Question 1

If the overhead variance is immaterial,it is allocated among the ending balances of Work in Process,Finished Goods,and Cost of Goods Sold.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is not a manufacturing cost element?

Accepted Answer

A) Direct Materials 
B) Direct Labor 
C) Advertising expense 
D) Overhead 
E) All of these are correct 
A) Direct Materials 
B) Direct Labor 
C) Advertising expense 
D) Overhead 
E) All of these are correct

Question 3

Figure 5-8. John's Water Slides makes custom water slides for hotels.On September 1,there were three jobs in process,Jobs 812,813,and 814.Two more jobs were started during September,Jobs 815 and 816.By September 30,Jobs 812,814,and 816 were finished.The following data has been collected:
  Overhead is applied at the rate of 120% of direct labor cost.Jobs are sold at cost plus 60%.Selling and administrative expenses for September totaled $2,950.By September 30,Jobs 812 were 816 are sold,but the customer who ordered Job 814 decided he did not want the slide so it is still in the warehouse.
Refer to Figure 5-8.Calculate the ending balance in Work-in-Process as of September 30.

Accepted Answer

A) $2,222 
B) $1,700 
C) $1,961 
D) $3,555.20 
E) $1,392 
A) $2,222 
B) $1,700 
C) $1,961 
D) $3,555.20 
E) $1,392

Question 4

In job-order costing,the journal entry for overhead applied at the rate of $3 per direct labor hour when 210 direct labor hours were worked is:

Accepted Answer

A) True 
 B)False

Question 5

Actual overhead is used to arrive at the cost of goods manufactured.

Accepted Answer

A) True 
 B)False

Question 6

Using normal costing,which costs never enter the work-in-process account?

Accepted Answer

A) Applied Overhead 
B) Actual Overhead 
C) Direct Materials 
D) Direct Labor 
E) None of these. 
A) Applied Overhead 
B) Actual Overhead 
C) Direct Materials 
D) Direct Labor 
E) None of these.

Question 7

Figure 5-9. Warwick Company has the following transactions for the month of September:
  Balances at the beginning of the month were:
  Refer to Figure 5-9.What is the journal entry to record applied overhead for the month?

Accepted Answer

A) Work-in-Process 44,850 Overhead Control 44,850 
B) Various Payables 44,850 Overhead Control 44,850 
C) Overhead Control 44,850 Work-in-Process 44,850 
D) Overhead Control 44,850 Various Payables 44,850 
A) Work-in-Process 44,850 Overhead Control 44,850 
B) Various Payables 44,850 Overhead Control 44,850 
C) Overhead Control 44,850 Work-in-Process 44,850 
D) Overhead Control 44,850 Various Payables 44,850

Question 8

Which of the following statements is true about overhead?

Accepted Answer

A) Overhead costs are not incurred uniformly throughout the year. 
B) Overhead costs have a definite,identifiable relationship with units produced. 
C) Low production in one month would give rise to low unit overhead costs. 
D) All of these are correct. 
E) None of these are correct. 
A) Overhead costs are not incurred uniformly throughout the year. 
B) Overhead costs have a definite,identifiable relationship with units produced. 
C) Low production in one month would give rise to low unit overhead costs. 
D) All of these are correct. 
E) None of these are correct.

Question 9

Which of the following accounts is debited when goods are sold?

Accepted Answer

A) Finished Goods 
B) Overhead Control 
C) Raw Materials 
D) Cost of Goods Sold 
E) Sales Revenue 
A) Finished Goods 
B) Overhead Control 
C) Raw Materials 
D) Cost of Goods Sold 
E) Sales Revenue

Question 10

The journal entry for $17 of underapplied overhead is:

Accepted Answer

A) True 
 B)False

Question 11

When overhead is debited to Overhead Control,what is the credit?

Accepted Answer

A) Various payable accounts 
B) Cost of Goods Sold 
C) Work in Process 
D) Finished Goods 
E) Accounts Receivable 
A) Various payable accounts 
B) Cost of Goods Sold 
C) Work in Process 
D) Finished Goods 
E) Accounts Receivable

Question 12

The order that cost elements flow through accounts until they are recognized as an expense is

Accepted Answer

A) Work-in-Process,Cost of Goods Sold,Finished Goods 
B) Finished Goods,Work-in-Process,Cost of Goods Sold 
C) Finished Goods,Cost of Goods Sold,Work-in-Process 
D) Work-in-Process,Finished Goods,Cost of Goods Sold 
E) None of these are correct 
A) Work-in-Process,Cost of Goods Sold,Finished Goods 
B) Finished Goods,Work-in-Process,Cost of Goods Sold 
C) Finished Goods,Cost of Goods Sold,Work-in-Process 
D) Work-in-Process,Finished Goods,Cost of Goods Sold 
E) None of these are correct

Question 13

The following information was taken from the job cost sheet for Job 101 for Scott Manufacturing Company:
     Job 101 was sold on account on August 25 for 160% of its cost.
Required:

Accepted Answer

The answer of The following information was taken from the...

Question 14

The ___________________________ is calculated at the beginning of the year by dividing the total estimated annual overhead by the total estimated level of cost driver.

Accepted Answer

predetermi

Question 15

Figure 5-14
Deluxe Design Company makes custom furniture.On December 1,there were two jobs in process,Job 683,with a cost of $14,200 and Job 684 with a cost of $23,500.Jobs 685,686,and 687 were started during the month of December.Data on costs added during the month are as follows:
   Overhead is applied to production at the rate of 80% of direct labor cost.Job 685 was completed on December 17.Job 684 was completed on December 21 and the client was billed at cost plus 45%.All other jobs remained in process.
Refer to Figure 5-14.
Required: 
A.)Determine the amount of overhead to apply to each job for the period.
B.)Calculate the cost of work-in-process at the end of the month.
C.)Calculate the cost of finished goods,assuming that finished goods inventory on December 1st was zero.

