Job Costing(Quick Test #1)

1. Job costing is also known as job __________ costing.

2. Instead of stating that manufacturing overhead costs have been allocated, applied, assigned, or spread to products, accountants might state that the products have __________ the manufacturing overhead costs.

3. The three main classifications of costs in the job cost records are direct __________, direct labor, and manufacturing overhead.

4. In traditional costing, manufacturing overhead has often been applied to jobs on the basis of direct labor hours or production __________ hours.

5. Under a perpetual accounting system, when a job is completed its cost is credited to the account work-in-process and is debited to the account with the title __________ __________ .

6. A small amount of manufacturing overhead that is either overapplied or underapplied at the end of an accounting year is likely to be assigned to the __________ __________ __________ __________.

7. Under normal costing, manufacturing overhead is likely to be assigned to jobs by using a predetermined overhead __________.

8. The name of the general ledger account which serves as the control account for the job cost records of jobs that have been started but not completed is the __________ __________ __________ account.

9. A job could be a batch of several units.

10. A job costing system is more likely to be used when a company’s products or services are __________ __________ each other.

11. The numerator in the calculation of a predetermined overhead rate is the __________ amount of factory overhead.

12. Ideally, the denominator in the calculation of a predetermined overhead rate is a cost __________.

13. If a company has a significant difference between its manufacturing overhead incurred and manufacturing overhead applied, the difference should be assigned to __________.

14. Assuming a high volume manufacturer has a perpetual inventory system, which of the following accounts would you expect to have the largest account balance at the end of an accounting year?

15. In a job costing system, the units are likely to be produced for __________.

16. Manufacturing overhead is usually considered to be __________ __________ __________ cost.

17. Minor amounts of supplies, such as the glue and sandpaper used in manufacturing a product are likely to be charged to jobs as part of a product’s __________ __________.

18. The __________ __________ are used to assign direct labor cost to jobs.

19. Using actual materials cost, actual direct labor cost, and predetermined overhead rates is known as __________ product costing.

20. When the actual manufacturing overhead costs are greater than the manufacturing overhead costs that have been applied to products, the manufacturing overhead has been __________.

21. To avoid monthly fluctuations in the overhead rates, __________ manufacturing overhead rate is often used.

22. The costs transferred from a manufacturer’s work-in-process inventory to its finished goods inventory is the cost of goods __________.

23. The debit to work-in-process inventory for direct materials is the cost of materials __________ during the accounting period.

24. At the time that XYZ incurs indirect labor costs, the amounts will be debited to which of the following accounts?

25. The depreciation on the factory equipment used on jobs is debited to which of the following accounts?

26. The predetermined overhead rate for assigning costs to inventories and the cost of goods sold during the upcoming year will be $__________ per machine hour.

27. Assuming that the actual manufacturing overhead costs end up at $313,500 and there are actually 21,000 machine hours of production, the manufacturing overhead will be __________.

28. The amount of the overapplied or underapplied manufacturing overhead will be $__________.

29. The company’s cost of goods manufactured for the year was $__________.

30. The company’s cost of goods sold for the year was $__________.