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WorksheetsQUIZ 1 : TOPIC 8 [JOB ORDER COSTING]
Total questions: 20
Worksheet time: 17mins
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 product with unique characteristics
it uses a periodic inventory system
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
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 ticket and predetermined overhead rate
materials requisition form, time tickets and the actual overhead costs
materials requisition form, payroll register and the predetermined overhead rate
materials requisition form, time tickets and the predetermined overhead rate
The formula for computing the predetermined overhead rate is an estimated manufacturing overhead costs divided by an estimated basis of activity, expressed as
direct labour costs
direct labour hour
machine hours
any of the above
At the end of accounting period, a company using job order costing calculate the costs of goods manufactured :
from time tickets
from the work in process inventory account
by adding direct materials used, direct labour incurred and manufacturing overhead incurred
from the cost of goods sold account
Manufacturing overhead is underapplied if :
actual overhead is less than applied overhead
actual overhead is greater than applied overhead
the predetermined overhead rate equals the actual rate
actual overhead equals applied overhead
In a job order costing system, what is the order that goods are transferred through the conversion process?
Raw materials, work in process, finished goods
Work in process, raw materials, finished goods
Raw materials, direct labor, manufacturing overhead
Raw materials, manufacturing overhead, direct labor
At which stage of the manufacturing process would direct labour costs be applied?
Raw materials
Work in Process
Finished goods
Costs of goods sold
Which one of the following is NOT a component of the job order costing system?
direct materials
direct labour
manufacturing overhead
advertising expenses
Job order costing is one of the costing methods that can be used when the product is produced based on customer orders or specifications.
True
False
All manufacturing costs recorded in the job cost sheet will be transferred to a finished goods inventory at the end of accounting period.
True
False
Job cost sheets are used to track and record manufacturing costs to compute and allocate costs to products.
True
False
A job produced is normally for a short period and every job is charged with its own costs.
True
False
Job order costing is used by the companies that manufactured homogeneous products.
True
False
Predetermined overhead rate is a relationship between estimated overhead costs and actual basis of activity
True
False
Predetermined overhead rate is calculated before the period begins.
True
False
Material costs in job order costing must all come from the same department. True or False?
True
False
Which company would most likely use job order costing?
Service Company
Beverage Company
Oil Company
Cereal Company
Which of the following is the correct statement represents job costing
Only includes Prime Cost
To provide selling price of the product
To calculate Cost unit based single job order
To identify the cost of productions
