Job Order Costing Quiz

What are the two main types of cost accounting systems for manufacturing operations?

• Job order cost systems and standard cost systems

• Job order cost systems and process cost systems

• Process cost systems and service cost systems

• Standard cost systems and process cost systems

What is the primary document for tracking the costs associated with a given job in a job-order costing system?

• Job-cost sheet

• Time ticket

• Employee time ticket

• Materials requisition form

If a factory is a labour intensive, which one that appropriate as an allocation base for the predetermined overhead rate (POHR) in a job-order costing system?

• Direct labor hours

• Direct machine hours

• Numbers of direct material

• Total labor cost

What will a company do if actual and applied overhead are not equal in a job-order costing system?

• Make no adjustment

• Adjust the cost of goods sold

• Allocate the difference to work in process

• Close the difference to the factory overhead account

What is the purpose of using a job order cost accounting system for decision making?

• All of the above

• To accumulate and record product costs by jobs

• To compare total and unit product costs

• To compare costs over time

What is included in factory overhead costs in a job-order costing system?

• Direct materials and direct labor

• Indirect materials and indirect labor

• Direct labor and factory power

• Direct materials and factory depreciation

What account is increased for direct material cost, direct labor cost, and applied factory overhead cost in a job-order costing system?

• Factory overhead

• Work in process

• Finished goods

• Cost of goods sold

What is the purpose of using a predetermined factory overhead rate in a job-order costing system?

• To estimate total factory overhead costs

• All of the above

• To allocate factory overhead to production

• To compare actual and applied overhead

What is the journal entry to record the supplier's invoice related to a receiving report in a job-order costing system?

• Debit raw materials, credit accounts payable

• Debit work in process, credit accounts payable

• Debit factory overhead, credit accounts payable

• Debit finished goods, credit accounts payable

What is the purpose of selling and administrative expenses in a job-order costing system?

• To manage the manufacturing function

• To manage the company

• To manage the selling function

• To market and deliver the product