Scribd
Upload
55 views4 pages

PAA2 Job Order Costing

This document contains 11 multiple choice questions testing knowledge of job costing concepts like normal costing, job order costing, process costing, direct vs indirect costs, and work in process inventory accounting. It also provides a short case study with journal entries and asks calculation questions related to inventory, cost of goods sold, and net income.

Uploaded by

echo fate
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
55 views4 pages

PAA2 Job Order Costing

This document contains 11 multiple choice questions testing knowledge of job costing concepts like normal costing, job order costing, process costing, direct vs indirect costs, and work in process inventory accounting. It also provides a short case study with journal entries and asks calculation questions related to inventory, cost of goods sold, and net income.

Uploaded by

echo fate
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

1.

Normal costing is a method of job costing that allocates an indirect cost based on
the actual indirect-cost rate times the actual quantity of the cost-allocation base.
True
False

2. What is the best cost accumulation procedure to use when many batches, each
differing as to product specification, are produced?
a. Job Order
b. Process
c. Actual
d. Standard

3. Which of the following production operations would be most likely to employ a job
order system of cost accounting?
a. Toy manufacturing
b. Shipbuilding
c. Crud oil refining
d. Candy manufacturing

4. When a manufacturing company has a highly automated plant producing many


different products, probably the most appropriate basis of applying factory overhead
costs to Work in Process is:
a. units processed
b. machine hours
c. direct labor hours
d. direct labor dollars

5. Job costing information is used ________.


a. to determine target customers
b. to calculate the percentage of completion
c. for internal financial reporting
d. to enhance public relations

6. Job costing is ________.


a. used by businesses to price identical products
b. used by businesses to price unique products for different jobs
c. used to calculate equivalent units
d. used to calculate the percentage of work completed
7. Job costing ________.
a. cannot be used by the service industry
b. records the flow of costs for each product or service
c. allocates an equal amount of cost to each unit made during a time period
d. is used when each unit of output is identical

8. In a normal costing system, the Manufacturing Overhead Control account


________.
a. is increased by allocated manufacturing overhead
b. is credited with amounts transferred to Work-in-Process
c. is decreased by allocated manufacturing overhead
d. is debited with actual overhead costs

9. Which of the following is true of the Work-in-Process Control account?


a. It tracks all direct material purchases.
b. Its balance is the sum of amounts from all in-process individual job-cost records.
c. It is an expense account.
d. It tracks overhead costs in-process from beginning through completion

10. Direct costs ________.

a. are anything for which a measurement of costs is desired


b. are costs related to a particular cost object that can be traced to that cost object in a cost-
effective manner
c. focus specifically on the costing needs of the CFO
d. are costs related to a particular cost object that cannot be traced to that cost object in a cost-
effective manner

11.

a. 6,750
b. 2,250
c. 2,500
d. 4,250
12. Moscow Mfg Com.

a. 716
b. 691
c. 801
d. 736

13. Doonesbury Comp

a. 9,600
b. 10,300
c. 11,100
d. 5,400

14. Pidro Co.


a. 135,000
b. 180,000
c. 195,000
d. 240,000

15-21.

15.1 give the journal entries to record transactions a to j. |

15.2 Prepare the Income Statement *

16. What is the balance of the Work in Process Inventory account at the end of the period?

17. What is the balance of the Finished Goods Inventory account at the end of the period?

18. How much is the cost of goods manufactured?

19. How much is the cost of sales (normal)

20. How much is the Cost of Sales after adjustment for underapplied or overapplied overhead?

21. How much is the net income

You might also like