A job order costing system is most likely used by which of the following?

• an accounting firm specializing in tax returns
• a stereo manufacturing company
• a pet food manufacturer
• a paper manufacturing company

Which of the following is a conversion cost?

• raw matrials
• direct materials
• administrative expenses
• factory depreciation expenses

Which document lists the inventory that will be removed from the raw materials inventory?

• receiving document
• purchase order
• job cost sheet
• materials requisition form

Which document lists the total direct materials used in a specific job?

• receiving document
• purchase order
• job cost sheet
• materials requisition form

Assigning indirect costs to specific jobs is completed by which of the following?

• using the manufacturing costs incurred
• using the predetermined overhead rate
• applying the costs to manufacturing overhead
• applying the indirect labor to the work in process inventory

In a job order cost system, raw materials purchased are debited to which account?

• work in process inventory
• cost of goods sold
• finished goods inventory
• raw materials inventory

In a job order cost system, factory wage expense is debited to which account?

• raw materials inventory
• work in process inventory
• cost of goods sold
• finished goods inventory

In a job order cost system, indirect labor incurred is debited to which account?

• manufacturing overhead
• finished goods inventory
• cost of goods sold
• work in process inventory