Accounting Ch. 3 Quick Check’s

QC3-2 Which of the following documents specifies the materials needed to produce a​ job? A. Bill of materials B. Production schedule C. Receiving report D. Raw materials records

QC3-3 Which of the following documents is used to accumulate all of the manufacturing costs assigned to a​ job? A. Materials requisition B. Purchase order C. Labor time record D. Job cost record

QC3-4 The amount of manufacturing overhead recorded on a job cost record for a particular job is found by A. either tracing or allocating manufacturing overhead costs​ (management's choice). B. tracing manufacturing overhead to the job. C. allocating manufacturing overhead to the job. D. None of the answers listed is correct.

QC3-5 Which of the following is false​? A. Job cost information is not useful for assessing the profitability of different products. B. A​ cost-plus price is determined by adding a markup to the cost. C. Non-manufacturing costs can be assigned to jobs only for internal decision​ making, never for external financial reporting. D. Direct costing focuses on only the direct costs found on the job cost record.

QC3-6 Which of the following is true​? A. If manufacturing overhead is​ overallocated, then jobs will be undercosted. B. If manufacturing overhead is​ underallocated, then jobs will be overcosted. C. Both of the statements are true. D. None of the statements is true.

QC3-7 Assuming the amount of manufacturing overhead overallocation or underallocation is not​ material, which account is adjusted at the end of the​ period? A. Work in Process Inventory B. Sales Revenue C. Raw Materials Inventory D. Cost of Goods Sold

QC3-8 Whenever direct​ material, direct​ labor, and manufacturing overhead are recorded on a job cost​ record, an associated journal entry is made to debit which of the following​ accounts? A. Cost of Goods Sold B. Finished Goods Inventory C. Sales Revenue D. Work in Process Inventory

QC3-9 When a job is​ completed, the total cost of manufacturing the job should be moved to which of the following general ledger​ accounts? A. Finished Goods Inventory B. Sales Revenue C. Work in Process Inventory D. Cost of Goods Sold

QC3-10 Which of the following is true when using job costing at a service​ firm? A. Professional labor cost would be considered an indirect cost of serving the client. B. Both direct and indirect costs are assigned to client jobs. C. The professional billing rate consists solely of the​ professionals' labor cost. D. Office rent would be considered a direct cost of serving the client.