Question 1

Process costing averages the total cost of the process over the number of units produced

Accepted Answer

A) True 
 B)False

Question 2

Overhead was estimated to be $250,000 for the year along with 20,000 direct labor hours. Actual overhead was $225,000, and actual direct labor hours were 19,000. The amount debited to the manufacturing overhead account would be:

Accepted Answer

A)  $250,000. 
B)  $225,000. 
C)  $213,750. 
D)  $237,500. 
A)  $250,000. 
B)  $225,000. 
C)  $213,750. 
D)  $237,500.

Question 3

When manufacturing overhead is applied to production, which of the following accounts is credited?

Accepted Answer

A)  Raw Materials Inventory 
B)  Work in Process Inventory 
C)  Finished Goods Inventory 
D)  Manufacturing Overhead 
A)  Raw Materials Inventory 
B)  Work in Process Inventory 
C)  Finished Goods Inventory 
D)  Manufacturing Overhead

Question 4

Oscar Corp. applies manufacturing overhead to production at 150% of direct labor cost. During 20x5, manufacturing overhead of $180,000 was applied to production; actual manufacturing overhead was $199,000. Beginning Work in Process Inventory was $20,000 and ending Work in Process Inventory was $24,000. Beginning Finished Goods Inventory was $42,000, ending Finished Goods Inventory was $39,000. Sales for 20x5 were $580,000, yielding a $117,000 gross profit.
Complete the following schedule:

Accepted Answer

@#IMG-DLM& Use Cost of Goods Sold $463,0

Question 5

Ragtime Company had the following information for the year:   Ragtime Company used a predetermined overhead rate of $35 per direct labor hour for the year. Assume the only inventory balance is an ending Work in Process Inventory balance of $17,000. What was adjusted cost of goods sold?

Accepted Answer

A)  $435,000 
B)  $426,000 
C)  $418,000 
D)  $409,000 
A)  $435,000 
B)  $426,000 
C)  $418,000 
D)  $409,000

Question 6

Cost of goods completed is the same as:

Accepted Answer

A)  Cost of Goods Sold. 
B)  Work in Process Inventory. 
C)  Cost of Goods Manufactured. 
D)  Finished Goods Inventory. 
A)  Cost of Goods Sold. 
B)  Work in Process Inventory. 
C)  Cost of Goods Manufactured. 
D)  Finished Goods Inventory.

Question 7

Which of the following is a characteristic of a manufacturing environment that would use job order costing?

Accepted Answer

A)  Standardized production process 
B)  Continuous manufacturing 
C)  Homogenous products 
D)  Differentiated products 
A)  Standardized production process 
B)  Continuous manufacturing 
C)  Homogenous products 
D)  Differentiated products

Question 8

Geller Cabinets is a custom cabinet builder. They recently completed a set of kitchen cabinets (Job #12478), as summarized below:   Geller applies overhead to jobs at a rate of $15 per direct labor hour.
a. How much overhead would be applied to Job #12478?
b. What is the total cost of Job #12478?

Accepted Answer

The answer of Geller Cabinets is a custom cabinet builder....

Question 9

Highview Corp. applies manufacturing overhead to production at 125% of direct labor cost. During 20x5, manufacturing overhead of $100,000 was applied to production; actual manufacturing overhead was $109,000. Beginning Work in Process Inventory was $15,000 and beginning Finished Goods Inventory was $35,000. Work in Process Inventory increased by 10% during the year and Finished Goods Inventory decreased by 20% during the year. Sales for 20x5 were $450,000, yielding a $130,000 gross profit.
Complete the following schedule:

Accepted Answer

The answer of Highview Corp. applies manufacturing overhead to production...

Question 10

If a company uses a predetermined overhead rate, which of the following statements is correct?

Accepted Answer

A)  Manufacturing Overhead will be debited for estimated overhead. 
B)  Manufacturing Overhead will be credited for estimated overhead. 
C)  Manufacturing Overhead will be debited for actual overhead. 
D)  Manufacturing Overhead will be credited for actual overheaD.
Actual manufacturing overhead costs are accumulated on the debit side of the Manufacturing Overhead account. 
A)  Manufacturing Overhead will be debited for estimated overhead. 
B)  Manufacturing Overhead will be credited for estimated overhead. 
C)  Manufacturing Overhead will be debited for actual overhead. 
D)  Manufacturing Overhead will be credited for actual overheaD.
Actual manufacturing overhead costs are accumulated on the debit side of the Manufacturing Overhead account.

Question 11

McGown Corp. has the following information:   Additional information for the year is as follows:   Compute the direct materials used in production.

