JOB ORDER COSTING - TAXONOMY Item LO BT Item LO BT Item LO BT Item ...

CHAPTER 2

JOB ORDER COSTING

SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOO M’S

TAXONOMY

Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT True-False Statements

1. 1 K 8. 1 K 15. 1 K 22. 3 C 29. 5 C

2. 1 C 9. 1 C 16. 1 K 23. 3 K 30. 5 C

3. 1 C 10. 1 C 17. 2 K 24. 3 C 31. 1 C

4. 1 C 11. 1 C 18. 2 K 25. 4 C 32. 1 K

5. 1 C 12. 1 C 19. 2 C 26. 4 K 33. 2 K

6. 1 K 13. 1 K 20. 2 C 27. 4 K 34. 3 K

7. 1 C 14. 1 C 21. 2 K 28. 4 K 35. 5 K

Multiple Choice Questions

36. 1 K 59. 2 C 82. 3 AP 105. 4 C 128. 5 C

37. 1 K 60. 1 C 83. 3 AP 106. 4 AP 129. 5 C

38. 1 K 61. 2 K 84. 3 AP 107. 4 C 130. 5 K

39. 1 C 62. 2 K 85. 3 AP 108. 4 C 131. 5 C

40. 1 C 63. 2 AP 86. 3 AP 109. 4 C 132. 5 AP

41. 1 C 64. 2 K 87. 3 AP 110. 4 C 133. 5 C

42. 1 C 65. 2 C 88. 3 AP 111. 4 AP 134. 5 C

43. 1 C 66. 2 K 89. 3 C 112. 4 AP 135. 5 C

44. 1 AP 67. 2 K 90. 3 K 113. 4 AP 136. 5 C

45. 1 K 68. 2 K 91. 3 C 114. 4 C 137. 5 C

46. 1 K 69. 2 C 92. 3 C 115. 4 C 138. 5 C

47. 1 C 70. 2 C 93. 3 K 116. 4 AP 139. 5 C

48. 1 K 71. 2 K 94. 3 AP 117. 4 AP 140. 5 C

49. 1 C 72. 2 K 95. 3 C 118. 4 AP

st

141. 1 K

50. 1 C 73. 2 C 96. 3 K 119. 4 AP 142. 1 K

51. 1 C 74. 2 C 97. 3 AP 120. 4 AP

st

143. 1 K

52. 1 K 75. 2 K 98. 3 AP 121. 4 AP 144. 2 K

53. 1 C 76. 2 AP 99. 3 AP 122. 4 AP

st

145. 2 K

54. 1 K 77. 2 AP 100. 3 AP 123. 4 AP 146. 3 AP

55. 1 K 78. 2 AP 101. 3 AP 124. 5 AP

st

147. 3 K

56. 1 AP 79. 2 AP 102. 4 AP 125. 5 AP 148. 5 C

57. 1 K 80. 2 AP 103. 4 C 126. 5 AP

st

149. 5 K

58. 2 K 81. 3 AP 104. 4 C 127. 5 C 150. 5 K

Brief Exercises 151 .

1 AP 153. 2 AP 155. 3,5 AP 157. 4 AP 159. 5 AP

152 .

1 AP 154. 2 AP 156. 3 AP 158. 5 AP 160. 5 AP

st This question also appears in a self-test at the student companion website.Managerial Accounting Tools for Business Decision Making 7th Edition Weygandt Test Bank Visit TestBankDeal.com to get complete for all chapters

