1. Powers Company reported Net sales of $1,200,000 and Accounts Receivable, net of $78,500. The Day's sales uncollected (rounded to whole days) is:

A. 24 days.

B.15 days.

C. 4 days.

D. 56 days.

E. 48 days.

2. The file of job cost sheets for completed but undelivered jobs equals the balance in the Work in Process Inventory account.

A. True

B. False

3. Actual factory overhead incurred in a job costing system is debited to a Factory Overhead general ledger account and credited to various other accounts.

A. True

B. False

4. Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations for June. The journal entry to record June production activities for direct material usage is:

Direct materials used	$87,000
Direct labor used	160,000
Predetermined overhead rate (based on direct labor)	155%
Goods transferred to finished goods	432,000
Cost of goods sold	444,000
Credit sales	810,000

A. Debit Raw Materials Inventory $87,000; credit Accounts Payable $87,000.

B. Debit Raw Materials Inventory $87,000; credit Finished Goods Inventory $87,000.

C. Debit Cost of Goods Sold $87,000; credit Finished Goods Inventory $87,000.

D. Debit Work in Process Inventory $87,000; credit Raw Materials Inventory $87,000.

E. Debit Work in Process Inventory $87,000; credit Cost of Goods Sold $87,000.

5. Costs incurred in detecting poor quality products are referred to as:

A. appraisal costs

B. external failure costs

C. internal failure costs

D. prevention costs

6. The use of departmental overhead rates will generally result in:

A. The use of a single cost allocation base

B. The use of a single overhead cost pool for the shop

C. The use of a separate cost allocation base for each department in the shop

D. The use of a separate cost allocation base for each activity in the shop

7. The high-low method is used to derive the variable cost per unit and total fixed costs using just the highest and lowest volume levels.

A. True

B. False