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Multiple Choice Quiz
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1.
Which of the following manufacturers is most likely to use a job order accounting system?
A)a brewery
B)a ship builder of oil tankers
C)an oil refinery
D)a sugar refinery
2.
In a job order cost accounting system, which account would be debited in recording a purchase invoice for raw materials?
A)Raw Materials Inventory
B)Goods in Process Inventory
C)Factory Overhead
D)Finished Goods Inventory
3.
In a job order cost accounting system, which account would be debited in recording a materials requisition for direct materials?
A)Raw Materials Inventory
B)Factory Overhead
C)Raw Materials Purchases
D)Goods in Process Inventory
4.
The predetermined overhead rate is $6.10 per direct labour hour. Job 213 required 210 direct labour hours of which 150 hours were incurred during the current accounting period. How much overhead should be applied to Job 213 during the current accounting period?
A)$ 366
B)$ 915
C)$1,218
D)$1,281
5.
Production reports for the second quarter show the following data:
MonthMachine-
Hours		Direct
Labour
Hours		Direct
Labour
Cost		Direct
Materials
Cost		Actual
Overhead
April9,00012,000$60,000$32,000$45,020
May12,00010,000$50,000$28,500$60,000
June10,0009,000$44,000$45,000$50,100
Which variable would be the most likely basis for allocating overhead?
A)Machine-hours
B)Labour Hours
C)Labour Cost
D)Materials Cost
6.
Direct materials used: $20,000
Factory overhead: $40,000
Beginning goods in process: $0
Ending goods in process: $12,000
Cost of goods manufactured: $65,000
What was the amount of direct labour?
A)$17,000
B)$77,000
C)$ 5,000
D)$48,000
7.
Company records show the following data:
MonthLabour
Cost		Actual
Overhead
May$60,000$91,020
June$50,000$74,850
July$44,000$66,120
Overhead is applied at 150% of direct labour cost. At the end of July, the balance of the overhead account would be:
A)$1,290, debit
B)$1,050, debit
C)$ 960, debit
D)$ 990, debit
8.
Job 21 was unfinished at the end of the accounting period. The total cost assigned to the job is $12,000 of which $3,000 is direct material. Factory overhead is allocated to goods in process at 150% of direct labour cost. What was the amount of direct labour charged to Job 21?
A)$9,000
B)$3,600
C)$4,000
D)$3,000
9.
The production costs to produce one unit of finished goods was $45. Direct materials were 1/3 of the total cost, and direct labour was 40% of the combined total of direct labour and direct materials. The cost for direct materials, direct labour, and factory overhead was:
A)$15, $18, and $12, respectively
B)$15, $12, and $18, respectively
C)$15, $16, and $14, respectively
D)$15, $10, and $20, respectively
10.
The overapplied balance of the Factory Overhead ledger account is $36,000, a significant amount. The ending balances of Goods in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold accounts are $12,000, $8,000, and $60,000, respectively. On the basis of ending balances, how much of the overapplied balance should be allocated to each of these accounts?
A)$5,400, $3,600, $27,000
B)$12,000, $12,000, $12,000
C)$12,000, $4,000, $20,000
D)$3,600, $5,400, $24,000
11.
The amount of underapplied overhead is immaterial. What account(s) should this amount be allocated to?
A)Goods in Process Inventory
B)Finished Goods Inventory
C)Cost of Goods Sold
D)All of above
12.
Which of the following statement is NOT correct regarding the differences between a cost accounting system and a general accounting system?
A)A cost accounting system is used in a periodic inventory system, while a general accounting system is used in a perpetual inventory system.
B)A cost accounting system continually updates its three inventory accounts, while a general accounting system updates them only at the end of each accounting period.
C)A cost accounting system uses a cost of goods manufacturing account, while a general accounting system uses a manufacturing summary account.
D)A cost accounting system uses the cost of goods sold account to record the manufacturing costs and other expenses, while a general accounting system uses an income summary account.
13.
Which of the following items is NOT included in the job cost sheet?
A)Direct Materials
B)Indirect Materials
C)Direct Labour
D)Manufacturing Overhead
14.
Which of the following is NOT a source of information for recording costs in the Factory Overhead account?
A)Materials requisitions
B)Clock cards
C)Time tickets
D)Adjusting entries





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