Question 1

Match each following terms with their correct description from the items listed below.* Each term may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-Form filled out by each employee every day

Accepted Answer

A time ticket is a form filled out by each employee every day to record the time they started and ended work each day. The other options (job-order cost sheet, materials requisition form) are used in different parts of the accounting process.

Question 2

Match each following cost flows with their corresponding job-costing event from the items listed below.* Each term may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-Schedule of costs of goods sold is prepared

Accepted Answer

The schedule of costs of goods sold is prepared at the end of each accounting period to summarize the costs of goods sold during the period.

Question 3

Match each following cost flows with their corresponding job-costing event from the items listed below.* Each term may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-Cost of materials is removed from Raw Materials Inventory account and added to Work-in-Process Inventory

Accepted Answer

When materials are removed from storage into production, it indicates the start of a job and the cost of those materials are added to Work-in-Process Inventory.

Answer: A
 When a job is completed, the cost of materials, labor, and overhead are added up and allocated to the job. This allocation includes the cost of materials added to Work-in-Process Inventory during the job.

Answer: D
 Once a product is sold, the cost of the product is removed from Finished Goods Inventory and transferred to Cost of Goods Sold. This cost includes the cost of materials used to produce the product.

The options for B and E are not applicable to job-costing event.

Question 4

Match each following terms with their correct description from the items listed below.* Each term may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-Form prepared every time a new job is started

Accepted Answer

A job-order cost sheet is a document used to record and track the costs associated with a specific job or project. It includes labor, materials, and overhead costs.

Answer: B 
 A time ticket is a document used to track the amount of time an employee spends working on a specific job. It includes the employee's name, the job or project number, and the amount of time spent on that job.

Answer: C 
 A materials requisition form is a document used to request and track the materials needed for a specific job or project. It includes the quantity and description of materials, the job or project number, and the date of the request.

Question 5

Match each following cost flows with their corresponding job-costing event from the items listed below.* Each term may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-Insignificant overhead variance closed to costs of goods

Accepted Answer

Insignificant overhead variance is typically closed to cost of goods at the end of the year to adjust the cost of goods sold for any small differences between actual and applied overhead.

Question 6

Match each following terms with their correct description from the items listed below.
-The amount by which applied overhead exceeds actual overhead

Accepted Answer

Overapplied overhead refers to the situation where the overhead applied to products (using the predetermined overhead rate) exceeds the actual overhead costs incurred.

Question 7

Match each following terms with their correct description from the items listed below.* Each term may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-Form headed by the job order number, or name

Accepted Answer

A job-order cost sheet is a document that tracks the direct materials, direct labor, and overhead costs associated with a specific job or project. It is typically organized by job order number or name.

Answer: B
 A time ticket is a document that records the amount of time an employee spends on a particular job or task. It is typically used to track direct labor costs and may be organized by job order number or name.

Answer: C
 A materials requisition form is a document used to request and track the materials needed for a particular job or project. It may be organized by job order number or name.

Question 8

Match each following terms with their correct description from the items listed below.
-A single overhead rate calculated using all estimated overhead for a factory divided by the estimated activity level across the entire factory

Accepted Answer

A plantwide overhead rate is calculated using all estimated overhead for a factory divided by the estimated activity level across the entire factory.

Answer: A
 A predetermined overhead rate is a single overhead rate calculated using all estimated overhead for a factory divided by the estimated activity level across the entire factory.

Answer: C
 A departmental overhead rate is calculated separately for each department based on that department's estimated overhead costs and activity levels.

Answer: D
 Overhead variance refers to the difference between actual overhead costs incurred and applied overhead costs.

Answer: E
 Overapplied overhead occurs when the actual overhead costs incurred are less than the overhead costs applied.

Answer: F
 Underapplied overhead occurs when the actual overhead costs incurred are greater than the overhead costs applied.

Answer: G
 Applied overhead refers to the amount of overhead costs that have been allocated to a particular job or product.

Answer: H
 Normal cost of goods sold refers to the cost of goods sold that includes only actual direct material and direct labor costs, as well as overhead costs that have been applied.

