Question 1

Match the terms with the definitions.
-The wages of employees who are directly involved in converting materials into finished goods.

Accepted Answer

Direct labor refers to the wages of employees who are directly involved in converting materials into finished goods.

Answer: E
 Factory overhead refers to all the indirect costs of production that can't be easily traced to specific products, such as rent, utilities, and supplies.

Answer: F
 The predetermined overhead rate is used to apply factory overhead costs to specific jobs or products based on a predetermined formula.

Answer: G
 Materials Inventory refers to the raw materials and supplies that are used in production.

Answer: I
 Indirect labor refers to the wages of employees who support the production process but aren't directly involved in converting materials into finished goods, such as maintenance workers and supervisors.

Answer: J
 The job cost ledger is used to track the direct and indirect costs of specific jobs or projects.

Answer: A
 A cost accounting system is a set of procedures and controls used to track and analyze costs throughout the production process.

Answer: H
 The finished goods ledger is used to track the costs associated with finished products that are ready for sale.

Answer: B 
 A daily time sheet is a record of the amount of time that employees spend on various tasks throughout the workday.

Answer: D
 Underapplied overhead occurs when the actual factory overhead costs are greater than the overhead costs that were applied to specific jobs or products.

Question 2

Match the terms with the definitions.
-The system that provides a separate record of the cost of each individual product or group of products that is produced.

Accepted Answer

A job order cost system provides a separate record of the cost of each individual product that is produced.

Question 3

Match the terms with the definitions.
-The account that includes all the materials (both direct and indirect) acquired to be used in production.

Accepted Answer

Materials Inventory is the account that includes all the materials acquired to be used in production.

Answer: A
 A cost accounting system is a system of accounting that includes all expenditures viz. direct labor, direct materials, and manufacturing overhead essential for running a business.

Answer: C
 Direct labor refers to the salary or wages paid to laborers who are directly involved in the production process.

Answer: E
 Factory overhead refers to all indirect costs incurred during the production process.

Answer: F
 Predetermined overhead rate is a fixed rate used to apply overhead costs to different job orders.

Answer: I
 Indirect labor refers to the salary or wages paid to laborers who are not directly involved in the production process.

Answer: J
 A job cost ledger is a record that tracks all the costs associated with a specific job order.

Answer: H
 A finished goods ledger is a record that tracks the costs and quantities of finished goods produced by a company.

Answer: D
 Underapplied overhead is a situation where the actual overhead costs incurred in the production process are less than the amount of overhead costs allocated using the predetermined overhead rate.

Question 4

Match the terms with the definitions.
-The account in which materials, labor, and overhead costs of producing a product are accumulated until the product is completed.

Accepted Answer

Work in Process is the account in which materials, labor, and overhead costs of producing a product are accumulated until the product is completed.

Answer: B
 Process cost system is a cost accounting system in which costs are assigned to each process or department for a set period of time.

Answer: C
 Overapplied overhead is the amount of overhead costs applied to production that exceeds the actual amount of overhead costs incurred.

Answer: D
 Direct materials are materials that can be traced directly to a specific product or job.

Answer: E
 Materials requisition is a document used to authorize the use of materials from the storeroom.

Answer: F
 Factory overhead subsidiary ledger is a record that shows the details of all factory overhead costs incurred for a specific period of time.

Answer: G
 Finished Goods Inventory is the account in which completed products are stored before they are sold.

Answer: H
 Materials ledger is a record that shows the details of all materials purchased and used for production.

Answer: I
 Job order cost system is a cost accounting system in which costs are assigned to individual jobs or products.

Answer: J
 Indirect materials are materials that are used in production but cannot be traced directly to a specific product or job.

Answer: K
 Job cost sheet is a document that shows the costs incurred for a specific job or product.

Question 5

Match the terms with the definitions.
-A form used to issue materials from the storeroom to production. It serves as both an authorization to the storekeeper to issue materials and a source document showing the movement of materials.

Accepted Answer

The term "materials requisition" matches the given definition of a form used to issue materials from the storeroom to production. It serves as both an authorization to the storekeeper to issue materials and a source document showing the movement of materials.

Question 6

Match the terms with the definitions.
-The subsidiary ledger that shows the quantity, cost, material received and issued, and resulting balance for each type of material.

Accepted Answer

The definition matches the materials ledger, which tracks the quantity, cost, and movement of materials received and issued, as well as the current balance for each type of material.

