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Custom SearchJob order costing systemMultiple choice questions (MCQs)Posted in: Job order costing system (quizzes)Results13 of 22 questions answered correctly Your time: 00:48: You have reached 13 of 22 points, (59%)Restart quiz View questionsFacebook 2 Twitter Email Pinterest More 37The companies...

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5/18/2019

Job order costing system - multiple choice questions (MCQs) | Accounting for Management

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Job order costing system  Multiple choice questions (MCQs)  Posted in: Job order costing system (quizzes)

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Results 13 of 22 questions answered correctly Your time: 00:48:21 You have reached 13 of 22 points, (59.09%)

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The companies that produce many different products or services usually use: process costing job order costing both process costing and job order costing none of the above CORRECT https://www.accountingformanagement.org/jocs-mcqs/

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Job order costing system - multiple choice questions (MCQs) | Accounting for Management

Awesome! Your answer is correct. Which of the following costs is recorded on the job cost sheet? Direct materials cost Direct labor cost Manufacturing overhead cost All of the above CORRECT Awesome! Your answer is correct. Which of the following journal entries is correct for the issuance of direct materials to production? Materials Dr. & Work in process Cr.

Direct Material + Production

Work in process Dr. & Materials Cr.

Impact on: 1. WIP 2. Materials

Work in process Dr. & Accounts payable Cr. Materials Dr. & Accounts payable Cr. CORRECT Awesome! Your answer is correct. The GSM company uses job order costing system and provides you the following data for the current period: Direct materials issued to production: $180,000 Indirect materials issued to production: $16,000 Direct labor cost: $214,000 Manufacturing overhead cost – applied: $226,000 Manufacturing overhead cost – actual: $250,000 There was no beginning and ending work in process and finished goods inventory. The company uses a predetermined overhead rate to apply manufacturing overhead to work in process (WIP) inventory. Based on the above information, what is the cost of goods manufactured of GSM Company? $660,000 $644,000 $620,000 $604,000 https://www.accountingformanagement.org/jocs-mcqs/

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Job order costing system - multiple choice questions (MCQs) | Accounting for Management

INCORRECT Your answer is incorrect. The correct answer is “$620,000” (option 3). Computation:

The SK manufacturing company computes predetermined overhead rate on the basis of machine hours in the machining department and direct labor cost in the assembly department. The following estimates were made at the beginning of the year:

Based on the above information, what are the predetermined overhead rates for machining department and assembly department? $5 and 100% $5 and 200% $6 and 200% $5 and 50% CORRECT Awesome! Your answer is correct. Computation: Machining department: Estimated manufacturing overhead cost/Estimated machine hours = $15,000/3,000 hours = $5 per machine hour Assembly department: https://www.accountingformanagement.org/jocs-mcqs/

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Job order costing system - multiple choice questions (MCQs) | Accounting for Management

Estimated manufacturing overhead cost/Estimated direct labor cost = $20,000/$10,000 = 200% Which of the following is a correct journal entry to record direct labor cost? Production Dr. & Direct labor Cr. Work in process Dr. & Direct labor Cr.

Direct Labor 1. WIP 2. Wages Payable

Wages payable Dr. & Work in process Cr. Work in process Dr. & Wages payable Cr. INCORRECT Your answer is incorrect. The correct answer is “Work in process Dr. & Wages payable Cr.” (option 4). The ABC company has the following estimated costs for the next year: Direct materials: $15,000 Indirect materials: $5,000 Direct labor: $55,000 Salary of production supervisor: $35,000 Rent on factory equipment: $16,000 Sales commission: $75,000 Advertising expenses: $11,000 It is estimated that 53,000 machine hours and 8,000 direct labor hours will be worked during the next year. What will be the predetermined overhead rate if company applies manufacturing overhead cost to jobs on the basis of direct labor hours. $15 $14 $7 $17

Predetermined FOG=Total Indirect Cost/No. of Base Units

INCORRECT Your answer is incorrect. The correct answer is “$7” (option 3). Computation: ($5,000 + $16,000 + $35,000)/8,000 hours = $7 per direct labor hour

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Job order costing system - multiple choice questions (MCQs) | Accounting for Management

Under job order costing system, which of the following costs would be recorded as debit to manufacturing overhead account? Direct materials cost Indirect materials cost Direct labor cost None of the above CORRECT Awesome! Your answer is correct. In a job order costing system, which of the following costs is not an example of manufacturing overhead cost? Indirect labor cost Fuel used in factory Salary of production manager Sales commission CORRECT Awesome! Your answer is correct. Which of the following is a correct journal entry to apply manufacturing overhead cost to jobs? Work in process Dr. & Manufacturing overhead Cr.

