Deck 12: Job-Order, Process, and Hybrid Costing Systems

Question 1

The application of estimated manufacturing overhead to jobs is:

A) An asset exchange transaction.
B) An asset source transaction.
C) An asset use transaction.
D) A claims exchange transaction.

Answer 1

A
Feedback: The application of estimated manufacturing overhead to jobs increases the asset account Work in Process Inventory and decreases the temporary asset account Manufacturing Overhead.As such,it is an asset exchange transaction.

Question 2

A hybrid cost system contains:

A) Features of a job-order cost system.
B) Features of a process cost system.
C) Features of both variable and absorption cost systems.
D) Features of both job-order and process cost systems.

Answer 2

D
Feedback: Many companies use hybrid costing systems.Hybrid systems combine features of both process and job-order costing systems.

Question 3

All of the following are source documents used in job order cost systems except:

A) Time card.
B) Standard cost card.
C) Work ticket.
D) Materials requisition.

Answer 3

B
Feedback: As each job moves through production,detailed cost information is recorded on the job cost sheet.That information includes the direct materials (from materials requisition forms),direct labor (from work tickets,which are also called time cards),and overhead (applied using the predetermined overhead rate)relating to the job.

Question 4

The source document used to record the amount of time worked by an employee on a job is called the:

A) Requisition sheet.
B) Pay stub.
C) Job cost sheet.
D) Work ticket.

Question 5

All of the following transactions lead to an entry on the job cost sheet except:

A) Indirect material used on the job.
B) A materials requisition for material used on a job.
C) Work ticket for direct labor incurred on the job.
D) Application of estimated overhead to the job.

Question 6

In a job-order cost system,the subsidiary accounts for the work in processWork in Process Inventory account are the:

A) Standard cost cards.
B) Job cost sheets.
C) Individual accounts payable accounts.
D) Cost of production report.

Question 7

Which of the following accounts is reported on the balance sheet?

A) Raw materials inventoryRaw Materials Inventory.
B) Work in Pprocess Iinventory.
C) Finished Ggoods Iinventory.
D) All of these.

Question 8

Select the incorrect statement regarding cost flows through a job-order cost system.

A) Product costs are accumulated separately by job.
B) The job order cost system is patterned after the physical flow of products as they move through the production process.
C) The three inventory accounts used are maintained on a perpetual basis.
D) Costs are averaged for all jobs produced within a department.

Question 9

A process cost system would be appropriate for all of the following except:

A) Production of gasoline.
B) Manufacture of smart phones.
C) Services provided by public accounting firm.
D) Manufacture of granola bars.

Question 10

In which of the following industries would a job-order cost system most likely be used?

A) Oil refinery
B) Small appliances manufacturer
C) Construction of cell towers
D) Beverage manufacturer

Question 11

An example of a product or /service that would most likely be accounted for using a process cost system would be:

A) Vitamin manufacturer.
B) Printing services.
C) Manufacturer of motor homes.
D) Auto repair services.

Question 12

In a job-order cost system,as goods are produced,product costs (direct material,direct labor,and overhead)are accumulated in the:

A) Work in Pprocess Inventory account.
B) Raw Materials Inventory account.
C) Finished Ggoods Inventory account.
D) Cost of Ggoods Ssold account.

Question 13

All of the following are asset exchange events except:

A) Purchase of raw materials with cash.
B) Use of raw materials in production.
C) Cost of shipping goods to customers.
D) Payment of production wages.

Question 14

The use of raw materials in production is:

A) An asset source transaction.
B) An asset use transaction.
C) An asset exchange transaction.
D) A claims exchange transaction.

Question 15

A materials requisition in a job-order cost system is used as a:

A) A source document for assigning costs to individual departments.
B) A subsidiary account for recording the materials used on each job.
C) Request form for getting the necessary materials from the materials store room.
D) A means of ordering materials from outside suppliers.

Question 16

Select the incorrect statement regarding cost flows through a process cost system.

A) The process cost system is patterned after the physical flow of products as they move through the production process.
B) The three inventory accounts used are maintained on a perpetual basis.
C) Product costs are accumulated separately by job.
D) A separate work in process account is maintained for each department or process.

