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    Quiz 7 Job Order

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    khyzhirell028
    Practice exam in Job Order

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    Quiz 7 Job Order

    Uploaded by

    khyzhirell028
    4 views3 pages
    Practice exam in Job Order

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    quiz 7 job order

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    Practice exam in Job Order

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    4 views3 pages

    Quiz 7 Job Order

    Uploaded by

    khyzhirell028
    Practice exam in Job Order

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    QUIZ NO.

    7 – JOB ORDER COSTING

    1. What is the primary characteristic of a job order costing system?

    A) It allocates costs to specific jobs or batches of products.

    B) It averages costs across all units produced.

    C) It assigns costs based on machine hours.

    D) It applies costs uniformly across all departments.

    2. Which of the following industries is most likely to use job order costing?

    A) Fast food restaurants

    B) Automobile manufacturing

    C) Electricity generation

    D) Grocery stores

    3. In a job order costing system, direct materials are initially recorded as:

    A) Work in Process Inventory.

    B) Finished Goods Inventory.

    C) Cost of Goods Sold.

    D) Raw Materials Inventory.

    4. Which of the following costs would typically be included in the manufacturing overhead of a job order
    costing system?

    A) Direct labor

    B) Direct materials

    C) Factory rent

    D) Cost of goods sold

    5. How are indirect costs allocated to jobs in a job order costing system?

    A) Based on direct labor hours


    B) Based on machine hours

    C) Based on direct materials cost

    D) Equally distributed across all jobs

    6. Which of the following statements is true regarding job order costing?

    A) It is used only in service industries.

    B) It is most appropriate for continuous mass production.

    C) It assigns costs to individual units of production.

    D) It is not suitable for tracking costs of customized products.

    7. In a job order costing system, what is the journal entry to record the issuance of direct materials to a
    production job?

    A) Debit Work in Process Inventory, credit Raw Materials Inventory

    B) Debit Raw Materials Inventory, credit Work in Process Inventory

    C) Debit Finished Goods Inventory, credit Work in Process Inventory

    D) Debit Manufacturing Overhead, credit Work in Process Inventory

    8. Which of the following documents is used to authorize the production of a specific job in a job order
    costing system?

    A) Purchase order

    B) Sales invoice

    C) Job cost sheet

    D) Production schedule

    9. What is the predetermined overhead rate formula used in job order costing?

    A) Estimated total overhead / Estimated total direct labor hours

    B) Actual total overhead / Actual total direct labor hours

    C) Estimated total overhead / Estimated total machine hours

    D) Actual total overhead / Estimated total direct labor hours


    10. In job order costing, underapplied overhead occurs when:

    A) Actual overhead costs exceed applied overhead costs.

    B) Applied overhead costs exceed actual overhead costs.

    C) Direct materials costs exceed direct labor costs.

    D) Manufacturing overhead costs are not allocated to production jobs.

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