Question 1

The acquisition of raw materials causes the work in process account to increase.

Accepted Answer

A) True 
 B)False

Question 2

Which one of the following describes factory labour?

Accepted Answer

A)  It is debited to manufacturing overhead when incurred.
B)  It is debited to jobs as they are completed.
C)  It is an inventory account in a job cost system.
D)  It is assigned to work in process or manufacturing overhead.E) B) and D)
F) None of the above

Question 3

A predetermined overhead rate is used to allocate the actual costs of manufacturing overhead for the period.

Accepted Answer

A) True 
 B)False

Question 4

How is the authorization for issuing materials made when an effective system of internal control is in place?

Accepted Answer

A)  By utilizing pre-numbered materials requisition slips
B)  By acquiring the materials from the delivery driver when the shipment is received from a trucking company
C)  By receiving authorization to begin a job from the production supervisor
D)  By approval from the accounting departmentE) A) and B)
F) All of the above

Question 5

Which of the following is true of materials requisition slips?

Accepted Answer

A)  They are prepared after the goods have been sold.
B)  They trigger a transaction which increases finished goods.
C)  They may indicate indirect materials used in production.
D)  They indicate receipt of materials from the supplier.E) All of the above
F) B) and D)

Question 6

A job cost accounting system is appropriate for homogeneous products that are continuously mass produced.

Accepted Answer

A) True 
 B)False

Exam 3: Job Order Costing

Which of the following is true of materials requisition slips?

Correct Answer
verified

A predetermined overhead rate is used to allocate the actual costs of manufacturing overhead for the period.

Correct Answer
verified

Which one of the following describes factory labour?

Correct Answer
verified

A job cost accounting system is appropriate for homogeneous products that are continuously mass produced.

Correct Answer
verified

How is the authorization for issuing materials made when an effective system of internal control is in place?

Correct Answer
verified

The acquisition of raw materials causes the work in process account to increase.

Correct Answer
verified

Exam 3: Job Order Costing

Which of the following is true of materials requisition slips?

Correct AnswerverifiedShow Answer

A predetermined overhead rate is used to allocate the actual costs of manufacturing overhead for the period.

Correct AnswerverifiedShow Answer

Which one of the following describes factory labour?

Correct AnswerverifiedShow Answer

A job cost accounting system is appropriate for homogeneous products that are continuously mass produced.

Correct AnswerverifiedShow Answer

How is the authorization for issuing materials made when an effective system of internal control is in place?

Correct AnswerverifiedShow Answer

The acquisition of raw materials causes the work in process account to increase.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified