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WorksheetsCHAPTER 5 & 7
Total questions: 10
Worksheet time: 5mins
A company is more likely to use a job order cost system if:
it manufactures a large volume of similar products
its production is continuous.
it manufactures products with unique characteristics.
it uses a periodic inventory system.
In accumulating raw materials costs, companies add the cost of raw materials purchased in a perpetual system to:
Raw Materials Purchases.
Raw Materials Inventory.
Purchases.
Work in Process.
Raw materials are assigned to a job when:
the job is sold.
the materials are purchased.
the materials are received from the vendor.
the materials are issued by the materials storeroom.
The source of information for assigning costs to job cost sheets are:
invoices, time tickets, and the predetermined overhead rate.
materials requisition slips, time tickets, and the actual overhead costs.
materials requisition slips, payroll register, and the predetermined overhead rate.
materials requisition slips, time tickets, and the predetermined overhead rate.
In recording the issuance of raw materials in a job order cost system, it would be incorrect to:
increase Work in Process Inventory.
increase Finished Goods Inventory.
increase Manufacturing Overhead.
decrease Raw Materials Inventory.
The formula for computing the predetermined manufacturing overhead rate is estimated annual overhead costs divided by estimated annual operating activity, expressed as:
direct labor cost.
direct labor hours.
machine hours.
Any of the above.
In Crawford Company, the predetermined overhead rate is 80% of direct labor cost. During the month, Crawford incurs $210,000 of factory labor costs, of which $180,000 is direct labor and $30,000 is indirect labor. Actual overhead incurred was $200,000. The amount of overhead added to Work in Process Inventory should be:
$200,000.
$144,000.
$168,000.
$160,000.
Mynex Company completes Job No. 26 at a cost of $4,500 and later sells it for $7,000 cash. A correct recording is:
increase Finished Goods Inventory $7,000 and decrease Work in Process Inventory $7,000.
increase Cost of Goods Sold $7,000 and decrease Finished Goods Inventory $7,000.
increase Finished Goods Inventory $4,500 and decrease Work in Process Inventory $4,500.
increase Accounts Receivable $7,000 and increase Sales Revenue $7,000.
Manufacturing overhead is underapplied if:
actual overhead is less than applied.
actual overhead is greater than applied.
the predetermined rate equals the actual rate.
actual overhead equals applied overhead.
The flow of costs in job order costing:
begins with work in process inventory and ends with finished goods inventory.
begins as soon as a sale occurs.
parallels the physical flow of materials as they are converted into finished goods.
is necessary to prepare the cost of goods manufactured schedule.
