Cornerstones of Cost Management 4e Don R Hansen Maryanne M Mowen - Test Bank

Cornerstones of Cost Management 4e Don R Hansen Maryanne M Mowen – Test Bank

Instant Download – Complete Test Bank With Answers

Sample Questions Are Posted Below

Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 1
1. A production process may yield a tangible product or a service and their unique characteristics determine the best
approach for developing a cost management system.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-1 – LO: 05.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GOJI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJA-GWAG-KA3I-GA5S-ECUR-
8RSU-YPTT-CESU-K3JI-GOSS-RCT3-GWSS-CA3W-GH3G-EPJT-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
2. Manufacturing firms produce intangible products that cannot be inventoried.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-1 – LO: 05.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-01 – BB-Industry
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GOJW
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMB-CA5D-1CTS-CEAU-G3MF-
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 2
CRSS-KQMR-CESU-QCBW-GOSS-KQJZ-CCSU-NPJ3-8RHG-NP3T-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
3. Service firms produce intangible products that are not separable from the customer.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-1 – LO: 05.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-01 – BB-Industry
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GO1N
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJA-GHHG-CQBU-GO5S-ECJ1-
GHSU-ECJS-8RSU-QAUN-GOSS-CQMN-8RSS-GC5F-GYAU-NPJU-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
4. Heterogeneity means that services cannot be inventoried and must be consumed when performed.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-1 – LO: 05.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-01 – BB-Industry
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GO1B
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJT-8YHU-QAJO-GAAG-CC3T-
GHSS-KPJA-CRSS-R3JI-GOSU-1CBI-CCSS-KAMF-GC4U-EQJI-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
5. Inseparability means that production and consumption are inseparable for services.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-1 – LO: 05.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-01 – BB-Industry
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GOT3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJU-GRAS-NQBO-GA4D-QCJZ-
GASU-NPDN-8RSS-K3BS-GOSU-OCBT-GCSU-KP33-GI1U-CPJZ-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
6. The uniqueness of the products or units for cost accounting purposes relates to their common costs.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-1 – LO: 05.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 4
QUESTION ID: JFND-GO33-GINW-GOTA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJ3-CJUD-KPT3-GWAG-EPDG-
GOSU-C3JO-8RSU-Q3DG-GOSU-Y3T1-8RSU-GQJO-8FOU-NCTW-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
7. Cost accumulation is the determination of the dollar amounts of direct materials, direct labor and overhead costs, and
cost measurement is the recognition and recording of costs.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-2 – LO: 05.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
TOPICS: Bloom’s – Remembering
KEYWORDS: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GO1G
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJS-CEAG-NPJO-GR4D-EPB1-CRSS-
EAMG-CESU-NA5F-GOSS-GP31-GASU-EP3W-GAHD-RPJ3-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
8. Cost assignment is the assignment of costs to products or services once the costs have been accumulated and measured.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-2 – LO: 05.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 5
DATE MODIFIED: 1/11/2017 3:47 AM
QUESTION ID: JFND-GO33-GINW-GO1F
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJO-8R3S-RQMN-8BOU-CC5F-CESU-
NQJZ-CRSU-R3T1-GOSS-EAJW-CCSS-KPJ3-CW3U-GPJU-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
9. Unit cost is a critical piece of information for a manufacturing business as well as a service company.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-2 – LO: 05.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GO1R
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMB-GEHD-KCJA-COHG-NCUN-
CWSU-Y3B3-CRSS-RQBS-GOSU-RCUG-8YSU-QQMN-GH3G-NP3O-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
10. Activity level is the average activity usage over the long term and normal activity level is the production level for one
year.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-2 – LO: 05.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-11 – Strategic Planning
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 6
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GO1D
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMR-GEHG-GP3U-GPOS-RCBZ-
GOSU-RQBS-8YSU-R3DN-GOSS-EC31-8YSS-NAMG-8R3D-13DD-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
11. Companies operating in job-order industries produce a wide variety of products or jobs that are quite different from
each other.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-3 – LO: 05.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GOTU
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJ3-CPOU-R3DD-CITU-OAUG-CESS-
EA3S-8YSS-NCDD-GOSS-RQJA-GRSU-Y3JO-CW5U-KAJ3-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
12. The job-order cost sheet accumulates the cost of all the jobs produced.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-3 – LO: 05.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 7
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GOT1
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMD-GAHD-YP5D-GC4G-KATW-
COSU-OA3U-8YSS-NCJO-GOSS-RAMB-CASU-EPBI-CITG-K3DG-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
13. The collection of all job-order cost sheets defines a work-in-process inventory file.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-3 – LO: 05.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GOTT
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJS-CW5S-E3TU-CPOS-RPJA-GESS-
N3JA-CESU-NA3Z-GOSU-EPJO-CESU-1PUB-GY5G-CC3W-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
14. The source document known as a time ticket assigns the direct overhead to each particular job.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-3 – LO: 05.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 8
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GOTO
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJ3-CA5U-YP3U-8B1G-GQBW-8YSS-
EPJO-8RSU-EPUD-GOSU-RPT3-8RSS-NPDF-GIUG-R3UB-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
15. A job-order costing process would be applicable for an airplane manufacturer.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-3 – LO: 05.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GOTZ
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMR-GP1G-NQMD-GY4D-RCDD-
GHSU-KAJA-CESU-CCTS-GOSU-CCTW-CWSU-QC31-GI1U-CPUN-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
16. Cost flow follows costs from the point they are incurred to the point they are recognized as an expense on the income
statement.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 9
STATE STANDARDS: United States – v1 – ACBSP-APC-09 – Financial Statements
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GOTS
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMB-CP1U-OPJU-GBTG-RAUD-
CRSS-CPDD-8YSU-NCJ3-GOSS-RP3W-GOSS-CAJ3-GC3D-1CJ3-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
17. When materials are purchased, the costs of the materials “flows” into the materials inventory account.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GOTI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJS-CR5S-E3MB-GA3D-QPUD-
GCSU-KCMF-8RSU-NCTT-GOSS-KPT3-8YSS-GC5G-GHAG-EPJZ-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
18. In a job-order costing system, direct labor costs assigned to a job are different than the costs assigned to work-in-
process inventory.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 10
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GOTW
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJT-GA5D-YA3A-GTOS-K3MF-
CESU-QCDR-8YSU-KQBW-GOSU-G3TZ-GRSS-RPUB-GR5D-ECBZ-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
19. In a job-order costing system, actual overhead costs never enter the work-in-process inventory accounts
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GQNN
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMN-G3TG-KQBW-GE4D-OPMD-
CWSU-GQJO-8YSU-GC3Z-GOSU-QAUD-GCSU-RP3O-GO3G-K3JU-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
20. The costs of a completed job are transferred from the work-in-process inventory account to the finished goods
inventory account.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 11
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GQNB
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMN-8YAD-1QJ1-C3OU-GPJU-8YSU-
NCBS-8YSU-NQJZ-GOSU-RCT1-CWSU-KAT3-GWAD-GAMD-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
21. A debit balance in overhead control implies that actual overhead costs exceed overhead applied.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GQB3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMN-8RHU-RPUN-GP1G-EQBZ-
CASS-KQMR-8RSS-KCUB-GOSU-KPB3-COSS-CCMB-CW4G-EPJU-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
22. In job-order costing, departmental overhead rates and activity-based costing affect only the application of overhead.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 12
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-5 – LO: 05.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GQBA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMD-CPUD-YATA-G31G-RQDB-
GRSS-KC5B-8RSU-GA3T-GOSU-OPJO-GASU-1A3W-CEHU-QCDD-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
23. In an activity-based costing system activity cost is applied to each job by multiplying productivity rate by the job’s use
of the associated driver.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-5 – LO: 05.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 1/13/2017 5:01 AM
QUESTION ID: JFND-GO33-GINW-GQNG
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJ3-G7TS-R3UD-8BOS-EQDR-GWSS-
CCBA-CRSU-RCUB-GOSU-OQDG-GASU-1CDR-CJOS-GCUB-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
24. Costs of normal spoilage are included in overhead and applied to all good units produced.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 13
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-6 – LO: 05.06
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GQNF
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJO-CWHU-Y3DD-8Y5D-GQBO-
CASS-CCJA-CESU-NQBZ-GOSS-K3BW-COSU-G3MF-GTTD-1PMG-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
25. Abnormal spoilage is charged to the job that caused it.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-6 – LO: 05.06
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
TOPICS: Bloom’s – Remembering
KEYWORDS: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GQNR
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJ1-CC3D-GA3T-G7TU-GP5B-
GWSU-RC3S-8RSS-CC3Z-GOSS-EPUN-8RSU-EC3A-8R4D-ECDG-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
26. In __________ a single product is produced on a continuous basis.
ANSWER: process production
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 14
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-1 – LO: 05.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GQND
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJT-CW3G-NPUF-8RAD-C3JW-
CWSU-13BO-8YSU-EQJT-GOSU-O3JT-GESU-KPB3-GP1S-NPB1-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
27. A __________ service organization does not use raw material or tangible items for the customer.
ANSWER: pure
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-1 – LO: 05.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-01 – BB-Industry
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GQBU
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMR-8Y5U-1CUG-CAAS-NC5N-
CASU-OCBA-8YSU-OCTO-GOSU-KA3I-GHSS-EC3A-CR4D-YAUB-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
28. __________ means that services cannot be inventoried but must be consumed when performed.
ANSWER: Perishability
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-1 – LO: 05.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 15
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-01 – BB-Industry
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GQB1
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJI-8F1D-N3MF-GA5D-NCUD-8YSU-
QCDB-8YSU-N3T1-GOSS-RCJS-GYSU-YQBZ-CFOS-RAUF-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
29. __________ is the recognition and recording of costs.
ANSWER: cost accumulation
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-2 – LO: 05.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GQBT
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJW-CF1U-13TU-8BTG-KQDN-
GRSS-CCJO-8RSS-ECJ1-GOSU-ECUR-CWSS-NAJ1-8F1U-NATU-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
30. Determining the dollar amounts of direct materials, direct labor, and overhead used in production involves
__________ .
ANSWER: cost measurement
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-2 – LO: 05.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 16
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GQBO
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJU-CEAD-YPMG-GFUD-CP31-
GCSU-NATW-CESU-KC3Z-GOSU-KP5N-CASU-QAUF-GOAU-OCDD-E7JI-YT4D-
JFNN-4OTI-GO4W-NQNBEE
31. The association of production costs with the units produced is called __________ .
ANSWER: cost assignment
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-2 – LO: 05.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GQBZ
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMR-GTUG-KPBZ-CA3D-NPBS-
8RSS-EPJA-CRSS-NQJT-GOSU-QC5D-GYSU-CAJW-CR5D-KAMR-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
32. The __________ activity level is the production level a firm expects to attain for the coming year.
ANSWER: expected
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-2 – LO: 05.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-11 – Strategic Planning
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 17
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GQBS
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJO-GCAU-EC3A-GY3D-ECUD-
GOSS-NQJ1-CESU-EC3Z-GOSU-1CT1-GHSU-CCT3-CTUD-EP5B-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
33. The __________ costing system assigns costs by the job.
ANSWER: job-order
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-3 – LO: 05.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GQBI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMR-GJTG-KCJU-GCAD-C3BU-
8YSU-EPJO-8RSU-1CTZ-GOSS-NCB3-GHSU-RQJT-CO3U-13DD-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
34. The __________ form indicates the type and quantity of each material issued to the factory.
ANSWER: materials requisition
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-3 – LO: 05.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GQBW
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJA-8R4D-QC33-8YHU-13MD-CASU-
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 18
OQJW-CESS-GPUF-GOSU-YAT1-COSU-1A3Z-8RHS-EAUB-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
35. A __________ inventory file is a file of job-order cost sheets.
ANSWER: work-in-process
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-3 – LO: 05.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GQKN
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJO-CFUD-QCTI-8RHU-O3MR-
CASS-KC5R-8RSU-QPMF-GOSU-EAJZ-8YSU-YPBZ-CR3D-Q3BA-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
36. The actual __________ costs are not included on a job-order sheet.
ANSWER: factory overhead
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-3 – LO: 05.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GQKB
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJ3-C31S-E3JW-GF1U-YQMB-GWSS-
E3DR-8RSS-K3MN-GOSS-RQBI-COSS-KPBI-GWAS-RQJ3-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
37. Purchases of direct materials are recorded as a debit to the __________ account.
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 19
ANSWER: materials inventory
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GQJ3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJZ-GY4S-RCBT-GEHD-GQMR-
CWSS-CCUN-8RSU-GP3T-GOSU-OATS-GESU-C3JO-GE5D-CCBT-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
38. The entry that captures the flow of material from the storeroom to work-in-process is called
the __________ inventory account.
