Accounting_203_Chapter_2_Test - ACCOUNTING 203 Chapter 2...

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ACCOUNTING 203 Chapter 2 Practice Test True and False Statements 1. Both job order and process costing systems use averaging to compute unit product costs. 2. The three cost categories appearing on a job cost sheet are: selling expense, manufacturing expense, and administrative expense. 3. Under a job-order cost system the Work in Process account is debited with the cost of materials purchased. 4. The process of assigning overhead to jobs is known as overhead application. 5. Period costs are expensed as incurred, rather than going into the Work in Process account. Multiple Choice Questions 6. In a job-order cost system, the application of manufacturing overhead usually would be recorded as a debit to: A) Cost of Goods Sold B) Work in Process inventory. C) Manufacturing Overhead. D) Finished Goods inventory. 7. Which of the following would probably be the least appropriate allocation base for allocating overhead in a highly automated manufacturer of specialty valves? A) machine-hours B) power consumption C) direct labor-hours D) machine setups Everett Community College Tutoring Center 1
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8. The Work in Process inventory account of a manufacturing firm shows a balance of $3,000 at the end of the accounting period. The job cost sheets of two uncompleted jobs show charges of
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This note was uploaded on 05/17/2011 for the course ACCT 203 taught by Professor Mac during the Spring '11 term at Chicago State.

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Accounting_203_Chapter_2_Test - ACCOUNTING 203 Chapter 2...

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