2203 Chapter 2

Which of the following costs are recorded directly into the Work in Process Inventory account?

• Direct materials

• Direct labor

• Indrect materials

• Direct materals AND Direct labor

• All of these

Job order costing

• is used by companies that make standardized products
• is used by companies that offer customized products
• is total costs divided by units produced
• is Direct Labor plus Direct Materials plus Manufacturing Overhead

Process costing

• is used by companies that make standardized products
• is used by companies that offer customized products
• is total costs divided by units produced
• is Direct Labor plus Direct Materials plus Manufacturing Overhead

Indirect costs

• can be easily and conveniently traced to a specific job
• canNOT be easily and conveniently traced to a specific job
• is when the actual overhead is less than the applied overhead
• is total costs divided by units produced

Predetermined Overhead Rate

• ACTUAL cost divided by ACTUAL cost driver
• ACTUAL cost divided by ESTIMATED cost driver
• ESTIMATED cost divided by ESTIMATED cost driver
• ESTIMATED cost divided by ACTUAL cost driver

When a job that has been in process is finished, it is moved from ______ to _______.

• Raw Materials Inventory to Work in Process Inventory
• Work in Process inventory to Finished Goods Inventory
• Work in Process Inventory to Cost of Goods Sold
• Finished Goods Inventory to Cost of Goods Sold

We use the Predermined Overhead Rate to allocate:

• Work in Process Inventory to Finished Goods Inventory
• Manufacturing Overhead to Finished Goods Inventory
• Manufacturing Overhead to Work in Process Inventory
• Indirect Labor to Manufacturing Overhead

Indirect costs are accumulated in which account to be applied to jobs?

• Raw Materials Inventory
• Work in Process Inventory
• Finished Goods Inventory
• Manufacturing Overhead

Job costs sheets are used

• to summarize the costs incurred on a specific job
• instead of materials requisition forms in most situations
• only if a job is started and completed in the same period
• to calculate the predermined overhead rate

Which company is most likely to use Job Order Costing?

• a custom bridal gown company
• a brewery
• a candy company
• a fidget spinner manufacturer