1.Which of the following would be accounted for using a job order cost system?
a)The production of personal computers
b)The refining of petroleum
c)The construction of a new campus building
d)The production of automobiles

2.As of December 31, 2010, Stand Still Industries had $2,500 of raw materials inventory. At the beginning of 2010, there was $2,000 of materials on hand. During the year, the company purchased $305,000 of materials; however, it paid for only $292,500. How much inventory was requisitioned for use on jobs during 2010?
a)$292,000
b)$304,500
c)$305,500
d)$293,000

3.The flow of costs in a job order cost system
a)involves accumulating manufacturing costs incurred and assigning the accumulated costs to work done.
b)generally follows a LIFO cost flow assumption.
c)measures product costs for a set time period.
d)cannot be measured until all jobs are complete.

4.A process cost system would be used for all of the following except the
a)production of automobiles.
b)refining of petroleum.
c)manufacture of cereal.
d)printing of wedding invitations.

5.Which of the following is not a control account?
a)Raw Materials Inventory
b)Factory Labor
c)Manufacturing Overhead
d)All of these are control accounts.

6.When the company assigns factory labor costs to jobs, the direct labor cost is debited to
a)Work in Process Inventory.
b)Manufacturing Overhead.
c)Direct Labor.
d)Factory Labor.

7.Companies assign manufacturing overhead to work in process on an estimated basis through the use of a(n)
a)actual overhead rate.
b)estimated overhead rate.
c)assigned overhead rate.
d)predetermined overhead rate.

8.Overapplied manufacturing overhead exists when overhead assigned to work in process is
a)less than overhead incurred and there is a debit balance in Manufacturing Overhead at the end of a period.

b)more than overhead incurred and there is a credit balance in Manufacturing Overhead at the end of a period.

c)less than overhead incurred and there is a credit balance in Manufacturing Overhead at the end of a period.

d)more than overhead incurred and there is a debit balance in Manufacturing Overhead at the end of a period.

9.Which of the following statements about under- or overapplied manufacturing overhead is correct?
a)When Manufacturing Overhead has a credit balance, overhead is said to be under-applied.

b)After the entry to transfer over- or underapplied overhead to Cost of Goods Sold is posted, Manufacturing Overhead will have a zero balance.

c)At the end of the year, under- or overapplied overhead is eliminated by a closing entry.

d)When annual financial statements are prepared, overapplied overhead is reported in current liabilities.