Acct 2920 Ch 8 Quiz

Which companies are most likely to use a job costing system?

• Soda bottling company
• Construction company
• Accounting firm
• Chemical producer
• Screen printer

Which costing method uses applied manufacturing overhead to determine product costs?

• Actual costing
• Normal costing
• Standard costing

Which would be the most appropriate cost driver in a highly automated manufacturing environment?

• Direct labor hours
• Direct labor dollars
• Machine hours
• Miles driven

All job costs are accumulated on which document?

• Job cost sheet
• Bill of materials
• Materials requisition
• Employee timesheet

The total of all job cost sheets supports the balance in which inventory account?

• Raw Materials inventory
• WIP inventory
• Finished goods inventory
• Merchandise inventory

The budgeted OH rate times the actual activity is equal to

• Estimated overhead
• Actual overhead
• Applied overhead
• Total overhead

What effect does underapplied overhead have on the financials?

• Increase Cost of goods sold
• Decrease Cost of goods sold
• Increase Net income
• Decrease Net income

A company requisitions direct and indirect materials to be used in production. Which accounts are used in the entry to record this transaction?

• Raw Materials inventory
• WIP inventory
• Finished goods inventory
• MOH Control
• Accounts payable

A company pays the factory supervisor their monthly salary. Which accounts are used in the entry to record this transaction?

• WIP inventory
• MOH Control
• Salaries expense
• Cash
• Salaries payable

A company applies overhead to jobs that were worked on during the month. Which accounts are used in the entry to record this transaction?

• MOH Control
• Cost of good sold
• WIP inventory
• Finished goods inventory
• Accounts payable