MAcc seminar 3

Choose the most suitable cost object for process - costing system.

• Airplane

• Audition from Deloitte

• Furniture

• Bricks

The companies that produce many different products or services usually use:

• process costing

• job order costing

• both process costing and job order costing

• none of the above

Which of the following costs is recorded on the job cost sheet?

• Direct materials cost

• Direct labor cost

• Manufacturing overhead cost

• All of the above

Which of the following journal entries is correct for the issuance of direct materials to production?

• Materials Dr. & Work in process Cr.

• Work in process Dr. & Materials Cr.

• Work in process Dr. & Accounts payable Cr.

• Materials Dr. & Accounts payable Cr.

In a job order costing system, which of the following costs is not an example of manufacturing overhead cost?

• Indirect labor cost

• Fuel used in factory

• Salary of production manager

• Sales commission

*Estimated manufacturing overhead cost at the beginning of the year: $100,000

*Estimated direct labor hours at the beginning of the year: 10,000

*Actual manufacturing overhead cost incurred during the year: $118,000

*Actual direct labor hours worked during the year: 11,000

Based on the above information, the cost record of the company will show:

• overapplied overhead of $8,000

• underapplied overhead of $8,000

• overapplied overhead of $18,000

• underapplied overhead of $18,000

Manufacturing overhead would be overapplied if:

• actual overhead < applied overhead

• actual overhead > applied overhead

• actual overhead = applied overhead

• applied overhead > direct materials cost + direct labor cost

Term which describes assigning of indirect cost, to any cost object is classified as

• cost allocation

• sales tracing

• sales allocation

• cost tracing

Which of the following is not a feature of a process production system?

• Repetitive production

• High production volume

• Low product flexibility

• Heterogeneous products

A unit cost calculated in costing system, by assigning total costs incurred to many similar units is categorized as

• accounting period costing system

• process costing system

• job costing system

• none of above