Select the one best answer for each:
1. Which one of the following would not be classified as manufacturing overhead? a. Indirect labor b. Direct materials c. Insurance on factory building d. Indirect materials
2. Prime costs of a company are $3,000,000, manufacturing overhead is $1,500,000 and direct labor is $750,000. What is the amount of direct materials? a. $1,500,000. b. $750,000. c. $2,250,000. d. Cannot be determined from the information provided.
3. An important feature of a job order cost system is that each job a. must be similar to previous jobs completed. b. has its own distinguishing characteristics. c. must be completed before a new job is accepted. d. consists of one unit of output.
4. When a job is completed and all costs have been accumulated on a job cost sheet, the journal entry that should be made is a. Finished Goods Inventory Direct Materials Direct Labor Manufacturing Overhead b. Work In Process Inventory Direct Materials Direct Labor Manufacturing Overhead c. Raw Materials Inventory Work In Process Inventory d. Finished Goods Inventory Work In Process Inventory
5. 3,000 units in a process that are 70% complete, are referred to as a. 3,000 equivalent units of production. b. 900 equivalent units of production. c. 2,100 equivalent units of production. d. 900 unequivalent units of production.
6. Which of the following is correct? Job Order Process Cost a. Work in process account several one for each process b. Work in process account one one c. Work in process account one one for each process d. Work in process account several one4.
7. A well-designed activity-based costing