Answer: E
 A materials requisition is a document that shows the type and quantity of materials needed for a specific job or production order. It is used to transfer materials from the materials inventory to the production area.

Answer: F
 The factory overhead subsidiary ledger is a record that shows the details of each overhead cost incurred during the production process, including indirect labor, maintenance and repairs, utilities, and other expenses.

Answer: D
 Direct materials are those that can be easily traced to a specific job or production order, such as raw materials used in manufacturing a product. Direct materials are a direct cost of production.

Answer: J
 Indirect materials are materials that are used in the production process but cannot be easily traced to a specific job or production order. Examples include lubricants, cleaning supplies, and small tools.

Answer: G
 The Finished Goods Inventory account reflects the value of products that have been completed but not yet sold. It is part of the balance sheet for a manufacturing company.

Answer: I
 The job order cost system is used in manufacturing to track the cost of producing individual units or batches of products. In this system, costs are accumulated and assigned to a specific job or production order.

Answer: A
 Work in Process (WIP) is the inventory of partially completed products that are still being worked on in the production process. It includes the cost of materials, labor, and factory overhead associated with each job.

Answer: K
 A job cost sheet is a document that lists the direct materials, direct labor, and factory overhead incurred for each individual job or production order. It is used to monitor the cost and progress of each job.

Question 7

Match the terms with the definitions.
-Those materials used in the manufacturing process that do not become a major part of the finished product.

Accepted Answer

Indirect materials are materials used in the manufacturing process that do not become a major part of the finished product.

Question 8

Match the terms with the definitions.
-The subsidiary ledger in which a separate account for each product is kept.

Accepted Answer

The answer of Match the terms with the definitions.
-The subsidiary...

Question 9

Match the terms with the definitions.
-A system for accumulating detailed information regarding the cost of producing a product.

Accepted Answer

A cost accounting system is designed to accumulate detailed information about the costs associated with producing a product, including materials, labor, and overhead.

Question 10

Match the terms with the definitions.
-The rate used to apply overhead based on production activity (direct labor hours, direct labor costs, or machine hours) used because of the difficulties of relating specific costs to specific jobs.

Accepted Answer

The predetermined overhead rate is used to allocate overhead costs to products based on a consistent measure of production activity, such as direct labor hours, direct labor costs, or machine hours.

Question 11

Match the terms with the definitions.
-The difference between the overhead applied and the actual overhead cost incurred if the amount of applied overhead is greater than actual overhead cost incurred.

Accepted Answer

Overapplied overhead is the difference between the overhead applied and the actual overhead cost incurred if the amount of applied overhead is greater than actual overhead cost incurred.

Question 12

Match the terms with the definitions.
-A record of the time worked and labor cost incurred on each job.

Accepted Answer

A daily time sheet is used to record the time worked and labor cost incurred on each job.

Question 13

Match the terms with the definitions.
-Those materials that enter into and become a major part of the finished product.

Accepted Answer

Direct materials are the materials that enter into and become a major part of the finished product.

Answer: A
 Work in process refers to partially completed products that are still in the production process.

Answer: J
 Indirect materials are materials that are necessary for the production process but do not become a major part of the finished product.

Answer: E
 Materials requisition refers to the process of requesting materials needed for production.

Answer: G
 Finished Goods Inventory refers to the completed products that are ready for sale.

Answer: I
 Job order cost system is a method of costing where the costs are assigned to each individual job or order.

Answer: K
 Job cost sheet is a document that tracks the costs associated with a specific job or order.

Answer: B
 Process cost system is a method of costing used in industries where production is continuous and the products are homogeneous.

Answer: C
 Overapplied overhead refers to a situation where more overhead costs are allocated than actually incurred.

Answer: F
 Factory overhead subsidiary ledger is a document that tracks the factory overhead costs for a specific period of time.

Question 14

Match the terms with the definitions.
-A subsidiary ledger for the work in process control account that is made up of job cost sheets.

Accepted Answer

The job cost ledger is a subsidiary ledger for the work in process control account that is made up of job cost sheets.

Answer: A 
 The cost accounting system is a system used to track and analyze costs related to the production process.

Answer: B 
 A daily time sheet is used to track the time employees spend working on specific jobs or tasks.

Answer: C 
 Direct labor refers to the cost of labor directly involved in the production of a product or service.

Answer: D 
 Underapplied overhead refers to a situation where actual overhead costs are greater than the applied overhead costs in a given period.

Answer: E 
 Factory overhead refers to all the indirect costs associated with the production process, such as rent, utilities, and depreciation.

