Chapter 003, Systems Design: Job-Order Costing

| October 3, 2018

17. Which of the following companies would be most likely to use a
job-order costing system rather than a process costing system?
A. fast food restaurant B. shipbuilding
C. crude oil refining D.
candy making

18. Computing unit product costs involves averaging in:

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A. Choice A

B. Choice B

C. Choice C

D. Choice D

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Chapter 003, Systems Design: Job-Order Costing

19. For which situation(s) below would an organization be more likely
to use a job-order costing system of accumulating product costs rather than a
process costing system?
A. a
steel factory that processes iron ore into steel bars

B. a factory that processes sugar and other ingredients into black
licorice C. a costume maker that makes specialty costumes for figure skaters
D. all of these

20. In job-order costing, all of the following statements are correct
with respect to labor time and cost except:
A. time tickets are kept by employees showing the amount of work
on specific jobs. B. the job cost sheet for a job will contain all direct labor
charges to that particular job.
C. labor cost that can be traced to a job only with a great deal
of effort is treated as part of manufacturing overhead.
D. a
machine operator performing routine annual maintenance work on a piece of
equipment would charge the maintenance time to a specific job.

21. Which of the following documents is used to specify the type and
quantity of materials drawn from the storeroom, and identifies the job to which
the costs of the materials are to be charged?
A. Job Cost Sheet B. Bill of Materials
C. Material Requisition Form
D. Purchase Order

22. Choice of allocation base should be made based on:

A. the relative size of the base.

B. the base’s relation to direct labor.

C. the base’s activity.

D. whether the base actually drives the cost being allocated.

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Chapter 003, Systems Design: Job-Order Costing

23. In a job-order costing system, the journal entry to record the
application of overhead cost to jobs would include:
A. a credit to the Manufacturing Overhead account. B. a credit to
the Work in Process inventory account. C. a debit to Cost of Goods Sold.

D. a debit to the
Manufacturing Overhead account.

24. Ivory Company uses a job-order costing system. What year-end
journal entry could Ivory make to dispose of (close out) $4,150 of overapplied
manufacturing overhead cost?
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B..jpg”>
C..jpg”>

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25. In a job-order costing system, the use of indirect materials would
usually be recorded as a debit to:
A. Raw Materials. B. Work in Process.
C. Manufacturing Overhead.
D. Finished Goods.

26. In a job-order costing system, direct labor costs usually are
recorded initially with a debit

to:

A. Manufacturing Overhead.
B. Finished Goods inventory. C. Direct Labor Expense.

D. Work in Process.

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