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Questions
Q:
The entry to record the purchase of materials on account using a job order costing system would include a:
A) debit to materials inventory.
B) debit to accounts payable.
C) debit to work in process inventory.
D) credit to materials inventory.
Q:
Direct materials and direct labor are assigned to individual job cost records, and recorded with a debit to Work in process.
Q:
Indirect materials issued and indirect labor costs incurred are debited to the Manufacturing overhead account.
Q:
When direct materials are requisitioned, the Work in process account will be debited.
Q:
Indirect materials and indirect labor are tracked to individual job costing records and recorded in the Work in process account.
Q:
Work in process inventory is debited for the incurrence of both direct and indirect labor in a job costing system.
Q:
When materials are requisitioned for a job, the materials inventory account is debited.
Q:
A job order costing system is useful in which of the following circumstances?
A) Mass production of a commodity
B) Manufacturing multiple products in separate batches
C) Continuous flow production of a single product
D) Manufacturing a product in a multi-step flow of production
Q:
A process costing system is useful in which of the following circumstances?
A) Providing specialized services
B) Production of unique products
C) Production of multiple products in separate batches
D) Mass production of a single type of product
Q:
Which of the following statements is FALSE?
A) A job order costing system would be used by manufacturers of custom made products.
B) A process costing system would be used by manufacturers of commodities, such as flour or sugar.
C) A service firm would likely use a job order costing system.
D) A print and copy shop would likely use a process costing system.
Q:
Job order costing is most likely used in which of the following industries?
A) Pharmaceutical manufacturing
B) Medical clinic
C) Oil refinery
D) Food and beverage manufacturing
Q:
Which of the following is an industry that would use a process costing system rather than a job order costing system?
A) Custom furniture manufacturer
B) Music production studio
C) Paint manufacturer
D) Home remodeling contractor
Q:
Which of the following companies would NOT use job order costing?
A) A lawn maintenance company
B) A legal firm
C) An auto repair shop
D) A beverage manufacturer
Q:
Process costing is used by companies that produce large numbers of identical units in a continuous fashion.
Q:
Accounting firms, building contractors, and healthcare providers are companies that use job order costing.
Q:
Q:
The following information was obtained from Fizz Company:
Advertising costs: $9,900
Indirect labor: $11,000
CEO's salary: $49,000
Direct Labor: $41,000
Indirect materials: $7,900
Direct materials: $61,000
Factory utilities: $700
Factory janitorial costs: $2,300
Manufacturing equipment depreciation: $2,100
Delivery vehicle depreciation: $1,100
Administrative wages and salaries: $21,000
How much were Fizz's inventoriable product costs?
A) $126,000
B) $104,100
C) $127,100
D) $115,000
Q:
The following information was obtained from Fizz Company:
Advertising costs: $9,900
Indirect labor: $11,000
CEO's salary: $49,000
Direct Labor: $41,000
Indirect materials: $7,900
Direct materials: $61,000
Factory utilities: $9,000
Factory janitorial costs: $2,300
Manufacturing equipment depreciation: $2,100
Delivery vehicle depreciation: $1,100
Administrative wages and salaries: $21,000
How much were Fizz's period costs?
A) $60,000
B) $81,000
C) $92,000
D) $79,900
Q:
The following information has been provided by Buffalo Company:
Direct labor: $100,000
Direct materials used: $40,000
Direct materials purchased: $67,000
Cost of goods manufactured: $199,000
Ending work in process: $46,000
Corporate headquarters' property taxes: $6,000
Manufacturing overhead: $79,000
How much was Buffalo's beginning work in process?
A) $20,000
B) $42,000
C) $26,000
D) $66,000
Q:
Q:
Arturo Manufacturing Company provided the following information for the year 2012:
Beginning balancefinished goods inventory $49,500
Ending balancefinished goods inventory $42,000
Cost of goods manufactured $591,000
How much is the cost of goods sold?
A) $682,500
B) $598,500
C) $549,000
D) $682,000
Q:
Arturo Manufacturing Company provided the following information for the year 2012:
Beginning balancework in process inventory $12,000
Ending balancework in process inventory $28,000
Beginning balancedirect materials inventory $42,000
Ending balancedirect materials inventory $30,000
Purchasesdirect materials $180,000
Direct labor $235,000
Indirect materials $23,500
Indirect labor $9,500
Depreciation on factory plant & equipment $12,000
Plant utilities & insurance $135,000
What was the amount of the cost of goods manufactured for the year?
A) $591,000
B) $579,000
C) $619,000
D) $607,000
Q:
Arturo Manufacturing Company provided the following information for the year 2012:
Beginning balancework in process inventory $12,000
Ending balancework in process inventory $28,000
Beginning balancedirect materials inventory $42,000
Ending balancedirect materials inventory $30,000
Purchasesdirect materials $180,000
Direct labor $235,000
Indirect materials $23,500
Indirect labor $9,500
Depreciation on factory plant & equipment $12,000
Plant utilities & insurance $135,000
What was the amount of manufacturing costs incurred during the year?