Question 17

At the time indirect materials are issued to production,the balance in the:

A) The balance in the manufacturing overheadManufacturing Overhead account will decrease.
B) The balance in the work in process inventoryWork in Process Inventory account will increase.
C) The balance in the raw materials inventoryRaw Materials inventory account will increase.
D) The balance in the manufacturing overheadManufacturing Overhead account will increase.

Question 18

Which product costing system distributes costs evenly across total production?

A) Process cost system
B) Job order cost system
C) Standard cost system
D) Variable cost system

Question 19

Which of the following is incorrect regarding a job-order cost system?

A) Unit cost is determined for each product or job.
B) Source documents are used to assign costs to the subsidiary accounts.
C) Costs are accumulated for homogenous products that are produced through a continuous process.
D) Costs may be accumulated for a batch of work that contains many units of a product.

Question 20

A process cost system is used when:

A) Homogenous items are produced in a continuous flow production process.
B) Batches of identical inventory items are produced.
C) A company produces unique,one-of-a-kind inventory items.
D) All of these.

Question 21

The entry to record cost of selling a particular job in a job-order costing system would include a:

A) Debit to finished goods inventoryFinished Goods Inventory and a credit to cost of goods soldCost of Goods Sold.
B) Debit to cost of goods soldCost of Goods Sold and a credit to finished goods inventoryFinished Goods Inventory.
C) Debit to cost of goods soldCost of Goods Sold and a credit to Wwork in Pprocess Inventory.
Capitalize account name
Done.JMF
D) Credit to Wwork in Pprocess Inventory and a debit to finished goodsFinished Goods Inventory.
Capitalize account
Done.JMF
Capitalize account name
Done.JMF
Capitalize account
Done.JMF

Question 22

An iIndirect material:

A) Is an overhead cost.
B) Is a product cost.
C) Does not need to May be accounted for using the perpetual a periodic method.
Reworded since the term periodic method is not used in chapter
D) All of these.
Reworded since the term periodic method is not used in chapter

Question 23

Which source document provides information for the journal entry to transfer costs from the work in process inventoryWork in Process Inventory account to the finished goods inventoryFinished Goods Inventory account?

A) Job cost sheet
B) Work ticket
C) Standard cost card
D) Materials requisition

Question 24

Needham Company uses a job order cost system.During the month of September,the company worked on three jobs.The job order cost sheets for the three jobs contained the following information at the end of September: $\begin{array}{|l|r|r|r|}\hline & {\text { Job A }} & {\text { Job B }} &{\text { Job C }} \\\hline \text { Beginning Balances } & \$ 4,000 & \$ 3,000 & \$ 6,000 \\\hline \text { Direct Materials } & 1,000 & 1,600 & 2,000 \\\hline \text { Direct Labor } & 2,400 & 4,600 & 1,800 \\\hline\end{array}$ The company applies overhead at 120% of direct labor cost. The total cost of Job A at the end of September was:

A) $6,280.
B) $10,280.
C) $16,280.
D) $11,720.

Question 25

Payment of cash for production workers' wages is:

A) An asset exchange transaction.
B) An asset source transaction.
C) An asset use transaction.
D) A claims exchange transaction.

Question 26

Langdon Company experienced an accounting event that affected its financial statements as indicated below: $\begin{array}{|c|c|c|c|c|c|c|c|c|c|}\hline \text { Assets } & = & \text { Liab. } & + & \text { Equity } & \text { Rev. } & - & \text { Exp. } & = & \text { Net Inc. } \\\hline(250) & = & \mathbf{n} / \mathbf{a} & + & (250) & \mathbf{n} / \mathbf{a} & - & 250 & = & (250) \\\hline\end{array}$ Which of the following transactions could have caused the indicated effects on the company's accounting equation?

A) Goods transferred from work in process to finished goods.
B) Allocation of underapplied overhead to cost of goods sold.
C) Collection of account receivable.
D) Allocation of overapplied overhead to cost of goods sold.

Question 27

The work in process account for Chambers Company contained the following entries: Debit of $80,000 for direct raw materials
Debit of $120,000 for direct labor
Debit of $60,000 for manufacturing overhead
Ending balance,$84,000,associated with Job #2
The company uses a job-order cost system.Work was only performed on two jobs during the period.The beginning balance in work in process was zero.What was the cost of Job #1,which was started and completed during the period?

