Chapter 5
JOB ORDER COSTING
MULTIPLE CHOICE
Question Nos. 4, 5, 9-13, and 18 are AICPA adapted.
Question Nos. 7, 8, and 14-17 are ICMA adapted.
A 1. Under job order cost accumulation, the factory overhead control account controls:
A. factory overhead analysis sheets
B. all general ledger subsidiary accounts
C. job order cost sheets
D. cost reports by processes
E. materials inventories
B 2. Supplies needed for use in the factory are issued on the basis of:
A. job cost sheets
B. materials requisitions
C. time tickets
D. factory overhead analysis sheets
1
, E. clock cards
B 3. Finished Goods is debited and Work in Process is credited for a:
A. transfer of completed goods out of the factory
B. transfer of completed production to the finished goods storeroom
C. purchase of goods on account
D. transfer of materials to the factory
E. return of unused materials from the factory
A 4. In job order costing, when materials are returned to the storekeeper that were previously
issued to the factory for cleaning supplies, the journal entry should be made to:
A. Materials
Factory Overhead
B. Materials
Work in Process
C. Purchases Returns
Work in Process
D. Work in Process
Materials
E. Factory Overhead
Work in Process
2
,Job Order Costing 3
A 5. Under a job order cost system, the dollar amount of the entry to transfer the inventory
from Work in Process to Finished Goods is the sum of the costs charged to all jobs:
A. completed during the period
B. started in process during the period
C. in process during the period
D. completed and sold during the period
E. none of the above
B 6. When a manufacturing company has a highly automated plant producing many different
products, probably the most appropriate basis of applying factory overhead costs to Work
in Process is:
A. units processed
B. machine hours
C. direct labor hours
D. direct labor dollars
E. none of the above
A 7. Cherokee Company applies factory overhead on the basis of direct labor hours. Budget
and actual data for direct labor and overhead for the year are as follows:
Budget Actual
Direct labor hours ............................................................. 600,000 650,000
Factory overhead costs ..................................................... $720,000 $760,000
The factory overhead for Cherokee for the year is:
A. overapplied by $20,000
B. overapplied by $40,000
C. underapplied by $20,000
, Job Order Costing 4
D. underapplied by $40,000
E. neither underapplied nor overapplied
SUPPORTING CALCULATION:
$720,000
= $1.20 _ 650,000
600,000
= $780,000(applied) $760,000(actual)= $20,000(overapplied)
JOB ORDER COSTING
MULTIPLE CHOICE
Question Nos. 4, 5, 9-13, and 18 are AICPA adapted.
Question Nos. 7, 8, and 14-17 are ICMA adapted.
A 1. Under job order cost accumulation, the factory overhead control account controls:
A. factory overhead analysis sheets
B. all general ledger subsidiary accounts
C. job order cost sheets
D. cost reports by processes
E. materials inventories
B 2. Supplies needed for use in the factory are issued on the basis of:
A. job cost sheets
B. materials requisitions
C. time tickets
D. factory overhead analysis sheets
1
, E. clock cards
B 3. Finished Goods is debited and Work in Process is credited for a:
A. transfer of completed goods out of the factory
B. transfer of completed production to the finished goods storeroom
C. purchase of goods on account
D. transfer of materials to the factory
E. return of unused materials from the factory
A 4. In job order costing, when materials are returned to the storekeeper that were previously
issued to the factory for cleaning supplies, the journal entry should be made to:
A. Materials
Factory Overhead
B. Materials
Work in Process
C. Purchases Returns
Work in Process
D. Work in Process
Materials
E. Factory Overhead
Work in Process
2
,Job Order Costing 3
A 5. Under a job order cost system, the dollar amount of the entry to transfer the inventory
from Work in Process to Finished Goods is the sum of the costs charged to all jobs:
A. completed during the period
B. started in process during the period
C. in process during the period
D. completed and sold during the period
E. none of the above
B 6. When a manufacturing company has a highly automated plant producing many different
products, probably the most appropriate basis of applying factory overhead costs to Work
in Process is:
A. units processed
B. machine hours
C. direct labor hours
D. direct labor dollars
E. none of the above
A 7. Cherokee Company applies factory overhead on the basis of direct labor hours. Budget
and actual data for direct labor and overhead for the year are as follows:
Budget Actual
Direct labor hours ............................................................. 600,000 650,000
Factory overhead costs ..................................................... $720,000 $760,000
The factory overhead for Cherokee for the year is:
A. overapplied by $20,000
B. overapplied by $40,000
C. underapplied by $20,000
, Job Order Costing 4
D. underapplied by $40,000
E. neither underapplied nor overapplied
SUPPORTING CALCULATION:
$720,000
= $1.20 _ 650,000
600,000
= $780,000(applied) $760,000(actual)= $20,000(overapplied)