Accepted Answer

The answer of Figure 5-14
Deluxe Design Company makes custom furniture.On...

Question 16

Costs associated with selling and general administrative activities are not

Accepted Answer

A) period costs. 
B) nonmanufacturing costs. 
C) manufacturing costs. 
D) period costs and nonmanufacturing costs. 
E) any of these. 
A) period costs. 
B) nonmanufacturing costs. 
C) manufacturing costs. 
D) period costs and nonmanufacturing costs. 
E) any of these.

Question 17

What items may be on a materials requisition form to maintain proper control over a firm's inventory of direct materials?

Accepted Answer

A) cost of supplies 
B) cost of lubricants for production machinery 
C) the date and a signature 
D) all of these are correct 
E) none of these are correct 
A) cost of supplies 
B) cost of lubricants for production machinery 
C) the date and a signature 
D) all of these are correct 
E) none of these are correct

Question 18

Using normal costing requires that

Accepted Answer

A) actual overhead costs are not assigned directly to jobs. 
B) predetermined rates are not used to assign overhead. 
C) applied overhead is not calculated on a job specific basis. 
D) Neither plantwide or departmental rates can be used to assign overhead. 
E) All of these are correct. 
A) actual overhead costs are not assigned directly to jobs. 
B) predetermined rates are not used to assign overhead. 
C) applied overhead is not calculated on a job specific basis. 
D) Neither plantwide or departmental rates can be used to assign overhead. 
E) All of these are correct.

Question 19

Labor cost flows reflect

Accepted Answer

A) direct labor cost. 
B) indirect labor cost. 
C) administration cost. 
D) both indirect and direct labor cost. 
E) administration cost and indirect cost. 
A) direct labor cost. 
B) indirect labor cost. 
C) administration cost. 
D) both indirect and direct labor cost. 
E) administration cost and indirect cost.

Question 20

Which of the following sentences is not true?

Accepted Answer

A) Actual overhead costs always enter the Work-in-Process account. 
B) The cost of a job includes direct materials,direct labor,and applied overhead. 
C) When a job is complete,it must leave Work-in-Process and be entered into Finished Goods or Cost of Goods Sold. 
D) All of these are correct. 
E) None of these are correct. 
A) Actual overhead costs always enter the Work-in-Process account. 
B) The cost of a job includes direct materials,direct labor,and applied overhead. 
C) When a job is complete,it must leave Work-in-Process and be entered into Finished Goods or Cost of Goods Sold. 
D) All of these are correct. 
E) None of these are correct.

If the overhead variance is immaterial,it is allocated among the ending balances of Work in Process,Finished Goods,and Cost of Goods Sold.

Which of the following is not a manufacturing cost element?

In job-order costing,the journal entry for overhead applied at the rate of $3 per direct labor hour when 210 direct labor hours were worked is:

Actual overhead is used to arrive at the cost of goods manufactured.

Using normal costing,which costs never enter the work-in-process account?

Figure 5-9. Warwick Company has the following transactions for the month of September: Balances at the beginning of the month were: Refer to Figure 5-9.What is the journal entry to record applied overhead for the month?

Which of the following statements is true about overhead?

Which of the following accounts is debited when goods are sold?

The journal entry for $17 of underapplied overhead is:

When overhead is debited to Overhead Control,what is the credit?

The order that cost elements flow through accounts until they are recognized as an expense is

The following information was taken from the job cost sheet for Job 101 for Scott Manufacturing Company: Job 101 was sold on account on August 25 for 160% of its cost. Required:

The ___________________________ is calculated at the beginning of the year by dividing the total estimated annual overhead by the total estimated level of cost driver.

Costs associated with selling and general administrative activities are not

What items may be on a materials requisition form to maintain proper control over a firm's inventory of direct materials?

Using normal costing requires that

Labor cost flows reflect

Which of the following sentences is not true?

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing,and Inventory Management

Profit Planning

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 5: Job-Order Costing

If the overhead variance is immaterial,it is allocated among the ending balances of Work in Process,Finished Goods,and Cost of Goods Sold.

Which of the following is not a manufacturing cost element?

In job-order costing,the journal entry for overhead applied at the rate of $3 per direct labor hour when 210 direct labor hours were worked is:

Actual overhead is used to arrive at the cost of goods manufactured.

Using normal costing,which costs never enter the work-in-process account?

Figure 5-9. Warwick Company has the following transactions for the month of September: Balances at the beginning of the month were: Refer to Figure 5-9.What is the journal entry to record applied overhead for the month?

Which of the following statements is true about overhead?

Which of the following accounts is debited when goods are sold?

The journal entry for $17 of underapplied overhead is:

When overhead is debited to Overhead Control,what is the credit?

The order that cost elements flow through accounts until they are recognized as an expense is

The following information was taken from the job cost sheet for Job 101 for Scott Manufacturing Company: Job 101 was sold on account on August 25 for 160% of its cost. Required:

The ___________________________ is calculated at the beginning of the year by dividing the total estimated annual overhead by the total estimated level of cost driver.

Costs associated with selling and general administrative activities are not

What items may be on a materials requisition form to maintain proper control over a firm's inventory of direct materials?

Using normal costing requires that

Labor cost flows reflect

Which of the following sentences is not true?

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing,and Inventory Management

Profit Planning

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters