Question :
39. When a job completed: A. Cost of goods sold debited.B. Work-in-process inventory debited.C. Finished : 1229511
39. When a job is completed:
A. Cost of goods sold is debited.
B. Work-in-process inventory is debited.
C. Finished goods inventory is credited.
D. None of the above.
40. Which of the following is a characteristic of manufacturing overhead in a job order cost system?
A. It is indirectly traceable to specific jobs or units.
B. It includes the cost of all labor relating to manufacturing operations.
C. It is assigned to units produced by means of an overhead application rate.
D. It includes the cost of direct materials used and of indirect labor.
41. Debits to the Manufacturing Overhead account record:
A. The actual amounts of overhead costs incurred during a period.
B. The amount of overhead applied to production during a period.
C. The amount of overhead incurred on a specific job.
D. All conversion costs of a period.
42. At the end of the accounting period, applied overhead was larger than actual overhead by a material amount. The over-applied overhead should be:
A. Treated as an extraordinary gain.
B. Treated as an extraordinary loss.
C. Apportioned among Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold.
D. Ignored; actual overhead is determined only for internal control purposes.
43. All of the following are advantages of developing a predetermined overhead application rate except:
A. Short-run fluctuations in volume of output are normalized.
B. In a job order system, unit costs can be determined as soon as jobs are completed.
C. The overhead application rate facilitates assigning overhead costs to the ending inventory of work in process.
D. Actual overhead will always be less than applied overhead.
44. The advantage of using a predetermined overhead application rate is that:
A. Units produced are charged with a “normal” amount of manufacturing overhead regardless of whether they are produced in a high-volume month or a low-volume month.
B. Overhead costs will be limited to the predetermined amount.
C. Entries need not be made to record actual overhead costs incurred.
D. The unit cost of production will be lower than it would be if actual overhead costs were assigned to units produced.
45. A predetermined overhead application rate:
A. Is used in a job order cost system but cannot be used in a process cost system.
B. Can be determined by dividing budgeted direct labor cost by the budgeted factory overhead costs.
C. Is not generally accepted for financial reporting purposes.
D. Tends to avoid wide variations in per-unit overhead costs because of short-run changes in volume.
46. Under-applied overhead at the end of a month:
A. Results when actual overhead costs are less than amounts applied to work in process.
B. Indicates a poorly designed cost accounting system.
C. Is represented by a debit balance remaining in the Manufacturing Overhead account.
D. Is represented by a credit balance remaining in the Manufacturing Overhead account.
47. Which of the following statements is true about activity-based costing?
A. Only one activity should be used for a company.
B. Many different activity bases are used in applying overhead.
C. There can only be one cost driver.
D. Direct materials and direct labor are applied to work-in-process based upon cost drivers.
48. Which of the following is not a commonly used cost accounting system?
A. Manufacturing yield costing.
B. Job order costing.
C. Process costing.
D. Activity-based costing.
