chapter 3 assignment questions

Question 1

Fringe benefits and payroll taxes associated with factory workers should be accumulated as a part of manufacturing overhead.

true or false

Answer 1

false

Question 2

Job cost sheets are often used as a subsidiary ledger for job costs.

true or false

Answer 2

true

Question 3

Total manufacturing costs for a period consists of the costs of direct material used, the cost of direct labour incurred, and the actual manufacturing overhead incurred during the period.

true or false

Answer 3

false

its the applied overhead

Question 4

Job shops and process shops are basically the same regarding the extent to which we can trace costs to individual units and jobs.

true or false

Answer 4

false

Question 5

In a job shop, because each job is unique, the firm has to track costs separately for individual jobs

true or false

Answer 5

true

Question 6

Typical flow of costs in manufacturing includes raw materials, factory labour, and manufacturing overhead

true or false

Answer 6

true

Question 7

The balance in Manufacturing Overhead is eliminated by an adjusting entry

true or false

Answer 7

true

Question 8

Cost accounting is primarily concerned with allocating overhead

true or false

Answer 8

false

Question 9

To calculate a predetermined overhead rate, you must multiply the actual activity level by the estimated annual overhead costs

true or false

Answer 9

false

Question 10

A job-order cost system

a) identifies costs with a particular activity within the production process, such as mixing, or cutting.
b) and a process cost system are two alternative cost accounting systems.
c) is appropriate for homogeneous products that are continuously mass produced.
d) is most appropriate when products that are produced do not have their own distinguishing characteristics.

Answer 10

b) and a process cost system are two alternative cost accounting systems.

Question 11

Which one of the following is a major purpose of cost accounting?

a) To provide gross profit rates to managers.
b) To allocate overhead costs to jobs.
c) To classify all costs as direct or indirect.
d) To measure, record, and report product costs.

Answer 11

d) To measure, record, and report product costs.

Question 12

What are the two major steps in the flow of costs for a job cost system?

a) accumulating and assigning
b) allocating and assigning
c) acquiring and accumulating
d) accumulating and allocating

Answer 12

a) accumulating and assigning

Question 13

Which of the following statements regarding the Raw Materials Inventory account is correct?

a) Freight costs related to acquiring materials are credited.
b) Purchase returns and allowances are debited.
c) The invoice cost of purchasing materials is debited.
d) Any purchase discounts taken are debited.

Answer 13

c) The invoice cost of purchasing materials is debited

Question 14

Which of the following is true?

a) When direct materials are requisitioned from the storeroom, the cost of the materials should be removed from the Work in Process Inventory account and added to the job cost sheets for the individual jobs on which the material was used.
b) Upon purchase of raw materials there is no attempt to associate the cost of materials with specific jobs or orders.
c) In a job-order cost system, each entry to the Raw Material Inventory account should be accompanied by a posting to one or more job cost sheets.
d) Materials requisition slips indicate the receipt of materials from a supplier.

Answer 14

b) Upon purchase of raw materials there is no attempt to associate the cost of materials with specific jobs or orders.

Question 15

In what manner does a company most likely maintain its records of individual items of raw materials?

a) Using a bar coding system.
b) In the Work in Process Inventory control account.
c) In the Raw Materials Inventory account in the general ledger.
d) In each of the separate job cost records.

Answer 15

a) Using a bar coding system

Question 16

Which statement is true with regard to factory labour costs?

a) It represents the net amount paid to factory workers for work on jobs.
b) It is added to the Factory Labour account and later assigned to work in process or manufacturing overhead.
c) These costs are accrued before incurred.
d) Amounts incurred during a particular year that have not been allocated to jobs are carried over to the next year.

Answer 16

b) It is added to the Factory Labour account and later assigned to work in process or manufacturing overhead.

Question 17

How is the employee time ticket used?

a) It is kept as evidence of payment to employees.
b) It is used only by the production supervisor to track which employees show up for work.
c) It is used as a basis for determining the cost of labour to add to jobs.
d) It is only sent to the accounting department to create pay cheques for employees.

Answer 17

c) It is used as a basis for determining the cost of labour to add to jobs.

Question 18

How often are postings to subsidiary accounts in a costing system made?

a) At the end of every accounting period.
b) Monthly.
c) Daily.
d) Weekly.

Answer 18

c) Daily.

Question 19

What is the primary role of a job cost sheet?

a) It lists the materials on hand available to be used for jobs.
b) It is the primary accounting record used in assigning costs to jobs.
c) It is used instead of a cost of goods manufactured schedule.
d) It shows the detail of the Manufacturing Overhead Control account

Answer 19

b) It is the primary accounting record used in assigning costs to jobs.

Question 20

Which one of the following contains sources of costs that will be added to job cost sheets?

a) invoices, time tickets, and the predetermined overhead rate
b) materials requisition slips, time tickets, and the actual overhead costs
c) materials requisition slips, payroll register, and the predetermined overhead rate
d) materials requisition slips, time tickets, and the predetermined overhead rate

Answer 20

d) materials requisition slips, time tickets, and the predetermined overhead rate

Question 21

Which one of the following is a control account?

a) Utilities Expense
b) Factory Wages Payable
c) Manufacturing Overhead
d) Cost of Goods Sold

Answer 21

c) Manufacturing Overhead

Question 22

what is a control account?

find this shit

Answer 22

yoooooooo

Question 23

At what point in time is the predetermined overhead rate calculated?

a) At the end of the year in which the job is in production.
b) At the time each job is completed.
c) At the beginning of the year.
d) Once actual overhead costs are incurred.

Answer 23

c) At the beginning of the year.

Question 24

Which one of the following is a common activity base used to calculate the predetermined overhead rate?

a) Number of months to complete jobs.
b) Indirect labour costs.
c) Direct labour dollars.
d) Number of jobs completed.

Answer 24

c) Direct labour dollars.

Question 25

Of the three manufacturing costs, which one is the most difficult to assign to a cost object?

a) Direct materials.
b) Direct labour.
c) Manufacturing overhead.
d) They are all equally difficult to assign.

Answer 25

c) Manufacturing overhead

Question 26

If a company has under-applied overhead at the end of the accounting period, how is it accounted for?

a) No entry occurs.
b) It is transferred to Finished Goods with the other job costs.
c) It is debited to Cost of Goods Sold.
d) It is credited to Cost of Goods Sold

Answer 26

c) It is debited to Cost of Goods Sold

Question 27

Where might you find under-applied overhead on the monthly financial statements?

a) As part of Manufacturing Overhead Expense in the operating expenses section on the Income Statement.
b) As part of “Other Revenues and Gains” on the Income Statement.
c) Included with Cost of Goods Sold on the Income Statement.
d) As a prepaid expense in the current asset section of the Balance Sheet

Answer 27

c) Included with Cost of Goods Sold on the Income Statement

Question 28

Tan Company over-applied manufacturing overhead during 2020. Which one of the following is part of the year-end entry to adjust the over-applied amount assuming the amount is material?

a) A debit to Work in Process Inventory.
b) A debit to Cost of Goods Sold.
c) A debit to Manufacturing Overhead.
d) A credit to Unearned Revenue

Answer 28

c) A debit to Manufacturing Overhead

Question 29

what are control accounts?

Answer 29

Control accounts (materials, labor and overhead, work-in-process, and finished goods) are inventory accounts