Session:4 Job Order Costing
Multiple Choice
Principles of Accounting, Volume 2: Managerial Accounting | Leadership Development – Micro-Learning Session
Rice University 2020 | Michael Laverty, Colorado State University Global Chris Littel, North Carolina State University| https://openstax.org/details/books/principles-managerial-accounting
1. LO 4.1Which of the following product situations is better suited to job order costing than to process costing?
- Each product batch is exactly the same as the prior batch.
- The costs are easily traced to a specific product.
- Costs are accumulated by department.
- The value of work in process is based on assigning standard costs.
2. LO 4.1A job order costing system is most likely used by which of the following?
- a pet food manufacturer
- a paper manufacturing company
- an accounting firm specializing in tax returns
- a stereo manufacturing company
4. LO 4.1Which of the following is a conversion cost?
- raw materials
- direct materials
- administrative expenses
- factory depreciation expenses
6. LO 4.2Which document lists the inventory that will be removed from the raw materials inventory?
- job cost sheet
- purchase order
- materials requisition form
- receiving document
8. LO 4.2Which document lists the total direct materials used in a specific job?
- job cost sheet
- purchase order
- materials requisition form
- receiving document
10. LO 4.4Assigning indirect costs to specific jobs is completed by which of the following?
- applying the costs to manufacturing overhead
- using the predetermined overhead rate
- using the manufacturing costs incurred
- applying the indirect labor to the work in process inventory
12. LO 4.7In a job order cost system, raw materials purchased are debited to which account?
- raw materials inventory
- work in process inventory
- finished goods inventory
- cost of goods sold
14. LO 4.7In a job order cost system, factory wage expense is debited to which account?
- raw materials inventory
- work in process inventory
- finished goods inventory
- cost of goods sold
16. LO 4.7In a job order cost system, indirect labor incurred is debited to which account?
- work in process inventory
- finished goods inventory
- manufacturing overhead
- cost of goods sold