6th edition
Full file at http://testbankscafe.eu/Test-Bank-for-Introduction-to-Managerial-Accounting-6th-Edition-Brewer,-Garrison,-Noreen
Chapter 02
Job-Order Costing
True / False Questions
1. Theuse!!of!!predetermined !!overheadL ratesL inL aL job-orderL costL systemL
makesL itL possibleL toL estimateL theL totalL costL ofL aL givenL jobL asL soonL
asL productionL isL completed.
True False
2. AL jobL costL sheet L isL used L toL accumulateL costsL chargedL to L aL job.
True False
3. TheL followingL journalL entryL wouldL beL madeL toL applyL overheadL costL toL
jobsL inL aL job-orderL costingL system:
True False
4. UnderL aL job-orderL cost L systemL the L Work L inL ProcessL accountL isL debitedL
withL theL costL ofL materialsL purchased.
True False
5. TheL processL ofL assigningL overheadL costL toL jobsL isL knownL asL
overheadL application.
True False
,Full file at http://testbankscafe.eu/Test-Bank-for-Introduction-to-Managerial-Accounting-6th-Edition-Brewer,-Garrison,-Noreen
6. TheL cost L ofL aL completedL jobL inL a L job-orderL costingL systemL typically L
consistsL ofL the L actualL direct L materialsL costL ofL theL job,L theL actualL
directL laborL costL ofL the L job,L andL theL actualL manufacturingL overheadL
costL ofL theL job.
True False
7. AL debitL balanceL inL the L ManufacturingL OverheadL accountL atL theL end L ofL
theL yearL meansL that L manufacturingL overheadL isL overapplied.
True False
8. PeriodL costsL areL expensedL asL incurred,L ratherL thanL goingL intoL the L WorkL
inL ProcessL account.
True False
9. AdvertisingL costsL shouldL beL chargedL toL theL ManufacturingL
OverheadL account.
True False
10 WhenL aL job L hasL beenL completed,L theL goodsL areL transferredL fromL the
. productionL departmentL toL theL finishedL goodsL warehouseL andL theL
journalL entryL wouldL include L aL creditL toL WorkL inL Process.
True False
11 UnderappliedL orL overappliedL manufacturingL overheadL representsL the
. differenceL betweenL actualL overheadL costsL andL appliedL overheadL costs.
True False
12 TopL managementL salariesL shouldL notL goL intoL theL Manufacturing L Overhead
. account.
True False
,Full file at http://testbankscafe.eu/Test-Bank-for-Introduction-to-Managerial-Accounting-6th-Edition-Brewer,-Garrison,-Noreen
13 IfL manufacturingL overheadL appliedL exceedsL theL actualL manufacturing
. overheadL costsL ofL theL period,L thenL manufacturingL overheadL
isL overapplied.
True False
MultipleL ChoiceL Questions
14 InL computingL itsL predeterminedL overheadL rate,L Marple L Company
. inadvertentlyL leftL itsL indirectL laborL costsL outL ofL theL computation.L
ThisL oversightL willL cause:
A. ManufacturingL Overhead L toL
beL overapplied.
B. theL CostL ofL GoodsL Manufactured L to L be
understated.
C. theL debitsL toL theL ManufacturingL OverheadL accountL to L
beL understated.
D. theL endingL balance L inL WorkL inL ProcessL toL be
overstated.
15 WhichL ofL theL followingL isL theL correctL formulaL toL computeL the
. predetermined L overheadL rate?
A. EstimatedL totalL unitsL inL theL allocationL baseL dividedL byL estimatedL
totalL manufacturingL overheadL costs.
B. EstimatedL totalL manufacturingL overheadL costsL dividedL byL estimated
totalL unitsL inL theL allocationL base.
C. ActualL totalL manufacturingL overheadL costsL dividedL byL estimatedL
totalL unitsL inL theL allocationL base.
D. EstimatedL totalL manufacturing L overheadL costsL dividedL byL actualL total
unitsL inL theL allocationL base.
, Full file at http://testbankscafe.eu/Test-Bank-for-Introduction-to-Managerial-Accounting-6th-Edition-Brewer,-Garrison,-Noreen
16 WhichL ofL theL followingL wouldL probablyL beL the L least L appropriateL allocation
. baseL forL allocatingL overheadL inL aL highlyL automatedL manufacturerL
ofL specialty L valves?
A. machine-
L hours
B. power
consumption
C. directLlabor-
L hours
D. machine
setups
17 WhatL documentL isL used L toL determineL theL actualL amountL ofL directL laborL to
. recordL onL aL jobL cost L sheet?
