1.

A job is a product or service that can be easily and conveniently distinguished from other
products/services.
2. Job cost sheets are used in accounting systems as a subsidiary ledger for the Work-in- Process
account.
3. Job shops have three types of inventory accounts: Direct Materials, Work-in-Process, and
Finished Goods.
4. The cost in the ending Finished Goods inventory account consists of the direct materials, direct
labor, and manufacturing overhead of all jobs still in process at the end of the period.
5. Accounting for direct materials and direct labor is easier than accounting for manufacturing
overhead costs.
6. Indirect material and indirect labor are two examples of manufacturing overhead costs.
7. The journal entry to record actual manufacturing overhead for indirect material debits
Manufacturing Overhead (Control) and credits Accounts Payable.
8. The journal entry to record actual manufacturing overhead for indirect labor debits Manufacturing
Overhead (Control) and credits Work-in-Process inventory.
9. The periodic allocation of manufacturing overhead costs to job cost sheets is based on an event,
not a transaction.
10. The predetermined overhead rate is computed by dividing the estimated activity of the allocation
base into the estimated manufacturing overhead costs.
11. The journal entry to apply manufacturing overhead costs to completed jobs credits either Applied
Manufacturing Overhead or Manufacturing Overhead (Control).
12. At the end of the accounting period, manufacturing overhead costs are applied to uncompleted
jobs using the same predetermined overhead rate that is used to apply manufacturing overhead
costs to completed jobs.
13. Overapplied overhead occurs when the actual overhead costs incurred during a period are
greater than the overhead costs applied during the period.
14. Underapplied overhead occurs when the actual overhead costs incurred during a period are
greater than the overhead costs applied during the period.
15. Normal costing uses the actual allocation base activity to apply manufacturing overhead costs to
jobs during the period.
16. Actual costing does not use a predetermined overhead rate to apply manufacturing overhead
costs to jobs completed during the period.
17. Service organizations, by their nature, cannot have a balance in Work-in-Process Inventory.
18. Service organizations generally use the same job costing procedures as manufacturers.
19. It is unethical to intentionally charge costs to the wrong job.
20. Most major projects require budget and completion stage revisions at certain intervals due to their
inherent uncertainty.