Cost Accounting 1

Direct material costs are

• Prime and conversion costs

• Prime and manufacturing costs

• Conversion and manufacturing costs

• Prime, conversion and manufacturing costs

Utilities expense incurred in production facilities (e.g., water, heat and light) is classified as

• Factory overhead

• Period cost

• Prime cost

• Administrative overhead

Actual, normal and standard cost systems may be used in conjunction with

• Process costing only

• Job order costing only

• Either job order or process costing

• Neither job order nor process costing

Which one is most likely to use process costing in accounting for production costs?

• Road builder

• Electrical contractor

• Newspaper publisher

• Automobile repair shop

In job order cost system, direct labor costs usually are recorded initially as an increase in

• Factory overhead applied

• Factory overhead control

• Finished goods

• Work in process

In job order costing, the application of Factory Overhead would be reflected in the general ledger as an increase in

• Factory overhead control

• Finished goods

• Work in process

• Cost of goods sold

In a well controlled materials system, the Purchasing agent performs the following activities except the

• placing of purchase orders with suppliers

• receiving of purchase requisitions

• approving and checking invoices

• preparation of purchase order

The receiving department does all of the following except:

• unloads and unpacks incoming materials

• keeps informed concerning sources of supply, prices, and delivery schedules

• matches materials received with descriptions on purchase orders

• arranges for inspection, when necessary

The purchasing department performs all of the following functions except:

• compares quantities received with the suppliers' packing list

• receives purchase requisitions for materials

• keeps informed concerning sources of supply, prices and delivery schedules

• prepares and places purchase orders

In a job order cost system, the use of direct materials previously purchased usually is recorded as an increase in:

• Work in process

• Factory overhead control

• Factory overhead applied

• Materials Inventory