1. The entry to record the requisition of indirect materials in a job cost system includes a: a) debit to Work in Process Inventory.

b) None of the answer choices is correct.

c) credit to Work in Process Inventory.

d) credit to Accounts Payable.

e) debit to Manufacturing Overhead.

2. Records at Sandy Inc. indicate that indirect materials totaling $800 were requisitioned and placed in production. Which one of the following journal entries should Sandy record for this transaction? a) Raw Materials Inventory 800 Work in Process Inventory 800

b) Raw Materials Inventory 800 Accounts Payable 800

c) Manufacturing Overhead 800 Raw Materials Inventory 800

d) None of the answer choices is correct.

e) Work in Process Inventory 800 Raw Materials Inventory 800

3. T or F: The predetermined overhead rate is calculated as the estimated activity in the allocation base divided by the estimated overhead costs.

4. T or F: All account names for job costing systems in service organizations are the same as those used by manufacturing companies.

5. T or F: When a manufacturing company purchases raw materials, the Raw Materials Inventory account is debited.

6. If the Manufacturing Overhead account has a credit balance after overhead has been applied to products, manufacturing overhead: a) is overapplied.

b) has been closed.

c) is underapplied.

d) has been applied incorrectly.

e) None of the answer choices is correct.

7. All of the following are reasons that companies prefer normal costing except: a) Normal costing averages overhead costs and levels out overhead fluctuations that might occur from month to month.

b) None of the answer choices is correct.

c) Normal costing simplifies recordkeeping.

d) Normal costing provides information for managers to quote customers the price of products based on estimated costs.

e) Normal costing tracks actual direct materials, actual direct labor costs, and actual manufacturing overhead costs.

8. Which of the following accounts would probably not be found in the Job Costing accounts of a service organization? a) None of the answer choices is correct.

b) Finished Goods.

c) Cost of Services.

d) Supplies Inventory.

e) Overhead.