A) $180,000
B) $148,000
C) $132,000
D) $176,000

Question 28

Recognition of revenue from sale of finished goods is:

A) An asset use transaction.
B) An asset exchange transaction.
C) An asset source transaction.
D) A claims exchange transaction.

Question 29

The purchase of raw materials for cash is:

A) An asset source transaction.
B) An asset exchange transaction.
C) An asset use transaction.
D) A claims exchange transaction.

Question 30

Needham Company uses a job order cost system.During the month of September,the company worked on three jobs.The job order cost sheets for the three jobs contained the following information at the end of September: $\begin{array}{|l|r|r|r|}\hline & {\text { Job A }} & {\text { Job B }} &{\text { Job C }} \\\hline \text { Beginning Balances } & \$ 4,000 & \$ 3,000 & \$ 6,000 \\\hline \text { Direct Materials } & 1,000 & 1,600 & 2,000 \\\hline \text { Direct Labor } & 2,400 & 4,600 & 1,800 \\\hline\end{array}$ The company applies overhead at 120% of direct labor cost. If Job B was sold for $16,000,what was the amount of gross margin for this job? (Ignore any consideration of overunderapplied- or overunderapplied overhead. )

A) $6,800
B) $5,880
C) $1,280
D) $14,720

Question 31

Preston Manufacturing is working on two housing projects.Overhead is applied on the basis of direct labor hours.At the beginning of the year,the company estimated that overhead would be $64,000 and 10,000 direct labor hours would be worked.Both projects were started and completed in the current accounting period.The following transactions were completed during the period: (a)Used $10,000 of direct material on Project I and $6,800 of direct material on Project II.
(b)Labor costs for the two jobs amounted to the following: Project I,$24,000 (2,000 hours);Project II,$44,000 (6,000 hours).
(c)Project II was sold during the period for $120,000.
The amount of estimated overhead applied to work in process inventoryWork in Process Inventory for the period equals: (Do not round your intermediate calculation. ):

A) $51,200.
B) $64,000.
C) $54,400.
D) $44,000.

Question 32

When manufacturing overhead is applied to production in a job order cost system,the accounting records would reflect an increase in which of the following accounts?

A) Work in Pprocess Inventory
B) Cost of Ggoods Ssold
C) Finished Ggoods Inventoryinventory
D) Raw Mmaterials inventory Inventory

Question 33

If overhead was overapplied during the accounting period by an insignificant amount,the The entry to close the Mdispose of overapplied manufacturing Ooverhead account will include a:

A) Debit to cost of goods soldCost of Goods Sold and a credit to manufacturing overheadManufacturing Overhead.
B) Debit to cost of goods soldCost of Goods Sold and a credit to finished goodsFinished Goods Inventory.
C) Debit to manufacturing overheadManufacturing Overhead and a credit to cost of goods soldCost of Goods Sold.
D) Debit to finished goodsFinished Goods Inventory and a credit to manufacturing overheadManufacturing Overhead.

Question 34

Cooper Manufacturing is currently working on two jobs.The job order cost sheets for Job 101 and Job 102 showed the following information: $\begin{array}{|l|r|r|}\hline & \text { Job } 101 & {\text { Job } 102} \\\hline \text { Direct Materials } & \$ 12,000 & \$ 15,000 \\\hline \text { Direct Labor } & 24,000 & 45,000 \\\hline\end{array}$ If overhead is applied to jobs at $0.80 per direct labor dollar,the total manufacturing cost for the two jobs would be:

A) $96,000.
B) $55,200.
C) $151,200.
D) $162,000.

Question 35

Ringgold Company experienced an event that affected its financial statements as indicated below: $\begin{array}{|c|c|c|c|c|c|c|c|c|c|c|c|}\hline & \text { Assets }&&= & \text { Liab. } & + & \text { Equity } & \text { Rev. } & - & \text { Exp. } & = & \text { Net Inc. } \\\hline \text { Mfg. } & + & \text { WIP } & & & & & & & & \\\text { OH }& &\text { Inv. }\\\hline (1,200)& + & (1,200) &= & \mathrm{n} / \mathbf{a} & +&\mathrm{n} / \mathrm{a} & \mathrm{n} / \mathrm{a} & -&\mathrm{n} / \mathrm{a} & = & \mathrm{n} / \mathrm{a} \\\hline\end{array}$ Which of the following accounting events caused the indicated effects on the company's accounting equation?

