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| 1 | |
Which of the following is characteristic of a job order cost accounting system? |
| | A) | It records manufacturing activities using a perpetual inventory system. |
| | B) | It tracks cost by job. |
| | C) | It is best suited for customized products. |
| | D) | All of the above. |
| | E) | None of the above. |
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| 2 | |
Which of the following manufacturers is most likely to use a job order cost accounting system? |
| | A) | A soft drink producer. |
| | B) | A flour mill. |
| | C) | A gold mining operation. |
| | D) | A builder of offshore oil rigs. |
| | E) | All of the above. |
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| 3 | |
Which of the following would be considered factory overhead using a job order cost system? |
| | A) | Direct materials. |
| | B) | Direct labor. |
| | C) | Depreciation on factory buildings. |
| | D) | Salesperson's salary. |
| | E) | None of the above. |
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| 4 | |
In a job order cost accounting system, which account would be debited when raw materials are purchased for use in production? |
| | A) | Factory Overhead. |
| | B) | Goods in Process Inventory. |
| | C) | Raw Materials Inventory. |
| | D) | Accounts Payable. |
| | E) | None of the above. |
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| 5 | |
In a job order cost accounting system, which account would be debited when raw materials are transferred into production? |
| | A) | Finished Goods Inventory. |
| | B) | Goods in Process Inventory. |
| | C) | Factory Overhead. |
| | D) | Raw Materials Inventory. |
| | E) | None of the above. |
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| 6 | |
Which of the following is true about the Factory Payroll account? |
| | A) | It is debited to accrue wages that are utilized in production. |
| | B) | It is credited to transfer the labor to a specific job. |
| | C) | It is treated as a temporary account, which holds the cost until it can be allocated to the proper balance sheet account. |
| | D) | It should not have a balance at the end of the accounting period. |
| | E) | All of the above. |
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| 7 | |
In a job order cost accounting system, which account would be credited when time tickets related to a specific job are recorded? |
| | A) | Factory Payroll. |
| | B) | Factory Overhead. |
| | C) | Finished Goods Inventory. |
| | D) | Goods in Process Inventory. |
| | E) | None of the above. |
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| 8 | |
Which of the following would be considered a major aim of a job order costing system? |
| | A) | To determine the costs of producing each job or lot. |
| | B) | To compute the cost per unit. |
| | C) | To include separate records for each job in order to track the costs. |
| | D) | All of the above. |
| | E) | None of the above. |
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| 9 | |
Which of the following costs would flow through the Factory Overhead account? |
| | A) | Indirect materials. |
| | B) | Indirect labor. |
| | C) | Supervisory salaries of production staff. |
| | D) | Depreciation on factory equipment. |
| | E) | All of the above. |
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| 10 | |
The predetermined overhead rate is $12.00 per direct labor hour. Job 213 required 420 direct labor hours of which 300 hours were incurred during the current accounting period. How much overhead should be applied to Job 213 during the current accounting period? |
| | A) | $2,556. |
| | B) | $5,040. |
| | C) | $3,600. |
| | D) | $8,640. |
| | E) | None of the above. |
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| 11 | |
Which of the following is not true about a cost accounting system? |
| | A) | A cost accounting system can be a job order costing system. |
| | B) | A cost accounting system provides information about per unit costs. |
| | C) | A cost accounting system provides little useful information to assist managers in controlling costs. |
| | D) | A cost accounting system uses the perpetual inventory concept. |
| | E) | A cost accounting system can be a process costing system. |
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| 12 | |
If management predicts total direct labor costs of $100,000 and total overhead costs of $200,000, what is the predetermined overhead rate based on direct labor costs? |
| | A) | 50%. |
| | B) | 100%. |
| | C) | 200%. |
| | D) | Cannot be determined. |
| | E) | None of the above. |
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| 13 | |
Job G34 was unfinished at the end of the accounting period. The total cost assigned to the job is $48,000 of which $12,000 is direct material. Factory overhead is allocated to goods in process at 125% of direct labor cost. What was the amount of direct labor charged to Job G34? |
| | A) | $12,000. |
| | B) | $16,000. |
| | C) | $36,000. |
| | D) | Cannot be determined from information given. |
| | E) | Can be determined but is not shown above. |
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| 14 | |
The total cost to produce one unit is $600. Direct materials are 20% of the total cost, and direct labor is 1/3 of the combined total of direct labor and direct materials. What was the cost for direct materials, direct labor, and factory overhead? |
| | A) | $420, $60, and $120, respectively. |
| | B) | $60, $120, and $420, respectively. |
| | C) | $120, $60, and $420, respectively. |
| | D) | $60, $420, and $120, respectively. |
| | E) | None of the above. |
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| 15 | |
The underapplied balance of the Factory Overhead account is $27,000, a significant amount. The ending balances of Goods in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold accounts are $15,000, $12,000, and $54,000, respectively. On the basis of ending balances, how much of the underapplied balance should be allocated to each of these accounts? (Use a percentage with one decimal place. Such as 10.1%) |
| | A) | $4,000, $5,000, $18,000. |
| | B) | $18,000, $5,000, $4,000. |
| | C) | $18,000, $4,000, $5,000. |
| | D) | $4,995, $3,996, $18,009. |
| | E) | None of the above. |
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