Question 1

In a perpetual inventory system,each inventory account is supported by a(n)____________________ ledger.

Accepted Answer

The answer of In a perpetual inventory system,each inventory account...

Question 2

Perpetual inventory records are maintained through the use of subsidiary ledger cards or their automated equivalents.

Accepted Answer

A) True 
 B)False

Question 3

The overhead application rate for the current year is 1.5 times direct labor cost.($367,500/$245,000)
2.

Accepted Answer

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

Question 4

The ______ is a record of all manufacturing costs charged to a specific job.

Accepted Answer

A)  Cost of Goods Sold 
B)  Standard Costs Card 
C)  Work in Process Inventory 
D)  Job Order Cost Sheet 
A)  Cost of Goods Sold 
B)  Standard Costs Card 
C)  Work in Process Inventory 
D)  Job Order Cost Sheet

Question 5

Job order cost sheets constitute a subsidiary ledger that supports

Accepted Answer

A)  the Work in Process Inventory account. 
B)  the Finished Goods Inventory account. 
C)  the Raw Materials Inventory account. 
D)  the Cost of Goods Manufactured account. 
A)  the Work in Process Inventory account. 
B)  the Finished Goods Inventory account. 
C)  the Raw Materials Inventory account. 
D)  the Cost of Goods Manufactured account.

Question 6

A raw material subsidiary ledger

Accepted Answer

A)  contains a raw materials card for each item of direct materials only. 
B)  contains a raw materials card for each item of indirect materials only. 
C)  contains a raw materials card for each item of direct materials and indirect materials. 
D)  contains a raw material card for each supplier of raw materials. 
A)  contains a raw materials card for each item of direct materials only. 
B)  contains a raw materials card for each item of indirect materials only. 
C)  contains a raw materials card for each item of direct materials and indirect materials. 
D)  contains a raw material card for each supplier of raw materials.

Question 7

A job order cost sheet summarizes

Accepted Answer

A)  the direct labor,direct materials used,and actual overhead costs incurred on a specific job. 
B)  the direct labor,direct materials used,and applied overhead association with a specific job. 
C)  the estimated costs that will be required to complete a specific job. 
D)  the direct labor and direct materials used only. 
A)  the direct labor,direct materials used,and actual overhead costs incurred on a specific job. 
B)  the direct labor,direct materials used,and applied overhead association with a specific job. 
C)  the estimated costs that will be required to complete a specific job. 
D)  the direct labor and direct materials used only.

Question 8

Job Z2 requires $1,200 of material,$100 of which is indirect material.If manufacturing overhead is applied at a rate of 150 % of direct labor cost and labor hours charged to Job Z2 were 200 hours at $12 an hour,the total cost of Job Z2 would be:

Accepted Answer

A)  $3,600. 
B)  $4,800. 
C)  $7,200. 
D)  $7,100. 
A)  $3,600. 
B)  $4,800. 
C)  $7,200. 
D)  $7,100.

Question 9

Actual labor and manufacturing overhead costs for Smith Manufacturing were $65,000 and $123,500 respectively.The estimated costs for the year were $75,000 labor and $150,000.The over (under)applied overhead for the year was:

Accepted Answer

A)  $6,500 underapplied. 
B)  $6,500 overapplied. 
C)  $26,500 underapplied. 
D)  $26,500 overapplied. 
A)  $6,500 underapplied. 
B)  $6,500 overapplied. 
C)  $26,500 underapplied. 
D)  $26,500 overapplied.

Question 10

Morion Hat Manufacturing made the following charge purchases on February 4 of the current year.Felt $5,687;Ribbon $1,234;Straw $6,723;Dye (for the straw)$39;Thread $47;Various plastic fruits,flowers,etc.$179;and Glue $28.Assume that all items purchased were requisitioned for production during the year.Complete one journal entry for all purchases and one summary journal entry dated February 20 for the requisitioning of those materials into production.
Also,explain the internal controls applied to safeguard raw materials.

Accepted Answer

Note: Only the dye,glue,and thread are c

Question 11

The entry to record the application of overhead to jobs consists of

Accepted Answer

A)  a debit to Manufacturing Overhead Applied and a credit to Manufacturing Overhead. 
B)  a debit to Manufacturing Overhead and a credit to Manufacturing Overhead Applied. 
C)  a debit to Work in Process Inventory and a credit to Manufacturing Overhead Applied. 
D)  a debit to Manufacturing Overhead Applied and a credit to Work in Process Inventory. 
A)  a debit to Manufacturing Overhead Applied and a credit to Manufacturing Overhead. 
B)  a debit to Manufacturing Overhead and a credit to Manufacturing Overhead Applied. 
C)  a debit to Work in Process Inventory and a credit to Manufacturing Overhead Applied. 
D)  a debit to Manufacturing Overhead Applied and a credit to Work in Process Inventory.