Question 9

Match each following cost flows with their corresponding job-costing event from the items listed below.* Each term may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-Costs of a product are removed from Finished Goods Inventory and added to Cost of Goods Sold

Accepted Answer

When a product is sold, the costs associated with that product are transferred from Finished Goods Inventory to Cost of Goods Sold.

Question 10

Match each following terms with their correct description from the items listed below.
-Estimated overhead for a single department divided by the estimated activity level for that same department

Accepted Answer

Departmental overhead rate is calculated by dividing estimated overhead for a single department by the estimated activity level for that same department.

Question 11

Match each following terms with their correct description from the items listed below.* Each term may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-Form that may be used to maintain proper control over a firm's inventory of direct materials

Accepted Answer

A materials requisition form is used to document the withdrawal of direct materials from inventory for use in production. This helps to maintain proper control over inventory levels and ensure that materials are being used efficiently. Job-order cost sheets are used to track the costs associated with a specific job or project, while time tickets are used to record the amount of time that employees spend working on a particular job or task.

Question 12

Match each following cost flows with their corresponding job-costing event from the items listed below.* Each term may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-Actual overhead is reconciled with applied overhead

Accepted Answer

Actual overhead is reconciled with applied overhead at the end of each accounting period.

Question 13

Match each following cost flows with their corresponding job-costing event from the items listed below.* Each term may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-Direct materials, direct labour and applied overhead are totalled to yield manufacturing cost of job

Accepted Answer

When a job is completed, the direct materials, direct labor, and applied overhead are totaled to yield the manufacturing cost of the job.

Question 14

Match each following cost flows with their corresponding job-costing event from the items listed below.* Each term may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-Costs of a job are transferred from Work-in-Process Inventory to Finished Goods Inventory

Accepted Answer

The transfer of costs from Work-in-Process Inventory to Finished Goods Inventory typically occurs upon the completion of a job.

Answer: D
 When a product is sold, the costs associated with the production of that product are transferred from Finished Goods Inventory to Cost of Goods Sold.

Choices B, C, E are not applicable to the given cost flow.

Question 15

Match each following terms with their correct description from the items listed below.* Each term may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-Form that asks for the type, quantity, and unit cost of direct materials

Accepted Answer

A materials requisition form is a document used to request the transfer of raw materials from the storeroom or other designated areas to the production floor or work in process inventory. It usually asks for the type, quantity, and unit cost of direct materials. The job-order cost sheet is a record that accumulates the costs associated with a specific job, while a time ticket is a document that records the time spent by an employee on a specific job.

Quiz 5: Job-Order Costing

Match each following terms with their correct description from the items listed below.* Each term may be used more than once, and it is possible that one or more of the classifications may not be used at all. -Form filled out by each employee every day

Match each following cost flows with their corresponding job-costing event from the items listed below.* Each term may be used more than once, and it is possible that one or more of the classifications may not be used at all. -Schedule of costs of goods sold is prepared

Match each following terms with their correct description from the items listed below.* Each term may be used more than once, and it is possible that one or more of the classifications may not be used at all. -Form prepared every time a new job is started

Match each following cost flows with their corresponding job-costing event from the items listed below.* Each term may be used more than once, and it is possible that one or more of the classifications may not be used at all. -Insignificant overhead variance closed to costs of goods

Match each following terms with their correct description from the items listed below. -The amount by which applied overhead exceeds actual overhead

Match each following terms with their correct description from the items listed below.* Each term may be used more than once, and it is possible that one or more of the classifications may not be used at all. -Form headed by the job order number, or name

Match each following terms with their correct description from the items listed below. -A single overhead rate calculated using all estimated overhead for a factory divided by the estimated activity level across the entire factory

Match each following terms with their correct description from the items listed below. -Estimated overhead for a single department divided by the estimated activity level for that same department

Match each following cost flows with their corresponding job-costing event from the items listed below.* Each term may be used more than once, and it is possible that one or more of the classifications may not be used at all. -Actual overhead is reconciled with applied overhead

Match each following terms with their correct description from the items listed below.* Each term may be used more than once, and it is possible that one or more of the classifications may not be used at all. -Form that asks for the type, quantity, and unit cost of direct materials