A) $427,000
B) $607,000
C) $180,000
D) $595,000
Q:
Arturo Manufacturing Company provided the following information for the year 2012:
Beginning balancework in process inventory $12,000
Ending balancework in process inventory $28,000
Beginning balancedirect materials inventory $42,000
Ending balancedirect materials inventory $30,000
Purchasesdirect materials $180,000
Direct labor $235,000
Indirect materials $23,500
Indirect labor $9,500
Depreciation on factory plant & equipment $12,000
Plant utilities & insurance $135,000
What was the amount of manufacturing overhead costs?
A) $180,000
B) $156,500
C) $147,000
D) $135,000
Q:
Arturo Manufacturing Company provided the following information for the year 2012:
Beginning balancework in process inventory $12,000
Ending balancework in process inventory $28,000
Beginning balancedirect materials inventory $42,000
Ending balancedirect materials inventory $30,000
Purchasesdirect materials $180,000
Direct labor $235,000
Indirect materials $23,500
Indirect labor $9,500
Depreciation on factory plant & equipment $12,000
Plant utilities & insurance $135,000
What was the amount of direct materials used in production?
A) $210,000
B) $150,000
C) $192,000
D) $252,000
Q:
The following information was obtained from Sizzler Company:
Advertising costs: $7,900
Indirect labor: $9,000
Direct Labor: $31,000
Indirect materials: $7,200
Direct materials: $47,000
Factory utilities: $3,000
Factory repair and maintenance: $700
Factory janitorial costs: $1,900
Manufacturing equipment depreciation: $1,600
Delivery vehicle depreciation: $790
Administrative wages and salaries: $19,000
How much was Sizzler's factory overhead?
A) $24,190
B) $1,600
C) $23,400
D) $3,600
Q:
The following information was obtained from Sizzler Company:
Advertising costs: $7,900
Indirect labor: $9,000
Direct Labor: $31,000
Indirect materials: $7,200
Direct materials: $47,000
Factory utilities: $3,000
Factory repair and maintenance: $700
Factory janitorial costs: $1,900
Manufacturing equipment depreciation: $1,600
Delivery vehicle depreciation: $790
Administrative wages and salaries: $19,000
How much were Sizzler's product costs?
A) $102,190
B) $99,500
C) $129,090
D) $101,400
Q:
The following information was obtained from Sizzler Company:
Advertising costs: $7,900
Indirect labor: $9,000
Direct Labor: $31,000
Indirect materials: $7,200
Direct materials: $47,000
Factory utilities: $3,000
Factory repair and maintenance : $700
Factory janitorial costs: $1,900
Manufacturing equipment depreciation: $1,600
Delivery vehicle depreciation: $790
Administrative wages and salaries: $19,000
How much were Sizzler's period costs?
A) $27,690
B) $7,900
C) $19,790
D) $19,000
Q:
The following information has been provided by LeMaire Company:
Direct labor: $50,000
Direct materials used: $20,000
Materials purchased: $27,000
Cost of goods manufactured: $100,000
Ending work in process: $16,000
Corporate headquarters' property taxes: $6,000
Manufacturing overhead: $39,000
The beginning work in process was:
A) $23,000.
B) $7,000.
C) $9,000.
D) $1,000.
Q:
Which of the following properly describes the accounting for advertising costs?
A) Advertising costs are product costs and are expensed as incurred.
B) Advertising costs are period costs and are expensed as incurred.
C) Advertising costs are product costs and are expensed when the manufactured product is sold.
D) Advertising costs are period costs and are expensed when the manufactured product is sold.
Q:
Which of the following properly describes the accounting for corporate headquarters' property taxes?
A) The property taxes are product costs and are expensed as incurred.
B) The property taxes are period costs and are expensed as incurred.
C) The property taxes are product costs and are expensed when the manufactured product is sold.
D) The property taxes are period costs and are expensed when the manufactured product is sold.
Q:
Which of the following properly describes the accounting for factory depreciation?
A) Factory depreciation is a product cost and is expensed as incurred.
B) Factory depreciation is a period cost and is expensed as incurred.
C) Factory depreciation is a product cost and is expensed when the manufactured product is sold.
D) Factory depreciation is a period cost and is expensed when the manufactured product is sold.
Q:
Which of the following properly describes the accounting for indirect labor costs?
A) Indirect labor costs are product costs and are expensed as incurred.
B) Indirect labor costs are period costs and are expensed as incurred.
C) Indirect labor costs are product costs and are expensed when the manufactured product is sold.
D) Indirect labor costs are period costs and are expensed when the manufactured product is sold.
Q:
Which of the following is NOT a period cost?
A) Sales commissions
B) CEO's salary
C) Delivery van depreciation
D) Factory janitorial costs
Q:
Which of the following would probably be considered an indirect material cost in a bakery?
