Test On Accounting: MCQ Quiz!

30 Questions | By Amphib2007 | Updated: Mar 21, 2022 | Attempts: 611

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1.

A document which is used to track how much an employee works on each job in a factory is called the:
- A.
  
  Labor time ticket
- B.
  
  Labor requisition
- C.
  
  Job cost sheet
- D.
  
  Payroll stubs
2.

Copies of a completed purchase requisition are forwarded to:
- A.
  
  Accounts payable only
- B.
  
  The purchasing department and accounts payable
- C.
  
  The purchasing department only
- D.
  
  The receiving department only
3.

The entry to record the cost of wages earned by the production line workers who actually make the product would include a debit to:
- A.
  
  Direct Labor
- B.
  
  Overhead
- C.
  
  Work-in-Process
- D.
  
  Wage Expenses
4.

The job order costing system would not be used to accumulate costs for which products listed below?
- A.
  
  Advertising posters
- B.
  
  Pencils
- C.
  
  Bridges
- D.
  
  Custom furniture
5.

Assuming the cost per equivalent unit is $1.88, the value assigned to the ending inventory should be:
- A.
  
  $658
- B.
  
  $1,334.80
- C.
  
  $1,316
- D.
  
  None of these answers is correct.
6.

Which manufactured product listed below would most likely be accounted for using a process costing system?
- A.
  
  Bridges
- B.
  
  Milk
- C.
  
  Ships
- D.
  
  Airplanes
7.

Manufacturing overhead generally benefits:
- A.
  
  The administrative departments within a company
- B.
  
  The factory as a whole and therefore, all products
- C.
  
  Only specific production jobs
- D.
  
  The end user of a product
8.

Assume that the equivalent units of production this month for Alabama Red’s Hot Sauces are 8,350. If the costs in beginning inventory were $450.00 and current manufacturing costs were $5,311.50, then the cost assigned to the 8,000 units completed would be:
- A.
  
  None of these answers is correct.
- B.
  
  $5,520.00
- C.
  
  $5,120.00
- D.
  
  $5,761.50
9.

Assume the cost per equivalent is $2.57. Based on the information regarding units in Table M3-1, the costs assigned to the goods in ending inventory should be:
- A.
  
  $1,927.5
- B.
  
  $3,983.5
- C.
  
  $963.75
- D.
  
  None of these answers is correct.
10.

Happy Faces Manufacturing uses machine hours to allocate manufacturing overhead to production. Based on 20,000 machine hours and an overhead cost of $40,000, the amount of overhead allocated for each machine hour would be:
- A.
  
  $0.50
- B.
  
  $1.00
- C.
  
  $0.25
- D.
  
  $2.00
11.

Allocating manufacturing overhead is a two-stage process. The first stage is to __________ and the second stage is __________.
- A.
  
  Identify a cost object; allocate indirect costs
- B.
  
  Gather overhead into a cost pool; allocate overhead using an application rate
- C.
  
  Allocate overhead using an application rate; gather overhead into a cost pool
- D.
  
  None of these answers is correct.
12.

The document that is sent to the vendor that specifies the quantity, type, and cost of materials needed is called a:
- A.
  
  Purchase requisition
- B.
  
  Receiving report
- C.
  
  Purchase order
- D.
  
  Materials requisition
13.

When materials have been received and checked in, they are then stored in the:
- A.
  
  Administrative offices
- B.
  
  Materials stores warehouse
- C.
  
  Loading dock
- D.
  
  Finished goods distribution center
14.

A method of allocating manufacturing costs to production during the period to determine an average cost per unit is known as:
- A.
  
  Job order costing
- B.
  
  Absorption costing
- C.
  
  Process costing
- D.
  
  Variable costing
15.

A document that would track and summarize the direct materials, direct labor, and overhead costs for each job is known as a:
- A.
  
  Purchase requisition
- B.
  
  Purchase order
- C.
  
  Job cost sheet
- D.
  
  Materials requisition
16.

Minnow Manufacturing uses direct labor hours to allocate manufacturing overhead. Based on the overhead cost of $40,000 and 10,000 hours of labor, the overhead cost allocated for each hour of labor would be:
- A.
  
  $4.00
- B.
  
  $0.25
- C.
  
  $1.00
- D.
  
  $5.00
17.

The element of cost associated with particular units of production that is abstract relative to the other elements is:
- A.
  
  Direct labor
- B.
  
  Manufacturing overhead
- C.
  
  Direct materials
- D.
  
  None of these answers is correct.
18.

Assume the number of equivalent units is 4,500. Based on the cost information in Table M3-1, the cost per equivalent unit this year is:
- A.
  
  $2.47
- B.
  
  $2.43
- C.
  
  $2.53
- D.
  
  None of these answers is correct.
19.

When product costs reflect the actual direct material costs, actual direct labor costs, and actual overhead costs, the cost system being used is a(n):
- A.
  
  Common cost system
- B.
  
  Direct cost system
- C.
  
  Actual cost system
- D.
  
  Normal costing system
20.

The accounts payable department matches all documents received to determine how much should be paid. Which one of the following documents used is externally generated?
- A.
  
  Receiving report
- B.
  
  Vendor invoice
- C.
  
  Purchase requisition
- D.
  
  Purchase order
21.

When goods are completed and transferred to finished goods, the entry will contain a credit to:
- A.
  
  Finished Goods Inventory
- B.
  
  Manufacturing Overhead Cost Incurred
- C.
  
  Cost of Goods Sold
- D.
  
  Work-in-Process Inventory
22.

Using Table M3-2, the amount in Finished Goods Inventory at the end of the month should be:
- A.
  
  $27,260
- B.
  
  $12,320
- C.
  
  $10,200
- D.
  
  $22,520
23.

When ordered goods are received by the firm, the receiving clerk compares the goods received to the:
- A.
  
  Materials requisition
- B.
  
  Purchase order
- C.
  
  Purchase requisition
- D.
  
  Job cost sheet
24.

The information found on a typical job cost sheet includes:
- A.
  
  Direct material, direct labor, and overhead costs
- B.
  
  Direct material and direct labor costs only
- C.
  
  Direct labor costs and overhead only
- D.
  
  Direct material costs only
25.

When the goods produced by the firm require varying amounts of labor for each product, the firm should use what type of product costing system?
- A.
  
  Absorption
- B.
  
  Process
- C.
  
  Job order
- D.
  
  Variable