Question 1

The key to allocating indirect manufacturing costs to jobs is to identify an appropriate allocation base.

Accepted Answer

Indirect manufacturing costs cannot be directly attributed to a specific product or job, so an appropriate allocation base, such as machine hours or direct labor hours, must be used to assign these costs to the products being produced.

Question 2

What is the document which is prepared by manufacturing personnel to request materials for the production process?

Accepted Answer

A materials requisition is a document prepared by manufacturing personnel to request materials for the production process. A cost ticket is used to accumulate the costs of a specific job or order, and a job cost record is used to track the costs of all jobs or orders over a period of time. A manufacturing ticket is used to track the production process of a specific item or product.

Question 3

An internal request for raw materials calls for a _____________ to be completed.

Accepted Answer

A materials requisition is a document used internally to request raw materials from a storeroom or warehouse for use in production or assembly. A purchase order is used to request materials from an external supplier, a bill of materials is a list of components needed to make a finished product, and a labor time record is a document used to track employee hours worked.

Question 4

Which comes last in the flow of costs?

Accepted Answer

Cost of goods sold represents the cost of the raw materials, labor, and overhead used to manufacture a product that has been sold. It is the last cost to be incurred in the flow of costs, as it represents the final stage in the manufacturing process. Finished goods inventory comes before cost of goods sold, as it represents completed products that have not yet been sold. Work in process inventory comes before finished goods inventory, as it represents products that are still being manufactured. Raw materials inventory comes first in the flow of costs, as it represents the initial raw materials purchased for manufacturing.

Question 5

Manufacturing overhead costs can be traced to jobs.

Accepted Answer

Manufacturing overhead costs are indirect costs that cannot be traced directly to specific jobs or products. They are allocated to jobs using a predetermined overhead rate.

Question 6

An equal amount of manufacturing overhead should be allocated to each job.

Accepted Answer

Allocating an equal amount of manufacturing overhead to each job is not an accurate method of allocation. Manufacturing overhead costs should be allocated based on the activity or cost drivers that actually cause the overhead costs to be incurred, such as machine hours, direct labor hours, or materials used. This ensures that costs are allocated in a manner that reflects the actual usage of resources by each job, and leads to more accurate and reliable product costs.

Question 7

Which comes second in the flow of costs?

Accepted Answer

The flow of costs typically follows this order: Raw materials inventory, Work in process inventory, Finished goods inventory, and finally, Cost of goods sold. Therefore, Work in process inventory comes second.

Question 8

Allocating manufacturing overhead to jobs simply means "splitting up" the total manufacturing overhead costs among the jobs produced during the year.

Accepted Answer

Allocating manufacturing overhead to jobs does mean dividing the total manufacturing overhead costs among the jobs produced during the year. This is done to determine the total cost of each job and to accurately price products or services.

Question 9

Briefly explain the cost flow of materials through a job costing system from the purchase to the sale.

Accepted Answer

The answer of  Briefly explain the cost flow of...

Question 10

On the line in front of each statement,enter the letter corresponding to the term that best fits that statement.You may use a letter more than once and some letters may not be used at all.
 $$\begin{array} { | l | l | l | l | } 
\hline \text { A. } & \text { bill of materials } & \text { F. } & \text { job cost record } \
\hline \text { B. } & \text { cost driver } & \text { G. } & \text { process costing } \
\hline \text { C. } & \text { materials requisition } & \text { H. } & \text { labor tine record } \
\hline \text { D. } & \text { invaice } & \text { I. } & \text { receiving repart } \
\hline \text { E. } & \text { purchase arder } & \text { J. } & \text { job costing } \
\hline
\end{array}$$ ____ A bill from a supplier
____ A list of all of the raw materials needed to manufacture a job
____ System for assigning costs to a specific unit or to a small batch of products or services that pass through production steps as a distinct identifiable job
____ A written or electronic document authorizing the purchase of specific raw materials from a specific supplier
____ System for assigning costs to large numbers of identical units that usually proceed in a continuous fashion through a series of uniform production steps or processes
____ A written or electronic document that requests specific materials be transferred from the raw materials inventory storeroom to the production floor
____ A written or electronic document listing the quantity and type of raw materials received in an incoming shipment

Accepted Answer

The answer of  On the line in front of...

Question 11

When used,raw materials:

Accepted Answer

The answer of  When used,raw materials:
...

Question 12

A document that accumulates job costs is called a:

Accepted Answer

A job cost record is a document that accumulates all the costs associated with a particular job or project, including direct and indirect costs. It is essential for tracking and managing project costs and ensuring that the job is profitable. The other options, such as bill of materials, labor time record, and production schedule, may be related to job cost tracking but do not specifically accumulate all job costs in one document.

Question 13

For a manufacturer that uses job costing,show the order of the cost flow through the following accounts by numbering them from 1 to 4.
____ Finished goods inventory
____ Raw materials inventory
____ Cost of goods sold
____ Work in process inventory

Accepted Answer

The answer of  For a manufacturer that uses job...

