Question 1

At the end of each year,the underapplied or overapplied overhead appears as an adjustment to the Cost of Goods Sold amount on the Income Statement.

Accepted Answer

A) True 
 B)False

Question 2

The balance in the Work in Process account is $22,270.

Accepted Answer

The answer of The balance in the Work in Process...

Question 3

Materials may be withdrawn from the storeroom only on completion of a materials ___________________.

Accepted Answer

The answer of Materials may be withdrawn from the storeroom...

Question 4

The entry to record applied overhead includes a(n)____________________ to the Work in Process Inventory account.

Accepted Answer

The answer of The entry to record applied overhead includes...

Question 5

In a just-in-time inventory system,the _________________________ account is debited when goods arrive.

Accepted Answer

Work in Pr

Question 6

A(n)____________________ cost accounting system is normally used when standard types of products are made in continuous operations.

Accepted Answer

The answer of A(n)____________________ cost accounting system is normally used...

Question 7

A worker completes a(n)____________________ for each job indicating the job performed and the corresponding starting and stopping time.

Accepted Answer

time ticke

Question 8

Under the LIFO method of inventory pricing,the quantities issued are priced from the oldest inventory items available in the order they were received.

Accepted Answer

A) True 
 B)False

Question 9

Martinez Manufacturing applies overhead based on direct labor hours.The company estimates that their overhead for the year will be $180,000,and that they will use 72,000 direct labor hours.Martinez Manufacturing actually used 75,000 direct labor hours.The journal entry to record manufacturing overhead would include a:

Accepted Answer

A)  Debit to Work in Process Inventory for $187,500. 
B)  Credit to Manufacturing Overhead Applied for $180,000. 
C)  Debit to Work in Process Inventory for $180,000. 
D)  Debit to Manufacturing Overhead Applied for $187,500. 
A)  Debit to Work in Process Inventory for $187,500. 
B)  Credit to Manufacturing Overhead Applied for $180,000. 
C)  Debit to Work in Process Inventory for $180,000. 
D)  Debit to Manufacturing Overhead Applied for $187,500.

Question 10

Acceptable methods for determining cost of inventory include FIFO,LIFO,weighted average cost,specific identification and standard cost.

Accepted Answer

A) True 
 B)False

Question 11

A job order cost sheet would be utilized to track the cost of the following costs except for:

Accepted Answer

A)  sales commission on the job. 
B)  material issued to the job. 
C)  labor hours worked. 
D)  overhead allocated. 
A)  sales commission on the job. 
B)  material issued to the job. 
C)  labor hours worked. 
D)  overhead allocated.

Question 12

Utilizing standard costing systems enables management to evaluate manufacturing efficiencies.

Accepted Answer

A) True 
 B)False

Question 13

The _________________________ rate is often computed by dividing estimated overhead costs by estimated direct labor costs.

Accepted Answer

overhead a

Question 14

At the end of the year,Harding Company had a balance in Manufacturing Overhead of $19,000,and a balance in Manufacturing Overhead Applied of $20,000.When the Manufacturing Overhead account is closed,the Cost of Goods Sold account will be:

Accepted Answer

A)  Increased by $1,000. 
B)  Decreased by $1,000. 
C)  Unaffected. 
D)  Closed to Manufacturing Overhead Applied. 
A)  Increased by $1,000. 
B)  Decreased by $1,000. 
C)  Unaffected. 
D)  Closed to Manufacturing Overhead Applied.

Question 15

Martinez Manufacturing applies overhead based on direct labor hours.The company estimates that their overhead for the year will be $180,000,and that they will use 72,000 direct labor hours.During the year,Martinez Manufacturing actually used 75,000 direct labor hours and actual overhead costs were $190,000.At the end of the year,manufacturing overhead was:

Accepted Answer

A)  Overapplied by $2,500. 
B)  Overapplied by $10,000. 
C)  Underapplied by $2,500. 
D)  Underapplied by $10,000. 
A)  Overapplied by $2,500. 
B)  Overapplied by $10,000. 
C)  Underapplied by $2,500. 
D)  Underapplied by $10,000.

