Accounting 202 - Chapter 3

55 Questions | Total Attempts: 142

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Accounting Quizzes & Trivia

Today we covered chapter three which was about job costing. This usually occurs with goods made after an order. As discussed job costing gives an accountant an overview of what each manufacturing will cost the company. What else can you remember from class today? Take up this simple quiz and find out. All the best!


Questions and Answers
  • 1. 
    What are the two basic types of costing systems?
    • A. 

      Job costing and process costing

    • B. 

      Periodic costing and perpetual costing

    • C. 

      Product costing and materials inventory costing

    • D. 

      Periodic costing and process costing

  • 2. 
    What type of product costing system would a manufacturer of plywood use?
    • A. 

      Job costing

    • B. 

      Process costing

    • C. 

      Either job or process

    • D. 

      Both job and process

  • 3. 
    What type of product costing system would a manufacturer of luxury yachts use?
    • A. 

      Job costing

    • B. 

      Process costing

    • C. 

      Either job or process

    • D. 

      Both job and process

  • 4. 
    Which of these documents are used to accumulate the costs of a job?
    • A. 

      Labor time record

    • B. 

      Materials inventory requisition form

    • C. 

      Job cost record

    • D. 

      Bill of materials

  • 5. 
    Which of these documents substantiates the balance of the raw materials inventory account shown on the company’s balance sheet?
    • A. 

      Raw materials records

    • B. 

      Bill of materials

    • C. 

      Materials requisition

    • D. 

      Labor time record

  • 6. 
    Which of these documents informs the storeroom to send specific materials to the factory floor?
    • A. 

      Receiving report

    • B. 

      Bill of materials

    • C. 

      Materials requisition

    • D. 

      Purchase order

  • 7. 
    When direct materials are requisitioned, they flow directly into:
    • A. 

      Cost of goods sold

    • B. 

      Finished goods inventory

    • C. 

      Manufacturing overhead

    • D. 

      Work in process inventory.

  • 8. 
    A source document for tracking employee hours is called a
    • A. 

      Job cost record

    • B. 

      Process costing

    • C. 

      Labor time record

    • D. 

      Job costing

  • 9. 
    A document that accumulates job costs is called a
    • A. 

      Job cost record

    • B. 

      Bill of materials

    • C. 

      Labor time record

    • D. 

      Production schedule

  • 10. 
    Which comes first in the flow of costs?
    • A. 

      Cost of goods sold

    • B. 

      Finished goods inventory

    • C. 

      Raw materials inventory

    • D. 

      Work in process inventory

  • 11. 
    Which comes second in the flow of costs?
    • A. 

      Cost of goods sold

    • B. 

      Finished goods inventory

    • C. 

      Raw materials inventory

    • D. 

      Work in process inventory

  • 12. 
    Which comes third in the flow of costs?
    • A. 

      Cost of goods sold

    • B. 

      Finished goods inventory

    • C. 

      Raw materials inventory

    • D. 

      Work in process inventory

  • 13. 
    Which comes last in the flow of costs?
    • A. 

      Cost of goods sold

    • B. 

      Finished goods inventory

    • C. 

      Raw materials inventory

    • D. 

      Work in process inventory

  • 14. 
    Payroll costs for factory employees who do NOT work directly on the product are considered:
    • A. 

      Direct labor

    • B. 

      Manufacturing overhead

    • C. 

      Selling expenses

    • D. 

      Administrative costs

  • 15. 
    An estimated manufacturing overhead rate computed before the year begins is a(n):
    • A. 

      Cost allocation

    • B. 

      Cost driver

    • C. 

      Actual manufacturing overhead rate

    • D. 

      Predetermined manufacturing overhead rate

  • 16. 
    Assigning manufacturing overhead costs and other indirect costs is called:
    • A. 

      Cost allocation

    • B. 

      Cost driver

    • C. 

      Materials requisition

    • D. 

      Predetermined manufacturing overhead rate

  • 17. 
    Manufacturers follow four steps to implement a manufacturing overhead allocation system.  The last step is to:
    • A. 

      Select an allocation base and estimate the total amount that will be used during the year

    • B. 

      Allocate some manufacturing overhead to each individual job

    • C. 

      Estimate total manufacturing overhead costs for the coming year

    • D. 

      Calculate a predetermined manufacturing overhead rate

  • 18. 
    Manufacturers follow four steps to implement a manufacturing overhead allocation system.  The first step is to:
    • A. 

      Select an allocation base and estimate the total amount that will be used during the year

    • B. 

      Allocate some manufacturing overhead to each individual job

    • C. 

      Estimate total manufacturing overhead costs for the coming year

    • D. 

      Calculate a predetermined manufacturing overhead rate

  • 19. 
    Manufacturers follow four steps to implement a manufacturing overhead allocation system.  Which step is NOT performed before the year begins?
    • A. 

      Select an allocation base and estimate the total amount that will be used during the year.

    • B. 

      Allocate some manufacturing overhead to each individual job.

    • C. 

      Estimate total manufacturing overhead costs for the coming year.

    • D. 

      Calculate a predetermined manufacturing overhead rate.

  • 20. 
    Manufacturing overhead is allocated on the basis of
    • A. 

      Machine hours

    • B. 

      Direct labor hours

    • C. 

      Direct labor costs

    • D. 

      Any of the above

  • 21. 
    Allocating manufacturing overhead costs is done
    • A. 

      Before the period starts

    • B. 

      During the period

    • C. 

      At the end of the period

    • D. 

      At none of these times

  • 22. 
    Computing the predetermined manufacturing overhead rate is done
    • A. 

      Before the period starts

    • B. 

      During the period

    • C. 

      At the end of the period

    • D. 

      At any time

  • 23. 
    How do you calculate the predetermined manufacturing overhead rate used to allocate manufacturing overhead costs?
    • A. 

      . By dividing the total estimated manufacturing overhead costs by the total estimated amount of the allocation base

    • B. 

      By dividing the total estimated amount of the allocation base by the total estimated manufacturing overhead costs

    • C. 

      By dividing the total estimated manufacturing overhead costs by the total actual amount of the allocation base

    • D. 

      By multiplying the total estimated manufacturing overhead costs by the total estimated amount of the allocation base

  • 24. 
    Manufacturing overhead would include:
    • A. 

      Indirect labor costs only

    • B. 

      All manufacturing costs except direct materials and direct labor

    • C. 

      All manufacturing costs

    • D. 

      Indirect materials only

  • 25. 
    If a job consists of a batch of identical units, managers find the unit cost by:
    • A. 

      Tracing direct materials to each unit

    • B. 

      Multiplying the total job cost by the number of units in the job

    • C. 

      Tracing direct labor to each unit

    • D. 

      Dividing the total job cost by the number of units in the job

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