Chapter 17

Accounting Systems for Measuring Costs

Results Reporter
Out of 7 questions, you answered 5 correctly, for a final grade of 71%.
5 correct (71%)
2 incorrect (29%)
0 unanswered (0%)
Please answer all questions

Your Results:
The correct answer for each question is indicated by a

INCORRECT A job cost sheet can be used to determine:

A)Whether overhead was under- or overapplied to a particular job.
B) The total cost of materials purchased for a particular job.
C) The per-unit cost figure for a particular job.
D)The actual amount of overhead costs incurred in completing a
particular job.
Feedback: Incorrect, the answer is c.

CORRECT

In a job order cost system, a credit balance remaining in the Manufacturing

Overhead account at the end of a period:
A)Indicates that actual overhead was larger than applied overhead.
B) Indicates that an error occurred in the cost system.
C)Indicates that applied overhead was larger than actual overhead.
D) Should be closed to Income Summary
Feedback: Correct.

CORRECT

Which of the following would likely be the most appropriate cost driver of
machinery power costs?

A)

Direct labor hours.

B)

Repair work orders.

C)
D)

Machine hours.
Production run set-ups.

Feedback: Correct.

Use the following data for questions 4 through 7.

Sayure Praire Aircraft Corporation uses a job order cost system and applies overhead based on a
percentage of direct labor cost. Cost flows through the Work in Process Inventory account during
September are given below:

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onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=jpg:: ::/olc/dl/23712/mcch17.jpg','popWin',
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width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (16.0K)</a> Only Job #302
was still in process at the end of September and this job had been charged with $3,000 in direct
materials cost.

CORRECT

Refer to the information above. The amount of direct materials cost charged to
completed jobs during September was:
A)

$20,000.

B)

$17,000.

C)
D)

$5,000.
$3,000.

Feedback: Correct.

CORRECT

Refer to the information above. The predetermined overhead application rate at

Sayure Praire is what percentage of direct labor costs?

A)

50%.

B)

100%.

C)

150%.

D)

200%.

Feedback: Correct.

INCORRECT

Refer to the information above. The amount of overhead costs applied to Job #302
during September were:
A)

$12,000.

B)

$8,000.

C)

$6,000.

D)

$4,000.

Feedback: Incorrect, the answer is a.

CORRECT

Refer to the information above. The journal entry which accounts for the $95,000
transferred out of work in process includes a debit of $95,000 to:
A)

Finished Goods

B)

Cost of Goods Sold

C)

Accounts Receivable
D)

Feedback: Correct.

Sales.