Accepted Answer

A)  $20,000 
B)  $30,000 
C)  $110,000 
D)  $90,000 
A)  $20,000 
B)  $30,000 
C)  $110,000 
D)  $90,000

Question 12

Russo Cabinets is a custom cabinet builder. They recently completed a set of kitchen cabinets (Job #1887), as summarized below:   Russo applies overhead to jobs at a rate of $18 per direct labor hour.
a. How much overhead would be applied to Job #1887?
b. What is the total cost of Job #1887?

Accepted Answer

The answer of Russo Cabinets is a custom cabinet builder....

Question 13

Pinnacle Consulting employs two CPAs, each having a different area of specialization. Judy specializes in tax consulting and Steve specializes in management consulting. Pinnacle expects to incur total overhead costs of $519,750 during the year and applies overhead based on annual salary costs. Judy is a senior partner, her annual salary is $225,000, and she is expected to bill 2,000 hours during the year. Steve is a senior associate, his annual salary is $121,500, and he is expected to bill 1,800 hours during the year.
a. Calculate the predetermined overhead rate.
b. Assuming that the hourly billing rate should be set to cover the total cost of services plus a 20% markup, compute the hourly billing rates for Judy and Steve.

Accepted Answer

a. Predetermined Overhead Rate: $519,750

Question 14

Which of the following represents the cost of jobs completed but not yet sold?

Accepted Answer

A)  Raw Materials Inventory 
B)  Work in Process Inventory 
C)  Finished Goods Inventory 
D)  Cost of Goods Sold 
A)  Raw Materials Inventory 
B)  Work in Process Inventory 
C)  Finished Goods Inventory 
D)  Cost of Goods Sold

Question 15

Kilt Company had the following information for the year:   Kilt Company used a predetermined overhead rate of $42.00 per direct labor hour for the year and estimated that direct labor hours would total 5,500 hours. Assume the only inventory balance is an ending Work in Process balance of $17,000. How much overhead was applied during the year?

Accepted Answer

A)  $231,000 
B)  $150,000 
C)  $166,000 
D)  $210,000 
A)  $231,000 
B)  $150,000 
C)  $166,000 
D)  $210,000

Question 16

A predetermined overhead rate is calculated by dividing estimated total manufacturing overhead cost by estimated total cost driver

Accepted Answer

A) True 
 B)False

Question 17

When units are completed, the cost associated with the job is credited to which account?

Accepted Answer

A)  Raw Materials Inventory 
B)  Work in Process Inventory 
C)  Finished Goods Inventory 
D)  Cost of Goods Sold 
A)  Raw Materials Inventory 
B)  Work in Process Inventory 
C)  Finished Goods Inventory 
D)  Cost of Goods Sold

Question 18

Belton Custom Kitchens is a custom cabinet builder. They recently completed a set of kitchen cabinets (Job #3097), as summarized below:   Belton applies overhead to jobs at a rate of $17 per direct labor hour.
a. How much overhead would be applied to Job #3097?
b. What is the total cost of Job #3097?

Accepted Answer

The answer of Belton Custom Kitchens is a custom cabinet...

Question 19

Cost of goods manufactured is the amount of cost transferred:

Accepted Answer

A)  out of Finished Goods Inventory and into Cost of Goods Sold. 
B)  out of Finished Goods Inventory and into Work in Process Inventory. 
C)  out of Work in Process Inventory and into Manufacturing Overhead. 
D)  out of Work in Process Inventory and into Finished Goods Inventory. 
A)  out of Finished Goods Inventory and into Cost of Goods Sold. 
B)  out of Finished Goods Inventory and into Work in Process Inventory. 
C)  out of Work in Process Inventory and into Manufacturing Overhead. 
D)  out of Work in Process Inventory and into Finished Goods Inventory.

Question 20

The most common method for disposing of over or underapplied overhead is to:

Accepted Answer

A)  recalculate the overhead rate for the period. 
B)  recalculate the overhead rate for the next period. 
C)  make a direct adjustment to Work in Process Inventory. 
D)  make a direct adjustment to Cost of Goods SolD.
The most common method for disposing of the balance in Manufacturing Overhead is to make a direct adjustment to Cost of Goods SolD. 
A)  recalculate the overhead rate for the period. 
B)  recalculate the overhead rate for the next period. 
C)  make a direct adjustment to Work in Process Inventory. 
D)  make a direct adjustment to Cost of Goods SolD.
The most common method for disposing of the balance in Manufacturing Overhead is to make a direct adjustment to Cost of Goods SolD.

