Question 1

Depreciation expense on factory equipment is part of factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 2

A(n)  _____ provides product costs for each quantity of a product that is manufactured.

Accepted Answer

A)   process costing
B)   job order costing
C)   activity based costing
D)   DuPont costingE) B) and D)
F) B) and C)

Question 3

The sale of a finished good on account would:

Accepted Answer

A)   decrease Cost of Goods Sold and increase Finished Goods.
B)   increase Cost of Goods Sold and decrease Finished Goods; increase Accounts Receivable and increase Sales.
C)   increase Sales Expense and decrease Finished Goods; decrease Cash and decrease Accounts Receivable.
D)   increase Work-in-Process and decrease Finished Goods; increase Accounts Receivable and increase Sales.E) C) and D)
F) B) and C)

Question 4

Which of the following are the two main types of cost accounting systems for manufacturing operations?

Accepted Answer

A)   Process cost and general accounting systems
B)   Job order cost and process cost systems
C)   Job order cost and general accounting systems
D)   Process cost and replacement cost systemsE) B) and C)
F) A) and B)

Question 5

The cost of wages paid to employees directly involved in the manufacturing process of converting materials into finished product is classified as:

Accepted Answer

A)   factory overhead cost.
B)   direct labor cost.
C)   wages expense.
D)   direct materials cost.E) B) and C)
F) B) and D)

Question 6

The underapplied factory overhead amount may be transferred to cost of goods sold at the end of the fiscal year.

Accepted Answer

A) True 
 B)False

Question 7

Service companies can effectively use activity-based costing to compute product (service) costs.

Accepted Answer

A) True 
 B)False

Question 8

The recording of the factory labor costs incurred for general factory use would include a debit to:

Accepted Answer

A)   Factory Overhead.
B)   Wages Payable.
C)   Wages Expense.
D)   Cost of Goods Sold.E) None of the above
F) B) and D)

Question 9

Which of the following is an example of direct materials cost for an automobile manufacturer?

Accepted Answer

A)   Cost of oil lubricants for factory machinery
B)   Cost of wages of assembly worker
C)   Varnish for coating
D)   Cost of interior upholsteryE) B) and C)
F) B) and D)

Question 10

The direct labor and overhead costs of providing services to clients are accumulated in:

Accepted Answer

A)   finished services expense.
B)   work in process.
C)   administrative salaries expense.
D)   overhead.E) A) and B)
F) None of the above

Question 11

For a manufacturing business, work-in-process inventories consist of inventories which have _____.

Accepted Answer

A)   not yet entered the manufacturing process
B)   entered the manufacturing process but not been completed
C)   entered and completed manufacturing process but have not been sold
D)   entered and completed manufacturing process and have been soldE) B) and C)
F) A) and D)

Question 12

The direct labor and overhead costs of providing services to clients are accumulated in a Work-in-Process account.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following items would be classified as a part of prime cost?

Accepted Answer

A)   Direct labor cost
B)   Factory overhead cost
C)   Selling cost
D)   Administrative costE) A) and D)
F) None of the above

Question 14

After the goods are completed, their costs are transferred from Work in Process to Finished Goods.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is most likely to be a product cost?

Accepted Answer

A)   Salary of the vice president of sales
B)   Advertising for a particular product
C)   Drill bits for a drill press used in the plant assembly area
D)   Salary of the company receptionistE) All of the above
F) A) and B)

Question 16

Which of the following would be a period costs for a textbooks printing company?

Accepted Answer

A)   Wages of a press operator
B)   Utility costs of the factory
C)   Advertising expenses
D)   Paper costsE) B) and C)
F) B) and D)

Question 17

Compute factory overhead cost from the following costs:   Depreciation on factory buil dings $45,950 Depreciation on office equipment 32,980 Direct materials used 96,840 Indirect labor 6,580\begin{array} { | l | r | } \hline 	ext { Depreciation on factory buil dings } & \$ 45,950 \\hline 	ext { Depreciation on office equipment } & 32,980 \\hline 	ext { Direct materials used } & 96,840 \\hline 	ext { Indirect labor } & 6,580 \\hline\end{array} Depreciation on factory buil dings  Depreciation on office equipment  Direct materials used  Indirect labor ​$45,95032,98096,8406,580​​

Accepted Answer

A)   $73,000
B)   $52,530
C)   $96,840
D)   $78,930 E) None of the above
F) A) and B)

Question 18

In job order cost accounting system used by a service business, which of the following items would normally not be included as part of overhead?