ANSWER: work-in-process
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:30 AM
DATE MODIFIED: 10/7/2016 9:30 AM
QUESTION ID: JFND-GO33-GINW-GQJA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMG-GC4D-N3TO-GEAU-1C3U-
GRSS-RAT1-CESU-1PUB-GOSU-KCBZ-GCSS-GA3W-GPTD-NQMR-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
39. __________ are the source of information for posting the labor cost flows.
ANSWER: Time tickets
POINTS: 1
DIFFICULTY: Easy
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 20
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GQKG
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMD-8FUG-RP5N-CR3U-RAJZ-
8RSU-K3J3-8YSS-GCUF-GOSS-CCBW-GWSU-RPUD-GY3G-C3DB-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
40. The total applied overhead at a given point in time is given by the credit balance in the __________ control account.
ANSWER: overhead
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GQKF
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJ1-C31D-KCMF-8F1D-ECBW-CRSS-
KCB3-CESS-C3TO-GOSU-1C3T-GASS-RPB3-G7OU-KCJU-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
41. When a job is completed the total costs are transferred to a __________ inventory file.
ANSWER: finished goods
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 21
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GQKR
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMG-GTTS-GPJU-GTOS-RCDG-
GOSU-CA3W-8RSU-KCTW-GOSS-EATO-CWSS-RPUN-GR5G-GAJT-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
42. When a job is shipped to a customer, the finished job cost becomes the cost of the __________ sold.
ANSWER: goods
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GQKD
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJA-GJOS-CCB3-GAAU-OAT1-
8YSU-13TU-8YSS-KQMF-GOSU-1PUB-CWSS-N3TA-8F1S-R3T1-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
43. In job-order costing, departmental overhead rates and activity-based costing affect only the application of __________
.
ANSWER: overhead
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-5 – LO: 05.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 22
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GQJU
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMG-GA3S-NPT3-CCAS-KC3U-
CWSS-N3MG-8YSS-EPMR-GOSU-Q3BI-GYSS-KQJI-CRHU-E3MB-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
44. The defective units expected due to the nature of the typical production process are
called __________ .
ANSWER: normal spoilage
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-6 – LO: 05.06
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GQJ1
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJW-GE5G-RP3W-C3UD-R3TW-
GWSU-E3JI-CESU-EPTU-GOSS-RCMN-GRSS-NPBU-CC5D-KPBW-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
45. The defective units due to the exacting nature of a particular job is called __________ .
ANSWER: abnormal spoilage
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Completion
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-6 – LO: 05.06
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 23
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GQJT
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMG-GOHG-CA3W-8B1U-1QJU-
GASS-GAJ3-CRSS-KCBI-GOSU-EQMN-GYSU-GCUD-GA3U-QCJS-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
46. Which of the following is a manufactured product?
a. bungee jumping
b. beauty salon
c. automobile
d. restaurant
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-1 – LO: 05.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-01 – BB-Industry
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GQJO
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMR-GB1G-C3BA-GOHU-Y3MD-
GOSS-E3JZ-CRSS-GPTZ-GOSS-KC33-CRSU-EPTU-8Y3G-KCMR-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
47. Manufacturers producing unique or customized products would employ a(n)
a. process costing system.
b. job-costing system.
c. homogeneous costing system.
d. all of the above.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 24
LEARNING OBJECTIVES: COCM.HANS.18.5-1 – LO: 05.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GQJZ
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMD-CCAS-R3T1-CFOU-Y3TI-
CASU-KQJ1-8RSU-QPUN-GOSU-GP3O-CCSU-CAJS-GE4S-NCTO-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
48. Which of the following is a pure service?
a. bungee jumping
b. beauty salon
c. restaurant
d. software
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-1 – LO: 05.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-01 – BB-Industry
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GQJS
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJZ-GAAD-KPDG-CI1S-ECDB-
GYSU-G3JA-CESU-OPTT-GOSU-CQMF-GWSU-KCJZ-8BOS-E3BT-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
49. A pure service organization has
a. no raw materials, no inventories, and a definite separation between the plant and the customer.
b. raw materials, tangible items, and no separation between the plant and the customer.
c. no raw materials, no tangible items, and no separation between the plant and the customer.
d. none of these.
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 25
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-1 – LO: 05.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-01 – BB-Industry
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GQJI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMF-CEHU-KQJ3-8R4D-Q3UR-
GRSU-O3UG-8YSS-NC3Z-GOSU-13BS-8YSU-YCBA-CIUG-GQJU-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
50. Inseparability refers to the
a. nonphysical nature of services as opposed to products.
b. fact that production and consumption are inseparable for services.
c. greater chances for variation in the performance of services than in the production of products.
d. fact that services cannot be inventoried but must be consumed when performed.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-1 – LO: 05.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-01 – BB-Industry
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GQJW
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJZ-8RAU-1P3I-CA4G-KCJ1-GHSU-
O3DF-CESS-KQJZ-GOSU-O3MD-8YSS-EAUF-8YHG-NPMG-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 26
51. Which of the following is true of heterogeneity?
a. It refers to the nonphysical nature of services as opposed to products.
b. It refers to the fact that production and consumption are inseparable for services.
c. Heterogeneity makes it difficult to ensure quality control of services.
d. Heterogeneity makes it difficult for services to be patented.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-1 – LO: 05.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-01 – BB-Industry
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/20/2017 8:02 AM
QUESTION ID: JFND-GO33-GINW-GTKN
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJ3-COAS-E3J1-GW4U-1PBO-CCSU-
Q3TO-CRSU-CC5D-GOSU-EQBW-GHSU-K3UG-GF1G-GQBZ-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
52. Intangibility refers to the
a. nonphysical nature of services as opposed to products.
b. fact that production and consumption are inseparable for services.
c. greater chances for variation in the performance of services than in the production of products.
d. fact that services cannot be inventoried but must be consumed when performed.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-1 – LO: 05.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-01 – BB-Industry
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GTKB
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 27
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJ1-GA4D-CPTA-COHS-RCUD-
CESU-OAMR-CESU-QP3W-GOSU-OPDF-CRSS-CPMF-GA5G-C3UN-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
53. The _____ nature of services leads to a requirement of standardized system to handle repeat customers.
a. Heterogenous
b. Intangible
c. Inseparable
d. Perishable
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-1 – LO: 05.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-01 – BB-Industry
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/20/2017 8:04 AM
QUESTION ID: JFND-GO33-GINW-GTJ3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMD-8R5D-OCMR-GAAD-ECUN-
CASU-QP3W-8RSS-KA5N-GOSS-KCTO-GHSU-GCMD-CRAU-1QMG-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
54. Which of the following firms would make extensive use of service costing?
a. Law firm
b. furniture manufacturer
c. auto dealer
d. auto manufacturer
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-1 – LO: 05.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 28
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GTJA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJA-CJTS-E3UD-CFTS-KCTZ-CESU-
YCDN-CRSS-CPUD-GOSU-NAMF-COSU-N3MB-CFOS-G3UF-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
55. Which of the following products would NOT use job-order costing?
a. houses
b. chemicals
c. ships
d. custom-built furniture
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-1 – LO: 05.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GTKG
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMD-GFUG-GA5N-GFOS-RPMD-
8YSS-R3JO-CRSU-O3B1-GOSS-N3TO-CRSU-GQB3-CO5G-NC5G-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
56. Which of the following firms would make extensive use of a job-order costing?
a. dental and medical services
b. canned foods
c. discount brokers
d. petroleum
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 29
LEARNING OBJECTIVES: COCM.HANS.18.5-1 – LO: 05.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GTKF
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJW-G7UG-GA5R-CC5G-C3BU-
CCSU-NP31-8YSS-RA3W-GOSU-YQMB-CESU-YAJZ-COAD-NAJO-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
57. Process costing would be most applicable for
a. custom machining.
b. an electronics producer.
c. high rise building construction.
d. CPA audits.
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-1 – LO: 05.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GTKR
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJI-CEAD-Y3B3-GJ1G-KAUN-CESU-
Q3MD-CESU-O3JU-GOSS-CCJZ-GRSU-1CJW-GC3U-NAMF-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
58. Which of the following would NOT use a process costing system?
a. electrical wire
b. cotton yarn
c. newsprint
d. satellites
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 30
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-1 – LO: 05.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GTKD
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJT-GW4S-ECUN-CF1U-OA3U-
CESU-GA3W-8YSS-NPB3-GOSU-RAJW-GHSU-QAMD-GW5S-NC3I-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
59. Homogeneous products refer to
a. products similar in nature.
b. the nonphysical nature of services and opposed to products.
c. great variation in the nature products.
d. products that can be inventoried.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-1 – LO: 05.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-01 – BB-Industry
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GTJU
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJS-CO4U-KQB3-GR5D-G3JT-CCSU-
1C33-CRSU-QPBZ-GOSS-KA3A-GASU-KCT3-GA4G-N3BW-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 31
60. Which cost accounting processes would be most appropriate for firms that mass-produce large quantities of similar or
homogeneous products?
a. DuPont costing
b. Process costing
c. Job-order costing
d. Common-size costing
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-1 – LO: 05.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-01 – BB-Industry
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/20/2017 5:07 AM
QUESTION ID: JFND-GO33-GINW-GTJ1
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJW-GIOU-EP3S-CCHS-RATU-
CESU-E3TZ-8YSU-OQJA-GOSU-EQMB-CASU-CPBS-G3TG-KPBA-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
61. The process where a single product is produced on a continuous basis is called:
a. process production
b. job-order production
c. job production
d. both a and c
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-1 – LO: 05.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-35 – Process Costing
United States – v1 – AICPA-01 – BB-Industry
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 32
QUESTION ID: JFND-GO33-GINW-GTJT
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMF-CE3D-GAUD-8R4U-RQB3-
GASU-R3TS-8RSS-KCBS-GOSU-EQJS-8YSS-GQJZ-COHS-RCB3-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
62. For a manufacturer, the three inventory accounts on the balance sheet are
a. Materials, Finished Goods, and Cost of Goods Sold.
b. Materials, Overhead, and Cost of Goods Sold.
c. Materials, Direct Labor, and Overhead.
d. Materials, Work-in-Process, and Finished Goods.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-1 – LO: 05.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-09 – Financial Statements
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GTB1
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMG-CJ1D-1P5B-GAAD-EPJZ-8YSS-
KQJT-8RSS-EAMN-GOSS-RCDD-GWSU-GQJS-CC3D-QQMF-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
63. A source document
a. is only an external document.
b. provides transaction data that can be recorded in a database.
c. is only used to record a transaction between an organization and an outside vendor.
d. is only an internal document.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-2 – LO: 05.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 33
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GTJO
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMF-8Y3S-KPDR-CEAU-RC3U-
GESS-NPB3-8YSU-CP5R-GOSU-RQDN-COSU-KAJS-GR3D-K3TS-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
64. Which of the following costs is usually NOT easily traceable to finished units of product?
a. direct labor
b. direct materials
c. manufacturing overhead
d. all of the above
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-2 – LO: 05.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP- APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GTJZ
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJI-8YAG-CP5G-CJ1D-C3MN-CESU-
K3DB-8RSU-OPUG-GOSU-KCUN-GOSS-KPUD-CJ1G-CPBZ-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
65. Manufacturing overhead consists of all
a. costs other than direct materials.
b. manufacturing costs other than direct materials.
c. costs other than direct materials and direct labor.
d. manufacturing costs other than direct materials and direct labor.
