Question 1

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) B) and C)
F) A) and B)

Question 2

At the end of the fiscal year,if the balance in Factory Overhead is small,it would normally be:

Accepted Answer

A)  transferred to Work-in-Process.
B)  transferred to Cost of Goods Sold.
C)  transferred to Finished Goods.
D)  allocated between Work-in-Process and Finished Goods.E) C) and D)
F) B) and D)

Question 3

The recording of the jobs completed would decrease:

Accepted Answer

A)  Factory Overhead.
B)  Finished Goods.
C)  Work-in-Process.
D)  Cost of Goods Sold.E) A) and B)
F) None of the above

Question 4

Which of the following is an example of direct labor cost for an airplane manufacturer?

Accepted Answer

A)  Cost of wages of janitors
B)  Cost of wages of assembly worker
C)  Salary of plant supervisor
D)  Salary of the chairmanE) B) and C)
F) None of the above

Question 5

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 6

Which of the following manufacturing costs is an indirect cost of producing a product?

Accepted Answer

A)  Oil lubricants used for factory machinery
B)  Commissions for sales personnel
C)  Hourly wages of an assembly worker
D)  Memory chips for a microcomputer manufacturerE) A) and D)
F) All of the above

Question 7

Which of the following is an example of a factory overhead cost?

Accepted Answer

A)  Repair and maintenance cost on the administrative building
B)  Factory heating and lighting cost
C)  Insurance premiums on salespersons' automobiles
D)  President's salaryE) B) and D)
F) A) and B)

Question 8

Manufacturers implement the philosophy of just-in-time processing to produce products with high quality,low cost,and instant availability.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following products would most likely be manufactured using a job order costing system?

Accepted Answer

A)  Number 2 pencils
B)  Computer monitors
C)  Wedding invitations
D)  PaperE) A) and C)
F) All of the above

Question 10

Pull manufacturing is driven by:

Accepted Answer

A)  customer demand.
B)  forecasting customers' requirements.
C)  a production schedule rather than line status.
D)  pushing inventory ahead to the next station.E) A) and B)
F) A) and C)

Question 11

Which of the following is most likely be a period cost?

Accepted Answer

A)  Depreciation on factory lunchroom furniture
B)  Salary of telephone receptionist in the sales office
C)  Salary of a security guard for the factory parking lot
D)  Computer chips used by a computer manufacturerE) B) and C)
F) A) and B)

Question 12

A job order cost system accumulates costs for each of the departments or processes within the factory.

Accepted Answer

A) True 
 B)False

Question 13

Materials inventory consists of the costs of direct and indirect materials that have not yet entered the manufacturing process.

Accepted Answer

A) True 
 B)False

Question 14

As product costs are incurred in the manufacturing process,they are accounted for as assets and reported on the balance sheet as inventory.

Accepted Answer

A) True 
 B)False

Question 15

Sales commission is an example of factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 16

Conversion cost is the combination of direct labor cost and factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 17

Non-manufacturing costs are generally classified into two categories: selling and administrative.

Accepted Answer

A) True 
 B)False

Question 18

Inventories of finished products are reported as current assets on a manufacturer's balance sheet.

Accepted Answer

A) True 
 B)False

Question 19

In a job order cost accounting system,the effect of the flow of direct materials into production will be:

Accepted Answer

A)  increase in Work-in-Process and decrease in Materials Inventory.
B)  increase in Materials Inventory and decrease in Work-in-Process.
C)  increase in Factory Overhead and decrease in Materials Inventory.
D)  increase in Work-in-Process and decrease in Supplies.E) All of the above
F) None of the above

Question 20

Matt,Inc.,a toy manufacturing company uses job order cost system.The time tickets from September jobs are summarized below.
a.Determine the total factory labor costs transferred to Work in Process and Factory Overhead for September.
b.Determine the amount of factory overhead applied to production for September.

Accepted Answer

a.Costs transferred to Work in Process =...