Test Bank for Managerial Accounting, Seventh Edition

• - 2

SUMMARY OF QUESTIONS BY LEARNING OBJECTIVES AND BLOO M’S

TAXONOMY

Exercises

161. 1 AP 167. 1–4 AP 173. 1–5 AP 179. 2,4 AP 185. 4,6 AP

162. 1–3 C 168. 1–4 AN 174. 1,2,5

,6

AP 180. 2,4,5 AP 186. 4,6 AP

163. 1–3 AP 169. 1–4 AP 175. 1–5 AP 181. 3,5 AP 187. 4 AP

164. 1–3 C 170. 1,2 AP 176. 2 AP 182. 3,5 AP 188. 4 AP

165. 1,2 AP 171. 1–4 AP 177. 2–4 AN 183. 3 AP

166. 1–4 AP 172. 1,4 AP 178. 2,4 AP 184. 3,5 AP

Completion Statements

189. 1 K 191. 1 K 193. 1 K 195. 2 K 197. 5 K

190. 1 K 192. 1 K 194. 2 AP 196. 3 K 198. 5 K

Matching Statements

199. 1 K

Short-Answer Essay

200. 1 S 202. 3 S 204. 2 S

201. 1 S 203. 3 S 205. 3 S

SUMMARY OF LEARNING OBJECTIVES BY QUEST ION TYPE

Item Type Item Type Item Type Item Type Item Type Item Type Item Type Learning Objective 1

• TF 11. TF 38. MC 48. MC 58. MC 163. Ex 173. Ex
• TF 12. TF 39. MC 49. MC 59. MC 164. Ex 175. Ex
• TF 13. TF 40. MC 50. MC 60. MC 165. Ex 189. C
• TF 14. TF 41. MC 51. MC 141. MC 166. Ex 190. C
• TF 15. TF 42. MC 52. MC 142. MC 167. Ex 191. C
• TF 16. TF 43. MC 53. MC 143. MC 168. Ex 192. C
• TF 31. TF 44. MC 54. MC 151. BE 169. Ex 193. C
• TF 32. TF 45. MC 55. MC 152. BE 170. Ex 199. MA
• TF 36. MC 46. MC 56. MC 161. Ex 171. Ex 200. SA
• TF 37. MC 47. MC 57. MC 162. Ex 172. Ex 201. SA

Learning Objective 2

• TF 61. MC 69. MC 77. MC 162. Ex 170. Ex 179. Ex
• TF 62. MC 70. MC 78. MC 163. Ex 171. Ex 180. Ex
• TF 63. MC 71. MC 79. MC 164. Ex 173. Ex 194. C
• TF 64. MC 72. MC 80. MC 165. Ex 174. Ex 195. C
• TF 65. MC 73. MC 144. MC 166. Ex 175. Ex 204. SA
• TF 66. MC 74. MC 145. MC 167. Ex 176. Ex
• MC 67. MC 75. MC 153. BE 168. Ex 177. Ex
• MC 68. MC 76. MC 154. BE 169. Ex 178. Ex

Job Order Costing

• - 3

Learning Objective 3

• TF 85. MC 93. MC 101. MC 166. Ex 180. Ex 202. SA
• TF 86. MC 94. MC 146. MC 167. Ex 181. Ex 203. SA
• TF 87. MC 95. MC 147. MC 168. Ex 182. Ex 205. SA
• TF 88. MC 96. MC 155. BE 169. Ex 183. Ex
• MC 89. MC 97. MC 156. BE 171. Ex 184. Ex
• MC 90. MC 98. MC 162. Ex 173. Ex 185. Ex
• MC 91. MC 99. MC 163. Ex 175. Ex 186. Ex
• MC 92. MC 100. MC 164. Ex 177. Ex 196. C

Learning Objective 4

• TF 104. MC 110. MC 116. MC 122. MC 169. Ex 178. Ex
• TF 105. MC 111. MC 117. MC 123. MC 171. Ex 179. Ex
• TF 106. MC 112. MC 118. MC 157. BE 172. Ex 187. Ex
• TF 107. MC 113. MC 119. MC 166. Ex 173. Ex 188. Ex
• MC 108. MC 114. MC 120. MC 167. Ex 175. Ex
• MC 109. MC 115. MC 121. MC 168. Ex 177. Ex