ANSWER: d
POINTS: 1
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 34
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-2 – LO: 05.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-27 – Managerial Accounting Features/Costs
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GTJS
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJ3-G3TU-OQBO-CE5D-GQMG-
8RSS-NCBU-CESU-OCBA-GOSU-KCUD-GWSU-GQJU-GFOU-O3JI-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
66. Cost accumulation refers to the:
a. use of actual costs for direct materials, direct labor, and overhead to determine unit cost.
b. association of production costs with units produced.
c. recognition and recording of costs.
d. determination of the dollar amounts of direct materials, direct labor, and overhead used in production.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-2 – LO: 05.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/20/2017 8:04 AM
QUESTION ID: JFND-GO33-GINW-GTJI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJA-CCAG-KCTU-GIUG-N3JO-
GASS-KCMN-CESS-NAUB-GOSU-GCUF-GCSU-O3UF-CC3D-13MG-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
67. Determining the dollar amounts of direct materials, direct labor, and overhead used in production involves:
a. Job order costing
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 35
b. Cost accumulation
c. Cost assignment
d. Cost measurement
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-2 – LO: 05.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GTJW
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMR-CJ1G-E3TW-8B1U-GATA-
COSS-NPTA-CESU-N3MG-GOSS-RPJI-CCSU-YATO-GRHU-1PUR-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
68. An actual overhead rate can be calculated
a. at the beginning of the year.
b. at the end of each month.
c. at the beginning of each month.
d. either at the beginning of the year or at the beginning of the month.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-2 – LO: 05.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GT1N
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJI-CW5U-KPJT-GEHU-GA33-GWSS-
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 36
EC3S-CESS-K3UR-GOSU-NPTW-CASS-NPJW-GW5U-QA5N-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
69. Disadvantages of actual costing include
a. actual cost systems cannot provide accurate unit cost information on a timely basis.
b. actual cost systems produce unit costs that fluctuate from period to period.
c. estimates must be used when calculating the actual overhead rate.
d. both a and b.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-2 – LO: 05.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GT1B
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJ3-CA3S-CAT1-GYHD-CATS-GESU-
1QB3-CRSU-1CTZ-GOSS-NPMB-8RSU-1ATS-CFOS-EAJA-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
70. The effect of uniform production levels on unit production costs can be achieved
a. by using a factory overhead rate based on long-run normal production activity level.
b. by using a factory overhead rate based on selling price.
c. by closing the factory overhead at the end of the accounting period.
d. by using a factory overhead rate based on different production levels for each year.
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-2 – LO: 05.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 37
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GTT3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJU-GF1S-RA3A-CR4S-GPT1-COSU-
NPT1-CESU-EQBA-GOSU-K3DN-8RSU-QP5B-CR5D-KPMF-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
71. Normal costing uses which cost in work in process?
a. applied direct materials
b. actual overhead
c. applied overhead
d. budgeted overhead
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-2 – LO: 05.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GTTA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJ1-GRHG-GATI-GHAD-KP3T-CRSS-
RATI-CESS-R3BO-GOSU-E3TW-8YSS-NPTZ-COAG-RATS-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
72. A normal costing system records which costs in work in process?
a. actual direct materials, actual direct labor, actual manufacturing overhead
b. applied direct materials, applied direct labor, applied manufacturing overhead
c. applied materials and labor and actual manufacturing overhead
d. actual materials and labor and applied manufacturing overhead
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-2 – LO: 05.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 38
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GT1G
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMR-CI1D-YPTO-GOHD-CAMB-
CRSU-Q3UB-8YSU-1PBT-GOSS-G3BW-8YSS-RQJA-8RAG-GQJ1-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
73. The predetermined overhead rate is usually calculated at the
a. end of each month.
b. beginning of each month.
c. beginning of the year.
d. end of the year.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-2 – LO: 05.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GT1F
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJS-GH5U-ECUD-CIOS-N3DF-CCSS-
CC3U-CESU-KP3O-GOSU-GCJA-8YSU-QCT1-CW5U-QA3S-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
74. Which of the following costing systems assigns actual costs of materials to inventory?
a. actual costing system
b. normal costing system
c. standard costing system
d. both a and b
ANSWER: d
POINTS: 1
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 39
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-2 – LO: 05.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GT1R
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJU-G31S-C3MR-G3TU-N3JI-GASS-
KCDR-8RSS-NCDF-GOSS-EA3O-CESS-RPTT-8R3U-QCUD-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
75. The principal difficulty with normal costing is that
a. the unit cost information is not received on a timely basis.
b. it can result in fluctuating per-unit overhead costs.
c. estimated overhead and estimated activity are likely to differ from actual overhead and actual costs, resulting
in underapplied or overapplied overhead.
d. there is no difficulty associated with using normal costing.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-2 – LO: 05.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GT1D
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJZ-GJ1D-EPDG-GOHU-GATZ-CESS-
CP5F-8RSU-N3MB-GOSS-KCJI-GASU-OPMN-GY3D-O3B1-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
76. Unit cost information is needed for
a. costing inventory.
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 40
b. financial reporting requirements.
c. decision making.
d. all of the above.
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-2 – LO: 05.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GTTU
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJU-GIUD-KPJO-8R3S-GQJ1-GYSU-
NATA-CESU-Y3TS-GOSU-YATO-CRSU-1CJA-GH3U-CPTT-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
77. A job-order costing system that uses actual costs for direct materials and direct labor and estimated costs for overhead
is called a(n) _____.
a. hybrid job-order costing system
b. normal job-order costing system
c. average job-order costing system
d. actual job-order costing system
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-2 – LO: 05.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/20/2017 2:41 AM
QUESTION ID: JFND-GO33-GINW-GTT1
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 41
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJA-GH3S-ECUR-CE3D-YQDB-
CRSU-OC5G-CESU-OC3W-GOSU-KC31-GRSS-KQJU-GTOS-CQJZ-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
78. The production level the firm expects to attain for the coming year is called:
a. Practical activity level
b. Normal activity level
c. Theoretical activity level
d. Expected activity level
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-2 – LO: 05.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-11 – Strategic Planning
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GTTT
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJU-GOHU-GP3W-8FOS-NPTS-
GYSU-KCT1-8YSS-GQBO-GOSU-GP5G-CWSU-YCBA-GOHD-QC5N-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
79. Unit costs are critical for
a. valuing inventory.
b. determining net income.
c. decisions to enter a new product line.
d. all of the above.
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-2 – LO: 05.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 42
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GTTO
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMN-GCAS-GQJU-CO5G-KC5F-
GASU-OCB1-8YSU-13BI-GOSU-OPTT-GHSU-YCBW-GP1D-G3TU-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
80. In developing unit costs, overhead costs should be assigned using activity drivers. Which would be the likely activity
driver for a production process using a lathe?
a. units produced
b. direct labor hours
c. machine hours
d. direct materials cost
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-2 – LO: 05.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GTTZ
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJZ-CE3D-RATZ-GC4D-CQJ1-GOSS-
N3DR-8YSU-QCDG-GOSS-NCTS-GRSU-YPB3-CCAG-CQMR-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
81. Unit cost is important information for which of the following?
a. valuing inventory
b. determining income
c. decision making
d. all of the above
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 43
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-2 – LO: 05.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GTTS
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMN-GR5G-G3BS-CC4S-NPDR-
8YSS-R3JA-CESU-Y3TT-GOSU-KP5D-GOSU-N3BW-GTOS-RPJZ-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
82. Which of the following activity levels has the advantage of using the same activity level year after year and, in turn,
producing less fluctuation from year to year in the assignment of per-unit overhead cost?
a. Actual activity level
b. Normal activity level
c. Theoretical activity level
d. Practical activity level
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-2 – LO: 05.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-11 – Strategic Planning
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/20/2017 8:05 AM
QUESTION ID: JFND-GO33-GINW-GTTI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJ3-CTTS-CQJ1-CITD-QPMG-CWSS-
R3BZ-CESS-KCMN-GOSU-R3BI-GRSU-KCT1-GTTU-GPB1-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
83. The absolute maximum production activity of a manufacturing firm is called:
a. Expected activity level
b. Normal activity level
c. Theoretical activity level
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 44
d. Practical activity level
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-2 – LO: 05.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-11 – Strategic Planning
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GTTW
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJ3-GBTU-O3TZ-CCHD-QP5G-
CWSU-GCJI-CRSS-GPTO-GOSS-EA3Z-GASU-NQMR-GH4U-1A3U-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
84. The maximum output that can be realized if everything operates efficiently is referred to as:
a. Expected activity level
b. Normal activity level
c. Theoretical activity level
d. Practical activity level
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-2 – LO: 05.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-11 – Strategic Planning
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GO4B
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJI-GPOU-RC3A-GW5U-OP5D-
CWSS-N3BI-8YSU-YQJO-GOSU-NP5G-8YSU-RAUG-GTOU-NCJ3-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 45
85. The system which assign(s) costs by the job is termed:
a. The process costing system
b. The job-order costing system
c. The project costing system
d. Both a and c
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-3 – LO: 05.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GO33
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJ1-8BOS-CQJI-GJ1U-1ATW-GCSU-
N3JZ-CESU-EPDF-GOSU-1A5N-GHSS-CA3S-GJ1D-KPBA-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
86. A job-order costing process would be most applicable for
a. a food processing plant.
b. natural gas processing.
c. airplane manufacturing.
d. fertilizer production.
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-3 – LO: 05.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 46
QUESTION ID: JFND-GO33-GINW-GO3A
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJT-GAHS-RPJA-GE3G-EPBT-8YSS-
RQJ1-8YSS-E3UG-GOSU-1C5R-CCSU-KQMF-G31G-GA5R-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
87. Which of the following source documents is used to assign direct labor cost to each particular job?
a. A materials requisition form
b. A time ticket
c. A work-in-process inventory file
d. A work ticket
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-3 – LO: 05.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/20/2017 8:06 AM
QUESTION ID: JFND-GO33-GINW-GO4G
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJS-COAU-1C5R-8YHD-Y3T1-GRSS-
RC33-CRSU-ECBT-GOSU-QCMD-GESS-RPJZ-GA5G-K3JI-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
88. The collection of all job cost sheets defines a
a. materials file.
b. finished goods file.
c. cost of goods file.
d. work-in-process file.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-3 – LO: 05.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 47
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GO4F
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJW-CW4U-YC3I-CTOU-1ATT-
GHSU-NCB3-CRSU-CC5F-GOSU-NCJ3-CWSS-KCTO-CFTS-NP3O-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
89. The document that identifies each job and accumulates its manufacturing costs is called:
a. job-order cost sheet
b. control account
c. production order
d. bill of materials
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-3 – LO: 05.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GO4R
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJA-CFOU-1C5B-CT1S-ECJS-8RSS-
EPTT-CRSU-NCUF-GOSU-KCMN-COSU-CPJ1-CA5S-RA5F-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
90. Which of the following items is a basic costing system record in a job-order costing system?
a. materials requisition form
b. job-order cost sheet
c. job time ticket
d. all of the above
ANSWER: d
POINTS: 1
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 48
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-3 – LO: 05.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GO4D
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMN-GR3G-EQMG-GE3S-CPDR-
GESS-CPBO-CESS-KQJA-GOSU-GAUD-CESS-EAUG-8RAD-QA33-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
91. The cost of direct materials is assigned to a job by the use of a source document known as a
a. job cost sheet.
b. control account.
c. materials requisition form.
d. production order.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-3 – LO: 05.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GO3U
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJA-CC3S-R3UN-CW3U-YQBI-
GWSU-CCJA-8YSU-1QMR-GOSU-CPDF-CCSU-CAT3-GY4U-OPMG-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
92. A work-in-process inventory file is
a. a file of electronic job-order cost sheets.
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 49
b. a file cabinet where work tickets are stored.
c. a file of electronic materials requisitions.
d. none of these.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-3 – LO: 05.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GO31
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMD-CR3D-OPDF-GAHS-E3MB-
GHSU-1CJT-CRSU-KA3T-GOSU-13JI-CESS-E3B1-CFOS-KCBW-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
93. Direct labor costs are assigned to individual jobs using a source document known as a
a. job-order cost sheet.
b. payroll check.
c. time sheet.
d. requisition form.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-3 – LO: 05.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Remembering
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GO3T
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJA-GO4U-YCBT-GRAS-RQJZ-
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 50
COSU-Q3B3-8YSU-CPJZ-GOSS-CPJZ-CCSU-RC3I-CAAD-KCTT-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
94. The Nautical Corporation manufactures custom-made wood wall units. The following data pertains to Job X4A:
Direct materials placed into production $9,000
Direct labor hours worked 300 hours
Direct labor rate per hour $15
Machine hours worked 100 hours
Factory overhead rate is $22.50 per machine hour. Job X4A consists of 500 units.