Exam 10: Accounting Systems for Manufacturing Businesses

Materials inventory consists of the costs of direct and indirect materials that have not yet entered the manufacturing process.

Correct Answer
verified

Which of the following is most likely be a period cost?

Correct Answer
verified

Non-manufacturing costs are generally classified into two categories: selling and administrative.

Correct Answer
verified

Which of the following is an example of a factory overhead cost?

Correct Answer
verified

The sale of a finished good on account would:

Correct Answer
verified

At the end of the fiscal year,if the balance in Factory Overhead is small,it would normally be:

Correct Answer
verified

Sales commission is an example of factory overhead cost.

Correct Answer
verified

As product costs are incurred in the manufacturing process,they are accounted for as assets and reported on the balance sheet as inventory.

Correct Answer
verified

In a job order cost accounting system,the effect of the flow of direct materials into production will be:

Correct Answer
verified

Inventories of finished products are reported as current assets on a manufacturer's balance sheet.

Correct Answer
verified

Pull manufacturing is driven by:

Correct Answer
verified

Which of the following products would most likely be manufactured using a job order costing system?

Correct Answer
verified

A job order cost system accumulates costs for each of the departments or processes within the factory.

Correct Answer
verified

Conversion cost is the combination of direct labor cost and factory overhead cost.

Correct Answer
verified

Manufacturers implement the philosophy of just-in-time processing to produce products with high quality,low cost,and instant availability.

Correct Answer
verified

Correct Answer
verified
a.Costs transferred to Work in Process =...
View Answer

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

Correct Answer
verified

Which of the following is an example of direct labor cost for an airplane manufacturer?

Correct Answer
verified

Which of the following manufacturing costs is an indirect cost of producing a product?

Correct Answer
verified

The recording of the jobs completed would decrease:

Correct Answer
verified

Exam 10: Accounting Systems for Manufacturing Businesses

Materials inventory consists of the costs of direct and indirect materials that have not yet entered the manufacturing process.

Correct AnswerverifiedShow Answer

Which of the following is most likely be a period cost?

Correct AnswerverifiedShow Answer

Non-manufacturing costs are generally classified into two categories: selling and administrative.

Correct AnswerverifiedShow Answer

Which of the following is an example of a factory overhead cost?

Correct AnswerverifiedShow Answer

The sale of a finished good on account would:

Correct AnswerverifiedShow Answer

At the end of the fiscal year,if the balance in Factory Overhead is small,it would normally be:

Correct AnswerverifiedShow Answer

Sales commission is an example of factory overhead cost.

Correct AnswerverifiedShow Answer

As product costs are incurred in the manufacturing process,they are accounted for as assets and reported on the balance sheet as inventory.

Correct AnswerverifiedShow Answer

In a job order cost accounting system,the effect of the flow of direct materials into production will be:

Correct AnswerverifiedShow Answer

Inventories of finished products are reported as current assets on a manufacturer's balance sheet.

Correct AnswerverifiedShow Answer

Pull manufacturing is driven by:

Correct AnswerverifiedShow Answer

Which of the following products would most likely be manufactured using a job order costing system?

Correct AnswerverifiedShow Answer

A job order cost system accumulates costs for each of the departments or processes within the factory.

Correct AnswerverifiedShow Answer

Conversion cost is the combination of direct labor cost and factory overhead cost.

Correct AnswerverifiedShow Answer

Manufacturers implement the philosophy of just-in-time processing to produce products with high quality,low cost,and instant availability.

Correct AnswerverifiedShow Answer

Correct Answerverifieda.Costs transferred to Work in Process =...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is an example of direct labor cost for an airplane manufacturer?

Correct AnswerverifiedShow Answer

Which of the following manufacturing costs is an indirect cost of producing a product?

Correct AnswerverifiedShow Answer

The recording of the jobs completed would decrease:

Correct AnswerverifiedShow 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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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.Costs transferred to Work in Process =...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
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