Chapter 3: Review

For which of the following would job costing not be appropriate? a. Law firm b. Electrician c. Manufacturer of mass-produced carbonated beverages d. Manufacturer of custom-ordered production equipment

Which of the following documents specifies the materials needed to produce a job? a. Production schedule b. Bill of materials c. Raw materials records d. Receiving report

Which of the following documents is used to accumulate all of the manufacturing costs assigned to a job? a. Job cost record b. Labor time record c. Materials requisition d. Purchase order

The amount of manufacturing overhead recorded on a job cost record for a particular job is found by: a. Tracing manufacturing overhead to the job. b. Allocating manufacturing overhead to the job. c. Either tracing or allocating manufacturing overhead costs (management's choice). d. None of the answer listed is correct.

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

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 ofthe statements are true.

Assuming the amount of manufacturing overhead overallocation or underallocation is not material, which account is adjusted at the end of the period? a. Raw Materials Inventory b. Cost of Goods Sold c. Sales Revenue d. Work in Process Inventory

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. Work in Process Inventory b. Cost of Goods Sold c. Finished Goods Inventory d. Sales Revenue

When a job is completed, the total cost of manufacturing the job should be moved to which of the following general ledger accounts? a. Cost of Goods Sold b. Finished Goods Inventory c. Sales Revenue d. Work in Process Inventory

Which of the following is true when using job costing at a service firm? a. Office rent would be considered a direct 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. Professional labor cost would be considered an indirect cost of serving the client.