Question 1

The amount of time spent by an employee in the factory is usually recorded on

Accepted Answer

Time spent by employees in the factory is usually recorded on time tickets to track the number of hours worked by each employee. Job order cost sheets are used to record the cost of manufacturing a specific product or completing a specific job. Employees' earnings records are used to document each employee's total earnings and deductions. The statement of owners' equity shows the changes in the owner's equity during a specific period of time.

Question 2

Which of the following is a period cost?

Accepted Answer

Period costs are expenses that are not directly tied to the production process and are expensed in the period in which they occur. The salary of a telephone receptionist in the sales office is a period cost because it is an administrative expense, not directly related to manufacturing the product.

Question 3

Which of the following would record the labor costs to an individual job?

Accepted Answer

Time tickets are used to record the labor costs incurred for an individual job, by noting the time spent by each employee working on that particular job. The other options are used for overall payroll and attendance tracking, but do not specifically record labor costs for individual jobs.

Question 4

The source document for the data for debiting Work in Process for direct materials is a

Accepted Answer

The materials requisition is the source document for debiting Work in Process for direct materials because it shows the materials that were used in the production process and the quantity used. The purchase order and purchase requisition are used to order materials from suppliers, and the receiving report is used to record the receipt of materials, but none of these documents provide the information needed to record direct materials used in production.

Question 5

In a job order cost accounting system,when goods that have been ordered are received,the receiving department personnel count,inspect the goods,and complete a

Accepted Answer

When goods are received in a job order cost accounting system, the receiving department personnel complete a receiving report. This report documents the quantity and condition of the goods received, and it serves as a basis for making entries into the accounting system. The other options (A, B, and D) are not applicable in this context.

Question 6

Selected accounts with amounts omitted are as follows ​
 ​
 If the balance of Work in Process on August 31 is $220,000,what was the amount debited to Work in Process for direct materials in August?

Accepted Answer

The answer of Selected accounts with amounts omitted are as...

Question 7

In a job order cost accounting system,the entry to record the flow of direct materials into production is to

Accepted Answer

The correct entry to record the flow of direct materials into production in a job order cost accounting system is to debit Work in Process and credit Materials. This reflects the movement of materials from inventory into the production process, increasing the Work in Process account and decreasing the Materials account.

Question 8

The Thomlin Company forecasts that total overhead for the current year will be $15,000,000 with 300,000 total machine hours.Year to date,the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours.If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead,as of this point in time (year to date),the overhead is

Accepted Answer

The answer of The Thomlin Company forecasts that total overhead...

Question 9

The entry to record the flow of direct labor costs into production in a job order cost accounting system is to

Accepted Answer

The direct labor costs are added to the Work in Process account, which represents the cost of the goods that are currently being manufactured. The credit to Wages Payable represents the liability that the company owes to its employees for their work. Together, these two accounts reflect the total cost of direct labor that has been incurred in producing the goods.

Question 10

Which of the following is a product cost?

Accepted Answer

Product costs are expenses directly related to creating a product or service. Drill bits used in the manufacturing process are a direct cost associated with production and thus a product cost. The other options are indirect costs and not directly linked to creating a product or service.

Question 11

The basis for recording direct and indirect labor costs incurred is a summary of the period's

Accepted Answer

Time tickets provide a record of the actual hours worked by employees or the amount of time spent on a particular job or task, which is used to calculate the direct labor cost. Indirect labor costs are recorded separately based on estimates or allocations, and may include salaries or wages for supervision, maintenance, or other support functions. Option A, job order cost sheets, are used to accumulate the direct materials and other direct costs for a specific job or order. Options C and D, employee earnings records and clock cards, provide information on the gross pay of employees and the hours they worked, but do not necessarily distinguish between direct and indirect labor costs.

Question 12

The details concerning the costs incurred on each job order are accumulated in a work in process account and supported by a

Accepted Answer

The costs incurred on each job order are accumulated in a cost ledger, which is a specialized accounting ledger that tracks the direct and indirect costs of production for each job. The work in process account is a sub-account within the cost ledger that tracks the costs of materials, labor, and overhead incurred on partially completed job orders. A stock ledger is used to track the inventory balances of raw materials, work in process, and finished goods. A materials ledger is also used to track the movements of raw materials and supplies. A creditors ledger is used to track the amounts owed to suppliers and vendors.

Question 13

The document authorizing the issuance of materials from the storeroom is a

Accepted Answer

A materials requisition is a document that authorizes the release of materials from the storeroom to the requesting department. A purchase requisition is a document used to request the purchase of goods or services. A receiving report is used to document the receipt of goods or services from a vendor. A purchase order is a document used to formally request goods or services from a vendor.

Question 14

The Thomlin Company forecasts that total overhead for the current year will be $15,500,000 with 250,000 total machine hours.Year to date,the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours.The predetermined overhead rate based on machine hours is

Accepted Answer

The predetermined overhead rate based on machine hours can be calculated by dividing the total overhead by the total machine hours.

The calculation will be:

Predetermined overhead rate = Total overhead / Total machine hours

= $15,500,000 / 250,000

= $62 per machine hour

Therefore, the answer is B, and the predetermined overhead rate based on machine hours is $62 per machine hour.

Question 15

At the end of July,the first month of the current fiscal year,the factory overhead account had a debit balance.Which of the following describes the nature of this balance and how it would be reported on the interim balance sheet?

Accepted Answer

The debit balance in the factory overhead account at the end of the month indicates that the actual overhead costs were higher than the overhead costs applied to the products. This situation is referred to as underapplied overhead. Since it is a debit balance, it is reported as a deferred debit on the interim balance sheet.

