Question 1

Job order manufacturing is also known as:

Accepted Answer

Job order manufacturing is a type of manufacturing in which products are made to order based on the individual customer's specifications. This is also known as customized production, as it allows for unique and personalized products to be created. Mass production manufacturing and process manufacturing refer to large-scale production of standardized products, while unit manufacturing is not a commonly used term in the industry. Standard costing is a method of determining the cost of a product based on predetermined standards, and is not directly related to the type of manufacturing process used.

Question 2

A job order cost accounting system would best fit the needs of a company that makes:

Accepted Answer

A job order cost accounting system is used to track the costs of producing custom or unique products. Custom machinery would require a job order cost accounting system to track the specific costs of each individual job. Shoes and apparel, pencils and erasers are mass-produced products that would be better suited for a process cost accounting system. Paint and cement are also mass-produced, but may have slight variations in production and could potentially use a hybrid cost accounting system. However, custom machinery is the only option that specifically requires a job order cost accounting system.

Question 3

A job order manufacturing system would be appropriate for a company that produces which one of the following items?

Accepted Answer

The answer of A job order manufacturing system would be...

Question 4

A source document that production managers use to request materials for manufacturing and that is used to assign materials costs to specific jobs or to overhead is a:

Accepted Answer

A materials requisition is a source document used by production managers to request materials for manufacturing, and it is also used to assign materials costs to specific jobs or to overhead. A job cost sheet is a document used to track the costs associated with a specific job. A production order is a document used to authorize the manufacture of a specific quantity of a product. A materials purchase order is a document used to request materials from a supplier. A receiving report is a document used to record the receipt of goods from a supplier.

Question 5

A job cost sheet shows information about each of the following items except:

Accepted Answer

A job cost sheet typically includes information about direct labor costs, overhead costs, and direct materials costs assigned to the job. However, it typically does not include information about the costs incurred by the marketing department in selling the job. The name of the customer may or may not be included on the job cost sheet, depending on the company's record-keeping practices.

Question 6

Overapplied overhead is the amount by which overhead applied to jobs using the predetermined overhead allocation rate exceeds the overhead incurred during a period.

Accepted Answer

This is the correct definition of overapplied overhead.

Question 7

The job order cost sheets used by Garza Company revealed the following:  Job No.125 was completed during May and Jobs No.124 and 125 were shipped to customers in May.What was the company's cost of goods sold for May and the goods in process inventory on May 31?

Accepted Answer

The answer of The job order cost sheets used by...

Question 8

In comparison to a general accounting system for a manufacturing company, a cost accounting system places an emphasis on:

Accepted Answer

A cost accounting system is designed specifically to assess and control the costs associated with manufacturing. Unlike a general accounting system that focuses on total costs and periodic inventory counts, a cost accounting system places a much greater emphasis on unit costs and cost control. This allows manufacturers to allocate costs more effectively, ultimately leading to higher profitability in the long term. Additionally, a cost accounting system is particularly useful for large volume operations involving standardized products, which are commonplace in the manufacturing industry.

Question 9

A job cost sheet includes:

Accepted Answer

A job cost sheet typically includes the costs of direct materials, direct labor, and overhead. Therefore, choice D is the best choice as it includes only these three elements.

Question 10

A document in a job order cost accounting system that is used to record the costs of producing a job is a(n):

Accepted Answer

A job cost sheet is a document used in a job order cost accounting system to record the costs of producing a job. It contains information about direct materials, direct labor, and manufacturing overhead costs associated with a specific job. This information is then used to determine the total cost of producing the job and to determine the selling price of the finished product.

Question 11

A perpetual record of a raw materials item that records data on the quantity and cost of units purchased, units issued for use in production, and units that remain in the raw materials inventory is called a(n):

Accepted Answer

A materials ledger card is a perpetual record that tracks data on the quantity and cost of units purchased, units issued for use in production, and units that remain in the raw materials inventory. This record is important for keeping track of inventory levels and costs associated with raw materials. Materials requisitions, purchase orders, materials vouchers, and purchase ledgers are not specific records for tracking raw materials inventory.

Question 12

Overapplied or underapplied overhead should be removed from the Factory Overhead account at the end of each accounting period.

Accepted Answer

Overapplied or underapplied overhead is an adjustment required to accurately assign overhead costs to products. Any remaining balance should be removed from the Factory Overhead account and allocated to Cost of Goods Sold or other relevant accounts.

Question 13

Job order costing systems normally use:

Accepted Answer

The answer of Job order costing systems normally use:
...

Question 14

A type of manufacturing that produces customized products or services for each customer is called:

Accepted Answer

Job order manufacturing is the type of manufacturing that produces customized products or services for each customer. It involves producing products in small batches or even one at a time, and each product is designed to meet the specific needs and requirements of the individual customer.

Question 15

Cost accounting systems used by manufacturing companies are based on the:

Accepted Answer

Manufacturing companies typically use a perpetual inventory system to track costs of goods sold and inventory levels in real-time. This allows for a more accurate and timely recording of inventory costs and enables managers to make informed decisions about production and pricing. The other options listed, such as a periodic inventory system or specific inventory methods like LIFO or weighted average, are not necessarily indicative of the cost accounting system used by a manufacturing company.

Question 16

The production activities for a customized product represent a(n):

Accepted Answer

Customized products are typically produced in small quantities or even one at a time, making them suited to job production. Job production involves the production of a unique item, customized to individual customer specifications. Therefore, the production activities for a customized product represent a job.

Question 17

A system of accounting for manufacturing operations that produces timely information about inventories and manufacturing costs per unit of product is a:

Accepted Answer

A cost accounting system is designed to provide information about inventories and manufacturing costs per unit of product. It helps to track the costs of all the activities involved in making a product, including direct materials, direct labor, and manufacturing overhead costs. With this information, companies can make better decisions about pricing, production, and profitability.

Question 18

Dell Builders manufactures each house to customer specifications.It most likely would use:

Accepted Answer

Job order costing is used when a company produces customized products or services based on customer requests, which is the case for Dell Builders. The costs of each house can be tracked separately, and the company can charge the customer accordingly.

Question 19

Large aircraft manufacturers such as McDonnell Douglas normally use:

Accepted Answer

Job order costing is used when there are unique products or services that are produced in batches or on a one-time basis. Large aircraft manufacturers typically produce each plane as a unique product, so job order costing is the most appropriate costing method.

Question 20

Underapplied overhead is the amount by which overhead applied to jobs using the predetermined overhead allocation rate exceeds the overhead incurred during a period.

Accepted Answer

Underapplied overhead is the opposite - it is the amount by which overhead incurred exceeds the overhead applied to jobs using the predetermined overhead allocation rate.

Quiz 2: Job Order Costing and Analysis