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topic 2 job costing

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202 accounting Quiz on topic 2 job costing, created by stevensae on 04/05/2015.
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Quiz by stevensae, updated more than 1 year ago
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Created by stevensae over 9 years ago
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Resource summary

Question 1

Question
In a job-order costing system, the journal entry to record the application of overhead cost to jobs would include:
Answer
  • Credit to MOH account
  • Credit to Work in Process inventory account
  • Debit to Cost of Goods Sold
  • a debit to the Manufacturing Overhead account

Question 2

Question
In a job-order costing system, the use of indirect materials would usually be recorded as a debit to:
Answer
  • Raw Materials
  • Work in Process
  • Manufacturing Overhead
  • Finished goods

Question 3

Question
In a job-order costing system, the entry to record depreciation on manufacturing equipment would include:
Answer
  • a debit to the Work in Process inventory account
  • a debit to the Depreciation Expense account
  • a credit to the Work in Process inventory account
  • a debit to the Manufacturing Overhead account

Question 4

Question
When applying manufacturing overhead to jobs, the formula to calculate the amount is as follows:
Answer
  • Predetermined overhead rate divided by the actual manufacturing overhead incurred on the particular job.
  • Predetermined overhead rate times the actual manufacturing overhead incurred on the particular job.
  • Predetermined overhead rate divided by the actual units of allocation base charged to the particular job.
  • Predetermined overhead rate times the actual units of allocation base charged to the particular job.

Question 5

Question
Which of the following companies would be most likely to use a job-order costing system rather than a process costing system?
Answer
  • Fast food restaurant
  • Shipbuilding
  • Crude oil refining
  • Candy making

Question 6

Question
Choice of allocation base should be made based on
Answer
  • The relative size of the base
  • the base's relation to direct labor
  • the base's activity
  • whether the base actually drives the cost being allocated

Question 7

Question
In a job-order costing system, the journal entry to record the application of overhead cost to jobs would include:
Answer
  • a credit to the Manufacturing Overhead account.
  • a credit to the Work in Process inventory account.
  • a debit to Cost of Goods Sold.
  • a debit to the Manufacturing Overhead account.

Question 8

Question
In a job-order costing system, the use of indirect materials would usually be recorded as a debit to:
Answer
  • raw materials
  • work in process
  • manufacturing overhead
  • finished goods

Question 9

Question
Which of the following is not a characteristic of Job-Order costing?
Answer
  • Many different products are produced each year
  • Products are manufactured to order
  • costs are traced or allocated to jobs
  • cost records must be maintained for each distinct product or job
  • manufacturing costs are assigned to products

Question 10

Question
MOH is applied to each job using a predetermined rate
Answer
  • True
  • False

Question 11

Question
Using a predetermined rate makes it possible to __________ total job costs sooner
Answer
  • Estimate
  • calculate
  • discard

Question 12

Question
When is actual overhead for the period known
Answer
  • the beginning of the period
  • the middle of the period
  • the end of the period

Question 13

Question
MOH is under-applied when
Answer
  • Applied OH is less than actual OH
  • Applied OH is greater than actual OH

Question 14

Question
MOH is over-applied when
Answer
  • Applied OH is less than actual OH
  • Applied OH is greater than actual OH

Question 15

Question
If you under-applied overhead you should ______ COGS, WIP, Finished goods
Answer
  • increase
  • decrease

Question 16

Question
If you over-applied overhead you should ______ COGS, WIP, Finished goods
Answer
  • increase
  • decrease

Question 17

Question
Assume that Tiger Co.'s overhead was $60,000 under-applied. This amount would result in an adjustment that would decrease COGS by $60,000.
Answer
  • True
  • False
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