeds estimated overhead.
D. budgeted overhead exceeds actual overhead.


Answer: A

Which costing system would better account for a unique individual product?

Which costing system would better account for a unique individual product?

A) job costing system
B) product costing system
C) process costing system
D) overhead costing system


Answer: A

What are the two basic types of costing systems? 

A) product costing and materials inventory costing
B) job costing and process costing
C) periodic costing and process costing
D) periodic costing and perpetual costing


Answer: B

The balance in the Work in Process account equals:

A. the balance in the Finished Goods inventory account.
B. the balance in the Cost of Goods Sold account.
C. the balances on the job cost sheets of uncompleted jobs.
D. the balance in the Manufacturing Overhead account.


Answer: C

Martinez Aerospace Company uses a job-order costing system. The direct materials for Job #045391 were purchased in July

Martinez Aerospace Company uses a job-order costing system. The direct materials for Job #045391 were purchased in July and put into production in August. The job was not completed by the end of August. At the end of August, in what account would the direct material cost assigned to Job #045391 be located?

A. Raw materials inventory
B. Work in process inventory
C. Finished goods inventory
D. Cost of goods manufactured


Answer: B

In a job-order costing system, indirect materials that have been previously purchased and that are used in production are recorded as a debit to:

A. Work in Process inventory.
B. Manufacturing Overhead.
C. Finished Goods inventory.
D. Raw Materials inventory


Answer: B

Which terms will make the following statement true? When manufacturing overhead is overapplied, the Manufacturing Overhead account has a balance and applied manufacturing overhead is greater than manufacturing overhead.

A. debit, actual
B. credit, actual
C. debit, estimated
D. credit, estimated


Answer: B

In a job-order costing system, direct labor cost is ordinarily debited to:

In a job-order costing system, direct labor cost is ordinarily debited to:

A. Manufacturing Overhead.
B. Cost of Goods Sold.
C. Finished Goods.
D. Work in Process.


Answer: D

In a job-order costing system, the use of direct materials that have been previously purchased is recorded as a debit to:

A. Raw Materials inventory.
B. Work in Process inventory.
C. Finished Goods inventory.
D. Manufacturing Overhead.


Answer: B

Which of the following accounts is debited when direct labor is recorded?

A. Work in process
B. Salaries and wages expense
C. Salaries and wages payable
D. Manufacturing overhead


Answer: A

In computing its predetermined overhead rate, Marple Company inadvertently left its indirect labor costs out of the computation

In computing its predetermined overhead rate, Marple Company inadvertently left its indirect labor costs out of the computation. This oversight will cause:

A. Manufacturing Overhead to be overapplied.
B. the Cost of Goods Manufactured to be understated.
C. the debits to the Manufacturing Overhead account to be understated.
D. the ending balance in Work in Process to be overstated.


Answer: B

Which of the following is the correct formula to compute the predetermined overhead rate?

A. Estimated total units in the allocation base divided by estimated total manufacturing overhead costs.
B. Estimated total manufacturing overhead costs divided by estimated total units in the allocation base.
C. Actual total manufacturing overhead costs divided by estimated total units in the allocation base.


Answer: D. Estimated total manufacturing overhead costs divided by actual total units in the allocation base.

Which of the following would probably be the least appropriate allocation base for allocating overhead in a highly automated manufacturer of specialty valves?

A. Machine-hours
B. Power consumption
C. Direct labor-hours
D. Machine setups

Answer: C