ACCT 2302 Exam 1

A company that produces a high volume of standardized units would normally use a job order costing system

• True

• False

Job order costing would be appropriate for companies that produce custom-made furniture.

• True

• False

The total costs on job cost sheets for jobs that are yet not completed equals the balance in the Finished Goods Inventory account

• True

• False

The total costs on job cost sheets for jobs that are yet not completed equals the balance in the Work in Process Inventory account.

• True

• False

The Factory Overhead account will have a debit balance at the end of the period if overhead applied during the period is greater than the overhead incurred.

• True

• False

If overhead is underapplied, it means that individual jobs have been charged too much overhead during the year and the cost of goods sold reported is too high.

• True

• False

Period Costs for a manufacturing company, such as general and administrative expenses, reduce inventory accounts and as a result increase cost of goods sold.

• True

• False

Under a job order costing system, individual jobs are charged with actual overhead costs when they are transferred to finished goods.

• True

• False

If actual overhead incurred during a period exceeds applied overhead, the difference will be a debit balance in the Factory Overhead account at the end of the period.

• True

• False

Both direct and selling costs are recorded on individual job cost sheets.

• True

• False