ACCT101 – Chapter 2 Exam Questions with Correct Solutions (Job Order Costing, Overhead, Manufacturing Accounts)

ACCT101 – Chapter 2 Exam Questions with Correct

Solutions (Job Order Costing, Overhead, Manufacturing

Accounts)


Description:

This ACCT101 file contains Chapter 2 exam questions with 100% correct answers.

The content focuses on cost accounting systems, specifically job order costing,

product cost tracking, and overhead allocation. It explains journal entries for direct

and indirect materials, labor costs, and manufacturing overhead, along with

underapplied and overapplied overhead. A focused guide for mastering managerial

and cost accounting basics.



Which of the following is a reason why a job order costing system is appropriate for a

custom 1) furniture manufacturer? A) Custom furniture manufacturers produce large

quantities of similar products. B) The direct costs incurred for each job are the same,

only indirect costs vary. C) The raw materials used have already been accounted for

using process costing. D) The cost incurred for each job will differ as per the order

specifications. - answer✔✔D) The cost incurred for each job will differ as per the
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order specifications. 2) Which of the following is the correct order of the four steps
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, of tracking product costs? A) accumulate → assign → allocate → adjust B) adjust →

allocate → accumulate → assign C) assign → accumulate → allocate → adjust D)

allocate → adjust → accumulate → assign - answer✔✔A) accumulate → assign →

allocate → adjust 3) A major purpose of a cost accounting system is to ________. A)

assist creditors in determining whether to grant a loan B) compute the cost of goods

sold for the income statement C) show investors a company is operating efficientlyD)

classify all costs as operating or marketing costs - answer✔✔B) compute the cost

of goods sold for the income statement 4) The entry to record the purchase of raw

materials on account would include a ________. A) debit to the Work-in-Process

Inventory account B) credit to the Raw Materials Inventory account C) credit to the

Work-in-Process Inventory account D) debit to the Raw Materials Inventory account -

answer✔✔D) debit to the Raw Materials Inventory account 5) Which of the

following accounts would be debited in the journal entry to record the issuance of

direct materials? A) Work-in-Process Inventory B) Finished Goods Inventory C) Cost

of Goods Sold D) Raw Materials Inventory - answer✔✔A) Work-in-Process

Inventory 7) The journal entry to issue $800 of direct materials and $60 of indirect

materials to production involves debit(s) to the ________. A) Work-in-Process

Inventory account for $800 and Manufacturing Overhead account for $60 B) Work-

in-Process Inventory account for $860 C) Manufacturing Overhead account for $860

D) Work-in-Process Inventory account for $800 and Finished Goods Inventory

account for $60 - answer✔✔A) Work-in-Process Inventory account for $800 and
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Manufacturing Overhead account for $60 6) The journal entry to issue indirect