FOH

Manufacturing overhead Dr. & Work in process Cr.

1. WIP 2. FOH

Finished goods Dr. & Manufacturing overhead Cr. Work in process Dr. & Finished goods Cr. INCORRECT Your answer is incorrect. The correct answer is “work in process Dr. & manufacturing overhead Cr.” (option 1). Estimated manufacturing overhead cost at the beginning of the year: $100,000 Estimated direct labor hours at the beginning of the year: 10,000 Actual manufacturing overhead cost incurred during the year: $118,000 Actual direct labor hours worked during the year: 11,000 Based on the above information, the cost record of the company will show: https://www.accountingformanagement.org/jocs-mcqs/

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Job order costing system - multiple choice questions (MCQs) | Accounting for Management

overapplied overhead of $8,000 underapplied overhead of $8,000 overapplied overhead of $18,000 underapplied overhead of $18,000 INCORRECT Your answer is incorrect. The correct answer is “underapplied overhead of $8,000” (option 2). The following information belongs to Delta Company which uses job order costing system: Overapplied balance of manufacturing overhead account: $22,000 Work in process inventory account – ending balance: $10,000 Finished goods inventory account – ending balance: $15,000 Cost of goods sold account – ending balance: $25,000 On the basis of ending balances, which of the following is a correct allocation of overapplied overhead balance among work in process, finished goods and cost of goods sold? $7,333, $7,333, $7,333 $4,400, $6,600, $11,000 $10,000, $15,000, $25,000 None of the above INCORRECT Your answer is incorrect. The correct answer is “$4,400, $6,600, $11,000” (option 2). Computation: Total ending balances: $10,000 + $15,000 + $25,000 = $50,000 The proportion of ending balances to total ending balance: Work in process: $10,000/$50,000 = 20% Finished goods: $15,000/$50,000 = 30% Cost of goods sold: $25,000/$50,000 = 50% The allocation of overapplied balance of manufacturing overhead account: Work in process: $22,000 × 0.2 = $4,400 Finished goods: $22,000 × 0.3 = $6,600 Cost of goods sold: $22,000 × 0.5 = $11,000

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Job order costing system - multiple choice questions (MCQs) | Accounting for Management

The Robert Company uses a job order costing system and computes its predetermined overhead rate at the beginning of each period on the basis of direct labor cost. At the end of current period, the only job in process is the job number 555B. The cost sheet related to job number 555B shows that the following direct materials and direct labor costs were incurred during the period: Direct materials cost: $800 Direct labor cost: $1,200 The work in process inventory account shows a balance of $2,600 at the end of current period. One the basis of above information, what is the predetermined overhead rate as a percentage of direct labor cost? 100% 200% 50% 75% INCORRECT Your answer is incorrect. The correct answer is “50%” (option 3). Computations: Manufacturing overhead applied to job number 555B: Work in process account balance – (Direct materials cost + Direct labor cost) = $2,600 – ($800 + $1,200) = $600 Predetermined overhead rate as a percentage of direct labor cost: Manufacturing overhead applied/Direct labor cost = $600/$1,200 = 50% Manufacturing overhead would be overapplied if: actual overhead < applied overhead actual overhead > applied overhead actual overhead = applied overhead applied overhead > direct materials cost + direct labor cost CORRECT Awesome! Your answer is correct.

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The Fine Company uses a job order costing system. The following information belongs to current period: Estimated manufacturing overhead at the beginning of the period: $440,000 Actual manufacturing overhead incurred during the period: $400,000 Manufacturing overhead underapplied: $16,000 Predetermined overhead rate: $20 per direct labor hour On the basis of above information, how many direct labor hours were worked during the current period? 20,800 hours 20,000 hours 19,200 hours 22,000 hours INCORRECT Your answer is incorrect. The correct answer is “19,200 hours” (option 3). Computations: Manufacturing overhead applied: Actual manufacturing overhead – Underapplied manufacturing overhead = $400,000 – $16,000 = $384,000 Direct labor hours worked during the period: Manufacturing overhead applied/Predetermined overhead rate = $384,000/$20 = 19,200 hours The following cost data relates to job 355C: Direct materials: $27,400 Direct labor cost: $9,600 Manufacturing overhead cost – applied: $4,000 (160 machine hours @ $25/machine hour) Selling and shipping cost: $14,000 The job 355C consists of 2,000 units and has been completed. What is the cost of goods sold per unit of job 355C? $20.5 $27.5 $26 $25.5

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Job order costing system - multiple choice questions (MCQs) | Accounting for Management

CORRECT Awesome! Your answer is correct. Computations: Cost of goods sold per unit ($27,400 + $9,600 + $4,000)/2,000 units = 20.5 per unit Selling and shipping cost is an operating cost. It is not a component of cost of goods sold (COGS) and has therefore been ignored. The total cost assigned to job 777C is $24,000 which includes direct materials cost of $6,000. The factory overhead is applied to work in process @ 150% of direct labor cost. What is the amount of direct labor cost charged and factory overhead applied to job 777C? $9,600 and $14,400, respectively $6,000 and $12,000, respectively $7,200 and $10,800, respectively $4,800 and $72,200, respectively CORRECT Awesome! Your answer is correct. Computations: Total of direct labor cost and manufacturing overhead cost = Total cost – Direct materials cost = $24,000 – $6,000 = $18,000 Suppose, direct labor cost = Y Manufacturing overhead is applied @ 150% of direct labor cost. Therefore, it must be 1.5Y. Direct labor cost + Manufacturing overhead cost applied = $18,000 or Y + 1.5 Y = $18,000 2.5Y = $18,000 Y = $18,000/2.5 Y = $7,200 Direct labor cost is $7,200 & manufacturing overhead cost applied is $10,800 ($7,200 × 1.5). Which of the following is a correct journal entry to record the transfer of finished goods from production department to finished goods store room?

Production + FG Storeroom 1. WIP 2. Finished Goods

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Job order costing system - multiple choice questions (MCQs) | Accounting for Management

Work in process Dr. & Finished goods Cr. Finished goods Dr. & Work in process Cr. Finished goods Dr. & Cost of goods sold Cr. Finished goods Dr. & Store room Cr. CORRECT Awesome! Your answer is correct. Which of the following is a correct journal entry to record the shipment of a completed job to to customer? Accounts receivable Dr. & Sales Cr. Accounts receivable Dr. & Finished goods Cr. Accounts receivable Dr. & Cost of goods sold Cr. Cost of goods sold Dr. & Accounts receivable Cr. INCORRECT Your answer is incorrect. The correct answer is “Accounts receivable Dr. & Sales Cr.” (option 1). Which of the following journal entries correctly records the cost of the job shipped to a customer? Accounts receivable Dr. & Work in process Cr. Finished goods Dr. & Cost of goods sold Cr. Cost of goods sold Dr. & Finished goods Cr. Accounts receivable Dr. & Finished goods Cr. CORRECT Awesome! Your answer is correct. The correct journal entry to dispose off an underapplied manufacturing overhead balance to cost of goods sold account is: Manufacturing overhead Dr. & Cost of goods sold Cr. Cost of goods sold Dr. & Manufacturing overhead Cr. Manufacturing overhead Dr. & Work in process Cr. Cost of goods sold Dr. & Work in process Cr. https://www.accountingformanagement.org/jocs-mcqs/

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Job order costing system - multiple choice questions (MCQs) | Accounting for Management

CORRECT Awesome! Your answer is correct. Which of the following source documents is used to record the amount of direct materials on the job cost sheet? Production order Bill of materials Materials requisition form Materials purchase order CORRECT Awesome! Your answer is correct.

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7 COMMENTS ON Job order costing system  Multiple choice questions (MCQs)

FEROLYN

need the multiple choice REPLY https://www.accountingformanagement.org/jocs-mcqs/

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Job order costing system - multiple choice questions (MCQs) | Accounting for Management

WAQAR

Thanks for this useful MCQs. REPLY

WAQAR

I couldn’t find separate article and MCQs for Process Costing. Isn’t there any write up for that? REPLY

ACCOUNTING FOR MANAGEMENT

Yes we don’t have articles and MCQs on process costing. We shall add them soon. Please check back in a month. REPLY

WAQAR

My exam is on 1st Nov, 2018 it would be nice if you add that in few days. Thanks. REPLY

JOHNSON OLADIPUPO

Hi guys My name is Johnson Joseph, based in Nigeria, I have been lecturing Cost Accounting and performance management for over 10 years. i can join your team to make questions on certain/selected topics available https://www.accountingformanagement.org/jocs-mcqs/

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Job order costing system - multiple choice questions (MCQs) | Accounting for Management

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ACCOUNTING FOR MANAGEMENT

Sure, please send us an email using our contact us form. REPLY

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Differential cost Opportunity cost Sunk cost Direct cost

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