Question 1

A(n)____________________ cost accounting system permits a firm to compare what its costs should be with its actual costs in order to evaluate efficiency.

Accepted Answer

standard

Question 2

The cost data for the Omega Manufacturing Company for the month of April 2016 is given below.
(a. )Raw materials and supplies costing $34,000 were purchased.
(b. )The summary of materials requisitions shows that materials and supplies costing $30,900 were issued for use in jobs.Direct materials accounted for $28,000,and the balance consisted of indirect materials and supplies.
(c. )The payroll summary shows that direct labor costs were $15,000 and indirect labor costs were $3,000.Social security tax withheld was $1,116,Medicare tax withheld was $261,and income tax deductions were $1,550.
(d. )Manufacturing overhead of $6,200 was incurred in addition to indirect materials and indirect labor (credit Accounts Payable).
(e. )The predetermined overhead application rate is 75 percent of direct labor costs.
(f. )The summary of completed jobs shows that the cost of these jobs amounted to $39,600.
(g. )The summary of sales invoices shows that goods costing $32,000 were sold on credit for $51,000.
Record the necessary entries on page 8 of a general journal.Omit descriptions.

Accepted Answer

The answer of The cost data for the Omega Manufacturing...

Question 3

The cost of a unit produced in a process cost system is the sum of the costs incurred in each department divided by the number of output units.

Accepted Answer

A) True 
 B)False  True

Question 4

What form is presented at the storeroom to obtain materials or supplies?

Accepted Answer

A)  Materials Request Form 
B)  Materials Requisition Form 
C)  Raw Materials Ledger Card 
D)  Production Order Form 
A)  Materials Request Form 
B)  Materials Requisition Form 
C)  Raw Materials Ledger Card 
D)  Production Order Form

Question 5

At the end of the fiscal year,any immaterial overapplied or underapplied overhead is

Accepted Answer

A)  closed to the Cost of Goods Sold account. 
B)  shown on the balance sheet as either a deferred charge or a deferred credit. 
C)  allocated to Cost of Goods Sold,Finished Goods Inventory,and Work in Process Inventory. 
D)  closed to the Cost of Goods Manufactured account. 
A)  closed to the Cost of Goods Sold account. 
B)  shown on the balance sheet as either a deferred charge or a deferred credit. 
C)  allocated to Cost of Goods Sold,Finished Goods Inventory,and Work in Process Inventory. 
D)  closed to the Cost of Goods Manufactured account.

Question 6

If manufacturing overhead is applied at a rate of $1.50 per direct labor dollar and the Department B worker had worked 200 hours at $12 an hour on Job L1147,then the applied overhead would be

Accepted Answer

A)  $3,600. 
B)  $18. 
C)  $300. 
D)  $2,400. 
A)  $3,600. 
B)  $18. 
C)  $300. 
D)  $2,400.

Question 7

Adams Manufacturing has three jobs in process in October of the current year,B2-19,C3-19,and D4-4.All three were begun during the first week of October.Job C3-19 was completed on October 10th with total labor costs of $14,750 and total material costs of $8,855.No other jobs were completed in October.The total balance in Job D4-4 is $8,250 ($4,275 in materials and $3,975 in labor)and in Job B2-19 is $17,850 ($10,425 in materials and $7,425 in labor)before overhead is applied.Overhead is applied based on total direct labor dollars.Estimated total direct labor dollars for the year is $440,000 and total estimated manufacturing overhead is $352,000.
Based on the information given,complete the Job Order Cost Sheet for Job C3-19.

Accepted Answer

Question 8

A firm purchased 25 units of materials with a unit price of $2.00 on May 5.On May 15,the firm purchased 25 units with a unit price of $2.10.If the firm uses the FIFO method of inventory pricing,the total cost of 30 units issued on May 20 would be

Accepted Answer

A)  $62.50. 
B)  $60.00. 
C)  $63.00. 
D)  $60.50. 
A)  $62.50. 
B)  $60.00. 
C)  $63.00. 
D)  $60.50.

Question 9

Under a job order cost system,unit costs are determined for products manufactured under each ___________________.

Accepted Answer

production

Question 10

Actual overhead costs are

Accepted Answer

A)  debited to Work in Process Inventory when incurred. 
B)  debited to Manufacturing Overhead when incurred. 
C)  debited to Manufacturing Overhead Applied when incurred. 
D)  credited to Manufacturing Overhead when incurred. 
A)  debited to Work in Process Inventory when incurred. 
B)  debited to Manufacturing Overhead when incurred. 
C)  debited to Manufacturing Overhead Applied when incurred. 
D)  credited to Manufacturing Overhead when incurred.

Question 11

Job order cost accounting is appropriate

Accepted Answer

A)  when there are continuous operations on standard types of products. 
B)  when a company produces more than one product in batches rather than on a continuous basis. 
C)  only for goods produced on special order. 
D)  for all manufacturing companies. 
A)  when there are continuous operations on standard types of products. 
B)  when a company produces more than one product in batches rather than on a continuous basis. 
C)  only for goods produced on special order. 
D)  for all manufacturing companies.