Question 14

For each of the following items,determine whether it would be more appropriate to increase A)manufacturing overhead or B)work in process inventory.Enter either the letter A or the letter B on the line in front of each statement.
____ Indirect materials used
____ Direct materials used
____ Indirect labor used
____ Direct labor used
____ Plant utilities

Accepted Answer

The answer of  For each of the following items,determine...

Question 15

Which comes third in the flow of costs?

Accepted Answer

The flow of costs typically follows this order: Raw materials inventory, Work in process inventory, Finished goods inventory, and then Cost of goods sold.

Question 16

Which comes first in the flow of costs?

Accepted Answer

Raw materials inventory typically comes first in the flow of costs. Raw materials are purchased, then used to manufacture products. Once the products are completed, they move into work in process inventory, then finished goods inventory, and finally are sold and recorded as cost of goods sold.

Question 17

A source document for tracking employee hours is called a:

Accepted Answer

A labor time record is a document that tracks the number of hours worked by employees. It is commonly used in job costing systems to allocate labor costs to specific jobs or tasks. Job cost records and process costing are not specifically related to tracking employee hours.

Question 18

Manufacturers follow four steps to implement a manufacturing overhead allocation system.The first step is to calculate a manufacturing overhead rate.

Accepted Answer

The answer of  Manufacturers follow four steps to implement...

Question 19

Generally accepted accounting principles (GAAP)mandate that manufacturing overhead MUST be treated as an inventoriable product cost for financial reporting purposes.

Accepted Answer

GAAP requires that manufacturing overhead costs be allocated and included in the cost of inventory for financial reporting purposes. This is because manufacturing overhead costs are indirect expenses that are necessary to produce the product and should be absorbed by the inventory cost until the product is sold.

Question 20

Payroll costs for factory employees who do NOT work directly on the product are considered:

Accepted Answer

Payroll costs for factory employees who do NOT work directly on the product are considered manufacturing overhead, as they are indirect costs incurred during the production process. Direct labor costs would be for employees who work directly on the product, such as assembly line workers. Selling expenses and administrative costs are not related to factory payroll costs.

Quiz 3: Job Costing

The key to allocating indirect manufacturing costs to jobs is to identify an appropriate allocation base.

What is the document which is prepared by manufacturing personnel to request materials for the production process?

An internal request for raw materials calls for a _____________ to be completed.

Which comes last in the flow of costs?

Manufacturing overhead costs can be traced to jobs.

An equal amount of manufacturing overhead should be allocated to each job.

Which comes second in the flow of costs?

Allocating manufacturing overhead to jobs simply means "splitting up" the total manufacturing overhead costs among the jobs produced during the year.

Briefly explain the cost flow of materials through a job costing system from the purchase to the sale.

When used,raw materials:

A document that accumulates job costs is called a:

For a manufacturer that uses job costing,show the order of the cost flow through the following accounts by numbering them from 1 to 4. Finished goods inventory Raw materials inventory Cost of goods sold Work in process inventory

Which comes third in the flow of costs?

Which comes first in the flow of costs?

A source document for tracking employee hours is called a:

Manufacturers follow four steps to implement a manufacturing overhead allocation system.The first step is to calculate a manufacturing overhead rate.

Generally accepted accounting principles (GAAP)mandate that manufacturing overhead MUST be treated as an inventoriable product cost for financial reporting purposes.

Payroll costs for factory employees who do NOT work directly on the product are considered:

Quiz 3: Job Costing

The key to allocating indirect manufacturing costs to jobs is to identify an appropriate allocation base.

What is the document which is prepared by manufacturing personnel to request materials for the production process?

An internal request for raw materials calls for a _____________ to be completed.

Which comes last in the flow of costs?

Manufacturing overhead costs can be traced to jobs.

An equal amount of manufacturing overhead should be allocated to each job.

Which comes second in the flow of costs?

Allocating manufacturing overhead to jobs simply means "splitting up" the total manufacturing overhead costs among the jobs produced during the year.

Briefly explain the cost flow of materials through a job costing system from the purchase to the sale.

When used,raw materials:

A document that accumulates job costs is called a:

For a manufacturer that uses job costing,show the order of the cost flow through the following accounts by numbering them from 1 to 4. ____ Finished goods inventory ____ Raw materials inventory ____ Cost of goods sold ____ Work in process inventory

Which comes third in the flow of costs?

Which comes first in the flow of costs?

A source document for tracking employee hours is called a:

Manufacturers follow four steps to implement a manufacturing overhead allocation system.The first step is to calculate a manufacturing overhead rate.

Generally accepted accounting principles (GAAP)mandate that manufacturing overhead MUST be treated as an inventoriable product cost for financial reporting purposes.

Payroll costs for factory employees who do NOT work directly on the product are considered:

For a manufacturer that uses job costing,show the order of the cost flow through the following accounts by numbering them from 1 to 4. Finished goods inventory Raw materials inventory Cost of goods sold Work in process inventory