One-half of Job X4A was sold for $10,000. What is the total amount of costs assigned to Job X4A?
a. $20,250
b. $15,750
c. $13,500
d. $9,000
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS: $9,000 + $15(300) + $22.50(100) = $15,750
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-3 – LO: 05.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/11/2017 1:19 AM
QUESTION ID: JFND-GO33-GINW-GO3O
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMB-GY5D-GCDG-GI1U-OQJS-
GCSS-CC5R-CRSU-K3J3-GOSU-EAUD-GHSU-EA31-GW5U-ECT1-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
95. The Nautical Corporation manufactures custom-made wood wall units. The following data pertains to Job X4A:
Direct materials placed into production $9,000
Direct labor hours worked 300 hours
Direct labor rate per hour $15
Machine hours worked 100 hours
Factory overhead rate is $22.50 per machine hour. Job X4A consists of 500 units.
One-half of Job X4A was sold for $10,000. What is the cost per unit for Job X4A?
a. $18
b. $31.50
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 51
c. $27
d. $40.50
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS: $9,000 + $15(300) + $22.50(100) = $15,750/500 =
$31.50
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-3 – LO: 05.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/11/2017 1:21 AM
QUESTION ID: JFND-GO33-GINW-GO3Z
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJO-8BOU-N3B1-8YAS-NAMB-
CCSS-CAJO-8RSS-G3TA-GOSU-EA3S-CWSS-RA3I-GE3D-NAJ1-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
96. Orange Corporation manufactures custom-made wallets. The following data pertains to Job GH7:
Direct materials placed into production $5,000
Direct labor hours worked 75 hours
Direct labor rate per hour $35
Machine hours worked 200 hours
Factory overhead is applied using a plant-wide rate based on direct labor hours. Factory overhead was budgeted at
$100,000 for the year, and the direct labor hours were estimated to be 25,000. Job GH7 consists of 60 units.
What is overhead cost assigned to Job GH7?
a. $240
b. $400
c. $210
d. $160
ANSWER: a
RATIONALE: SUPPORTING CALCULATIONS: Predetermined overhead rate = Budgeted factory
overhead for the year / Estimated direct labor hours = $100,000 / 25,000 direct labor hours =
$4
Overhead cost assigned to Job GH7 = Predetermined overhead rate × Units produced for
Job GH7 = $4 × 60 units = $240
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 52
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-3 – LO: 05.03
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/20/2017 8:46 AM
QUESTION ID: JFND-GO33-GINW-GO3S
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJW-CEAU-EPBZ-GTTU-OAMD-
GHSU-1AUB-CRSU-13TW-GOSU-OAUR-CRSU-ECTI-GY4D-YPJT-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
97. The Cameron Corporation manufactures custom-made purses. The following data pertains to Job XY5:
Direct materials placed into production $4,000
Direct labor hours worked 50 hours
Direct labor rate per hour $15
Machine hours worked 100 hours
Factory overhead is applied using a plant-wide rate based on direct labor hours. Factory overhead was budgeted at
$80,000 for the year and the direct labor hours were estimated to be 20,000. Job XY5 consists of 50 units.
What is the materials cost per unit for Job XY5?
a. $267
b. $80
c. $40
d. $4
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS: $4,000 / 50 = $80
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-3 – LO: 05.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/20/2017 8:44 AM
QUESTION ID: JFND-GO33-GINW-GO3I
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 53
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJZ-8RAU-1ATW-GJ1G-RP5F-CASU-
1ATS-8YSS-NCUF-GOSS-R3BW-GASU-OP5N-CFOS-EC3A-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
98. The Cameron Corporation manufactures custom-made purses. The following data pertains to Job XY5:
Direct materials placed into production $4,000
Direct labor hours worked 50 hours
Direct labor rate per hour $15
Machine hours worked 100 hours
Factory overhead is applied using a plant-wide rate based on direct labor hours. Factory overhead was budgeted at
$80,000 for the year and the direct labor hours were estimated to be 20,000. Job XY5 consists of 50 units.
What is the labor cost per unit for Job XY5?
a. $4
b. $15
c. $0.80
d. $40
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS: $15 × 50 = $750 / 50= $15
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-3 – LO: 05.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/20/2017 8:43 AM
QUESTION ID: JFND-GO33-GINW-GO3W
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMR-8R5U-QATZ-CAHU-OP5D-
CCSS-KCBS-CRSS-NC3U-GOSU-ECUN-GYSU-QCMR-GI1U-Q3BI-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
99. The Cameron Corporation manufactures custom-made purses. The following data pertains to Job XY5:
Direct materials placed into production $4,000
Direct labor hours worked 50 hours
Direct labor rate per hour $15
Machine hours worked 100 hours
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 54
Factory overhead is applied using a plant-wide rate based on direct labor hours. Factory overhead was budgeted at
$80,000 for the year and the direct labor hours were estimated to be 20,000. Job XY5 consists of 50 units.
What the total cost assigned to Job XY5?
a. $5,150
b. $4,400
c. $4,200
d. $4,950
ANSWER: d
RATIONALE: SUPPORTING CALCULATIONS: $80,000 / 20,000 = $4; $4 × 50 = $200; $4,000 + ($15 ×
50) + $200 = $4,950
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-3 – LO: 05.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/20/2017 8:47 AM
QUESTION ID: JFND-GO33-GINW-GTNN
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJZ-GTOS-KCJO-GJTD-QPJI-CASU-
RPB1-8RSU-R3DD-GOSS-KCDB-CRSU-Q3JI-CW3D-R3UR-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
100. Which of the following costs is NOT included on a job-order cost sheet?
a. direct material costs
b. applied factory overhead costs
c. direct labor costs
d. actual factory overhead costs
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-3 – LO: 05.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 55
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GTNB
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMR-8BOU-RAMG-COAG-KQJO-
CRSS-E3T1-8YSS-ECMR-GOSU-GQJA-GHSU-CPBT-GP1D-RA31-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
101. A debit to Materials Inventory indicates materials were
a. ordered.
b. requisitioned.
c. put into production.
d. purchased.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GTB3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMD-GH5G-KP3T-CR5U-KP31-
CCSU-1A5R-8RSU-CPUN-GOSS-EPUG-GRSS-GQDR-GRAG-KQDB-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
102. Robinson Corporation constructs new homes. Assume that Robinson uses a job costing system. During July 2018,
the following transactions occurred:
Robinson purchased $4,500 of lumber on account.
Robinson used $3,750 of lumber in production and incurred 50 hours of direct labor hours at $15 per hour.
Depreciation of $1,500 on equipment used to build new houses was recorded.
A house that was completed last period at a cost of $150,000 was sold for $180,000 in cash.
The journal entry to record the requisition of lumber for Robinson would include a
a. debit to Work-in-Process of $4,500.
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 56
b. debit to Materials Inventory of $3,750.
c. credit to Finished Goods of $3,750.
d. debit to Work-in-Process of $3,750.
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/20/2017 7:19 AM
QUESTION ID: JFND-GO33-GINW-GTBA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJ3-GRHS-EPBA-CP1U-K3DB-CESU-
QATO-CESS-GC5R-GOSU-QCBI-8YSU-EA5F-GA4U-EQMD-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
103. Robinson Corporation constructs new homes. Assume that Robinson uses a job costing system. During July 2018,
the following transactions occurred:
Robinson purchased $4,500 of lumber on account.
Robinson used $3,750 of lumber in production and incurred 50 hours of direct labor hours at $15 per hour.
Depreciation of $1,500 on equipment used to build new houses was recorded.
A house that was completed last period at a cost of $150,000 was sold for $180,000 in cash.
The journal entry to record labor for Robinson would include a
a. debit to Finished Goods of $750.
b. debit to Wages Payable of $750.
c. credit to Finished Goods of $750.
d. debit to Work-in-Process of $750.
ANSWER: d
RATIONALE: Labor is recorded as a debit to Work-in-Process $15 × 50 = $750
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 57
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/20/2017 7:18 AM
QUESTION ID: JFND-GO33-GINW-GTNG
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJT-GHHU-K3BI-GA3G-ECTT-CCSU-
GPMB-8RSS-GCBS-GOSU-EAJ3-CESS-EA5D-GYHG-KAMB-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
104. Lanyard Company uses a job-order costing system to account for product costs. The following information pertains
to 2018:
Materials placed into production $140,000
Indirect labor 40,000
Direct labor (10,000 hours) 160,000
Depreciation of factory building 60,000
Other factory overhead 100,000
Increase in work-in-process inventory 30,000
Factory overhead rate is $18 per direct labor hour.
What is the total amount credited to Materials Inventory for Lanyard in 2018?
a. $480,000
b. $170,000
c. $140,000
d. $110,000
ANSWER: c
RATIONALE: SUPPORTING CALCULATIONS: Materials used in production = $140,000
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/11/2017 1:35 AM
QUESTION ID: JFND-GO33-GINW-GTNF
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 58
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJ3-CJTD-GQJI-8BTS-GC3I-CRSU-
N3MF-8RSS-ECBT-GOSS-CPUD-GHSS-RAJA-GTUG-RAJ1-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
105. Lanyard Company uses a job-order costing system to account for product costs. The following information pertains
to 2018:
Materials placed into production $140,000
Indirect labor 40,000
Direct labor (10,000 hours) 160,000
Depreciation of factory building 60,000
Other factory overhead 100,000
Increase in work-in-process inventory 30,000
Factory overhead rate is $18 per direct labor hour.
What is the total amount debited to Finished Goods Inventory in 2018?
a. $490,000
b. $510,000
c. $450,000
d. $550,000
ANSWER: c
RATIONALE: SUPPORTING CALCULATIONS: $140,000 + $160,000 + ($18 × 10,000) − $30,000 =
$450,000
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/11/2017 1:39 AM
QUESTION ID: JFND-GO33-GINW-GTNR
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJI-CRAS-CA5D-GBTG-EQJW-
CRSU-RCDF-8RSU-GQMF-GOSU-K3UD-GRSU-1C3T-GF1D-N3DR-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
106. A journal entry debiting Work-in-Process would normally NOT be accompanied by a credit to
a. Materials Inventory.
b. Finished Goods.
c. Overhead Control.
d. Wages Payable.
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 59
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GTND
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMR-GA4G-NCTI-GC3S-GA5F-
GCSU-KC5N-CRSU-NCMG-GOSU-EQDG-COSS-RPB1-CEAU-GPUB-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
107. A debit balance in Overhead Control:
a. indicates applied overhead exceeds actual overhead.
b. gives the total actual overhead costs at a given point in time.
c. indicates actual overhead costs have entered the work-in-process inventory account.
d. equals the total applied overhead at a given point in time.
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/20/2017 8:08 AM
QUESTION ID: JFND-GO33-GINW-GTBU
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMF-GE4D-RP5D-CPUD-Q3TO-
GASU-OP3T-CRSS-NA5R-GOSU-EPDG-CWSU-NQMR-GY5D-EC3A-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 60
108. In a traditional enterprise, the flow of costs through the system is
a. materials inventory, work-in-process inventory, finished goods inventory, cost of goods sold.
b. materials inventory, work-in-process inventory, cost of goods sold, finished goods inventory.
c. work-in-process inventory, materials inventory, finished goods inventory, cost of goods sold.
d. work-in-process inventory, materials inventory, finished goods.
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GTBT
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJA-CFUD-GCJT-GIOS-GCJO-CESS-
NCT3-8YSS-N3TS-GOSS-GP5B-GWSU-OPDG-CRHU-GPJT-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
109. When normal costing is used, actual overhead costs are
a. recorded in the work-in-process account.
b. recorded in the overhead control account.
c. recorded in the finished goods account.
d. not recorded.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GTBO
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 61
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJT-C3UD-YPDN-CJ1S-KPBW-
GASU-K3JW-CRSU-YCJT-GOSU-E3JT-CESU-QC5F-GA3D-GPJ3-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
110. Grey, Inc., uses a predetermined rate to apply overhead. At the beginning of the year, Grey estimated its overhead
costs at $220,000, direct labor hours at 55,000, and machine hours at 20,000. Actual overhead costs incurred were
$233,250, actual direct labor hours were 62,000, and actual machine hours were 15,000.
