Question 1

When disposed of, underapplied manufacturing overhead will:

Accepted Answer

A)  increase Cost of Goods Sold. 
B)  increase Finished Goods. 
C)  decrease Cost of Goods Sold. 
D)  decrease Finished Goods. 
A)  increase Cost of Goods Sold. 
B)  increase Finished Goods. 
C)  decrease Cost of Goods Sold. 
D)  decrease Finished Goods.

Question 2

Santos Inc. had the following information for the preceding year:   Additional information for the year is as follows:   What was the ending Work in Process Inventory balance on 12/31?

Accepted Answer

A)  $20,000 
B)  $11,000 
C)  $50,000 
D)  $54,000 
A)  $20,000 
B)  $11,000 
C)  $50,000 
D)  $54,000

Question 3

Sawyer Company had the following information for the year:   Sawyer Company used a predetermined overhead rate using estimated overhead of $320,000 and 8,000 estimated direct labor hours. Assume the only inventory balance is an ending Finished Goods balance of $9,000. How much overhead was applied during the year?

Accepted Answer

A)  $245,000 
B)  $273,000 
C)  $280,000 
D)  $320,000 
A)  $245,000 
B)  $273,000 
C)  $280,000 
D)  $320,000

Question 4

When manufacturing overhead is applied to a job, a credit is made to the Work in Process account

Accepted Answer

A) True 
 B)False

Question 5

Manufacturing overhead was estimated to be $250,000 for the year along with 20,000 direct labor hours. Actual manufacturing overhead was $225,000, and actual direct labor hours were 19,000. To dispose of the balance in the Manufacturing Overhead account, which of the following would be correct?

Accepted Answer

A)  Manufacturing Overhead would be credited for $12,500. 
B)  Manufacturing Overhead would be credited for $25,000. 
C)  Manufacturing Overhead would be debited for $12,500. 
D)  Manufacturing Overhead would be debited for $25,000. 
A)  Manufacturing Overhead would be credited for $12,500. 
B)  Manufacturing Overhead would be credited for $25,000. 
C)  Manufacturing Overhead would be debited for $12,500. 
D)  Manufacturing Overhead would be debited for $25,000.

Question 6

Which of the following would be used to record the factory supervisor's salary?

Accepted Answer

A)  Raw Materials Inventory would be debited. 
B)  Work in Process Inventory would be debited. 
C)  Manufacturing Overhead would be debited. 
D)  Manufacturing Overhead would be crediteD.
Actual indirect manufacturing costs, including the factory supervisor's salary, are accumulated in the Manufacturing Overhead account on the debit side of the account. 
A)  Raw Materials Inventory would be debited. 
B)  Work in Process Inventory would be debited. 
C)  Manufacturing Overhead would be debited. 
D)  Manufacturing Overhead would be crediteD.
Actual indirect manufacturing costs, including the factory supervisor's salary, are accumulated in the Manufacturing Overhead account on the debit side of the account.

Question 7

Which of the following would be used to record the labor cost that is not traceable to a specific job?

Accepted Answer

A)  Raw Materials Inventory would be debited. 
B)  Work in Process Inventory would be debited. 
C)  Manufacturing Overhead would be debited. 
D)  Manufacturing Overhead would be crediteD.
Actual indirect labor costs are accumulated on the debit side of the Manufacturing Overhead account. 
A)  Raw Materials Inventory would be debited. 
B)  Work in Process Inventory would be debited. 
C)  Manufacturing Overhead would be debited. 
D)  Manufacturing Overhead would be crediteD.
Actual indirect labor costs are accumulated on the debit side of the Manufacturing Overhead account.

Question 8

Optimum Finance Inc. provides budget, savings, and investment services to clients who want a stress-free financial lifestyle. The company customizes a program for each client based on their individual goals that includes budget recommendations, investment counseling, and savings techniques. The company uses a job order cost system that keeps track of the cost of the amount of time financial consultants spend with each client. Optimum applies all indirect operating costs (e.g., rent, utilities, and management salaries) as a percentage of the consultant's labor cost. During the most recent year, the firm estimated that it would pay $500,000 to its consultants and incur indirect operating costs of $750,000. Actual consultant labor costs were $537,500 and actual indirect operating costs were $725,000. During the year, Optimum provided 42 hours of consulting services to Joan Clair for which Optimum pays an average of $20 per hour. What is the total cost of providing services to Joan?