Question 12

If actual overhead costs exceed the overhead applied during the year,the difference represents ____________________ overhead.

Accepted Answer

The answer of If actual overhead costs exceed the overhead...

Question 13

When indirect materials are requisitioned from the materials storeroom and placed in production,an entry is made crediting Raw Materials Inventory and debiting

Accepted Answer

A)  Work in Process Inventory. 
B)  Cost of Goods Manufactured. 
C)  Manufacturing Overhead Applied. 
D)  Manufacturing Overhead. 
A)  Work in Process Inventory. 
B)  Cost of Goods Manufactured. 
C)  Manufacturing Overhead Applied. 
D)  Manufacturing Overhead.

Question 14

Manufacturing costs for each unit produced is calculated by dividing job order costs by ___________________.

Accepted Answer

units,unit

Question 15

Process cost accounting is appropriate

Accepted Answer

A)  exclusively for companies that produce only one product. 
B)  when a company produces more than one product in batches rather than on a continuous basis. 
C)  when a company produces what each customer wants on special order. 
D)  when there are continuous operations on standard types of products. 
A)  exclusively for companies that produce only one product. 
B)  when a company produces more than one product in batches rather than on a continuous basis. 
C)  when a company produces what each customer wants on special order. 
D)  when there are continuous operations on standard types of products.

Question 16

At the end of the year the Manufacturing Overhead account is closed into what account?

Accepted Answer

A)  Work in Process 
B)  Finished Goods 
C)  Cost of Goods Sold 
D)  Manufacturing Overhead Control 
A)  Work in Process 
B)  Finished Goods 
C)  Cost of Goods Sold 
D)  Manufacturing Overhead Control

Question 17

The overhead application rate for the current year is 0.8 times direct labor cost.($352,000/$440,000)
2.

Accepted Answer

The answer of The overhead application rate for the current...

Question 18

What is the subsidiary ledger that contains a record for each overhead item called?

Accepted Answer

A)  Manufacturing Overhead Control 
B)  Manufacturing Overhead Ledger 
C)  Manufacturing Overhead Records Book 
D)  Manufacturing Overhead Card 
A)  Manufacturing Overhead Control 
B)  Manufacturing Overhead Ledger 
C)  Manufacturing Overhead Records Book 
D)  Manufacturing Overhead Card

Question 19

Direct labor costs of $10,000 and indirect labor costs of $1,500 associated with a job are recorded on the job cost sheet with a corresponding debit to Work in Process for $11,500.

Accepted Answer

A) True 
 B)False

Question 20

The entry to charge work in process inventory with the appropriate amount of applied overhead consists of a debit to Work in Process Inventory and a credit to Manufacturing Overhead Applied.

Accepted Answer

A) True 
 B)False

Exam 27: Job Order Cost Accounting

A(n)____________________ cost accounting system permits a firm to compare what its costs should be with its actual costs in order to evaluate efficiency.

The cost of a unit produced in a process cost system is the sum of the costs incurred in each department divided by the number of output units.

What form is presented at the storeroom to obtain materials or supplies?

At the end of the fiscal year,any immaterial overapplied or underapplied overhead is

If manufacturing overhead is applied at a rate of $1.50 per direct labor dollar and the Department B worker had worked 200 hours at $12 an hour on Job L1147,then the applied overhead would be

A firm purchased 25 units of materials with a unit price of $2.00 on May 5.On May 15,the firm purchased 25 units with a unit price of $2.10.If the firm uses the FIFO method of inventory pricing,the total cost of 30 units issued on May 20 would be

Under a job order cost system,unit costs are determined for products manufactured under each ___________________.

Actual overhead costs are

Job order cost accounting is appropriate

If actual overhead costs exceed the overhead applied during the year,the difference represents ____________________ overhead.

When indirect materials are requisitioned from the materials storeroom and placed in production,an entry is made crediting Raw Materials Inventory and debiting

Manufacturing costs for each unit produced is calculated by dividing job order costs by ___________________.

Process cost accounting is appropriate

At the end of the year the Manufacturing Overhead account is closed into what account?

The overhead application rate for the current year is 0.8 times direct labor cost.($352,000/$440,000) 2.

What is the subsidiary ledger that contains a record for each overhead item called?

Direct labor costs of $10,000 and indirect labor costs of $1,500 associated with a job are recorded on the job cost sheet with a corresponding debit to Work in Process for $11,500.

The entry to charge work in process inventory with the appropriate amount of applied overhead consists of a debit to Work in Process Inventory and a credit to Manufacturing Overhead Applied.

Accounting: the Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and the Postclosing Trial Balance

Accounting for Sales and Accounts Receivable

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Financial Statements and Closing Procedures

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analyses

The Statement of Cash Flows

Departmentalized Profit and Cost Centers

Accounting for Manufacturing Activities

Process Cost Accounting

Controlling Manufacturing Costs: Standard Costs

Cost-Revenue Analysis for Decision Making

Filters