A) Actual overhead cost was incurred
B) Underapplied overhead was written off
C) Estimated overhead was charged to production
D) None of these.

Question 36

Which event results in the transfer of product costs from the balance sheet to the income statement?

A) Purchase of materials
B) Sale of goods
C) Production of goods
D) Application of estimated manufacturing overhead to job

Question 37

The purchase of raw materials on account is:

A) An asset use transaction.
B) An asset exchange transaction.
C) An asset source transaction.
D) A claims exchange transaction.

Question 38

Needham Company uses a job order cost system.During the month of September,the company worked on three jobs.The job order cost sheets for the three jobs contained the following information at the end of September: $\begin{array}{|l|r|r|r|}\hline & {\text { Job A }} & {\text { Job B }} &{\text { Job C }} \\\hline \text { Beginning Balances } & \$ 4,000 & \$ 3,000 & \$ 6,000 \\\hline \text { Direct Materials } & 1,000 & 1,600 & 2,000 \\\hline \text { Direct Labor } & 2,400 & 4,600 & 1,800 \\\hline\end{array}$ The company applies overhead at 120% of direct labor cost. During September Job B was completed,and it was sold in October.At the end of September the total cost in work in process was:

A) $36,960.
B) $22,240.
C) $26,400.
D) None of these.

Question 39

Frank Company experienced an event that affected its financial statements as indicated below: $\begin{array}{|c|c|c|c|c|c|c|c|c|c|}\hline \text { Assets } & = & \text { Liab. } & + & \text { Equity } & \text { Rev. } & - & \text { Exp. } & = & \text { Net Inc. } \\\hline 5,000 & = & \mathrm{n} / \mathrm{a} & + & 5,000 & 5,000 & - & \mathrm{n} / \mathrm{a} & = & 5,000 \\\hline\end{array}$ Which of the following transactions caused the indicated effects?

A) Completed units were sold.
B) Units were completed and moved to finished goods.
C) The cost of units sold was recorded.
D) None of these.

Question 40

The entry to record the completion of a job in a job costing system would cause:

A) An increase to the cost of goods manufactured account.
B) An increase in net income.
C) An increase to the cost of goods soldCost of Goods Sold account.
D) A decrease to the work in process inventoryWork in Process Inventory account.

Question 41

Which of the following is not an approach to compute equivalent whole units?

A) Weighted average.
B) Last-in-first-out.
C) First-in-first-out.
D) All of these can be used.

Question 42

Which of the following is not a component of process cost systems?

A) Multiple work in process accounts.
B) Cost of production report.
C) Job cost sheet.
D) None of these.

Question 43

Select the correct formula for computing the cost to be assigned to ending inventory in a process costing system.

A) Ending inventory equivalent units × cost per equivalent unit
B) Ending inventory units × cost per equivalent unit
C) Beginning inventory cost + transferred-in costs
D) Beginning inventory units + units transferred in - units transferred out

Question 44

Select the correct formula for computing equivalent whole units for the period under the weighted average approach.

A) Equivalent whole units = Uunits transferred
B) Equivalent whole units = Uunits transferred + (Eending inventory units × Ppercentage complete)
C) Equivalent whole units = Uunits transferred + Eending inventory units
D) Equivalent whole units = (Uunits transferred + Eending inventory units)× Ppercentage complete

Question 45

Garst Manufacturing is working on two jobs.Cost is accumulated under a job order cost system,and overhead is applied on the basis of direct labor hours.The company estimated that overhead would be $64,000 and 10,000 direct labor hours would be worked.Both projects were started and completed in the current accounting period.The following transactions were completed during the period: (a)Used $10,000 of direct material on Project I and $6,800 of direct material on Project II.
(b)Labor costs for the two jobs amounted to the following: Project I,$24,000 (2,000 hours);Project II,$44,000 (6,000 hours).
(c)Project II was sold during the period for $120,000.
The ending balance in work in process was:

A) $34,000.
B) $0.
C) $46,800.
I agree with this answer.
OK)JMF
I computed both ways - just this project and then the full WIP analysis less project II.Both ways ended up with this amount.I changed the correct answer accordingly.(And,it makes no sense that the ending WIP is zero since Project I is in it. )Please recheck my solution.
See above.JMF
D) $136,000.
I agree with this answer.
OK)JMF
I computed both ways - just this project and then the full WIP analysis less project II.Both ways ended up with this amount.I changed the correct answer accordingly.(And,it makes no sense that the ending WIP is zero since Project I is in it. )Please recheck my solution.
See above.JMF

