Question 1

Manufacturing overhead includes all of the following except

Accepted Answer

A)  indirect labor. 
B)  direct labor. 
C)  utilities. 
D)  payroll taxes on factory labor. 
A)  indirect labor. 
B)  direct labor. 
C)  utilities. 
D)  payroll taxes on factory labor.

Question 2

When a perpetual inventory system is used,the balance of the Raw Materials Inventory account at the end of an accounting period should reflect the cost of materials on hand.

Accepted Answer

A) True 
 B)False

Question 3

The balance in the Work in Process account as of October 31st is the total of $35,220.

Accepted Answer

Question 4

A standard cost system may be used

Accepted Answer

A)  only with a process cost system. 
B)  only with a job order cost system. 
C)  with either a job order cost system or a process cost system. 
D)  in neither a job order cost system or a process cost system. 
A)  only with a process cost system. 
B)  only with a job order cost system. 
C)  with either a job order cost system or a process cost system. 
D)  in neither a job order cost system or a process cost system.

Question 5

Standard cost accounting may be used with either a job order cost system or a process cost system.

Accepted Answer

A) True 
 B)False

Question 6

At the end of the year,Easton Company had a balance in Manufacturing Overhead of $20,000,and a balance in Manufacturing Overhead Applied of $19,000.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 7

At the end of the month,if the total of the credits in the Manufacturing Overhead Applied account is greater than the total of the debits in the Manufacturing Overhead account,overhead has been underapplied.

Accepted Answer

A) True 
 B)False

Question 8

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 and actual overhead costs were $220,000.At the end of the year,manufacturing overhead was:

Accepted Answer

A)  Overapplied by $20,000. 
B)  Underapplied by $20,000. 
C)  Overapplied by $4,000. 
D)  Underapplied by $4,000. 
A)  Overapplied by $20,000. 
B)  Underapplied by $20,000. 
C)  Overapplied by $4,000. 
D)  Underapplied by $4,000.

Question 9

The following partially completed T-accounts summarize Sicondo's manufacturing costs for last year.Required: 1)Describe and identify transactions 1-6;2)Prepare the journal entry to close out the applied manufacturing overhead;3)Compute the adjusted cost of goods sold.

Accepted Answer

The answer of The following partially completed T-accounts summarize Sicondo's...

Question 10

Purchases of raw materials are debited to the Work in Process Inventory account.

Accepted Answer

A) True 
 B)False

Question 11

The process cost accounting system is used when homogenous products are manufactured in a continuous process.

Accepted Answer

A) True 
 B)False

Question 12

What form is used to keep track of inventory of raw materials? What additional information does the form provide if a perpetual inventory system is utilized?

Accepted Answer

The form is the Raw Materials Ledger Car

Question 13

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 LIFO 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 14

What are the two principle cost accounting systems and give an example of a type of business which would use this system?

Accepted Answer

Job Order Cost Accounting System: Used b

Question 15

At the end of each year,the underapplied or overapplied overhead usually is closed out to the Cost of Goods Sold account.

Accepted Answer

A) True 
 B)False

Question 16

The manufacturing overhead recorded in the Work in Process Inventory account is not necessarily the actual overhead incurred.

Accepted Answer

A) True 
 B)False

Question 17

The Manufacturing Overhead Applied account for Cullverin Manufacturing had activity of $860 in indirect materials and supplies,$992 in indirect labor,and $4,654 in other overhead costs recorded in the account at April 30 of the current year.The Manufacturing Overhead Applied account had a total of $6,740 in overhead applied during April.What is the over- or underapplied overhead for April? Prepare the journal entry to close the related overhead accounts.

Accepted Answer

The overap

Question 18

At the end of each year,the underapplied or overapplied overhead is closed to the Work in Process inventory account.

Accepted Answer

A) True 
 B)False

Question 19

Davit Boat Building has three jobs in process in November of the current year,A1-13,R18-4,and B2-19.All three were begun on November 1st.Job A1-13 was completed on November 21st with total labor costs of $8,750 and total material costs of $7,725.No other jobs were completed in November.The total balance in Job R18-4 is $3,275 ($675 in materials and $2,600 in labor)and in Job B2-19 is $6,782 ($1,240 in materials and $5,542 in labor)before overhead is applied.Overhead is applied based on total direct labor dollars.Estimated total direct labor dollars for the year is $245,000 and total estimated manufacturing overhead is $367,500.
Based on the information given,complete the Job Order Cost Sheet for Job A1-13.

Accepted Answer

Question 20

Indirect materials issued to production are recorded with a debit to Work in Process and a credit to Raw Materials.

Accepted Answer

A) True 
 B)False

Exam 27: Job Order Cost Accounting

Manufacturing overhead includes all of the following except

When a perpetual inventory system is used,the balance of the Raw Materials Inventory account at the end of an accounting period should reflect the cost of materials on hand.

The balance in the Work in Process account as of October 31st is the total of $35,220.

A standard cost system may be used

Standard cost accounting may be used with either a job order cost system or a process cost system.

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

At the end of the month,if the total of the credits in the Manufacturing Overhead Applied account is greater than the total of the debits in the Manufacturing Overhead account,overhead has been underapplied.

The following partially completed T-accounts summarize Sicondo's manufacturing costs for last year.Required: 1)Describe and identify transactions 1-6;2)Prepare the journal entry to close out the applied manufacturing overhead;3)Compute the adjusted cost of goods sold.

Purchases of raw materials are debited to the Work in Process Inventory account.

The process cost accounting system is used when homogenous products are manufactured in a continuous process.

What form is used to keep track of inventory of raw materials? What additional information does the form provide if a perpetual inventory system is utilized?

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 LIFO method of inventory pricing,the total cost of 30 units issued on May 20 would be

What are the two principle cost accounting systems and give an example of a type of business which would use this system?

At the end of each year,the underapplied or overapplied overhead usually is closed out to the Cost of Goods Sold account.

The manufacturing overhead recorded in the Work in Process Inventory account is not necessarily the actual overhead incurred.

At the end of each year,the underapplied or overapplied overhead is closed to the Work in Process inventory account.

Indirect materials issued to production are recorded with a debit to Work in Process and a credit to Raw Materials.

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

The balance in the Work in Process account as of October 31^st is the total of $35,220.