Question 16

The amount of time spent by an employee on an individual job are recorded on

Accepted Answer

Time tickets are specifically designed to record the amount of time the employee has spent on a particular job. Pay stubs typically display information on the employee's pay and deductions, and in-and-out cards may keep track of an employee's arrival and departure times, but do not necessarily record the time spent on specific tasks. Employees' earnings records may contain information on the employee's pay and hours worked, but not necessarily on individual job times.

Question 17

At the end of the fiscal year,the balance in Factory Overhead is small.The balance would be

Accepted Answer

The balance in Factory Overhead represents the amount of indirect manufacturing costs that have not been allocated to the product. At the end of the fiscal year, these costs have been incurred but not yet allocated to any specific job or product. Therefore, the balance in Factory Overhead should be transferred to Cost of Goods Sold as an expense for the current period.

Question 18

Each document in the cost ledger is called a

Accepted Answer

Each document in the cost ledger is called a job cost sheet, which contains information about the direct and indirect costs of a specific job or project. The other options (finished goods sheet, stock record, materials requisition) refer to different types of documents used in inventory management and production processes.

Question 19

At the end of the year,overhead applied was $42,000,000.Actual overhead was $40,300,000.Closing over / underapplied overhead into Cost of Goods Sold would cause net income to

Accepted Answer

The answer of At the end of the year,overhead applied...

Question 20

A summary of the materials requisitions completed during a period serves as the basis for transferring the cost of the materials from the controlling account in the general ledger to the controlling accounts for

Accepted Answer

The cost of materials is initially recorded in the Materials Control account, but it is necessary to transfer this cost to the appropriate manufacturing accounts (Work in Process and Factory Overhead) as materials are used in production. This is done based on the summary of materials requisitions, which indicates how much of each material was used in production. Therefore, option B is the correct choice as it involves both Work in Process and Factory Overhead accounts. Option A is incorrect because Cost of Goods Sold account is not involved in the transfer of cost of materials from materials control account. Option C is incorrect because Finished Goods account is not involved in the recording of the cost of raw materials used in production. Option D is incorrect because Work in Process and Finished Goods accounts are both inventory accounts, and the transfer of cost of materials relates only to the Work in Process account.

Quiz 16: Job Order Costing

The amount of time spent by an employee in the factory is usually recorded on

Which of the following is a period cost?

Which of the following would record the labor costs to an individual job?

The source document for the data for debiting Work in Process for direct materials is a

In a job order cost accounting system,when goods that have been ordered are received,the receiving department personnel count,inspect the goods,and complete a

Selected accounts with amounts omitted are as follows If the balance of Work in Process on August 31 is $220,000,what was the amount debited to Work in Process for direct materials in August?

In a job order cost accounting system,the entry to record the flow of direct materials into production is to

The entry to record the flow of direct labor costs into production in a job order cost accounting system is to

Which of the following is a product cost?

The basis for recording direct and indirect labor costs incurred is a summary of the period's

The details concerning the costs incurred on each job order are accumulated in a work in process account and supported by a

The document authorizing the issuance of materials from the storeroom is a

The Thomlin Company forecasts that total overhead for the current year will be $15,500,000 with 250,000 total machine hours.Year to date,the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours.The predetermined overhead rate based on machine hours is

At the end of July,the first month of the current fiscal year,the factory overhead account had a debit balance.Which of the following describes the nature of this balance and how it would be reported on the interim balance sheet?

The amount of time spent by an employee on an individual job are recorded on

At the end of the fiscal year,the balance in Factory Overhead is small.The balance would be

Each document in the cost ledger is called a

At the end of the year,overhead applied was $42,000,000.Actual overhead was $40,300,000.Closing over / underapplied overhead into Cost of Goods Sold would cause net income to

A summary of the materials requisitions completed during a period serves as the basis for transferring the cost of the materials from the controlling account in the general ledger to the controlling accounts for

Quiz 16: Job Order Costing

The amount of time spent by an employee in the factory is usually recorded on

Which of the following is a period cost?

Which of the following would record the labor costs to an individual job?

The source document for the data for debiting Work in Process for direct materials is a

In a job order cost accounting system,when goods that have been ordered are received,the receiving department personnel count,inspect the goods,and complete a

Selected accounts with amounts omitted are as follows ​ ​ If the balance of Work in Process on August 31 is $220,000,what was the amount debited to Work in Process for direct materials in August?

In a job order cost accounting system,the entry to record the flow of direct materials into production is to

The entry to record the flow of direct labor costs into production in a job order cost accounting system is to

Which of the following is a product cost?

The basis for recording direct and indirect labor costs incurred is a summary of the period's

The details concerning the costs incurred on each job order are accumulated in a work in process account and supported by a

The document authorizing the issuance of materials from the storeroom is a

The Thomlin Company forecasts that total overhead for the current year will be $15,500,000 with 250,000 total machine hours.Year to date,the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours.The predetermined overhead rate based on machine hours is

At the end of July,the first month of the current fiscal year,the factory overhead account had a debit balance.Which of the following describes the nature of this balance and how it would be reported on the interim balance sheet?

The amount of time spent by an employee on an individual job are recorded on

At the end of the fiscal year,the balance in Factory Overhead is small.The balance would be

Each document in the cost ledger is called a

At the end of the year,overhead applied was $42,000,000.Actual overhead was $40,300,000.Closing over / underapplied overhead into Cost of Goods Sold would cause net income to

A summary of the materials requisitions completed during a period serves as the basis for transferring the cost of the materials from the controlling account in the general ledger to the controlling accounts for

Selected accounts with amounts omitted are as follows If the balance of Work in Process on August 31 is $220,000,what was the amount debited to Work in Process for direct materials in August?