Question 46

Marion Company uses process costing and the weighted average method.The following information was available for April: $\begin{array}{|l|r|l|}\hline & {\text { Units }} & \text { Costs } \\\hline \text { Work in Process, April 1 } & 100 & \$ 3,000 \\\hline \text { Work in Process, April 30 } & 200 & (\mathrm{~A}) \\\hline\end{array}$ During April,1,000 units were started,and costs incurred during the month were $37,000.Ending inventory was 50% complete.Based on the information given, (A)above would equal what amount?

A) $8,000
B) $3,000
C) $4,000
D) $3,300

Question 47

Kidd Company uses a process cost system and the weighted average method.The company had 800 units of product in its work in process inventory at the beginning of the period.During the period 3,000 additional units of product were started.At the end of the period there were 1,500 units of product in the work in process account.The ending work in process inventory was estimated to be 30% complete.The beginning work in process inventory had a balance of $4,000.Product costs totalingThere were $84,000 of product costs were added to work in process during the period.The amount of cost in ending work in process inventory is:

A) $33,600.
B) $48,000.
C) $14,400.
D) $8,400.

Question 48

Cameron Company uses a process cost system and the weighted average method to account for its production.The following information was available for August: $\begin{array}{|l|r|l|}\hline & \text { Units } & \text { Costs } \\\hline \text { Work in Process, August 1 } & 100 & \$ 2,990 \\\hline \text { Work in Process, August 31 } & 200 & (\mathrm{~A}) \\\hline\end{array}$ During the month,800 units were started into production,and $5,000 in costs were incurred.Ending inventory was 50% complete.The cost of the units transferred out would be (Do not round your intermediate calculations.Round your final answer to the nearest dollar):

A) $6,392.
B) $5,000.
C) $5,085.
D) None of these.

Question 49

Gaither Company uses a process cost system and the weighted average method.The following data applies to January 2014. $\begin{array}{|l|r|}\hline &{\text { Units }} \\\hline \text { Beginning Work in Process } & 2,500 \\\hline \text { Started during the period } & 25,000 \\\hline \text { Ending Work in Process } & 1,000 \\\hline\end{array}$ The ending work in process inventory is 90% complete.The total number of equivalent whole units for processed during January was:

A) 25,600.
B) 26,500.
C) 27,500.
D) 27,400.

Question 50

O'Hare Company,is a manufacturing firm that uses a job-order cost system to determine the costs of its products.During 2014the current accounting period,O'Hare used $1,200 of direct raw materials for job #132.The recognition of this event would reflect an increase in which of the following accounts?

A) Work in Pprocess Iinventory
B) Finished Ggoods Iinventory
C) Raw materials inventoryRaw Materials Inventory
D) Cost of Ggoods Ssold

Question 51

Equivalent units of production would best be defined as: I realize the bold word in text is "equivalent whole units" - However,given the wording of the LO,I have not inserted the word "whole" anywhere.

A) The number of whole units that could have been completed with direct material,direct labor and overhead used during the period.
B) Completed units that are produced through the same process.
C) Number of units transferred out during the period,regardless of when the units were started into production.
D) Units of production that are the same kind of product.
I realize the bold word in text is "equivalent whole units" - However,given the wording of the LO,I have not inserted the word "whole" anywhere.

Question 52

Link Company uses a process cost system and the weighted average method.During the year Link Companythe company completed 1,300 units of product.Ending inventory consisted of 400 units that were 50% complete.The total dollar cost associated with production of inventory was $90,000.The cost per equivalent whole unit would be which of the following?

A) $54.00
B) $69.22
C) $60.00
D) $83.82

Question 53

Bates Manufacturing uses a job order cost system,and overhead is applied on the basis of direct labor hours.At the beginning of the period,the company estimated that overhead would be $64,000 and 10,000 direct labor hours would be worked.Two projects were started and completed in the current accounting period.The following transactions were completed during the period: (a)Used $10,000 of direct material on Project I and $6,800 of direct material on Project II.
(b)Labor costs for the two jobs amounted to the following: Project I,$24,000 (2,000 hours);Project II,$44,000 (6,000 hours).
(c)Project II was sold during the period for $120,000.
The company's gross margin for the period was: (Do not round your intermediate calculation. ):

A) $30,800.
B) $18,000.
C) $89,200.
D) $69,200.

