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Cynthia Brown 1/10/2011 10:51 am Unit 4 review d...

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Cynthia Brown 1/10/2011 10:51 am Unit 4 review due in 45 min. (I need by 11:45 am today) 1. Which of the following organizations would be most likely to use a job order costing system? (Points: 1) the loan department of a bank the check clearing department of a bank a manufacturer of processed cheese food a manufacturer of video cassette tapes 2. When job order costing is used, the primary focal point of cost accumulation is the ________. (Points: 1) department supervisor item job 3. Which of the following are drawbacks to applying actual overhead to production? (Points: 1) A delay occurs in assigning costs to jobs or products. Fluctuations in quantities produced during a period could cause varying per-unit charges for fixed overhead. Seasonality of overhead costs may cause distortions in job or product costs. all answers are correct 4. In a job order costing system, the dollar amount of the entry that debits Finished Goods Inventory and credits Work in Process Inventory is the sum of the costs charged to all jobs _______. (Points: 1) started in process during the period in process during the period completed and sold during the period completed during the period 5. Which of the following statements about job order cost sheets is true? (Points: 1) All job order cost sheets serve as the general ledger control account for Work in Process Inventory. Job order cost sheets can serve as subsidiary ledger information for both Work in Process Inventory and Finished Goods Inventory. If material requisition forms are used, job order cost sheets do not need to be maintained. Job order cost sheets show costs for direct material and direct labor, but not for manufacturing overhead since it is an applied amount. 6. The cost sheets for incomplete jobs at the end of the period comprise the subsidiary ledger for _______. (Points: 1) Finished Goods Inventory Raw Material Inventory Work in Process Inventory Supplies Inventory 7. The source document that records the amount of time an employee worked on a job and his/her pay rate is the _______. (Points: 1) job order cost sheet employee time sheet interoffice memo labor requisition form 8. Overhead is applied to jobs in a job order costing system _______. (Points: 1) at the end of a period as jobs are completed at the end of a period or as jobs are completed, whichever is earlier at the end of a period or as jobs are completed, whichever is later 9. Underapplied overhead resulting from unanticipated and immaterial price increases for overhead items should be written off by _______. (Points: 1) decreasing Cost of Goods Sold increasing Cost of Goods Sold decreasing Cost of Goods Sold, Work in Process Inventory, and Finished Goods Inventory increasing Cost of Goods Sold, Work in Process Inventory, and Finished Goods Inventory 10. Which of the following statements is false? (Points: 1) While the use of standard costing is acceptable for job order costing systems, actual cost records should still be maintained. It is normally more time-consuming for a company to use standard costs in a job order costing system. Standards can be used in a job order costing system, if the company usually produces items that are similar in nature. Standard costs may be used for material, labor, or both material and labor in a job order costing environment. 11. The trend in job order costing is to ________. (Points: 1) eliminate the data entry function for the accounting system automate the data collection and data entry functions use accounting software to change the focal point of the job order system create an Intranet to share information between competitors 12. The use of standard material or labor costs in job order costing _______. (Points: 1) is similar to the use of predetermined overhead rates in a normal costing system will keep actual costs of jobs from fluctuating due to changes in component costs is appropriate for any company making a units to customer specification all answers are correct 13. Knowing specific job costs enables managers to effectively perform which of the following tasks? (Points: 1) estimate costs of future jobs establish realistic job selling prices evaluate job performance all answers are correct 14. A unit that is rejected at a quality control inspection point, but that can be reworked and sold, is referred to as a _______. (Points: 1) spoiled unit scrap unit abnormal unit defective unit 15. In a job order costing system, the net cost of normal spoilage is equal to _______. (Points: 1) estimated disposal value plus the cost of spoiled work the cost of spoiled work minus estimated spoilage cost the units of spoiled work times the predetermined overhead rate the cost of spoiled work minus the estimated disposal value 16. The net cost of normal spoilage in a job order costing system in which spoilage is common to all jobs should be _______. (Points: 1) assigned directly to the jobs that caused the spoilage charged to manufacturing overhead during the period of the spoilage charged to a loss account during the period of the spoilage allocated only to jobs that are completed during the period 17. Quest Co. is a print shop that produces jobs to customer specifications. During January 20X6, Job #3051 was worked on and the following information is available: Direct material used $2,500 Direct labor hours worked 15 Machine time used 6 Direct labor rate per hour $7 Overhead application rate per hour of machine time $18 What was the total cost of Job #3051 for January? (Points: 1) $2,713 $2,770 $2,812 $3,052 18. Brown Corporation manufactures products on a job order basis. The job cost sheet for Job #656 shows the following for March: Direct material $5,000 Direct labor (100 hours @ $7.25) $725 Machine hours incurred 40 Predetermined overhead rate per machine hour $26 At the end of March, what total cost appears on the job cost sheet for Job #656? (Points: 1) $5,725 $5,765 $6,765 $8,325 19. At the end of the last fiscal year, Roberts Company had the following account balances: Overapplied overhead $ 6,000 Cost of Goods Sold $980,000 Work in Process Inventory $ 38,000 Finished Goods Inventory $ 82,000 If the most common treatment of assigning overapplied overhead were used, the final balance in Cost of Goods Sold is: (Points: 1) $974,000 $974,660 $985,340 $986,000 20. Strong Products has no Work in Process or Finished Goods inventories at the close of business on December 31, 20X4. The balances of Strong Products? accounts as of December 31, 20X4, are as follows: Cost of goods sold--unadjusted $2,040,000 Selling & administrative expenses 900,000 Sales 3,600,000 Manufacturing overhead control 700,000 Manufacturing overhead applied 648,000 Pretax income for 20X4 is: (Points: 1) $608,000 $660,000 $712,000 undeterminable from the information given

 

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