If the predetermined overhead rate is based on machine hours, what is the total amount credited to the factory overhead
account for the year for Grey?
a. $240,000
b. $135,000
c. $215,000
d. $165,000
ANSWER: d
RATIONALE: SUPPORTING CALCULATIONS:
Predetermined overhead rate = Estimated overhead costs / Estimated machine hours
= $220,000 / 20,000 machine hours = $11
Total amount credited to the factory overhead account for the year for Grey = Predetermined
overhead rate × Actual machine hours = $11 × 15,000 machine hours = $165,000
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/20/2017 8:13 AM
QUESTION ID: JFND-GO33-GINW-GTBZ
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMN-GJTU-OA33-8B1D-EA3I-CCSS-
E3JW-8RSU-EP5G-GOSS-EPTI-GRSU-GAMR-GO5U-CCTI-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
111. On March 9, 2018, Job XX4 was completed. The job cost sheet showed a total of $6,000 in direct materials and
$8,000 in direct labor at a rate of $20 per direct labor hour. Factory overhead is applied at $30 per direct labor hour. The
debit to Finished Goods Inventory to record the completion of Job XX4 is
a. $17,000.
b. $11,000.
c. $6,000.
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 62
d. $26,000.
ANSWER: d
RATIONALE: SUPPORTING CALCULATIONS: $6,000 + $8,000 + $30($8,000 / $20) = $26,000
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 15 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/20/2017 7:17 AM
QUESTION ID: JFND-GO33-GINW-GTBS
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJT-GWAD-N3MD-GHHD-13TT-
GHSU-QPTW-CRSU-RA5D-GOSU-CQJS-GESU-1PUG-GJUG-EATA-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
112. Tonneau Corporation had the following information available for October 2018:
Work in Process, October 1 $20,000
Materials placed into production, October 27,500
Direct labor, October 37,500
Factory overhead rate is 150 percent of direct labor costs.
Job cost sheets had the following balances:
Job Z1 $32,500
Job Z2 55,000
Job Z3 35,000
Job Z4 18,750
Jobs Z3 and Z4 were not completed at the end of December.
What is the balance in Work-in-Process for Tonneau at the end of October?
a. $85,000
b. $87,500
c. $56,250
d. $53,750
ANSWER: d
RATIONALE: SUPPORTING CALCULATIONS: $35,000 + $18,750 = $53,750
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 63
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 15 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/11/2017 1:43 AM
QUESTION ID: JFND-GO33-GINW-GTBI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMR-GJ1U-RAUB-GBUD-OPDR-
GOSU-ECTZ-CRSU-13MG-GOSS-EP5G-GCSU-QCBO-C31G-CQJO-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
113. Tonneau Corporation had the following information available for October 2018:
Work in Process, October 1 $20,000
Materials placed into production, October 27,500
Direct labor, October 37,500
Factory overhead rate is 150 percent of direct labor costs.
Job cost sheets had the following balances:
Job Z1 $32,500
Job Z2 55,000
Job Z3 35,000
Job Z4 18,750
Jobs Z3 and Z4 were not completed at the end of December.
What is the cost of goods finished during October for Tonneau Corporation?
a. $85,000
b. $87,500
c. $56,250
d. $53,750
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS: $32,500 + $55,000 = $87,500
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 64
NOTES: Time Estimate – 15 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/11/2017 1:46 AM
QUESTION ID: JFND-GO33-GINW-GTBW
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMD-CTOU-YPDR-CA4U-QPJZ-
CASU-RAJ3-8YSU-QQDD-GOSS-CPBW-8RSS-NCMG-CI1G-KP5D-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
114. In the Monroe Company, the following Job cards were totaled at the end of the month:
Job 243 $5,750
Job 244 $4,980
Job 245 $3,675
Job 246 $4,250
Job 247 $5,100
Job 248 $3,800
Jobs 243 and 244 were in Finished Goods Inventory at the beginning of the month. Jobs 245 and 246 were in Work-in-
process at the beginning of the month. Jobs 247 and 248 were started during the month. At the end of the month, Jobs 243
and 247 were sent to customers; jobs 245, 247, and 248 were completed and sent to finished goods.
What is the cost of goods sold for the month?
a. $10,730
b. $10,850
c. $12,575
d. none of these
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS: Jobs 243 and 247 were sent to customers and sold.
$5,750 + $5,100 = $10,850
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 15 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/11/2017 2:50 AM
QUESTION ID: JFND-GO33-GINW-GC1N
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJI-CJOU-YQBW-GFTD-CPMN-
CCSU-RPTS-8YSS-GPMN-GOSU-G3JW-8RSS-NP33-CEAU-OA5B-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 65
115. In the Monroe Company, the following Job cards were totaled at the end of the month:
Job 243 $5,750
Job 244 $4,980
Job 245 $3,675
Job 246 $4,250
Job 247 $5,100
Job 248 $3,800
Jobs 243 and 244 were in Finished Goods Inventory at the beginning of the month. Jobs 245 and 246 were in Work-in-
process at the beginning of the month. Jobs 247 and 248 were started during the month. At the end of the month, Jobs 243
and 247 were sent to customers; jobs 245, 247, and 248 were completed and sent to finished goods.
What is the ending work-in-process inventory for the month?
a. $10,730
b. $4,250
c. $12,575
d. none of these
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS: Jobs 245, 247, and 248 were finished so Job 246 is still
in process. = $4,250
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 15 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/11/2017 2:52 AM
QUESTION ID: JFND-GO33-GINW-GC1B
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMG-8BTU-1AJ1-8YAU-EPUF-CESS-
N3JA-CRSS-K3TA-GOSU-ECJI-8RSS-R3JU-8FTD-OCT3-E7JI-YT4D-JFNN-4OTI-GO4W-
NQNBEE
116. In the Monroe Company, the following Job cards were totaled at the end of the month:
Job 243 $5,750
Job 244 $4,980
Job 245 $3,675
Job 246 $4,250
Job 247 $5,100
Job 248 $3,800
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 66
Jobs 243 and 244 were in Finished Goods Inventory at the beginning of the month. Jobs 245 and 246 were in Work-in-
process at the beginning of the month. Jobs 247 and 248 were started during the month. At the end of the month, Jobs 243
and 247 were sent to customers; jobs 245, 247, and 248 were completed and sent to finished goods.
What is the cost of goods manufactured for the month?
a. $10,730
b. $10,850
c. $12,575
d. none of these
ANSWER: c
RATIONALE: SUPPORTING CALCULATIONS: Jobs 245, 247, and 248 were completed. $3,675 + $5,100
+ $3,800 = $12,575
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 15 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/11/2017 2:55 AM
QUESTION ID: JFND-GO33-GINW-GCT3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMF-GAHU-CCJW-GJTG-GPDN-
8RSU-EPUB-CRSS-GP5F-GOSU-YP31-GRSS-C3MN-CWAD-RP5F-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
117. Canmore Company has the following data pertaining to 2018:
Beginning materials inventory $ 50,000
Beginning work-in-process inventory 0
Beginning finished goods inventory 0
Materials placed into production 125,000
Materials purchased on account 137,500
Direct labor incurred (10,000 hours) 62,500
Cost of goods completed (Job BB8) 25,000
Factory overhead rate is 125 percent of direct labor costs.
What is the ending materials inventory balance for Canmore in 2018?
a. $50,000
b. $62,500
c. $12,500
d. $37,500
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS: $50,000 + $137,500 − $125,000 = $62,500
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 67
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 15 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/20/2017 8:41 AM
QUESTION ID: JFND-GO33-GINW-GCTA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMN-GO5U-EAMF-GAAS-KCMB-
GHSS-NAMR-CRSU-Y3DF-GOSS-KQDB-CWSS-GPT1-CR5U-G3BO-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
118. Samuelson Company has the following selected debit balance accounts at the end of the current year: Work-in-
Process, $25,000; Finished Goods, $12,500; Cost of Goods Sold, $37,500; and Factory Overhead, $6,000. The pro-rated
amount charged to Cost of Goods Sold for factory overhead will be
a. $25,000.
b. $3,000.
c. $37,500.
d. $6,000.
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS: $37,500 / ($25,000 + $12,500 + $37,500) × $6,000 =
$3,000
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GC1G
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJI-GHHS-EPUD-G7TD-K3JO-GOSS-
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 68
RQJT-CRSU-YQDR-GOSS-CP3W-GOSU-RAMF-GY3D-Q3JA-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
119. Under normal costing, which of the following statements is true regarding factory overhead?
a. The balance in factory overhead at the end of the accounting period is closed.
b. Different overhead rates are used for different quantities of predicted activity.
c. The balance in factory overhead at the end of the accounting period is kept open.
d. The immaterial balance in factory overhead at the end of the accounting period is allocated to the cost of
goods sold and inventory accounts.
ANSWER: a
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GC1F
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMD-GO5S-NCUG-8B1D-NCTS-
8YSS-KPBI-CRSU-YAMG-GOSS-RQJW-GYSS-E3BT-GH3U-NPJA-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
120. Total manufacturing-related costs incurred by Alloy Company in October for all its jobs is as follows:
Direct materials $ 1000
Insurance of factory building 160
Direct labor 1,400
Property taxes-factory building 700
Other factory overhead costs 1,550
Factory overhead applied 1,950
Assuming Alloy uses a normal costing system and applies overhead based on a predetermined rate, what is the credit to
Overhead Control to close the account at the end of the year?
a. $560
b. $460
c. $1,250
d. $1,320
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS:
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 69
Actual overhead = Insurance of factory building + Property taxes-factory building + Other
factory overhead costs = $160 + $700 + $1,550 = $2,410
Applied overhead = $1,950
Underapplied overhead = Actual overhead − Applied overhead = $2,410 − $1,950 = $460
Credit to Overhead Control to close the account at the end of the year = $460
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/20/2017 8:14 AM
QUESTION ID: JFND-GO33-GINW-GC1R
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJ3-GA4U-G3UG-CA3U-R3DR-
GHSS-CQJ3-CRSU-1ATS-GOSS-GPDR-CRSS-EQBI-CITG-KAMN-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
121. Which of the following transactions in a job-order costing system requires the procedure of merely moving a job-
order cost sheet from one file to another?
a. applying factory overhead to jobs
b. closing overapplied factory overhead
c. delivering a completed job to a customer
d. moving the job from one production department to another
ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GC1D
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 70
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMF-GBTD-OCB1-GI1U-RCMB-
GRSU-1QJO-CRSS-G3MR-GOSU-RQJ1-GASS-GQMB-GO5G-CPTU-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
122. The following information is available pertaining to the Production Division of Clarkson Enterprises:
Assembly Dept. Finishing Dept. Total
Overhead costs $7,500 $22,500 $30,000
Direct labor hours 7,500 2,500 10,000
Machine hours 2,500 7,500 10,000
Production information pertaining to Job 4X5:
Assembly Dept. Finishing Dept. Total
Prime costs $1,250 $0 $1,250
Direct labor hours 250 0 250
Machine hours 0 0 0
Units produced 500 0 500
What is the plantwide overhead rate based on direct labor hours?
a. $1.00
b. $1.50
c. $3.00
d. $9.00
ANSWER: c
RATIONALE: SUPPORTING CALCULATIONS: $30,000 / 10,000 = $3 per DLH
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/18/2017 10:03 AM
QUESTION ID: JFND-GO33-GINW-GCTU
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMR-G7UD-QATU-CTTU-GATO-
COSS-GQMB-CRSS-RPB3-GOSU-YC3W-CASU-RPMG-GYAD-K3TZ-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
123. The following information is available pertaining to the Production Division of Clarkson Enterprises:
Assembly Dept. Finishing Dept. Total
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 71
Overhead costs $7,500 $22,500 $30,000
Direct labor hours 7,500 2,500 10,000
Machine hours 2,500 7,500 10,000
Production information pertaining to Job 4X5:
Assembly Dept. Finishing Dept. Total
Prime costs $1,250 $0 $1,250
Direct labor hours 250 0 250
Machine hours 0 0 0
Units produced 500 0 500
Using the plantwide overhead rate based on direct labor hours what is the cost of Job 4X5?