Question 54

O'Hare Company,is a manufacturing firm that uses a job-order cost system to determine the costs of its products.On January 1,2014,O'Hare purchased $3,000 of raw materials with cash.The entry to record the purchase of raw materials would:

A) Increase total assets.
B) Decrease total assets.
C) Have no impact on total assets.
D) Decrease net income.

Question 55

Gibbons Company uses a process cost system and the weighted average method.The company had 400 units of product in its work in process inventory at the beginning of the period.During the period 1,500 additional units of product were started.At the end of the period there were 750 units of product in the work in process account.The ending work in process inventory was estimated to be 30% complete.The beginning work in process inventory had a cost of $2,000.There wereProduct costs totaling $42,000 of product costs were added to work in process during the period.The number of equivalent whole units in ending work in process is:

A) 450.
B) 750.
C) 1,275.
D) 225.

Question 56

The Neptune Corporation uses a process cost system and the weighted average method.The company started March with 2,300 units in work in process-Dept.A.During the month 4,000 units were started.At the end of the month there were 3,200 units in ending work in process-Dept.A inventory that were 30% complete.The beginning work in process balance was $120,270 and total manufacturing cost for the period was $304,000.Based on this information,the amount of cost transferred from work in process-Dept.A to work in process-Dept.B was:

A) $323,950.
B) $127,281.
C) $271,667.
D) $100,320.

Question 57

Select the incorrect statement regarding the recognition of depreciation on manufacturing equipment.

A) Recognizing depreciation on manufacturing equipment is an asset exchange event.
B) Depreciation on manufacturing equipment is an indirect product cost.
C) Recognizing depreciation on manufacturing equipment decreases the equipment's book value and increases the manufacturing overheadManufacturing Overhead account.
D) If the equipment was used to work on a job,the amount of depreciation must be entered on the appropriate job cost sheet.

Question 58

Select the incorrect statement regarding the cost of production report.

A) The report consists of two sections,a units section and a costs section.
B) The report is produced monthly by job or batch.
C) The cost inputs on the report come from the work in process account.
D) The report indicates the cost of units transferred out.

Question 59

Which of the following statements regarding a process cost system is

A) Use of a process cost system would be appropriate for a company that manufactures luxury yachts.
B) Unit costs are computed for each department.
C) The number of equivalent whole units for a period takes into account the stage of completion of ending work in process inventory.
D) Unit cost is determined for a designated period of time.

Question 60

Bruce Company experienced an event that affected its financial statements as indicated below: $\begin{array}{|c|c|c|c|c|c|c|c|c|c|c|c|}\hline & \text { Assets }&&= & \text { Liab. } & + & \text { Equity } & \text { Rev. } & - & \text { Exp. } & = & \text { Net Inc. } \\\hline \text { Mfg. } & + & \text { WIP } & & & & & & & & \\\text { Mixing }& &\text { Packing }\\\hline (10,500)& + & (10,500) &= & \text { NA } & +&\text { NA } &\text { NA } & -&\text { NA }& = & \text { NA }\\\hline\end{array}$ What type of product costing system is being used by this company?

A) Job-order cost system
B) Hybrid cost system
C) Process cost system
D) None of these.

Question 61

O'Hare Company,is a manufacturing firm that uses a job-order cost system to determine the costs of its products.O'Hare Company sold job #132,that cost $5,900 to manufacture,for $8,200 cash.The job cost sheet for that job reported total manufacturing costs of $5,900.The recognition of this event on the financial statements would include a(n):

A) Decrease to tTotal assets and total equity.
B) Decrease to tTotal lLiabilities.
C) Increase to tTotal assets,total equity and net income.
D) Decrease to net income.

Question 62

O'Hare Company,is a manufacturing firm that uses a job-order cost system to determine the costs of its products.During 2014the current accounting period,O'Hare recognized cost of goods sold of $4,850 for job #132.The recognition of this event will include a decrease to which of the following accounts?:

A) Cost oOf Goods Sold.
B) Production Supplies.
C) Work iIn Process Inventory.
D) Finished Goods Inventory.

