1. Job order costing is used when a company:

   		produces many different products
   		has a net loss
   		sells inventory only
   		produces many identical products

1. Applied overhead cost was $75,000 and actual overhead cost is $76,000. Applied overhead was:

   		overapplied and cost of goods sold will need to be decreased
   		underapplied and cost of goods sold will need to be increased
   		overapplied and cost of goods sold will need to be increased
   		underapplied and cost of goods sold will need to be decreased

2. Actual overhead has a normal __________ balance and applied overhead has a ________________normal balance

   		credit;credit
   		debit;credit
   		debit;debit
   		credit;debit

1. Which inventory account represents units of product that are partially complete?

   		cost of goods sold
   		finished goods
   		direct materials
   		work in process

1. Which sequence properly exhibits the flow of goods?

   		raw materials, work in process, finished goods, cost of goods sold
   		direct labor, cost of goods sold, finished goods, overhead
   		raw materials, finished goods, cost of goods sold, work in process
   		raw materials, overhead, direct labor, cost of goods sold

1. Production costs for a manufacturer are:

   		work in process, finished goods, inventory
   		direct materials, overhead, and finished goods
   		work in process, direct materials, and cost of goods sold
   		direct materials, direct labor, and overhead

1. Whipley Corporation had a predetermined overhead rate of $10 per direct labor hour. Job Z had actual overhead cost of $3,000 and 280 direct labor hours. The journal entry to apply overhead to work in process will include a:

   		debit to applied overhead for $2,800
   		debit to overhead $3,000
   		credit to applied overhead for $2,800
   		credit to overhead $3,000

beginning raw materials inventory	1,500
ending raw materials inventory	800
goods purchased	20,000

Using the cost of goods manufactured schedule, the cost of direct materials used in production is: (assume no indirect materials were used)

		$19,300
		$20,500
		$22,300
		$20,700

1. Which of the following costs will not appear in the finished goods account?

   		direct materials
   		administrative salary costs
   		factory rent
   		indirect labor

1. $5,000 of raw materials were withdraw from the storeroom for use in production. This included $4,800 of direct materials and $200 indirect materials. The journal entry to record the issue of materials into production:

   raw materials	5,000
   work in process		200
   overhead		4,800

   work in process	4,800
   overhead	200
   raw materials		5,000

   raw materials	5,000
   work in process		5,000

   work in process	4,800
   overhead		4,800