Question 1

The total of the dollar amounts on the job order cost cards that have not been completed would be equal to the

Accepted Answer

A)   cost of goods completed.
B)   balance in the Finished Goods Inventory account.
C)   Cost of Goods Sold account.
D)   balance in the Work in Process Inventory account.E) All of the above
F) B) and D)

Question 2

Pretty Pillows, Mfg., manufactures silk throw pillows. Last month the company produced 3,890 pillows. Using job order costing, determine the product unit cost for one pillow based on the following costs: production facility utilities, $1,600; depreciation on production equipment, $650; indirect materials, $400; direct materials, $5,300; indirect labor, $1,000; direct labor, $3,500; sales commissions, $4,000; president's salary, $8,000; insurance on production facility, $1,000; advertising expense, $900; rent on production facility, $6,000; rent on sales office, $4,000; and legal expense, $600. Carry your answer to two decimal places.

Accepted Answer

The answer of Pretty Pillows, Mfg., manufactures silk throw pillows....

Question 3

Companies that produce custom-made products usually use a process costing system.

Accepted Answer

A) True 
 B)False

Question 4

When a job has been completed, all of the costs assigned to that job order are moved to the Finished Goods Inventory account.

Accepted Answer

A) True 
 B)False

Question 5

In a job order costing system, when the goods are sold, the Cost of Goods Sold account is increased, and the Finished Goods Inventory account is decreased for the selling price of the goods sold.

Accepted Answer

A) True 
 B)False

Question 6

When a job is completed in a service organization, the job costs are transferred to the

Accepted Answer

A)   Work in Process Inventory account.
B)   Finished Goods Inventory account.
C)   Cost of Goods Sold account.
D)   Cost of Services account.E) A) and C)
F) C) and D)

Question 7

Few actual production processes fit the definitions of job order costing or process costing exactly.

Accepted Answer

A) True 
 B)False

Question 8

In a job order costing system, the transfer of overhead costs to the Work in Process Inventory account must take place before product unit costs can be computed.

Accepted Answer

A) True 
 B)False

Exam 20: Costing Systems: Job Order Costing

The total of the dollar amounts on the job order cost cards that have not been completed would be equal to the

Correct Answer
verified

When a job is completed in a service organization, the job costs are transferred to the

Correct Answer
verified

In a job order costing system, the transfer of overhead costs to the Work in Process Inventory account must take place before product unit costs can be computed.

Correct Answer
verified

When a job has been completed, all of the costs assigned to that job order are moved to the Finished Goods Inventory account.

Correct Answer
verified

Correct Answer
verified

In a job order costing system, when the goods are sold, the Cost of Goods Sold account is increased, and the Finished Goods Inventory account is decreased for the selling price of the goods sold.

Correct Answer
verified

Companies that produce custom-made products usually use a process costing system.

Correct Answer
verified

Few actual production processes fit the definitions of job order costing or process costing exactly.

Correct Answer
verified

Exam 20: Costing Systems: Job Order Costing

The total of the dollar amounts on the job order cost cards that have not been completed would be equal to the

Correct AnswerverifiedShow Answer

When a job is completed in a service organization, the job costs are transferred to the

Correct AnswerverifiedShow Answer

In a job order costing system, the transfer of overhead costs to the Work in Process Inventory account must take place before product unit costs can be computed.

Correct AnswerverifiedShow Answer

When a job has been completed, all of the costs assigned to that job order are moved to the Finished Goods Inventory account.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In a job order costing system, when the goods are sold, the Cost of Goods Sold account is increased, and the Finished Goods Inventory account is decreased for the selling price of the goods sold.

Correct AnswerverifiedShow Answer

Companies that produce custom-made products usually use a process costing system.

Correct AnswerverifiedShow Answer

Few actual production processes fit the definitions of job order costing or process costing exactly.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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