DEPARTMENT OF ACCOUNTANCY COMM 305 & ACCO 240
JOHN MOLSON SCHOOL OF BUSINESS ALL SECTIONS
MID TERM EXAMINATION
PLEASE READ THIS PAGE – IT CONTAINS IMPORTANT INFORMATION BEFORE STARTING TO WRITE BE SURE YOU ARE WRITING IN THE CORRECT EXAM ROOM RELATED TO YOUR SECTION
1. This examination will last Three (3) hours and consists of Five (6) Questions printed on (11) pages including this page. Make sure your copy of the exam is complete before starting.
2. Write all your answers (including answers to multiple-choice statements) in the lined examination answer booklet that has been provided to you separately. You may answer the Questions in any order. Indicate clearly your professors name in the front of the booklet.
3. Your answers may be written in pencil or ink.
4. Read the Questions carefully and budget your time carefully. Show details of all work in order to benefit from part marks, except for Multiple-choice questions. Attempt all Questions.
5. This is a closed book examination; no reference to notes, etc. is allowed. However, a silent hand-held four-function calculator and one standard (not electronic) dictionary are permitted.
6. Invigilators will not answer questions, unless you think there is an error in the examination questionnaire.
QUESTION I. 15 POINTS
MULTIPLE CHOICES: Choose the best answer.
1. Indirect labour is considered a part of which of the following costs?
a) Product cost
b) Prime cost
c) Period cost
d) Nonmanufacturing cost
e) All of the above.
2. Which beginning and ending inventories appear on a cost of goods manufactured schedule?
a) Raw materials only
b) Raw materials and work in process
c) Raw materials, work in process, and finished goods
d) Work in process only
e) Work in process, and finished goods.
3. At the end of the year, Manufacturing Overhead has been over-applied. What occurred to create this situation?
a) The company incurred more manufacturing overhead costs than the manufacturing overhead assigned to jobs.
b) Estimated manufacturing overhead was less than actual manufacturing overhead costs.
c) The company incurred more total job costs than the amount budgeted for the job.
d) The actual manufacturing overhead costs were less than the manufacturing overhead assigned to jobs.
e) The actual manufacturing overhead costs were more than the manufacturing overhead assigned to jobs.
4. Which one of the following contains sources of costs that will be added to job cost sheets?
a) Invoices, time tickets, and the predetermined overhead rate
b) Materials requisition slips, time tickets, and the actual overhead costs
c) Materials requisition slips, payroll register, and the predetermined overhead rate
d) Materials requisition slips, time tickets, and the predetermined overhead rate
e) Materials requisition slips, time tickets, and the actual overhead rate
5. Halitosis Company completed job 45 at a cost of $8,900 and later sold it for $13,000 cash. Which one of the following is one effect of selling the job?
a) Debit Accounts Receivable $8,900
b) Credit Finished Goods Inventory $8,900
c) Debit Finished Goods Inventory $13,000
d) Debit Finished Goods Inventory $8,900
e) Credit Work in Process Inventory $8,900
6. What is unique about the flow of costs in a job order cost system?
a) Each job is costed separately in a Work in Process subsidiary ledger.
b) It involves accumulating material, labour, and manufacturing overhead costs as they are incurred in order to determine the job cost.
c) There are no costs remaining in Work in Process at year end.
d) Job costs cannot be measured until all overhead costs are determined.
e) Job costs cannot be measured until all actual costs are determined.
7. The Wrapping Department's output during the period