a. $1,250
b. $2,000
c. $8,750
d. $31,250
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS:
$30,000 / 10,000 = $3
per DLH prime cost $1,250
moh (250 × $3) 750
total $2,000
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/18/2017 10:07 AM
QUESTION ID: JFND-GO33-GINW-GCT1
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMF-COHD-CPMN-GO5U-RPJW-
CWSU-EATA-CRSU-QQDG-GOSS-EAJ3-CRSS-CCMG-CA4G-NPTA-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
124. The following information is available pertaining to the Production Division of Clarkson Enterprises:
Assembly Dept. Finishing Dept. Total
Overhead costs $7,500 $22,500 $30,000
Direct labor hours 7,500 2,500 10,000
Machine hours 2,500 7,500 10,000
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 72
Production information pertaining to Job 4X5:
Assembly Dept. Finishing Dept. Total
Prime costs $1,250 $0 $1,250
Direct labor hours 250 0 250
Machine hours 0 0 0
Units produced 500 0 500
What is the overhead rate for the Finishing Department based on machine hours?
a. $9.00
b. $3.00
c. $2.25
d. $1.00
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS: $22,500 / 7,500 = $3 per MH
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/18/2017 10:24 AM
QUESTION ID: JFND-GO33-GINW-GCTT
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJI-GI1U-OP31-GR3G-N3JT-GESU-
YQMB-CRSS-CAMG-GOSS-KPBW-CWSU-EC3T-CW4U-YQJU-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
125. The following information is available pertaining to the Production Division of Clarkson Enterprises:
Assembly Dept. Finishing Dept. Total
Overhead costs $7,500 $22,500 $30,000
Direct labor hours 7,500 2,500 10,000
Machine hours 2,500 7,500 10,000
Production information pertaining to Job 4X5:
Assembly Dept. Finishing Dept. Total
Prime costs $1,250 $0 $1,250
Direct labor hours 250 0 250
Machine hours 0 0 0
Units produced 500 0 500
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 73
Based on departmental overhead rates, what is the cost of Job 4X5? Departmental overhead rates for the Assembly
Department are based on direct labor hours, while departmental overhead rates for the Finishing Department are based on
machine hours.
a. $7,500
b. $8,750
c. $1,500
d. $1,250
ANSWER: c
RATIONALE: SUPPORTING CALCULATIONS:
$7,500 / 7,500 = $1
per MH prime cost $1,250
dhl (250 × 3) 250
total $1,500
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/20/2017 8:39 AM
QUESTION ID: JFND-GO33-GINW-GCTO
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJO-8FTD-G3TU-CEHD-RC31-8RSS-
NATW-8YSU-KCTT-GOSU-GCUB-GCSU-Y3MG-CJ1D-OCBI-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
126. The following information is available pertaining to the Production Division of Clarkson Enterprises:
Assembly Dept. Finishing Dept. Total
Overhead costs $7,500 $22,500 $30,000
Direct labor hours 7,500 2,500 10,000
Machine hours 2,500 7,500 10,000
Production information pertaining to Job 4X5:
Assembly Dept. Finishing Dept. Total
Prime costs $1,250 $0 $1,250
Direct labor hours 250 0 250
Machine hours 0 0 0
Units produced 500 0 500
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 74
What are the total overhead costs assigned to Job 4X5, assuming the Assembly and Finishing Departments use direct
labor hours and machine hours for their bases, respectively?
a. $62.50
b. $250.00
c. $750.00
d. $1,500.00
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS: ($7,500 / 7,500) × 250 = $250
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/18/2017 10:53 AM
QUESTION ID: JFND-GO33-GINW-GCTZ
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJU-CEAD-GPMD-CO3D-QQDD-
GCSS-NCDR-8YSU-Q3UG-GOSS-RQMN-GCSS-EC31-CW3D-QPDN-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
127. Wrap Corporation is a job-order costing company that uses activity-based costing to apply overhead to jobs.
The following overhead activities were budgeted for the year:
Activity Cost Driver Amount of driver
Setups $220,000 Number of setups 8,000
Purchasing 210,000 Number of parts 30,000
Other overhead 260,000 Direct labor hours 80,000
The following information about the jobs was given for August:
Job 201 Job 202 Job 203 Job 204
Balance 8/1 $64,500 $40,250 $31,400 0
Direct materials 64,000 32,300 21,000 16,000
Direct labor 82,000 39,600 45,000 25,000
Number of setups 30 15 40 190
Number of parts 200 70 500 400
Direct labor hours 4,000 2,300 5,000 1,600
By August 31, Jobs 202 and 203 were completed and sold. The remaining jobs were still in process.
What is the activity rate for purchasing?
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 75
a. $9
b. $7
c. $6
d. $5
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS: Activity rate for purchasing = Cost of purchasing
/ Number of parts = $210,000 / 30,000 parts = $7
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-5 – LO: 05.05
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/20/2017 8:16 AM
QUESTION ID: JFND-GO33-GINW-GCTI
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMN-GCHU-QQMN-CW4U-NATS-
8RSS-C3BT-8YSU-K3UN-GOSU-RCBI-CASU-1AT3-CPUG-KQBS-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
128. Lamour Corporation is a job order costing company that uses activity-based costing to apply overhead to jobs. The
following overhead activities were budgeted for the year.
Activity Cost Driver Amount of driver
setups $240,000 number of setups 6,000
purchasing 160,000 number of parts 20,000
other overhead 300,000 direct labor hours 80,000
The following information about the jobs was given for April.
Job 101 Job 102 Job 103 Job 104
Balance 4/1 $64,900 $40,770 $30,500 0
direct materials 54,000 37,900 25,000 11,000
direct labor 80,000 38,500 43,000 21,000
number of setups 40 10 30 200
number of parts 300 80 400 500
direct labor hours 5,000 2,400 5,200 1,200
By April 30, Jobs 102 and 103 were completed and sold. The remaining jobs were still in process.
What is the cost of job 102?
a. $ 86,440
b. $ 127,210
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 76
c. $ 117,170
d. none of the above
ANSWER: b
RATIONALE: Job 102 = BI $40,770
DM 37,900
DL 38,500
MOH
setups 10 × $40 = 400
purch 80 × $8 = 40
other 2,400 × $3.75 = 9,000
total cost 127,210
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-5 – LO: 05.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/18/2017 11:22 AM
QUESTION ID: JFND-GO33-GINW-GCTW
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJO-GA5D-QC33-CAHS-GQJI-GWSS-
CQBO-8RSS-CA3S-GOSS-CQJT-CASS-NP5B-GI1D-O3B3-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
129. Lamour Corporation is a job order costing company that uses activity-based costing to apply overhead to jobs. The
following overhead activities were budgeted for the year.
Activity Cost Driver Amount of driver
setups $240,000 number of setups 6,000
purchasing 160,000 number of parts 20,000
other overhead 300,000 direct labor hours 80,000
The following information about the jobs was given for April.
Job 101 Job 102 Job 103 Job 104
Balance 4/1 $64,900 $40,770 $30,500 0
direct materials 54,000 37,900 25,000 11,000
direct labor 80,000 38,500 43,000 21,000
number of setups 40 10 30 200
number of parts 300 80 400 500
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 77
direct labor hours 5,000 2,400 5,200 1,200
By April 30, Jobs 102 and 103 were completed and sold. The remaining jobs were still in process.
What is the cost of goods manufactured?
a. $ 144,400
b. $ 215,670
c. $ 178,340
d. $ 249,610
ANSWER: d
RATIONALE: CGM = Job 102 + Job 103
Job 102 = BI $40,770 Job 103 $30,500
DM 37,900 25,000
DL 38,500 43,000
MOH
setups 10 × $40 400 30 × $40 1,200
purch 80 × $8 640 400 × $8 3,200
other 2,400 × $3.75 9,000 5,200 × $3.75 19,500
total cost $127,210 + $122,400 = $249,610
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-5 – LO: 05.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/18/2017 11:36 AM
QUESTION ID: JFND-GO33-GINW-GC4N
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMR-GCHD-NQMG-CIUG-NC5G-
8YSU-ECTS-CESS-G3DG-GOSU-YPJA-CESU-EC3T-CW3D-RA5R-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
130. Excellent Corporation is a job-order costing company that uses activity-based costing to apply overhead to jobs. The
following overhead activities were budgeted for the year:
Activity Cost Driver Amount of driver
Setups $ 250,000 Number of setups 5,000
Purchasing 190,000 Number of parts 18,000
Other overhead 270,000 Direct labor hours 88,000
The following information about the jobs was given for June:
Job 201 Job 202 Job 203 Job 204
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 78
Balance 6/1 $64,500 $40,200 $32,500 0
Direct materials 74,000 37,900 23,000 13,000
Direct labor 77,000 36,500 43,500 22,000
Number of setups 50 10 20 200
Number of parts 200 80 400 500
Direct labor hours 4,000 2,300 5,100 1,500
By June 30, Jobs 202 and 203 were completed and sold. The remaining jobs were still in process.
The ending work in process would consist of the costs of _____.
a. Job 202 and Job 203
b. Job 201 and Job 204
c. Job 201, Job 202, Job 203, and Job 204
d. Job 201, Job 202, and Job 203
ANSWER: b
RATIONALE: SUPPORTING CALCULATIONS: The ending work in process would consist of the costs
of Job 201 and Job 204.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-5 – LO: 05.05
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/20/2017 8:18 AM
QUESTION ID: JFND-GO33-GINW-GC4B
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMR-GW3U-NQDN-CAHD-RPDG-
GOSS-KQDN-CESS-EAMR-GOSU-13BO-CESS-KCUG-COAG-E3JI-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
131. Lamour Corporation is a job order costing company that uses activity-based costing to apply overhead to jobs. The
following overhead activities were budgeted for the year.
Activity Cost Driver Amount of driver
setups $240,000 number of setups 6,000
purchasing 160,000 number of parts 20,000
other overhead 300,000 direct labor hours 80,000
The following information about the jobs was given for April.
Job 101 Job 102 Job 103 Job 104
Balance 4/1 $64,900 $40,770 $30,500 0
direct materials 54,000 37,900 25,000 11,000
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 79
direct labor 80,000 38,500 43,000 21,000
number of setups 40 10 30 200
number of parts 300 80 400 500
direct labor hours 5,000 2,400 5,200 1,200
By April 30, Jobs 102 and 103 were completed and sold. The remaining jobs were still in process.
The cost of goods sold would consist of the costs of what jobs?
a. Job 102 + Job 103
b. Job 101 + Job 104
c. Job 101 + Job 102 + Job 103 + Job 104
d. Job 101 + Job 102 + Job 103
ANSWER: a
RATIONALE: Jobs 102 + Job 103
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-5 – LO: 05.05
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/18/2017 11:45 AM
QUESTION ID: JFND-GO33-GINW-GC33
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJI-C3TS-CCBA-CF1S-NQBI-GHSS-
ECJI-8YSU-CCBA-GOSU-KCMF-COSU-QPB1-GW5G-EP5R-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
132. The Teal Company manufactures customized fabric yarns on a job-order basis. Job 450 is an order for 150 units. It
requires the following:
Direct materials $4,000
Direct labor ($10/hr) 2,000
Overhead (150 percent of direct labor cost) 3,000
After inspection, 3 units required rework which required 6 additional direct labor hours and $50 of materials.
If the spoilage was considered normal, what is the cost of job 450?
a. $9,000
b. $5,000
c. $7,000
d. $11,000
ANSWER: a
RATIONALE: Direct materials $4,000
Direct labor 2,000
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 80
Manufacturing overhead 3,000
Total cost $9,000
Rework is charged to manufacturing overhead (MOH).
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-6 – LO: 05.06
NATIONAL STANDARDS: United States – BUSPROG – Reflective Thinking
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/20/2017 8:19 AM
QUESTION ID: JFND-GO33-GINW-GC3A
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJT-GFTG-RAUN-8RHS-RCJ3-
GWSU-GAMN-CESS-CP3U-GOSU-CC33-GYSS-GPB1-COAS-NPJS-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
133. In a job-order costing system, if costs are incurred to rework a job due to inadequate training of personnel, these
costs would be
a. debited to the job.
b. debited to manufacturing overhead control.
c. credited to manufacturing overhead control.
d. credited to the cost of goods sold.
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-6 – LO: 05.06
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GCTS
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMN-CP1G-KQDB-GT1D-RAJZ-
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 81
GHSS-GCJU-CRSU-1QB3-GOSS-R3DN-8RSU-QCJI-G7TD-GPDR-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
134. The Omega Company manufactures customized motors on a job-order basis. Job 492 is an order for 100 units. It
requires the following:
direct materials $3,000
direct labor ($10/hr) 1,000
overhead (150% DL$) 1,500
After inspection, 2 units required rework which required 8 additional direct labor hours and $60 of materials.