Process costing averages the total cost of the process over the number of units produced

Overhead was estimated to be $250,000 for the year along with 20,000 direct labor hours. Actual overhead was $225,000, and actual direct labor hours were 19,000. The amount debited to the manufacturing overhead account would be:

When manufacturing overhead is applied to production, which of the following accounts is credited?

Ragtime Company had the following information for the year: Ragtime Company used a predetermined overhead rate of $35 per direct labor hour for the year. Assume the only inventory balance is an ending Work in Process Inventory balance of $17,000. What was adjusted cost of goods sold?

Cost of goods completed is the same as:

Which of the following is a characteristic of a manufacturing environment that would use job order costing?

Geller Cabinets is a custom cabinet builder. They recently completed a set of kitchen cabinets (Job #12478), as summarized below: Geller applies overhead to jobs at a rate of $15 per direct labor hour. a. How much overhead would be applied to Job #12478? b. What is the total cost of Job #12478?

If a company uses a predetermined overhead rate, which of the following statements is correct?

McGown Corp. has the following information: Additional information for the year is as follows: Compute the direct materials used in production.

Russo Cabinets is a custom cabinet builder. They recently completed a set of kitchen cabinets (Job #1887), as summarized below: Russo applies overhead to jobs at a rate of $18 per direct labor hour. a. How much overhead would be applied to Job #1887? b. What is the total cost of Job #1887?

Which of the following represents the cost of jobs completed but not yet sold?

A predetermined overhead rate is calculated by dividing estimated total manufacturing overhead cost by estimated total cost driver

When units are completed, the cost associated with the job is credited to which account?

Belton Custom Kitchens is a custom cabinet builder. They recently completed a set of kitchen cabinets (Job #3097), as summarized below: Belton applies overhead to jobs at a rate of $17 per direct labor hour. a. How much overhead would be applied to Job #3097? b. What is the total cost of Job #3097?

Cost of goods manufactured is the amount of cost transferred:

The most common method for disposing of over or underapplied overhead is to:

Introduction to Managerial Accounting

Process Costing

Activity-Based Cost Management

Cost Behavior and Estimation

Cost-Volume-Profit Analysis

Incremental Analysis for Short-Term Decision Making

Budgeting and Planning

Standard Costing and Variances

Decentralized Performance Evaluation

Capital Budgeting

Statement of Cash Flows

Financial Statement Analysis

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Exam 2: Job-Order Costing

Process costing averages the total cost of the process over the number of units produced

Overhead was estimated to be $250,000 for the year along with 20,000 direct labor hours. Actual overhead was $225,000, and actual direct labor hours were 19,000. The amount debited to the manufacturing overhead account would be:

When manufacturing overhead is applied to production, which of the following accounts is credited?

Ragtime Company had the following information for the year: Ragtime Company used a predetermined overhead rate of $35 per direct labor hour for the year. Assume the only inventory balance is an ending Work in Process Inventory balance of $17,000. What was adjusted cost of goods sold?

Cost of goods completed is the same as:

Which of the following is a characteristic of a manufacturing environment that would use job order costing?

Geller Cabinets is a custom cabinet builder. They recently completed a set of kitchen cabinets (Job #12478), as summarized below: Geller applies overhead to jobs at a rate of $15 per direct labor hour. a. How much overhead would be applied to Job #12478? b. What is the total cost of Job #12478?

If a company uses a predetermined overhead rate, which of the following statements is correct?

McGown Corp. has the following information: Additional information for the year is as follows: Compute the direct materials used in production.

Russo Cabinets is a custom cabinet builder. They recently completed a set of kitchen cabinets (Job #1887), as summarized below: Russo applies overhead to jobs at a rate of $18 per direct labor hour. a. How much overhead would be applied to Job #1887? b. What is the total cost of Job #1887?

Which of the following represents the cost of jobs completed but not yet sold?

A predetermined overhead rate is calculated by dividing estimated total manufacturing overhead cost by estimated total cost driver

When units are completed, the cost associated with the job is credited to which account?

Belton Custom Kitchens is a custom cabinet builder. They recently completed a set of kitchen cabinets (Job #3097), as summarized below: Belton applies overhead to jobs at a rate of $17 per direct labor hour. a. How much overhead would be applied to Job #3097? b. What is the total cost of Job #3097?

Cost of goods manufactured is the amount of cost transferred:

The most common method for disposing of over or underapplied overhead is to:

Introduction to Managerial Accounting

Process Costing

Activity-Based Cost Management

Cost Behavior and Estimation

Cost-Volume-Profit Analysis

Incremental Analysis for Short-Term Decision Making

Budgeting and Planning

Standard Costing and Variances

Decentralized Performance Evaluation

Capital Budgeting

Statement of Cash Flows

Financial Statement Analysis

Filters