Question : 71. Ortiz Company, a manufacturing firm that uses a job-order cost : 1208055

71. Ortiz Company, is a manufacturing firm that uses a job-order cost system to determine the costs of its products. During 2012, Ortiz paid $2,100 to production employees who worked on job #132. The entry to record these wages would include an increase to: 
A. Cost of goods sold.
B. Salary expense.
C. Finished goods inventory.
D. Work in process inventory.

72. Ortiz Company, is a manufacturing firm that uses a job-order cost system to determine the costs of its products. During 2012, Oritz applied estimated manufacturing overhead costs of $1,550 to job # 132. Which of the following statements regarding this transaction is correct? 
A. Work in process inventory decreases.
B. Manufacturing overhead decreases.
C. Net income decreases.
D. Total equity increases.

73. Ortiz Company, is a manufacturing firm that uses a job-order cost system to determine the costs of its products. During 2012, Ortiz transferred total product costs for job #132, to finished goods inventory. The recognition of this event would: 
A. Decrease total assets.
B. Increase total assets.
C. Reduce net income.
D. Have no impact on total assets.

74. In 2012, Ortiz paid $2,300 for selling and administrative expenses. Payment of cash for selling and administrative expenses is: 
A. An asset use transaction.
B. An asset source transaction.
C. An asset exchange transaction.
D. A claims exchange transaction.

75. Ortiz Company, is a manufacturing firm that uses a job-order cost system to determine the costs of its products. During 2012, Ortiz paid $700 for equipment rental and other indirect costs. The recognition of this event would: 
A. Have no impact on total assets.
B. Increase total assets.
C. Reduce net income.
D. Decrease total assets.

76. Ortiz Company, is a manufacturing firm that uses a job-order cost system to determine the costs of its products. During 2012, Ortiz recognized depreciation of $600 on manufacturing equipment. Which of the following describes the effect of this event on the accounting equation? 
A. Total assets and net income decrease.
B. Total assets are unaffected, but total equity decreases.
C. Total assets and total equity are unaffected.
D. Total assets increase and net income increase.

77. Ortiz Company, is a manufacturing firm that uses a job-order cost system to determine the costs of its products. Ortiz Company counted the production supplies on hand at year-end and determined that the amount used was $125. The recognition of this event on the financial statements would include an increase to: 
A. Supply expense.
B. Manufacturing overhead.
C. Work in process.
D. Finished goods.

78. Ortiz Company, is a manufacturing firm that uses a job-order cost system to determine the costs of its products. Ortiz Company sold job #132 for $8,200 cash. The recognition of this event on the financial statements would include an increase to: 
A. Total assets and total equity.
B. Total liabilities.
C. Net income.
D. Total assets, total equity and net income.

79. Ortiz Company, is a manufacturing firm that uses a job-order cost system to determine the costs of its products. During 2012, Ortiz recognized cost of goods sold of $4,850 for job # 132. The recognition of this event will include a decrease to: 
A. Cost of goods sold.
B. Production supplies.
C. Finished goods inventory.
D. Work in process inventory.

80. During 2012, Ortiz applied $14,500 of estimated overhead cost to production. Actual overhead costs were $14,325. The recognition of this transaction will: 
A. Decrease total assets and total liabilities.
B. Decrease cost of goods sold.
C. Increase stockholder’s equity.
D. Decrease cost of goods sold and increase stockholder’s equity.