Accepted Answer

A)  $2,100 
B)  $1,974 
C)  $2,058 
D)  $1,403 
A)  $2,100 
B)  $1,974 
C)  $2,058 
D)  $1,403

Question 9

McGown Corp. has the following information:   Additional information for the year is as follows:   Compute the cost of goods manufactured.

Accepted Answer

A)  $248,000 
B)  $242,000 
C)  $265,000 
D)  $235,000 
A)  $248,000 
B)  $242,000 
C)  $265,000 
D)  $235,000

Question 10

Indirect materials are recorded directly on the job cost sheet

Accepted Answer

A) True 
 B)False

Question 11

Which of the following would be used to apply manufacturing overhead to production for the period?

Accepted Answer

A)  Raw Materials Inventory would be debited. 
B)  Work in Process Inventory would be debited. 
C)  Manufacturing Overhead would be debited. 
D)  Work in Process Inventory would be crediteD.
When manufacturing overhead is applied to production, Work in Process Inventory is debited and the Manufacturing Overhead account is crediteD. 
A)  Raw Materials Inventory would be debited. 
B)  Work in Process Inventory would be debited. 
C)  Manufacturing Overhead would be debited. 
D)  Work in Process Inventory would be crediteD.
When manufacturing overhead is applied to production, Work in Process Inventory is debited and the Manufacturing Overhead account is crediteD.

Question 12

Overhead costs are overapplied if the amount applied to Work in Process is:

Accepted Answer

A)  greater than estimated overhead. 
B)  less than estimated overhead. 
C)  greater than actual overhead incurred. 
D)  less than actual overhead incurreD.
Overhead cost is overapplied if the amount applied is more than the actual overhead cost. 
A)  greater than estimated overhead. 
B)  less than estimated overhead. 
C)  greater than actual overhead incurred. 
D)  less than actual overhead incurreD.
Overhead cost is overapplied if the amount applied is more than the actual overhead cost.

When disposed of, underapplied manufacturing overhead will:

Santos Inc. had the following information for the preceding year: Additional information for the year is as follows: What was the ending Work in Process Inventory balance on 12/31?

When manufacturing overhead is applied to a job, a credit is made to the Work in Process account

Manufacturing overhead was estimated to be $250,000 for the year along with 20,000 direct labor hours. Actual manufacturing overhead was $225,000, and actual direct labor hours were 19,000. To dispose of the balance in the Manufacturing Overhead account, which of the following would be correct?

Which of the following would be used to record the factory supervisor's salary?

Which of the following would be used to record the labor cost that is not traceable to a specific job?

McGown Corp. has the following information: Additional information for the year is as follows: Compute the cost of goods manufactured.

Indirect materials are recorded directly on the job cost sheet

Which of the following would be used to apply manufacturing overhead to production for the period?

Overhead costs are overapplied if the amount applied to Work in Process is:

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

Exam 2: Job-Order Costing

When disposed of, underapplied manufacturing overhead will:

Santos Inc. had the following information for the preceding year: Additional information for the year is as follows: What was the ending Work in Process Inventory balance on 12/31?

When manufacturing overhead is applied to a job, a credit is made to the Work in Process account

Manufacturing overhead was estimated to be $250,000 for the year along with 20,000 direct labor hours. Actual manufacturing overhead was $225,000, and actual direct labor hours were 19,000. To dispose of the balance in the Manufacturing Overhead account, which of the following would be correct?

Which of the following would be used to record the factory supervisor's salary?

Which of the following would be used to record the labor cost that is not traceable to a specific job?

McGown Corp. has the following information: Additional information for the year is as follows: Compute the cost of goods manufactured.

Indirect materials are recorded directly on the job cost sheet

Which of the following would be used to apply manufacturing overhead to production for the period?

Overhead costs are overapplied if the amount applied to Work in Process is:

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