Question 1

During the year,Bright Corporation applied factory overhead costs of $330,000 to production.At the end of the year,total overapplied factory overhead is $13,000.What was the amount of actual factory overhead cost incurred during the year?

Accepted Answer

A)  $343,000
B)  $300,000
C)  $330,000
D)  $317,000E) A) and B)
F) C) and D)

Question 2

The recording of the jobs shipped and customers billed would increase:

Accepted Answer

A)  Accounts Payable.
B)  Cash.
C)  Finished Goods.
D)  Cost of Goods Sold.E) C) and D)
F) A) and C)

Question 3

If factory overhead applied is less than the actual costs,the overhead is said to be underapplied.

Accepted Answer

A) True 
 B)False

Question 4

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) A) and D)
F) C) and D)

Question 5

If the cost of direct materials is not a significant portion of the total product cost,it may be classified as:

Accepted Answer

A)  direct labor costs.
B)  selling and administrative costs.
C)  miscellaneous costs.
D)  factory overhead costs.E) B) and C)
F) A) and C)

Question 6

A difference in quantity of materials used on two comparable jobs may be caused by:

Accepted Answer

A)  inadequately trained employees.
B)  poor quality materials.
C)  employee carelessness.
D)  all of these.E) A) and B)
F) A) and C)

Question 7

Which of the following would probably not be found in the accounting system of a service provider?

Accepted Answer

A)  Cost ledger
B)  Finished goods ledger
C)  Cost of services account
D)  Job cost sheetsE) None of the above
F) A) and B)

Question 8

Illustrate the effects on the accounts and financial statements of each of the following transactions for a company using a job order cost system:

Accepted Answer

Assets = Liabilities + Stockholders' Equ...

Question 9

Which of the following costs is included in the finished goods inventory?

Accepted Answer

A)  Commission to sales person
B)  Company president's salary
C)  Factory Overhead
D)  Interest on bank loanE) None of the above
F) B) and C)

Question 10

Activity-based costing is a method of accumulating and allocating costs by department.

Accepted Answer

A) True 
 B)False

Question 11

The following information is available for the first month of operations of Deer Inc.,a manufacturer of sports apparel:
a.Cost of goods sold
b.Direct materials cost
c.Direct labor cost

Accepted Answer

a.$1,090,000 ($1,500,000 − $41...

Question 12

Just-in-time manufacturing practices include all of the following except:

Accepted Answer

A)  eliminating defective or poor-quality products.
B)  partnering with suppliers to provide high-quality,low-cost,and on-time materials.
C)  emphasizing push manufacturing to ensure inventory levels that will provide a buffer against production problems.
D)  employee involvement using teams organized in product cells.E) A) and D)
F) None of the above

Question 13

Which of the following is a period cost?

Accepted Answer

A)  Power
B)  Depreciation on factory equipment
C)  Sales commissions
D)  Wages of an assembly workerE) B) and D)
F) None of the above

Question 14

Which of the following statements is true of financial accounting?

Accepted Answer

A)  Under financial accounting,reports are prepared using generally accepted accounting principles.
B)  Financial accounting focuses on providing information primarily for internal use.
C)  Financial accounting includes more subjective data like possibility of competitors' reactions to a company's new sales prices.
D)  Information reported by financial accounting is not shared with those outside the company.E) A) and B)
F) None of the above

Question 15

An activity-based costing system allocates factory overhead rates to products or services using:

Accepted Answer

A)  a single plantwide overhead rate.
B)  the cost of activities based on an activity rate times the number of activity-based usage quantities.
C)  an allocation of budgeted revenues produced by a product or service.
D)  an end-of-year allocation of costs to products or services.E) A) and B)
F) A) and C)

Question 16

A summary of the materials requisitions completed during a period serves as the basis for transferring the cost of the materials from the Materials account to:

Accepted Answer

A)  Work-in-Process and Cost of Goods Sold.
B)  Work-in-Process and Factory Overhead.
C)  Finished Goods and Cost of Goods Sold.
D)  Work-in-Process and Finished Goods.E) B) and C)
F) A) and B)

Question 17

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

Accepted Answer

A)  job order cost sheets.
B)  time tickets.
C)  employees' earnings records.
D)  clock cards.E) B) and D)
F) B) and C)

Question 18

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 19

Refer to the information provided for Bluemoon,Inc.Calculate direct materials cost used in production.

