ACCT 102 MIDTERM EXAM QUESTIONS
AND ANSWERS ALL CORRECT
The three major cost of manufacturing a product are:
Multiple Choice
Marketing, selling, and administrative costs.
General, selling, and administrative costs.
Product costs, period costs, and variable costs.
Direct materials, direct labor, and factory overhead.
Correct
Indirect labor, indirect materials, and fixed expenses. - Answer- Direct materials, direct
labor, and factory overhead.
A company that makes which of the following types of products would best be suited for
a job costing system?
Multiple Choice
Fruit juice
Custom jewelry
Correct
Swimming suits
Snack chips
Phone chargers - Answer- Custom jewelry
The target cost for a job using job costing is calculated as:
Multiple Choice
direct costs − desired profit.
expected selling price − direct costs.
expected selling price − desired profit.
Correct
expected selling price + desired profit.
direct costs + desired profit. - Answer- expected selling price − desired profit.
A document in a job order costing system that is used to record the costs of producing a
job is a(n):
Multiple Choice
Units-of-production sheet.
Job lot.
, Process cost system.
Finished goods summary.
Job cost sheet.
Correct - Answer- Job cost sheet.
The Work in Process Inventory account of a manufacturing company has a $3,200 debit
balance. The company applies overhead using direct labor cost. The cost sheet of the
only job still in process shows direct material cost of $1,400 and direct labor cost of
$800. Therefore, the amount of applied overhead is:
Multiple Choice
$2,200.
$1,000.
Correct
$1,800.
$2,400.
$800.
WIP = DM + DL + OH$3,200 = $1,400 + $800 + OHOH = $3,200 − $1,400 − $800 =
$1,000 - Answer- $1,000.
A source document that an employee uses to report how much time was spent working
on a job or on overhead activities and that is used to determine the amount of direct
labor to charge to the job or to determine the amount of indirect labor to charge to
factory overhead is called a:
Multiple Choice
Payroll Register.
General Ledger.
Time ticket.
Correct
Factory Overhead Ledger.
Factory payroll record. - Answer- Time ticket.
A company that uses a job order costing system would make the following entry to
record the flow of direct materials into production:
Multiple Choice
debit Work in Process Inventory, credit Raw Materials Inventory.
Correct
debit Factory Overhead, credit Raw Materials Inventory.
debit Work in Process Inventory, credit Factory Overhead.
debit Work in Process Inventory, credit Cost of Goods Sold.
debit Finished Goods Inventory, credit Raw Materials Inventory. - Answer- debit Work in
Process Inventory, credit Raw Materials Inventory.
AND ANSWERS ALL CORRECT
The three major cost of manufacturing a product are:
Multiple Choice
Marketing, selling, and administrative costs.
General, selling, and administrative costs.
Product costs, period costs, and variable costs.
Direct materials, direct labor, and factory overhead.
Correct
Indirect labor, indirect materials, and fixed expenses. - Answer- Direct materials, direct
labor, and factory overhead.
A company that makes which of the following types of products would best be suited for
a job costing system?
Multiple Choice
Fruit juice
Custom jewelry
Correct
Swimming suits
Snack chips
Phone chargers - Answer- Custom jewelry
The target cost for a job using job costing is calculated as:
Multiple Choice
direct costs − desired profit.
expected selling price − direct costs.
expected selling price − desired profit.
Correct
expected selling price + desired profit.
direct costs + desired profit. - Answer- expected selling price − desired profit.
A document in a job order costing system that is used to record the costs of producing a
job is a(n):
Multiple Choice
Units-of-production sheet.
Job lot.
, Process cost system.
Finished goods summary.
Job cost sheet.
Correct - Answer- Job cost sheet.
The Work in Process Inventory account of a manufacturing company has a $3,200 debit
balance. The company applies overhead using direct labor cost. The cost sheet of the
only job still in process shows direct material cost of $1,400 and direct labor cost of
$800. Therefore, the amount of applied overhead is:
Multiple Choice
$2,200.
$1,000.
Correct
$1,800.
$2,400.
$800.
WIP = DM + DL + OH$3,200 = $1,400 + $800 + OHOH = $3,200 − $1,400 − $800 =
$1,000 - Answer- $1,000.
A source document that an employee uses to report how much time was spent working
on a job or on overhead activities and that is used to determine the amount of direct
labor to charge to the job or to determine the amount of indirect labor to charge to
factory overhead is called a:
Multiple Choice
Payroll Register.
General Ledger.
Time ticket.
Correct
Factory Overhead Ledger.
Factory payroll record. - Answer- Time ticket.
A company that uses a job order costing system would make the following entry to
record the flow of direct materials into production:
Multiple Choice
debit Work in Process Inventory, credit Raw Materials Inventory.
Correct
debit Factory Overhead, credit Raw Materials Inventory.
debit Work in Process Inventory, credit Factory Overhead.
debit Work in Process Inventory, credit Cost of Goods Sold.
debit Finished Goods Inventory, credit Raw Materials Inventory. - Answer- debit Work in
Process Inventory, credit Raw Materials Inventory.