A) Spices
B) Flour
C) Milk
D) Eggs
Q:
The cost of goods sold for Frye Manufacturing in 2012 was $233,000. The January 1, 2012 finished goods inventory balance was $31,600, and the December 31, 2012 finished goods inventory balance was $24,200. What was cost of goods manufactured during 2012?
A) $288,800
B) $233,000
C) $225,600
D) $240,400
Q:
Q:
Q:
A company used $35,000 of direct materials, incurred $73,000 in direct labor cost, and $114,000 in manufacturing overhead costs during the period. If beginning and ending work in process inventories were $28,000 and $21,000 respectively. What is the cost of goods manufactured?
A) $250,000
B) $229,000
C) $215,000
D) $222,000
Q:
Q:
Q:
Q:
Q:
Q:
Q:
Q:
At the beginning of 2011, the Taylor Company's work in process inventory account had a balance of $30,000. During 2011, $68,000 of direct materials were used in production, and $66,000 of direct labor costs were incurred. Manufacturing overhead in 2011 amounted to $90,000. The cost of goods manufactured was $220,000 in 2011. What is the balance in work in process inventory on December 31, 2011?
A) $24,000
B) $66,000
C) $6,000
D) $34,000
Q:
Which of the following describes the cost of goods manufactured?
A) The cost of the goods that were sold during the period
B) The total cost of all goods that were completed, or partially completed during the period
C) The cost of those goods which were completed during the period
D) The total costs in inventory at the end of the period
Q:
Q:
Q:
Which of the following describes the term cost object?
A) An object which costs money to purchase
B) Any type of cost which is incurred to produce a finished product
C) Anything which requires a detailed record of its component costs to be kept
D) Any cost which is treated as a period expense
Q:
All of the following are examples of manufacturing overhead EXCEPT for:
A) utilities incurred in the factory.
B) insurance on factory equipment.
C) wages of assembly line workers.
D) indirect materials.
Q:
Manufacturing overhead includes which of the following?
A) Indirect labor and indirect materials
B) Salaries of salesmen
C) Direct materials and direct labor
D) Delivery costs to ship goods to customers
Q:
Which of the following is an example of direct labor?
A) Wages of assembly line personnel
B) Salary of vice president of production
C) Wages of factory security guard
D) Salary of production manager
Q:
Period costs do NOT include which of the following?
A) Sales commissions
B) Factory janitorial costs
C) Insurance on delivery vehicles
D) Advertising costs
Q:
Which of the following is NOT a product cost?
A) Indirect labor
B) Depreciation of factory equipment
C) Indirect materials
D) Depreciation of corporate headquarters
Q:
Which of the following is NOT a part of manufacturing overhead?
A) Indirect materials
B) Indirect labor
C) Factory insurance
D) Depreciation on delivery vehicles
Q:
Which of the following costs would appear on the income statements for both a merchandiser and a manufacturer?
A) Direct labor
B) Cost of goods manufactured
C) Direct materials
D) Operating expenses
Q:
Which of the following is an example of a period cost?
A) Advertising expense
B) Depreciation on factory equipment
C) Indirect materials
D) Property taxes for the factory
Q:
Which of the following are period costs?
A) Current assets on the balance sheet
B) Costs incurred and expensed during the accounting period
C) Costs related to the manufacture of products
D) Current liabilities on the balance sheet
Q:
Which of the following costs do NOT go directly into the work in process account?
A) Factory overhead
B) Indirect labor
C) Factory janitorial costs
D) The purchase of raw materials
Q:
Repair and maintenance costs of vehicles used to deliver products to the customers are included in manufacturing overhead.
Q:
Repair and maintenance costs of vehicles used to deliver products to the customers are product costs.
Q:
Repair and maintenance costs for factory equipment are included in manufacturing overhead.
Q:
Repair and maintenance costs for factory equipment are product costs.
Q:
Accounting, legal and administrative costs are included in manufacturing overhead.
Q:
Accounting, legal and administrative costs are product costs.
Q:
Advertising and marketing costs are included in manufacturing overhead.
Q:
Advertising and marketing costs are product costs.
Q:
Sales commissions are included in manufacturing overhead.
Q:
Transportation costs to ship products to customers are product costs.
Q:
Factory rent, taxes and insurance are included in manufacturing overhead.
Q:
Factory rent, taxes and insurance are product costs.
Q:
Indirect materials costs like lubes and cleaning fluids are included in manufacturing overhead.
Q:
Indirect materials costs like lubes and cleaning fluids are product costs.
Q:
The wages and benefits of the factory janitors are included in manufacturing overhead.
Q:
The wages and benefits of the sales staff are product costs.
Q:
The wages and benefits of the factory manager are included in manufacturing overhead.
Q:
The wages and benefits of the factory manager are product costs.
Q:
The wages and benefits of the assembly line workers are included in manufacturing overhead.