Question 16

When materials that will become part of a finished product are removed from the storeroom and placed in production,

Accepted Answer

A)  Work in Process Inventory is debited. 
B)  Manufacturing Overhead is debited. 
C)  Raw Materials Inventory is debited. 
D)  Work in Process Inventory is credited. 
A)  Work in Process Inventory is debited. 
B)  Manufacturing Overhead is debited. 
C)  Raw Materials Inventory is debited. 
D)  Work in Process Inventory is credited.

Question 17

The advantages of a just-in-time inventory system include all of the following except:

Accepted Answer

A)  reduction in storage and warehousing cost. 
B)  cost associated with stock outs. 
C)  reduction in working capital requirements. 
D)  reduction in costs associated with recordkeeping. 
A)  reduction in storage and warehousing cost. 
B)  cost associated with stock outs. 
C)  reduction in working capital requirements. 
D)  reduction in costs associated with recordkeeping.

Question 18

At the end of the accounting period,the balance in the Work in Process inventory account reflects the cost

Accepted Answer

A)  of goods manufactured. 
B)  of completed units. 
C)  of partially completed units. 
D)  of goods sold. 
A)  of goods manufactured. 
B)  of completed units. 
C)  of partially completed units. 
D)  of goods sold.

Question 19

The McGreen Company employees worked 10,000 hours last year with an average hourly rate of $11 per hour.The overhead was $495,000.If overhead is based on direct labor costs,then the overhead rate is ________ per direct labor dollar.

Accepted Answer

A)  $11.00 
B)  $49.50 
C)  $4.50 
D)  $4.95 
A)  $11.00 
B)  $49.50 
C)  $4.50 
D)  $4.95

Question 20

Jacson Corp.was undecided whether to use labor hours or labor cost in establishing the annual overhead rate.Labor costs are prone to fluctuate based on new hires,raises,retirements,and personnel leaving.They decided to compute both rates.The overhead costs for the year were estimated at $525,000 with expected direct labor hours of 35,000 and indirect hours of 15,000.Direct and indirect labor costs are estimated to be $420,000 and $210,000 respectively.The overhead application rate using either base (labor hours,labor cost)would be:

Accepted Answer

A)  $15 per hour;125% of labor cost. 
B)  $10.50 per hour;83.3% of labor cost. 
C)  $12 per hour;80% of labor cost. 
D)  $12.60 per hour;120% of labor cost. 
A)  $15 per hour;125% of labor cost. 
B)  $10.50 per hour;83.3% of labor cost. 
C)  $12 per hour;80% of labor cost. 
D)  $12.60 per hour;120% of labor cost.

Exam 27: Job Order Cost Accounting

At the end of each year,the underapplied or overapplied overhead appears as an adjustment to the Cost of Goods Sold amount on the Income Statement.

The balance in the Work in Process account is $22,270.

Materials may be withdrawn from the storeroom only on completion of a materials ___________________.

The entry to record applied overhead includes a(n)____________________ to the Work in Process Inventory account.

In a just-in-time inventory system,the _________________________ account is debited when goods arrive.

A(n)____________________ cost accounting system is normally used when standard types of products are made in continuous operations.

A worker completes a(n)____________________ for each job indicating the job performed and the corresponding starting and stopping time.

Under the LIFO method of inventory pricing,the quantities issued are priced from the oldest inventory items available in the order they were received.

Acceptable methods for determining cost of inventory include FIFO,LIFO,weighted average cost,specific identification and standard cost.

A job order cost sheet would be utilized to track the cost of the following costs except for:

Utilizing standard costing systems enables management to evaluate manufacturing efficiencies.

The _________________________ rate is often computed by dividing estimated overhead costs by estimated direct labor costs.

At the end of the year,Harding Company had a balance in Manufacturing Overhead of $19,000,and a balance in Manufacturing Overhead Applied of $20,000.When the Manufacturing Overhead account is closed,the Cost of Goods Sold account will be:

When materials that will become part of a finished product are removed from the storeroom and placed in production,

The advantages of a just-in-time inventory system include all of the following except:

At the end of the accounting period,the balance in the Work in Process inventory account reflects the cost

The McGreen Company employees worked 10,000 hours last year with an average hourly rate of $11 per hour.The overhead was $495,000.If overhead is based on direct labor costs,then the overhead rate is ________ per direct labor dollar.

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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