Accepted Answer

A)   Materials
B)   Direct labor
C)   Rent
D)   SuppliesE) A) and B)
F) All of the above

Question 19

In job order cost accounting system, perpetual inventory records are maintained in controlling accounts and subsidiary ledgers for materials, work in process, and finished goods.

Accepted Answer

A) True 
 B)False

Question 20

If the cost of materials is not a significant portion of the total product cost, the materials may be classified as a part of factory overhead cost.

Accepted Answer

A) True 
 B)False

Exam 10: Accounting for Manufacturing Operations

The underapplied factory overhead amount may be transferred to cost of goods sold at the end of the fiscal year.

Correct Answer
verified

The cost of wages paid to employees directly involved in the manufacturing process of converting materials into finished product is classified as:

Correct Answer
verified

For a manufacturing business, work-in-process inventories consist of inventories which have _____.

Correct Answer
verified

In job order cost accounting system, perpetual inventory records are maintained in controlling accounts and subsidiary ledgers for materials, work in process, and finished goods.

Correct Answer
verified

Correct Answer
verified

The recording of the factory labor costs incurred for general factory use would include a debit to:

Correct Answer
verified

A(n) _____ provides product costs for each quantity of a product that is manufactured.

Correct Answer
verified

Depreciation expense on factory equipment is part of factory overhead cost.

Correct Answer
verified

If the cost of materials is not a significant portion of the total product cost, the materials may be classified as a part of factory overhead cost.

Correct Answer
verified

Which of the following would be a period costs for a textbooks printing company?

Correct Answer
verified

After the goods are completed, their costs are transferred from Work in Process to Finished Goods.

Correct Answer
verified

The sale of a finished good on account would:

Correct Answer
verified

Which of the following is most likely to be a product cost?

Correct Answer
verified

Which of the following are the two main types of cost accounting systems for manufacturing operations?

Correct Answer
verified

Service companies can effectively use activity-based costing to compute product (service) costs.

Correct Answer
verified

The direct labor and overhead costs of providing services to clients are accumulated in:

Correct Answer
verified

Which of the following is an example of direct materials cost for an automobile manufacturer?

Correct Answer
verified

The direct labor and overhead costs of providing services to clients are accumulated in a Work-in-Process account.

Correct Answer
verified

In job order cost accounting system used by a service business, which of the following items would normally not be included as part of overhead?

Correct Answer
verified

Which of the following items would be classified as a part of prime cost?

Correct Answer
verified

Exam 10: Accounting for Manufacturing Operations

The underapplied factory overhead amount may be transferred to cost of goods sold at the end of the fiscal year.

Correct AnswerverifiedShow Answer

The cost of wages paid to employees directly involved in the manufacturing process of converting materials into finished product is classified as:

Correct AnswerverifiedShow Answer

For a manufacturing business, work-in-process inventories consist of inventories which have _____.

Correct AnswerverifiedShow Answer

In job order cost accounting system, perpetual inventory records are maintained in controlling accounts and subsidiary ledgers for materials, work in process, and finished goods.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The recording of the factory labor costs incurred for general factory use would include a debit to:

Correct AnswerverifiedShow Answer

A(n) _____ provides product costs for each quantity of a product that is manufactured.

Correct AnswerverifiedShow Answer

Depreciation expense on factory equipment is part of factory overhead cost.

Correct AnswerverifiedShow Answer

If the cost of materials is not a significant portion of the total product cost, the materials may be classified as a part of factory overhead cost.

Correct AnswerverifiedShow Answer

Which of the following would be a period costs for a textbooks printing company?

Correct AnswerverifiedShow Answer

After the goods are completed, their costs are transferred from Work in Process to Finished Goods.

Correct AnswerverifiedShow Answer

The sale of a finished good on account would:

Correct AnswerverifiedShow Answer

Which of the following is most likely to be a product cost?

Correct AnswerverifiedShow Answer

Which of the following are the two main types of cost accounting systems for manufacturing operations?

Correct AnswerverifiedShow Answer

Service companies can effectively use activity-based costing to compute product (service) costs.

Correct AnswerverifiedShow Answer

The direct labor and overhead costs of providing services to clients are accumulated in:

Correct AnswerverifiedShow Answer

Which of the following is an example of direct materials cost for an automobile manufacturer?

Correct AnswerverifiedShow Answer

The direct labor and overhead costs of providing services to clients are accumulated in a Work-in-Process account.

Correct AnswerverifiedShow Answer

In job order cost accounting system used by a service business, which of the following items would normally not be included as part of overhead?

Correct AnswerverifiedShow Answer

Which of the following items would be classified as a part of prime cost?

Correct AnswerverifiedShow Answer

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