1) What is the best way to handle manufacturing overhead costs in order to get the most timely job cost information?
A. The company should apply overhead using an estimated rate throughout the year.
B. The company should add actual manufacturing overhead costs to jobs as soon as the overhead costs are incurred.
C. The company should determine an allocation rate as soon as the actual costs are known, and then apply manufacturing overhead to jobs.
D. The company should account for only the direct production costs.
2) Luca Company over-applied manufacturing overhead during 2006. Which one of the following is part of the year end entry to dispose of the over-applied amount assuming the amount is material?
A_ A decrease to applied overhead
B. A decrease to work in process inventory
C An increase to cost of goods sold D. An increase to finished goods
3) When a job is completed, what happens to the cost of the job?
A_ It is removed from finished goods and included in cost of goods sold.
B. It is removed from materials inventory and included in work in process.
C. It is removed from work in process and included in finished goods. a It is removed from work in process and included in cost of goods sold.
4) Which of the following represents the two basic types of cost accounting systems?
A Job order and job accumulation systems
B. Job order and batch systems
C. Process cost and batch systems
D. Job order and process cost systems
5) Which one of the following is NEVER part of recording the issuance of raw materials in a job order cost system?
A Debit Finished Goods Inventory
B. Debit Manufacturing Overhead
C. Credit Raw Materials Inventory
D. Debit Work in Process Inventory
6) Which one of the following is an important feature of a job order cost system?
A Each consists of features which distinguish it from the next.
B. Each job uses similar processes to produce.
C Each job has characteristics similar to the next.
D Each must be completed before a new product order is accepted.
7) Which one of the following costs would be included in manufacturing overhead of a lawn mower manufacturer?
A_ The cost of the fuel lines that run from the motor to the gas tank
B. Depreciation on the testing equipment
C The wages earned by motor assemblers
D. The cost of the wheels
8) What broad functions do the management of an organization perform?
A_ Planning, manufacturing, and controlling
B. Directing, manufacturing, and controlling
C Planning, directing, and selling
D. Planning, directing, and controlling
9) Which one of the following is indirect labor considered?
A. Raw material cost
B. Product cost
C Period cost a Nonmanufacturing cos.?