Question 12

If the manufacturing overhead was overapplied,then the

Accepted Answer

A)  the manufacturing overhead account had more debits than credits. 
B)  the manufacturing overhead account had more credits than debits. 
C)  the actual overhead expenses were more than the amount going to Work in Process. 
D)  the debits to Work in Process were more than the credits to Work in Process. 
A)  the manufacturing overhead account had more debits than credits. 
B)  the manufacturing overhead account had more credits than debits. 
C)  the actual overhead expenses were more than the amount going to Work in Process. 
D)  the debits to Work in Process were more than the credits to Work in Process.

Question 13

List the four manufacturing operations and define each.For the second operation,Production,summarize the flow of costs through a job order cost accounting system.

Accepted Answer

The four manufacturing operations are:
P

Question 14

The manufacturing overhead recorded in the Work in Process Inventory account is often the same as the actual overhead incurred.

Accepted Answer

A) True 
 B)False

Question 15

Wilson Enterprises applies overhead based on direct labor cost.The company estimates that their overhead for the year will be $240,000,and direct labor cost to be $300,000.Actual direct labor cost for Martinez Manufacturing was $280,000.The journal entry to record manufacturing overhead would include a:

Accepted Answer

A)  Debit to Work in Process Inventory for $240,000. 
B)  Credit to Manufacturing Overhead Applied for $350,000. 
C)  Credit to Work in Process Inventory for $224,000. 
D)  Credit to Manufacturing Overhead Applied for $224,000. 
A)  Debit to Work in Process Inventory for $240,000. 
B)  Credit to Manufacturing Overhead Applied for $350,000. 
C)  Credit to Work in Process Inventory for $224,000. 
D)  Credit to Manufacturing Overhead Applied for $224,000.

Question 16

When perpetual inventories are maintained in a job order cost system,as each job is completed its cost is transferred from Work in Process Inventory to Finished Goods Inventory.

Accepted Answer

A) True 
 B)False

Question 17

The following are benefits of a standard cost system except:

Accepted Answer

A)  consistently costed products. 
B)  assists in identification of manufacturing inefficiencies. 
C)  will result in reducing accounting workload. 
D)  can be used as a basis for setting selling prices. 
A)  consistently costed products. 
B)  assists in identification of manufacturing inefficiencies. 
C)  will result in reducing accounting workload. 
D)  can be used as a basis for setting selling prices.

Question 18

When perpetual inventories are maintained in a job order cost system,the balance of the Work in Process Inventory account represents

Accepted Answer

A)  the actual costs incurred for labor,materials,and overhead on all jobs that were started but are not yet complete. 
B)  the actual costs for the labor and materials used in uncompleted jobs and estimate of the overhead associated with these jobs. 
C)  only the actual costs for the labor and materials used in uncompleted jobs. 
D)  only the actual costs for the labor and materials used in completed jobs. 
A)  the actual costs incurred for labor,materials,and overhead on all jobs that were started but are not yet complete. 
B)  the actual costs for the labor and materials used in uncompleted jobs and estimate of the overhead associated with these jobs. 
C)  only the actual costs for the labor and materials used in uncompleted jobs. 
D)  only the actual costs for the labor and materials used in completed jobs.

Question 19

There may not be a raw materials inventory account when a just-in-time inventory system is used.

Accepted Answer

A) True 
 B)False

Question 20

Idle time is generally charged to manufacturing overhead.

Accepted Answer

A) True 
 B)False

Exam 27: Job Order Cost Accounting

In a perpetual inventory system,each inventory account is supported by a(n)____________________ ledger.

Perpetual inventory records are maintained through the use of subsidiary ledger cards or their automated equivalents.

The overhead application rate for the current year is 1.5 times direct labor cost.($367,500/$245,000) 2.

The ______ is a record of all manufacturing costs charged to a specific job.

Job order cost sheets constitute a subsidiary ledger that supports

A raw material subsidiary ledger

A job order cost sheet summarizes

Job Z2 requires $1,200 of material,$100 of which is indirect material.If manufacturing overhead is applied at a rate of 150 % of direct labor cost and labor hours charged to Job Z2 were 200 hours at $12 an hour,the total cost of Job Z2 would be:

Actual labor and manufacturing overhead costs for Smith Manufacturing were $65,000 and $123,500 respectively.The estimated costs for the year were $75,000 labor and $150,000.The over (under)applied overhead for the year was:

The entry to record the application of overhead to jobs consists of

If the manufacturing overhead was overapplied,then the

List the four manufacturing operations and define each.For the second operation,Production,summarize the flow of costs through a job order cost accounting system.

The manufacturing overhead recorded in the Work in Process Inventory account is often the same as the actual overhead incurred.

When perpetual inventories are maintained in a job order cost system,as each job is completed its cost is transferred from Work in Process Inventory to Finished Goods Inventory.

The following are benefits of a standard cost system except:

When perpetual inventories are maintained in a job order cost system,the balance of the Work in Process Inventory account represents

There may not be a raw materials inventory account when a just-in-time inventory system is used.

Idle time is generally charged to manufacturing overhead.

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

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