2-1
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, Chapter 02
Job Order Costing
True / False Questions
1. A marketing consulting firm would most likely use process costing.
True False
2. When job order costing is used, costs are accumulated on a job cost sheet.
True False
3. Process costing averages the total cost of the process over the number of units produced.
True False
2-2
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McGraw-Hill Education.
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,4. Source documents are used to assign all manufacturing costs to jobs.
True False
5. A materials requisition form is used to authorize the purchase of direct materials.
True False
6. A job cost sheet will record the direct materials and direct labor used by the job but not the
manufacturing overhead applied.
True False
2-3
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
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, 7. A predetermined overhead rate is calculated by dividing estimated total manufacturing overhead
cost by estimated total cost driver.
True False
8. Indirect materials are recorded directly on the job cost sheet.
True False
9. When manufacturing overhead is applied to a job, a credit is made to the Work in Process
account.
True False
10. The total manufacturing cost for a job is based on the amount of applied overhead using the
predetermined overhead rate.
True False
11. If there is a debit balance in the Manufacturing Overhead account at the end of the period,
overhead was underapplied.
True False
12. The most common method for disposing of the balance in Manufacturing Overhead is to make a
direct adjustment to Cost of Goods Sold.
True False
13. To eliminate underapplied overhead at the end of the year, Manufacturing Overhead would be
debited and Cost of Goods Sold would be credited.
True False
2-4
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
mynursytest.store
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
mynursytest.store
, Chapter 02
Job Order Costing
True / False Questions
1. A marketing consulting firm would most likely use process costing.
True False
2. When job order costing is used, costs are accumulated on a job cost sheet.
True False
3. Process costing averages the total cost of the process over the number of units produced.
True False
2-2
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
mynursytest.store
,4. Source documents are used to assign all manufacturing costs to jobs.
True False
5. A materials requisition form is used to authorize the purchase of direct materials.
True False
6. A job cost sheet will record the direct materials and direct labor used by the job but not the
manufacturing overhead applied.
True False
2-3
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
mynursytest.store
, 7. A predetermined overhead rate is calculated by dividing estimated total manufacturing overhead
cost by estimated total cost driver.
True False
8. Indirect materials are recorded directly on the job cost sheet.
True False
9. When manufacturing overhead is applied to a job, a credit is made to the Work in Process
account.
True False
10. The total manufacturing cost for a job is based on the amount of applied overhead using the
predetermined overhead rate.
True False
11. If there is a debit balance in the Manufacturing Overhead account at the end of the period,
overhead was underapplied.
True False
12. The most common method for disposing of the balance in Manufacturing Overhead is to make a
direct adjustment to Cost of Goods Sold.
True False
13. To eliminate underapplied overhead at the end of the year, Manufacturing Overhead would be
debited and Cost of Goods Sold would be credited.
True False
2-4
Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
mynursytest.store
