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Quiz - BUS 121 Ch. 3 _1B

Quiz - BUS 121 Ch. 3 _1B - the total cost of a job at the...

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NAME CHRISTINE DONALDSON SCORE ______________ BUS 121: Managerial Accounting Chapter 3 Quiz #1 T/F Questions: (1 point each) false 1. Job order costing systems are best used (or most appropriate) when a company produces many units of a single product over an extended period of time. true 2. When a company uses a predetermined overhead application rate , an estimated amount of manufacturing overhead cost, rather than the actual, is applied to the jobs. true 3. Under a job order cost system, the Raw Materials Inventory account is debited at the time the cost of materials is purchased from outside vendors or suppliers . false 4. Advertising costs, since they relate to the Finished Goods being sold by the company, should be charged into the Manufacturing Overhead account. true 5. With the use of a predetermined overhead application rate, it is possible to estimate
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Unformatted text preview: the total cost of a job at the time production on that particular job is completed. false 6. The overapplied or underapplied manufacturing overhead for the period is typically closed out to the Work-In-Process account. MC Questions: (2 points each) 1. The type of manufacturing company or operation that would be most likely to use a job-order costing system is a(n) A.) ball bearing manufacturer. B.) oil products refiner. C.) custom motor home manufacturer. D.) chemical products manufacturer. The answer is C . 2. In a job-order costing system, applying the manufacturing overhead by using an estimated overhead application rate would be recorded as a debit to: A.) Work-In-Process Inventory. B.) Manufacturing Overhead. C.) Raw Materials Inventory. D.) Finished Goods Inventory. The answer is A ....
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