61. Which of the following is not true about why a service firm will use the job order costing system?
A. to help control costs
B. to determine client billing
C. to determine department costs within the firm
D. to determine profit
62. Which of the following costs are NOT included in finished goods inventory?
A. Direct labor
B. Factory overhead
C. Company president's salary
D. Direct materials
63. Which of the following is the correct flow of manufacturing costs?
A. Raw materials, work in process, finished goods, cost of goods sold
B. Raw materials, finished goods, cost of goods sold, work in process.
C. Work in process, finished goods, raw materials, cost of goods sold
D. Cost of goods sold, raw materials, work in process, finished goods.
64. Which of the following would record the labor costs to an individual job?
A. Clock card
B. In-and-out cards
C. Time tickets
D. Payroll register
65. The Thomlin Company forecasts that total overhead for the current year will be $15,000,000 and that total machine hours will be 200,000 hours. Year to date, the actual overhead is $15,500,000 and the actual machine hours are 220,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, what is that overhead rate?
A. $71 per machine hour
B. $78 per machine hour
C. $68 per machine hour
D. $75 per machine hour
66. The Thomlin Company forecasts that total overhead for the current year will be $15,000,000 and that total machine hours will be 200,000 hours. Year to date, the actual overhead is $15,500,000 and the actual machine hours are 220,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date) the overhead is over/under applied by?
A. $1,000,000 over
B. $1,000,000 under
C. $500,000 over
D. $500,000 under
67. At the end of the year, overhead applied was $35,000,000. Actual overhead was $34,200,000. Closing over/under applied overhead into cost of goods sold would cause net income to increase/decrease by?
A. Increase by $800,000
B. Decrease by $800,000
C. Not effect net income.
D. Decrease net income by $200,000
68. Which of the following would most likely be a period cost?
A. Depreciation on factory lunchroom furniture.
B. Salary of telephone receptionist in the sales office.
C. Salary of a security guard for the factory parking lot.
D. Computer chips used by a computer manufacturer.
69. Which of the following would most likely be a product cost?
A. Salary of VP of sales.
B. Advertising for a particular product.
C. Drill bits for a drill press used in the plant assembly area.
D. Salary of the company receptionist.
70. The document authorizing the issuance of materials from the storeroom is the:
A. materials requisition
B. purchase requisition
C. receiving report
D. purchase order