Self Quiz--Job Order Costing

Answer each question mentally or on paper; click the Answer bar to check your answer.

1.  Job order costing is used in those cases involving:
a.  Large batches of homogeneous products
b.  Small batches of custom products
c.  Non-manufacturing situations
d.  None of these

2.  Purchase of Raw Materials would be debited to:
a.   Manufacturing Overhead
b.   Work in Process Inventory
c.   Raw Materials Inventory
d.  Direct Material

3.  Usage of Raw Materials would be debited to:
a.  Direct Materials
b.  Work in Process Inventory and Manufacturing Overhead
c.  Manufacturing Overhead only
d.  None of these

4.  All labor costs are debited to:
a.  Work in Process Inventory
b.  Direct Labor
c.  Factory Labor
d.  Manufacturing Overhead

5.  Factory Labor is assigned to two accounts: which ones?
a.  Prime Costs and Conversion Costs
b.  Work In Process and Direct Labor
c.  Direct Labor and Manufacturing Overhead
d.  Work in Process and Manufacturing Overhead

6.  The Predetermined Overhead Rate for Manufacturing Overhead is computed by:
a.  Using actual MO costs
b.  Dividing Estimated MO for the year by estimated volume of a particular activity
c.  Dividing Actual MO for the year by estimated volume of a particular activity
d.  None of these

7.  Direct Materials, Direct Labor, and applied Manufacturing Overhead costs come together in:
a.  The Manufacturing Overhead account
b.  Work in Process Inventory
c.  Finished Goods Inventory account
d.  None of these

8. The cause of costs moving from WIP to Finished Goods Inventory is:
a.  Incurrence of overhead
b.  The goods are sold
c.  The goods are completed
d.  None of these

9.  When goods are sold, a credit is made to Finished Goods Inventory and a debit is made to:
a.  Cost of Goods Sold
b.  Sales
c.  Manufacturing Overhead
d.  None of these

10. Overapplied overhead occurs when:
a.  The actual overhead is greater than the amount applied
b.  The overhead applied is greater than the actual overhead
c.  The MO account ends up with a debit balance
d.  None of these