If the rework is considered normal spoilage, what is the journal entry for overhead control?
a. no journal entry is needed
b. materials $60
payroll $80
overhead control $140
c. overhead control $140
materials $60
payroll $80
d. none of the above
ANSWER: c
RATIONALE: overhead control $ 140
materials $60
payroll $80
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-6 – LO: 05.06
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/18/2017 11:52 AM
QUESTION ID: JFND-GO33-GINW-GC4G
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJ1-COAU-YPUD-GTOU-QCMB-
CWSU-NAT3-8RSU-GPJA-GOSS-GC5F-GWSS-NQJS-GP1D-OAUF-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
135. The Omega Company manufactures customized motors on a job-order basis. Job 492 is an order for 100 units. It
requires the following:
direct materials $3,000
direct labor ($10/hr) 1,000
overhead (150% DL$) 1,500
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 82
After inspection, 2 units required rework which required 8 additional direct labor hours and $60 of materials.
If the rework is considered abnormal spoilage, what is the journal entry for overhead control?
a. no journal entry is needed
b. materials $ 60
payroll $80
overhead control $140
c. overhead control $ 140
materials $60
payroll $80
d. none of the above
ANSWER: a
RATIONALE: overhead control $ 140
materials $60
payroll $80
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-6 – LO: 05.06
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/12/2017 6:33 AM
QUESTION ID: JFND-GO33-GINW-GC4F
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMR-GCHS-GCB3-GJTD-GCUF-
COSU-1CTA-CRSU-GQDG-GOSS-CP5D-CWSU-EQBZ-CEAD-YP5G-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
136. The Omega Company manufactures customized motors on a job-order basis. Job 492 is an order for 100 units. It
requires the following:
direct materials $3,000
direct labor ($10/hr) 1,000
overhead (150% DL$) 1,500
After inspection, 2 units required rework which required 8 additional direct labor hours and $60 of materials.
If the rework is considered abnormal spoilage, what is the cost of job 492?
a. $5,500
b. $5,760
c. $3,140
d. $5,640
ANSWER: b
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 83
RATIONALE: DM $3,000 + $60 = $3,060
DL $1,000 + $80 = 1,080
MOH $1,500 + $120 = $1,620
Total $5,760
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-6 – LO: 05.06
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/20/2017 8:59 AM
QUESTION ID: JFND-GO33-GINW-GC4R
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMB-GRHD-Y3MN-GCHD-NCTA-
GYSS-K3J3-8RSS-RQMG-GOSU-RQB3-GASU-CC3S-CT1D-OPTO-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
137. Which of the following is true of normal spoilage?
a. This type of spoilage is charged to Loss from Normal Spoilage.
b. It is expected due to the nature of the production process.
c. This type of spoilage need not be accounted for.
d. It may result from electrical surges or by a leaky roof that allows rain to spoil the jobs beneath.
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-6 – LO: 05.06
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 5 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/20/2017 8:20 AM
QUESTION ID: JFND-GO33-GINW-GC4D
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMN-GW3D-Y3TS-CA5S-GC3I-
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 84
GHSS-KCJS-8RSS-GP5B-GOSU-CC5G-GOSU-YPT1-8BTU-EQJT-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
138. What is the most important factor that causes service firms to generally rank lower in customer satisfaction than
manufacturing firms?
ANSWER: Employees are key to customer services. Service firms have a greater heterogeneity of labor
due to different skills and abilities for interacting with customers and each other. Employees
may not even behave the same from one day to another, creating inconsistency in the level of
service. In manufacturing, employees are interacting with machinery in more routine tasks.
Performance is more consistent.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-1 – LO: 05.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-26 – Management Functions
United States – v1 – AICPA-01 – BB-Industry
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GC3U
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJ3-8F1S-ECUG-GBOS-RPMG-
GASU-RPUR-8YSU-GPTU-GOSU-1QBA-GOSS-ECDD-CC4D-GAJZ-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
139. Compare and contrast perishability and intangibility in an automobile oil lubrication shop and architectural design
firms.
ANSWER: Intangibility refers to the nonphysical nature of services. There can be no inventory of
services. Both lube jobs and architectural designs must be performed upon the demand of the
customer to meet the specifications-of the car, land, etc. Perishability also means that services
cannot be inventoried because they are consumed when they are performed. The
consumption of service means that customers may need repeated treatments. Oil lubes are
much more perishable than architectural designs. There is a more frequent need for lube jobs
than design jobs.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-1 – LO: 05.01
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-01 – BB-Industry
United States – v1 – IMA-07 – Cost Management
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 85
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GC31
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJA-G71S-E3TO-GO4S-R3TS-GCSS-
CCDD-8YSU-QAJ1-GOSS-R3BI-GRSS-GPBS-GPUD-1CBT-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
140. Why are unit costs important? Why do full-cost unit costs change from accounting period to accounting period.
ANSWER: Unit costs are important for valuing inventory, calculating the COGS and net income, and for
making decisions. Full-cost unit costs consist of direct materials, direct labor and
manufacturing overhead. If there are changes in production volume, the fixed manufacturing
overhead will be spread over different numbers of units causing unit costs to change.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-2 – LO: 05.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GC3T
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJZ-CFTD-YCMN-GH4G-NP3I-8YSU-
K3DB-CESU-ECMF-GOSS-NP5R-COSU-CC3T-CWHG-ECUD-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
141. Why are firms reluctant to use actual costing? How does normal costing solve the problems?
ANSWER: Actual costing systems do not provide accurate unit cost information on a timely basis
because manufacturing overhead costs are indirect costs that may fluctuate dramatically from
month to month and may be incurred independent of nonuniform production levels. Normal
costing averages overhead over the entire year and applies it as production takes place.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-2 – LO: 05.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 86
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 10 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GC3O
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMF-GC4U-NP3S-CIOS-CAUG-
GOSU-1PBZ-8RSU-EPBU-GOSS-NA33-8RSS-RCJU-G71G-NCJ1-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
142. Explain why actual costing systems are rarely used in practice.
ANSWER: Actual costing systems are rarely used in practice because they do not provide accurate unit
cost information on a timely basis. Actual per-unit overhead costs can vary dramatically from
period to period because (1) actual costs vary from period to period and/or (2) the number of
units produced may vary from period to period. Thus, when actual costing is used, a unit
produced during a low-volume month may be assigned a higher cost than a unit produced
during a high-volume month, even though the units are identical.
To avoid fluctuations in per-unit costs using actual overhead costs, it is necessary to wait
until the end of the period and use total actual overhead costs for the year to calculate per-
unit amounts. However, that information is received too late to be used throughout the year
for planning, control, and decision making. Using a normal costing system and a
predetermined overhead rate avoids the problems associated with an actual costing system.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-2 – LO: 05.02
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-25 – Managerial Characteristics/Terminology
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 20 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 10/7/2016 9:31 AM
QUESTION ID: JFND-GO33-GINW-GC3Z
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMR-CR3D-NQJZ-CE4D-GAJ1-8RSU-
QQJO-8YSS-RCJO-GOSS-G3JS-GESS-CQMG-8FUD-NCJI-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
143. What are the source documents used in a job-order costing system? How do the source documents relate to the job
cost sheet? How do these documents inform work in process?
ANSWER: The materials requisition form and job time tickets are the source documents for materials
and labor. The materials requisition form is used to bring materials needed for production to
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 87
the production floor for different jobs. The job time ticket is kept for each laborer. It reports
the time spent working on different jobs. These source documents are used to assign
materials and labor costs to job cost sheets. The job cost sheet collects all the materials, labor,
and overhead applied to each job. The job cards are read and summarized to create the WIP
account.
POINTS: 1
DIFFICULTY: Moderate
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-3 – LO: 05.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Understanding
NOTES: Time Estimate – 20 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/20/2017 12:31 AM
QUESTION ID: JFND-GO33-GINW-GC3S
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJS-GC4S-GQBT-GPUG-GATS-
GRSU-Y3DB-8YSS-GPMF-GOSU-OCMG-COSS-RCBS-C3TS-K3TW-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
144. Sound of Thunder Company has a job costing system. The following items appeared in the Work-in-Process account
during April 2018:
April 1, 2018, balance $ 20,000
Materials placed into production ?
Direct labor (4,000 hours) $120,000
Factory overhead applied $ 96,000
Cost of goods manufactured $400,000
April 30, 2018, balance $ 16,000
Sound of Thunder applies overhead to production on the basis of direct labor hours. Job XX, the only job in process on
April 30, has been charged $10,600 materials cost and has 100 labor hours of direct labor time assigned to it.
Required:
a. Determine the predetermined factory overhead rate for Sound of Thunder Company.
b. Determine the amounts of materials, direct labor, and factory overhead included in the
April 30, 2018, work in process.
c. Determine the amount of materials placed into production during April 2018.
ANSWER: a. Factory overhead rate = $96,000 / 4,000 = $24 per direct labor hour
b. Costs assigned to Job XX:
materials $10,600
direct labor (100 × $30*) = 3,000
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 88
factory overhead applied (100 × $24) = 2,400
work in process, April 30, 2018 = $16,000
* $120,000 / 4000 = $30 per hour
c. $X + $120,000 + $96,000 + $20,000 − $16,000 = $400,000 X = $180,000
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-3 – LO: 05.03
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 20 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/24/2017 1:53 AM
QUESTION ID: JFND-GO33-GINW-GC3I
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMR-GW4G-C3JA-GC4D-O3BS-
GYSU-EC33-8RSU-RC5R-GOSS-NCUG-GWSS-GCTZ-8B1D-GPDN-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
145. Matriarch Incorporated uses a job-order costing system and a predetermined overhead rate based on machine hours.
At the beginning of the year, the company estimated manufacturing overhead for the year would be $240,000 and
machine hours would be 8,000.
The following information pertains to November of the current year:
Job 10 Job 11 Job 12 Total
Work-in-process, Nov. 1 $16,000 $26,000 $38,000 $80,000
November production activity:
Materials requisitioned $ 4,000 $ 4,800 $ 7,200 $16,000
Direct labor cost $ 2,400 $ 3,600 $ 4,000 $10,000
Machine hours 400 700 900 2,000
Labor hours 120 180 200 500
Actual manufacturing overhead cost incurred in November was $61,000.
Required:
a. Compute the predetermined overhead application rate.
b. Determine the total cost associated with each job.
c. If jobs 10 and 12 were completed, prepared the journal entry to move the cost.
d. If job 10 was delivered to customers that paid $50,000 cash, prepare the journal entries.
What is the gross profit for job 10?
e. Assuming no beginning work in process, what is the cost assigned to ending work in process?
f. Assuming no beginning finished goods what is the cost assigned to ending finished goods?
g. How much was overhead over/underapplied?
ANSWER: a. $240,000 / 8,000 = $30
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 89
b.
Job 10 Job 11 Job 12 Total
Work-in-process, Nov. 1 $16,000 $26,000 $38,000 $80,000
November production activity:
Materials requisitioned $ 4,000 $ 4,800 $ 7,200 $16,000
Direct labor cost $ 2,400 $ 3,600 $ 4,000 $10,000
Overhead applied:
Machine hours
400 × $30 $12,000
700 × $30 $21,000
900 × $30 $27,000
Total 34,400 55,400 76,200
c. Finished goods $110,600
Work in process $110,600
job 10 + job 12 = 34,400 + 76,200 = $110,600 (the cost of goods manufactured)
d. record a sale
Cash $50,000
Sales $50,000
Cost of goods sold $34,400
Finished goods $34,400
Sales $50,000
CGS 34,400
Gross Profit $15,600
e. Job 11 is still in production = $55,400
f. Finished goods has one job – job 12 = $76,200
g.
Actual overhead $61,000
Applied overhead (12,000 + 21,000 + 27,000 ) = $60,000
Underapplied overhead $ 1,000
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 30 min.