Learning Objective 5

• TF 127. MC 133. MC 139. MC 159. BE 182. Ex
• TF 128. MC 134. MC 140. MC 160. BE 184. Ex
• TF 129. MC 135. MC 148. MC 173. Ex 185. Ex
• MC 130. MC 136. MC 149. MC 175. Ex 186. Ex
• MC 131. MC 137. MC 150. MC 180. Ex 197. C
• MC 132. MC 138. MC 158. BE 181. Ex 198. C

Note: TF = True-False BE = Brief Exercise C = Completion

MC = Multiple Choice Ex = Exercise MA = Matching SA = Short-Answer Essay

CHAPTER LEARNING OBJECTIVES

• Describe cost systems and the flow of costs in job order system. Cost accounting

involves the procedures for measuring, recording, and reporting product costs. From the data accumulated, companies determine the total cost and the unit cost of each product. The two basic types of cost accounting systems are job order cost and process cost. In job order costing, companies first accumulate manufacturing costs in three accounts: Raw Materials Inventory, Factory Labor, and Manufacturing Overhead. They then assign the accumulated costs to Work in Process Inventory and eventually to Finished Goods Inventory and Cost of Goods Sold.

• Use a job cost sheet to assign costs to work in process. A job cost sheet is a form used

to record the costs chargeable to a specific job and to determine the total and unit costs of the completed job. Job cost sheets constitute the subsidiary ledger for the Work in Process Inventory control account.

• Demonstrate how to determine and use the predetermined overhead rate. The

predetermined overhead rate is based on the relationship between estimated annual overhead costs and expected annual operating activity. This is expressed in terms of a common activity base, such as direct labor cost. Companies use this rate to assign overhead costs to work in process and to specific jobs.

Test Bank for Managerial Accounting, Seventh Edition

• - 4
• Prepare entries for manufacturing and service jobs completed and sold. When jobs are

completed, companies debit the cost to Finished Goods Inventory and credit it to Work in Process Inventory. When a job is sold the entries are: (a) Debit Cash or Accounts Receivable and credit Sales Revenue for the selling price, and (b) Debit Cost of Goods Sold and credit Finished Goods Inventory for the cost of the goods.

• Distinguish between under- or overapplied manufacturing overhead. Underapplied

manufacturing overhead indicates that the overhead assigned to work in process is less than the overhead incurred. Overapplied overhead indicates that the overhead assigned to work in process is greater than the overhead incurred.

TRUE-FALSE STATEMENTS

• Cost accounting is primarily concerned with accumulating information about product costs.

Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Reporting, AICPA PC: None, IMA: Reporting

• A job order cost system is most appropriate when a large volume of uniform products are

produced.

Ans: F, LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Measurement, AICPA PC: None,

IMA: Reporting

• A process cost accounting system is appropriate for similar products that are continuously

mass produced.

Ans: T, LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Measurement, AICPA PC: None,

IMA: Reporting

• The perpetual inventory method cannot be used in a job order cost system.

Ans: F, LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Measurement, AICPA PC: None,

IMA: Reporting

• A job order cost system and a process cost system are two alternative methods for

valuing inventories.

Ans: T, LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Reporting, AICPA PC: None, IMA: Reporting

• A job order cost system identifies costs with a particular job rather than with a set time

period.

Ans: T, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Reporting, AICPA PC: None, IMA: Reporting

• A company may use either a job order cost system or a process cost system, but not both.

Ans: F, LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Reporting, AICPA PC: None, IMA: Reporting

• Raw Materials Inventory, Factory Labor, and Manufacturing Overhead are all control

accounts in the general ledger when a job order cost accounting system is used.

Ans: F, LO: 1, Bloom: K, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC: None, IMA: Reporting

• Accumulating and assigning manufacturing costs are two important activities in a job order

cost system.

Ans: T, LO: 1, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Measurement, AICPA PC: None,

IMA: FSA