Practice Test -ACT 120

Which of the following would be accounted for using a job order cost system?

• The production of personal computers

• The production of automobiles

• The refining of petroleum

• The construction of a new campus building

As of December 31, 2008, Stand Still Industries had $1,500 of raw materials inventory. At the beginning of 2008, there was $1,200 of materials on hand. During the year, the company purchased $183,000 of materials; however, it paid for only $175,500. How much inventory was requisitioned for use on jobs during 2008?

• $175,200

• $182,700

• $183,300

• $175,800

The flow of costs in a job order cost system

• involves accumulating manufacturing costs incurred and assigning the accumulated costs to work done.

• cannot be measured until all jobs are complete.

• measures product costs for a set time period.

• generally follows a LIFO cost flow assumption.

When a job is completed and all costs have been accumulated on a job cost sheet, the journal entry that should be made is

• Finished Goods Inventory Direct Materials Direct Labor Manufacturing Overhead

• Work In Process Inventory Direct Materials Direct Labor Manufacturing Overhead

• Raw Materials Inventory Work In Process Inventory

• Finished Goods Inventory Work In Process Inventory

Manufacturing Overhead would not have a subsidiary account for

• utilities.

• property taxes.

• insurance.

• raw materials inventory.

Job cost sheets constitute the subsidiary ledger for the

• Finished Goods Inventory account.

• Cost of Goods Sold account.

• Work In Process Inventory account.

• Cost of Goods Manufactured account.

A materials requisition slip showed that direct materials requested were $53,000 and indirect materials requested were $9,000. The entry to record the transfer of materials from the storeroom is

• Work In Process Inventory53,000 Raw Materials Inventory53,000

• Direct Materials53,000 Indirect Materials9,000 Work in Process Inventory62,000

• Manufacturing Overhead62,000 Raw Materials Inventory62,000

• Work In Process Inventory53,000 Manufacturing Overhead9,000 Raw Materials Inventory62,000

Under an effective system of internal control, the authorization for issuing materials is made

• orally.

• on a prenumbered materials requisition slip.

• by the accounting department.

• by anyone on the production line.

Which one of the following should be equal to the balance of the work in process inventory account at the end of the period?

• The total of the amounts transferred from raw materials for the current period

• The sum of the costs shown on the job cost sheets of unfinished jobs

• The total of manufacturing overhead applied to work in process for the period

• The total manufacturing costs for the period

Which one of the following is a source document that impacts the job cost sheet?

• Raw materials receiving slips

• Materials purchase orders

• Labor time tickets

• Finished goods shipping documents