DATE CREATED: 10/7/2016 9:31 AM
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 90
DATE MODIFIED: 1/20/2017 8:28 AM
QUESTION ID: JFND-GO33-GINW-GC3W
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJT-CJ1D-GCBI-CW5D-GCT3-GASU-
QCBW-CRSS-EQBU-GOSS-CAUF-GOSS-RCUF-GTTS-GQDG-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
146. Selected account balances of Samaritan Company for 2018 are as follows:
Work in Process $35,000 Debit
Finished Goods $65,000 Debit
Cost of Goods Sold $100,000 Debit
Factory Overhead $22,000 Debit
Required:
a. Were factory overhead costs underapplied or overapplied in 2018? Explain.
b. Prepare the journal entry to dispose of the factory overhead balance assuming the amount is
immaterial.
c. Prepare the journal entry to dispose of the factory overhead balance using the allocation
method.
ANSWER: a. Underapplied by $22,000
The actual costs were $22,000 greater than those applied
to work-in-process.
b. Cost of Goods Sold 22,000
Factory Overhead 22,000
c. Work in Process (35,000 / 200,000) 3,850
Finished Goods (65,000 / 200,000) 7,150
Cost of Goods Sold (100,000 / 200,000) 11,000
Factory Overhead 22,000
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 20 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/18/2017 12:20 PM
QUESTION ID: JFND-GO33-GINW-GCNN
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJA-8FTG-C3DB-GC3D-1QJ1-GYSS-
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 91
CCJZ-CRSU-OA5F-GOSU-OPUF-GCSS-GAJ3-GFUD-OCJS-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
147. Coyote Company had the following selected account balances at the end of 2018:
Work in Process $120,000
Finished Goods 150,000
Cost of Goods Sold 180,000
Factory Overhead (overapplied) 63,000
Required:
a. Prepare the journal entry to dispose of the factory overhead balance assuming it is written off
to Cost of Goods Sold.
b. Prepare the journal entry to dispose of the factory overhead balance assuming it is allocated
among Work in Process, Finished Goods, and Cost of Goods Sold based on ending balances.
c. Which method of disposing of under- or overapplied factory overhead cost is more accurate?
Explain.
ANSWER: a. Factory Overhead 63,000
Cost of Goods Sold 63,000
b. Factory Overhead 63,000
Work in Process (120 / 450) 16,800
Finished Goods (150 / 450) 21,000
Cost of Goods Sold (180 / 450) 25,200
c. When the amount of overapplied or underapplied overhead
is immaterial, writing it off to Cost of Goods Sold is
sufficient. If the amount is material, allocating the amount to
the two inventories (WIP and FG) and Cost of Goods Sold
is preferable.
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 20 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/18/2017 12:22 PM
QUESTION ID: JFND-GO33-GINW-GCNB
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJA-8RAG-CQMF-GTTD-R3DF-
GESU-KC3S-CESU-Q3UD-GOSU-R3BI-CCSU-O3MG-G7TS-NQMD-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 92
148. The following information was taken from the job cost sheet for Job 101 for McDonald Manufacturing Company:
Date started: December 5, 2018
Date completed: January 21, 2019
Direct Direct Applied
Factory Job
Date Materials Labor Overhead Total
12-05-18 $3,000
12-15-18 $ 900 $450
12-17-18 1,500
12-22-18 1,350 675
01-01-19 1,500
01-21-19 600 300
Job 101 was sold on account on January 25, 2019, for 160 percent of its cost. Factory overhead is applied on the basis of
direct labor costs.
Required:
a. Prepare the journal entries to record the costs incurred for Job 101 in 2018-2019 for direct
materials, direct labor, and factory overhead.
b. Prepare the journal entry to record the completion of Job 101.
c. What is the predetermined factory overhead rate for McDonald Manufacturing?
d. Prepare the journal entries to record the sale of Job 101.
ANSWER: a. Work-in-Process 6,000
Materials 6,000
Work-in-Process 2,850
Wages Payable 2,850
Work-in-Process 1,425
Factory Overhead 1,425
b. Finished Goods 10,275
Work-in-Process 10,275
c. $1,425 / $2,850 = 50% of direct labor costs
d. Accounts Receivable 16,440
Sales 16,440
Cost of Goods Sold 10,275
Finished Goods 10,275
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 93
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 30 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/18/2017 12:26 PM
QUESTION ID: JFND-GO33-GINW-GCB3
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJI-GY4G-NCDF-CAAU-EQJI-GRSS-
NPUD-CRSS-KPBZ-GOSS-EAJT-GRSU-KPTT-COAS-RC5B-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE
149. Stainless Steel Company has two production departments: A and B. Stainless Steel has following budgeted overhead
costs and activity:
Overhead costs Direct labor hours Machine hours
Department A $ 50,000 10,000 5,000
Department B 175,000 5,000 25,000
Total $225,000 15,000 30,000
Production data for job 20 and 21 are given below:
Job 20 Job 21
Dept. A Dept. B Dept. A Dept. B
Prime costs $ 7,000 12,000 $22,000 $30,000
Direct labor hours 50 5 60 5
Machine hours 10 40 10 50
Job 20 Job 21
Units produced 100 100
Required:
a. Compare the costs per unit of Job 20 if Stainless Steel uses
1. a plantwide rate based on direct labor hours;
2. a plantwide rate based on machine hours;
3. departmental rates with Department A based on direct labor hours and Department B using machine hours. (round to
2 decimal places)
b. Why is there such a variation in the cost per unit? Which method provides the best cost assignment?
ANSWER: a. Overhead rates if Stainless Steel uses
1. a plantwide rate based on direct labor hours;
$225,000 / 15,000 = $15.00 DLH
2. a plantwide rate based on machine hours;
$225,000 / 30,000 = $7.50 MH
3. departmental rates with department A based on direct
labor hours and department B using machine hours.
A $50,000 / 10,000 = $5 DLH
B $175,000 / 25,000 = $7 MH
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 94
b. The variation in the cost per unit is due to the variation in consumption.
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 30 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/23/2017 6:52 AM
QUESTION ID: JFND-GO33-GINW-GCBA
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMJU-CEAD-Y3TS-G71D-EPMD-
GOSU-RPJI-CESU-CQBS-GOSU-CAUR-CWSS-K3DB-C31U-KAMB-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
150. Salazar Company completed the following transactions with respect to its manufacturing operations during October
2018:
a. Materials costing $140,000 and indirect materials costing $16,800 were purchased on account.
Assume indirect materials was debited to materials.
b. A total of $70,000 of materials was requisitioned to the factory for manufacturing operations
conducted during October.
c. Manufacturing payroll for the month consisted of 2,000 hours of direct labor and 500 hours of
indirect labor, both at $14 per hour.
d. Indirect materials costing $7,000 were requisitioned.
e. Depreciation on the factory building and equipment was $14,000.
f. Miscellaneous factory overhead expenses totaled $5,600 for October.
g. Factory overhead cost was applied to work in process at the rate of 125 percent of direct labor
costs.
h. Units of product with a total manufacturing cost of $84,000 were completed and transferred to
the finished goods warehouse.
i. Finished goods costing $49,000 were sold during October for $77,000 cash.
Required:
Prepare journal entries for each of the transactions that occurred during October 2018.
ANSWER:
a. Materials 156,800
Accounts Payable 156,800
b. Work-in-Process 70,000
Materials 70,000
c. Work-in-Process (2,000 × $14) 28,000
Factory Overhead (500 × $14) 7,000
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 95
Wages Payable 35,000
d. Factory Overhead 7,000
Materials 7,000
e. Factory Overhead 14,000
Accumulated Depreciation 14,000
f. Factory Overhead 5,600
Various Accounts 5,600
g. Work-in-Process (28,000 × 125%) 35,000
Factory Overhead 35,000
h. Finished Goods 84,000
Work-in-Process 84,000
i. Cash 77,000
Sales 77,000
Cost of Goods Sold 49,000
Finished Goods Inventory 49,000
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES: COCM.HANS.18.5-4 – LO: 05.04
NATIONAL STANDARDS: United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 30 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/12/2017 6:47 AM
QUESTION ID: JFND-GO33-GINW-GCNG
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMF-GB1D-RPMG-GC5D-RATT-
GWSS-KCJA-CRSS-KP3A-GOSU-NA33-CWSS-KP3U-GC3G-GPMR-E7JI-YT4D-JFNN-
4OTI-GO4W-NQNBEE
151. Lowland Corporation is a job order costing company that uses activity-based costing to apply overhead to jobs. The
following overhead activities were budgeted for the year.
Activity Cost Driver Amount of driver
setups $120,000 number of setups 6,000
purchasing 80,000 number of parts 20,000
other overhead 150,000 direct labor hours 75,000
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 96
The following information about the jobs was given for September.
Job 1001 Job 1002 Job 1003 Job 1004
Balance 9/1 $44,900 $60,700 $30,500 0
direct materials 54,000 37,000 25,000 41,000
direct labor 80,000 38,500 43,000 71,000
number of setups 40 10 30 200
number of parts 300 180 400 500
direct labor hours 5,000 2,400 5,200 1,200
By September 30, Jobs 1001 and 1003 were completed and sold. The remaining jobs were still in process.
Required:
1. Calculate the activity rates for each overhead activity.
2. Calculate the cost of each job for September 30.
3. What is the beginning work in process on September 1 and October 1?
4. What is the cost of goods manufactured?
5. What is the cost of goods sold?
6. Draw the T account for work in process. (include all debits and credits) Prepare the Statement of the Cost of Goods
Manufactured.
ANSWER: 1.
Activity Cost Amount of Driver Activity rate
setups $ 120,000 6,000 $ 20
purchasing 80,000 20,000 4
other overhead 150,000 75,000 2
2.
Job 1001 Job 1002 Job 1003 Job 1004 Total
Balanc
e 9/1 $ 44,900 $ 60,700 $ 30,500 0 136,100
dm 54,000 37,000 25,000 41,000 157,000
dl 80,000 38,500 43,000 71,000 232,500
#
setups
$20
( 40) 800 (10) 200 (30) 600 (200) 4,000 5,600
# parts
$4 (300) 1,200 (180) 720 (400) 1,600 (500) 2,000 5,520
dlhours
$2
(5,000) 10,00
0
(2,400) 4,8
00
(5,200) 10,4
00
(1,200) 2,4
00 27,600
TOTA
L $190,900 $141,920 $111,100 $120,400 $564,32
0
3. BWIP = $136,100
EWIP 9/30 = BWIP 10/1 = jobs 1002 + 1004 = $141,920 + $120,400 = $262,320
4. CGM = jobs 1001 + 1003 = $190,900 + $111,100 = $302,000
5. CGS = jobs 1001 + 1003 = $190,900 + $111,100 = $302,000
6.
Chapter 5
Copyright Cengage Learning. Powered by Cognero. Page 97
WIP
BI 136,100 302,000
DM 157,000
DL 232,500
MOH 38,720
EI 262,320
STATEMENT OF COST OF GOODS MANUFACTURED
Lowland Corporation
Month of September
Direct materials used in production $157,000
Direct labor 232,500
Manufacturing overhead applied 38,720
Total manufacturing costs added 428,220
Add: beginning work in process 136,100
Less: ending work in process 262,320
Cost of Goods manufactured 302,000
POINTS: 1
DIFFICULTY: Challenging
QUESTION TYPE: Subjective Short Answer
HAS VARIABLES: False
LEARNING OBJECTIVES
:
COCM.HANS.18.5-5 – LO: 05.05
NATIONAL STANDARDS
:
United States – BUSPROG – Analytic
STATE STANDARDS: United States – v1 – ACBSP-APC-34 – Job Order Costing
United States – v1 – AICPA-10 – FN-Measurement
United States – v1 – IMA-07 – Cost Management
KEYWORDS: Bloom’s – Applying
NOTES: Time Estimate – 30 min.
DATE CREATED: 10/7/2016 9:31 AM
DATE MODIFIED: 1/20/2017 9:04 AM
QUESTION ID: JFND-GO33-GINW-GCNF
QUESTION GLOBAL ID: GCID-E7BW-1TBP-GR4G-KQJW-CW4S-KQJO-GAA1-4CB1-GHH1-4AUD-CC4N-4CBS-
COAN-43BT-GPTU-NPUN-8BDI-GWN8-EPRW-EMMR-GY5G-KATI-GY4G-CPJI-CCSU-
EAJS-8RSU-GPTW-GOSU-YP5R-GYSU-YA5N-GC3G-K3TI-E7JI-YT4D-JFNN-4OTI-
GO4W-NQNBEE