Question 63

O'Hare Company,is a manufacturing firm that uses a job-order cost system to determine the costs of its products.During 2014the current accounting period,O'Hare transferred total product costs for job #132,to finished goods inventory.The recognition of this event would:

A) Increase total assets.
B) Decrease total assets.
C) Reduce net income.
D) Have no impact on total assets.

Question 64

Job-order cost systems are used by many service businesses;process cost systems are not applicable to service businesses.

Question 65

O'Hare Company,is a manufacturing firm that uses a job-order cost system to determine the costs of its products.During 2014the current accounting period,O'Hare paid $2,100 to production employees who worked on job #132.The entry to record these wages would include an increase to which :of the following accounts? Which of
This is how it reads in final view.No change needed.JMF

A) Cost of Ggoods Ssold.
B) Work in Pprocess Iinventory.
C) Finished Ggoods Iinventory.
D) Wage Eexpense.
Which of
This is how it reads in final view.No change needed.JMF

Question 66

In a job-order cost system,each department has a work in process account.

Question 67

O'Hare Company,is a manufacturing firm that uses a job-order cost system to determine the costs of its products.O'Hare Company counted the production supplies on hand at year-end and determined that the amount used was $125.The recognition of this event on the financial statements would include an increase to which of the following accounts?: Delete the ","
Done JMF

A) Supply Eexpense.
B) Work in Pprocess Inventory.
C) Manufacturing Ooverhead.
D) Finished Ggoods Inventory.
Delete the ","
Done JMF

Question 68

Which of the following items is provided on a work ticket?

A) Job-number
B) Employee identification
C) Work description
D) All of these.

Question 69

Both job-order and process costing require cost averaging procedures.

Question 70

Process costing is used for products produced in mass quantities through a continuous process that provides similar inputs to each unit produced.

Question 71

In 2014During the current accounting period,O'Hare Company paid $2,300 for selling and administrative expenses.Payment of cash for selling and administrative expenses is:

A) An asset exchange transaction.
B) An asset source transaction.
C) An asset use transaction.
D) A claims exchange transaction.

Question 72

Job-order and process cost systems are used only in the United States.

Question 73

During 2014the current accounting period,O'Hare applied $14,500 of estimated overhead cost to production.Actual overhead costs were $14,325.Assuming that the balance in the Manufacturing Overhead is insignificant,tThe recognition of these transactions to close that account will: This makes the explanation much easier

A) Decrease cost of goods sold and increase stockholder's equity.
B) Increase cost of goods sold.
C) Decrease stockholder's equity.
D) Decrease total assets and total liabilities.
This makes the explanation much easier

Question 74

In a job-order cost system,the inventory accounts generally are maintained on a perpetual basis.

Question 75

O'Hare Company,is a manufacturing firm that uses a job-order cost system to determine the costs of its products.During 2014the current accounting period,O'Hare applied estimated manufacturing overhead costs of $1,550 to job #132.Which of the following statements regarding this transaction is correct?

A) Work in process inventory decreases.
B) Net income decreases.
C) Manufacturing overhead decreases.
D) Total equity increases.

Question 76

Job-order and process cost systems are two different costing systems that a company chooses between based on the preference of management.

Question 77

Drummond Company provides customized computer training to employees of large corporations.What kind of costing system should Drummond use?

A) Standard costing
B) Process costing
C) Job-order costing
D) None of these.

Question 78

O'Hare Company,is a manufacturing firm that uses a job-order cost system to determine the costs of its products.During 2014the current accounting period,O'Hare recognized depreciation of $600 on manufacturing equipment.Which of the following describes the effect of this event on the accounting equation?

A) Total assets and total equity are unaffected.
B) Both total assets and total equities increase.
C) Total assets and net income decrease.
D) Total assets increase and net income increase.

Question 79

O'Hare Company,is a manufacturing firm that uses a job-order cost system to determine the costs of its products.During 2014the current accounting period,O'Hare paid $700 for equipment rental and other indirect costs.The recognition of this event would:

A) Decrease total assets.
B) Increase total assets.
C) Reduce net income.
D) Have no impact on total assets.

Question 80

The Purina Company would use a job-order costing system to account for the costs of making its premium dog food.