Answer: F 
 The predetermined overhead rate is a rate used to allocate factory overhead costs to specific jobs or products based on an estimated amount of activity.

Answer: G 
 Materials inventory refers to the cost of raw materials that have been purchased but not yet used in the production process.

Answer: H 
 The finished goods ledger is a subsidiary ledger used to track the cost of finished goods inventory.

Answer: I 
 Indirect labor refers to the cost of labor that is not directly involved in the production of a product or service, such as janitorial or maintenance staff.

Question 15

Match the terms with the definitions.
-The difference between the overhead applied and the actual overhead cost incurred if the amount of applied overhead is less than actual overhead cost incurred.

Accepted Answer

Underapplied overhead is the difference between the overhead applied and the actual cost incurred when the applied overhead is less than the actual overhead cost.

Question 16

Match the terms with the definitions.
-All manufacturing costs other than direct materials and direct labor.

Accepted Answer

Factory overhead refers to all manufacturing costs other than direct materials and direct labor, such as rent, utilities, and depreciation.

Answer: I 
 Indirect labor refers to employees who do not directly produce the product or service, such as maintenance workers or supervisors.

Answer: F 
 The predetermined overhead rate is calculated by dividing the estimated total factory overhead costs by the estimated total amount of the allocation base (such as direct labor hours or machine hours).

Answer: G 
 Materials inventory refers to the raw materials and supplies that a company has on hand to use in production.

Answer: C 
 Direct labor refers to the wages and salaries paid to employees who actually work on the product or service being produced.

Answer: D 
 Underapplied overhead occurs when a company applies less overhead to their products or services than what was actually incurred, resulting in a lower cost of goods sold and a higher gross profit.

Answer: J 
 The job cost ledger is used to track the costs incurred on a specific job or project, including direct materials, direct labor, and factory overhead.

Answer: A 
 A cost accounting system is used to track and analyze all the costs associated with producing a product or service, including indirect materials and indirect labor.

Answer: B 
 A daily time sheet is used to track the amount of time employees spend on different tasks, including direct labor on specific jobs or projects.

Answer: H 
 The finished goods ledger is used to track the costs and quantities of finished products that are ready to be sold to customers.

Question 17

Match the terms with the definitions.
-The wages and salaries of employees who devote their time to supervision or to work of a general nature.

Accepted Answer

Indirect labor refers to the wages and salaries of employees who are not directly involved in production but support the production process, such as supervisors or maintenance staff.

Quiz 26: Manufacturing Accounting: The Job Order Cost System

Match the terms with the definitions. -The wages of employees who are directly involved in converting materials into finished goods.

Match the terms with the definitions. -The system that provides a separate record of the cost of each individual product or group of products that is produced.

Match the terms with the definitions. -The account that includes all the materials (both direct and indirect) acquired to be used in production.

Match the terms with the definitions. -The account in which materials, labor, and overhead costs of producing a product are accumulated until the product is completed.

Match the terms with the definitions. -A form used to issue materials from the storeroom to production. It serves as both an authorization to the storekeeper to issue materials and a source document showing the movement of materials.

Match the terms with the definitions. -The subsidiary ledger that shows the quantity, cost, material received and issued, and resulting balance for each type of material.

Match the terms with the definitions. -Those materials used in the manufacturing process that do not become a major part of the finished product.

Match the terms with the definitions. -The subsidiary ledger in which a separate account for each product is kept.

Match the terms with the definitions. -A system for accumulating detailed information regarding the cost of producing a product.

Match the terms with the definitions. -The rate used to apply overhead based on production activity (direct labor hours, direct labor costs, or machine hours) used because of the difficulties of relating specific costs to specific jobs.

Match the terms with the definitions. -The difference between the overhead applied and the actual overhead cost incurred if the amount of applied overhead is greater than actual overhead cost incurred.

Match the terms with the definitions. -A record of the time worked and labor cost incurred on each job.

Match the terms with the definitions. -Those materials that enter into and become a major part of the finished product.

Match the terms with the definitions. -A subsidiary ledger for the work in process control account that is made up of job cost sheets.

Match the terms with the definitions. -The difference between the overhead applied and the actual overhead cost incurred if the amount of applied overhead is less than actual overhead cost incurred.

Match the terms with the definitions. -All manufacturing costs other than direct materials and direct labor.

Match the terms with the definitions. -The wages and salaries of employees who devote their time to supervision or to work of a general nature.