Accepted Answer

A)  $326,000
B)  $340,000
C)  $360,000
D)  $346,000E) A) and D)
F) B) and C)

Exam 10: Accounting Systems for Manufacturing Businesses

Just-in-time manufacturing practices include all of the following except:

Correct Answer
verified

During the year,Bright Corporation applied factory overhead costs of $330,000 to production.At the end of the year,total overapplied factory overhead is $13,000.What was the amount of actual factory overhead cost incurred during the year?

Correct Answer
verified

If the cost of direct materials is not a significant portion of the total product cost,it may be classified as:

Correct Answer
verified

Activity-based costing is a method of accumulating and allocating costs by department.

Correct Answer
verified

Which of the following statements is true of financial accounting?

Correct Answer
verified

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

Correct Answer
verified

Illustrate the effects on the accounts and financial statements of each of the following transactions for a company using a job order cost system:

Correct Answer
verified
Assets = Liabilities + Stockholders' Equ...
View Answer

Refer to the information provided for Bluemoon,Inc.Calculate direct materials cost used in production.

Correct Answer
verified

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

Correct Answer
verified

The recording of the jobs shipped and customers billed would increase:

Correct Answer
verified

If factory overhead applied is less than the actual costs,the overhead is said to be underapplied.

Correct Answer
verified

A difference in quantity of materials used on two comparable jobs may be caused by:

Correct Answer
verified

Which of the following would probably not be found in the accounting system of a service provider?

Correct Answer
verified

An activity-based costing system allocates factory overhead rates to products or services using:

Correct Answer
verified

Which of the following costs is included in the finished goods inventory?

Correct Answer
verified

The following information is available for the first month of operations of Deer Inc.,a manufacturer of sports apparel: a.Cost of goods sold b.Direct materials cost c.Direct labor cost

Correct Answer
verified
a.$1,090,000 ($1,500,000 − $41...
View Answer

A summary of the materials requisitions completed during a period serves as the basis for transferring the cost of the materials from the Materials account to:

Correct Answer
verified

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

Correct Answer
verified

Which of the following is a period cost?

Correct Answer
verified

Exam 10: Accounting Systems for Manufacturing Businesses

Just-in-time manufacturing practices include all of the following except:

Correct AnswerverifiedShow Answer

During the year,Bright Corporation applied factory overhead costs of $330,000 to production.At the end of the year,total overapplied factory overhead is $13,000.What was the amount of actual factory overhead cost incurred during the year?

Correct AnswerverifiedShow Answer

If the cost of direct materials is not a significant portion of the total product cost,it may be classified as:

Correct AnswerverifiedShow Answer

Activity-based costing is a method of accumulating and allocating costs by department.

Correct AnswerverifiedShow Answer

Which of the following statements is true of financial accounting?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Illustrate the effects on the accounts and financial statements of each of the following transactions for a company using a job order cost system:

Correct AnswerverifiedAssets = Liabilities + Stockholders' Equ...View AnswerShow Answer

Refer to the information provided for Bluemoon,Inc.Calculate direct materials cost used in production.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The recording of the jobs shipped and customers billed would increase:

Correct AnswerverifiedShow Answer

If factory overhead applied is less than the actual costs,the overhead is said to be underapplied.

Correct AnswerverifiedShow Answer

A difference in quantity of materials used on two comparable jobs may be caused by:

Correct AnswerverifiedShow Answer

Which of the following would probably not be found in the accounting system of a service provider?

Correct AnswerverifiedShow Answer

An activity-based costing system allocates factory overhead rates to products or services using:

Correct AnswerverifiedShow Answer

Which of the following costs is included in the finished goods inventory?

Correct AnswerverifiedShow Answer

The following information is available for the first month of operations of Deer Inc.,a manufacturer of sports apparel: a.Cost of goods sold b.Direct materials cost c.Direct labor cost

Correct Answerverifieda.$1,090,000 ($1,500,000 − $41...View AnswerShow Answer

A summary of the materials requisitions completed during a period serves as the basis for transferring the cost of the materials from the Materials account to:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is a period cost?

Correct AnswerverifiedShow Answer

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Assets = Liabilities + Stockholders' Equ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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a.$1,090,000 ($1,500,000 − $41...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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