A. time
ticket
B. payrollL
register
C. production
order
D. wagesL
payableL
account
Full file at http://testbankscafe.eu/Test-Bank-for-Introduction-to-Managerial-Accounting-6th-Edition-Brewer,-Garrison,-Noreen
Chapter 02
Job-Order Costing
True / False Questions
1. Theuse!!of!!predetermined !!overheadL ratesL inL aL job-orderL costL systemL
makesL itL possibleL toL estimateL theL totalL costL ofL aL givenL jobL asL soonL
asL productionL isL completed.
True False
2. AL jobL costL sheet L isL used L toL accumulateL costsL chargedL to L aL job.
True False
3. TheL followingL journalL entryL wouldL beL madeL toL applyL overheadL costL toL
jobsL inL aL job-orderL costingL system:
True False
4. UnderL aL job-orderL cost L systemL the L Work L inL ProcessL accountL isL debitedL
withL theL costL ofL materialsL purchased.
True False
5. TheL processL ofL assigningL overheadL costL toL jobsL isL knownL asL
overheadL application.
True False
,Full file at http://testbankscafe.eu/Test-Bank-for-Introduction-to-Managerial-Accounting-6th-Edition-Brewer,-Garrison,-Noreen
6. TheL cost L ofL aL completedL jobL inL a L job-orderL costingL systemL typically L
consistsL ofL the L actualL direct L materialsL costL ofL theL job,L theL actualL
directL laborL costL ofL the L job,L andL theL actualL manufacturingL overheadL
costL ofL theL job.
True False
7. AL debitL balanceL inL the L ManufacturingL OverheadL accountL atL theL end L ofL
theL yearL meansL that L manufacturingL overheadL isL overapplied.
True False
8. PeriodL costsL areL expensedL asL incurred,L ratherL thanL goingL intoL the L WorkL
inL ProcessL account.
True False
9. AdvertisingL costsL shouldL beL chargedL toL theL ManufacturingL
OverheadL account.
True False
10 WhenL aL job L hasL beenL completed,L theL goodsL areL transferredL fromL the
. productionL departmentL toL theL finishedL goodsL warehouseL andL theL
journalL entryL wouldL include L aL creditL toL WorkL inL Process.
True False
11 UnderappliedL orL overappliedL manufacturingL overheadL representsL the
. differenceL betweenL actualL overheadL costsL andL appliedL overheadL costs.
True False
12 TopL managementL salariesL shouldL notL goL intoL theL Manufacturing L Overhead
. account.
True False
,Full file at http://testbankscafe.eu/Test-Bank-for-Introduction-to-Managerial-Accounting-6th-Edition-Brewer,-Garrison,-Noreen
13 IfL manufacturingL overheadL appliedL exceedsL theL actualL manufacturing
. overheadL costsL ofL theL period,L thenL manufacturingL overheadL
isL overapplied.
True False
MultipleL ChoiceL Questions
14 InL computingL itsL predeterminedL overheadL rate,L Marple L Company
. inadvertentlyL leftL itsL indirectL laborL costsL outL ofL theL computation.L
ThisL oversightL willL cause:
A. ManufacturingL Overhead L toL
beL overapplied.
B. theL CostL ofL GoodsL Manufactured L to L be
understated.
C. theL debitsL toL theL ManufacturingL OverheadL accountL to L
beL understated.
D. theL endingL balance L inL WorkL inL ProcessL toL be
overstated.
15 WhichL ofL theL followingL isL theL correctL formulaL toL computeL the
. predetermined L overheadL rate?
A. EstimatedL totalL unitsL inL theL allocationL baseL dividedL byL estimatedL
totalL manufacturingL overheadL costs.
B. EstimatedL totalL manufacturingL overheadL costsL dividedL byL estimated
totalL unitsL inL theL allocationL base.
C. ActualL totalL manufacturingL overheadL costsL dividedL byL estimatedL
totalL unitsL inL theL allocationL base.
D. EstimatedL totalL manufacturing L overheadL costsL dividedL byL actualL total
unitsL inL theL allocationL base.
, Full file at http://testbankscafe.eu/Test-Bank-for-Introduction-to-Managerial-Accounting-6th-Edition-Brewer,-Garrison,-Noreen
16 WhichL ofL theL followingL wouldL probablyL beL the L least L appropriateL allocation
. baseL forL allocatingL overheadL inL aL highlyL automatedL manufacturerL
ofL specialty L valves?
A. machine-
L hours
B. power
consumption
C. directLlabor-
L hours
D. machine
setups
17 WhatL documentL isL used L toL determineL theL actualL amountL ofL directL laborL to
. recordL onL aL jobL cost L sheet?
A. time
ticket
B. payrollL
register
C. production
order
D. wagesL
payableL
account
