Question 1

A job cost sheet will record the direct materials and direct labor used by the job but not the manufacturing overhead applied.

Accepted Answer

A) True 
 B)False

Question 2

Kayla Inc.uses a job order costing system.Manufacturing overhead is applied on the basis of direct labor cost.Total manufacturing overhead was estimated to be $150,000 for the year;direct labor was estimated to total $300,000.
   The following transactions have occurred during the year.
   a.Calculate the predetermined overhead rate.
b.Calculate cost of goods manufactured.
c.Calculate the over- or underapplied overhead.
d.Calculate adjusted cost of goods sold.

Accepted Answer

a.50%
b.
Cost of goods manufactured comp

Question 3

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 4

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.Which of the following would be correct?

Accepted Answer

A) Overhead is underapplied by $25,000. 
B) Overhead is underapplied by $12,500. 
C) Overhead is overapplied by $12,500. 
D) Overhead is overapplied by $25,000. 
A) Overhead is underapplied by $25,000. 
B) Overhead is underapplied by $12,500. 
C) Overhead is overapplied by $12,500. 
D) Overhead is overapplied by $25,000.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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 7

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 Inventory balance of $9,000.What was adjusted cost of goods sold?

Accepted Answer

A) $715,000 
B) $708,000 
C) $706,000 
D) $699,000 
A) $715,000 
B) $708,000 
C) $706,000 
D) $699,000

Question 8

Belton Custom Kitchens is a custom cabinet builder.They recently completed a set of kitchen cabinets (Job Number 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

To apply manufacturing overhead,multiply

Question 9

Manufacturing overhead was estimated to be $200,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $215,000,and actual labor hours were 21,000.The amount debited to the Manufacturing Overhead account would be:

Accepted Answer

A) $200,000. 
B) $215,000. 
C) $210,000. 
D) $225,750. 
A) $200,000. 
B) $215,000. 
C) $210,000. 
D) $225,750.

Question 10

Which of the following represents the cost of the jobs sold during the period?

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 11

Overhead costs are underapplied 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. 
A) greater than estimated overhead. 
B) less than estimated overhead. 
C) greater than actual overhead incurred. 
D) less than actual overhead incurred.

Question 12

Manufacturing overhead was estimated to be $400,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $415,000,and actual labor hours were 21,000.To dispose of the balance in the Manufacturing Overhead account,which of the following would be correct?

Accepted Answer

A) Cost of Goods Sold would be credited for $15,000. 
B) Cost of Goods Sold would be credited for $5,000. 
C) Cost of Goods Sold would be debited for $5,000. 
D) Cost of Goods Sold would be debited for $15,000. 
A) Cost of Goods Sold would be credited for $15,000. 
B) Cost of Goods Sold would be credited for $5,000. 
C) Cost of Goods Sold would be debited for $5,000. 
D) Cost of Goods Sold would be debited for $15,000.

Question 13

When direct materials are used in production,which of the following accounts is debited?

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 14

Mendez Inc.had the following information for the preceding year:   Additional information for the year is as follows:
  What was the beginning Work in Process Inventory balance on 1/1?

Accepted Answer

A) $49,000 
B) $65,000 
C) $50,000 
D) $69,000 
A) $49,000 
B) $65,000 
C) $50,000 
D) $69,000

Question 15

Cadburn Corp.uses a job order costing system with manufacturing overhead applied to products on the basis of direct labor hours.For the upcoming year,Cadburn Corp.estimated total manufacturing overhead cost at $250,000 and total direct labor hours of 50,000.During the year actual manufacturing overhead incurred was $262,500 and 51,000 direct labor hours were used.
a.Calculate the predetermined overhead rate.
b.Calculate how much manufacturing overhead will be applied to production.
c.Is overhead over- or underapplied? By how much?
d.What account should be adjusted for over- or underapplied overhead? Should the balance be increased or decreased?

Accepted Answer

a.$5
b.$255,000
c.$7,500 underapplied
d.

Question 16

In recording the purchase of materials that are not traced to any specific job,which of the following is correct?

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. 
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.

Question 17

Manufacturing overhead was estimated to be $200,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $215,000 and actual labor hours were 21,000.The amount of manufacturing overhead applied to production would be:

Accepted Answer

A) $200,000. 
B) $215,000. 
C) $210,000. 
D) $225,750. 
A) $200,000. 
B) $215,000. 
C) $210,000. 
D) $225,750.

Question 18

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. 
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.

Question 19

Oscar Corp.applies manufacturing overhead to production at 150% of direct labor cost.During the year ended 20xx,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 the year ended 20xx were $580,000,yielding a $117,000 gross profit.
Complete the following schedule:

Accepted Answer

@#IMG-DLM& Use Cost of Goods Sold $463,000 at the

Question 20

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.

A job cost sheet will record the direct materials and direct labor used by the job but not the manufacturing overhead applied.

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?

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.Which of the following would be correct?

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

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

Manufacturing overhead was estimated to be $200,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $215,000,and actual labor hours were 21,000.The amount debited to the Manufacturing Overhead account would be:

Which of the following represents the cost of the jobs sold during the period?

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

Manufacturing overhead was estimated to be $400,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $415,000,and actual labor hours were 21,000.To dispose of the balance in the Manufacturing Overhead account,which of the following would be correct?

When direct materials are used in production,which of the following accounts is debited?

Mendez Inc.had the following information for the preceding year: Additional information for the year is as follows: What was the beginning Work in Process Inventory balance on 1/1?

In recording the purchase of materials that are not traced to any specific job,which of the following is correct?

Manufacturing overhead was estimated to be $200,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $215,000 and actual labor hours were 21,000.The amount of manufacturing overhead applied to production would be:

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

When disposed of,underapplied manufacturing overhead will:

Introduction to Managerial Accounting

Process Costing

Activity-Based Costing and Cost Management

Cost Behavior

Cost-Volume-Profit Analysis

Incremental Analysis for Short-Term Decision Making

Budgetary Planning

Standard Costing and Variance Analysis

Decentralized Performance Evaluation

Capital Budgeting

Statement of Cash Flows

Measuring and Evaluating Financial Performance

Filters

Exam 2: Job Order Costing

A job cost sheet will record the direct materials and direct labor used by the job but not the manufacturing overhead applied.

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?

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.Which of the following would be correct?

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

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

Manufacturing overhead was estimated to be $200,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $215,000,and actual labor hours were 21,000.The amount debited to the Manufacturing Overhead account would be:

Which of the following represents the cost of the jobs sold during the period?

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

Manufacturing overhead was estimated to be $400,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $415,000,and actual labor hours were 21,000.To dispose of the balance in the Manufacturing Overhead account,which of the following would be correct?

When direct materials are used in production,which of the following accounts is debited?

Mendez Inc.had the following information for the preceding year: Additional information for the year is as follows: What was the beginning Work in Process Inventory balance on 1/1?

In recording the purchase of materials that are not traced to any specific job,which of the following is correct?

Manufacturing overhead was estimated to be $200,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $215,000 and actual labor hours were 21,000.The amount of manufacturing overhead applied to production would be:

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

When disposed of,underapplied manufacturing overhead will:

Introduction to Managerial Accounting

Process Costing

Activity-Based Costing and Cost Management

Cost Behavior

Cost-Volume-Profit Analysis

Incremental Analysis for Short-Term Decision Making

Budgetary Planning

Standard Costing and Variance Analysis

Decentralized Performance Evaluation

Capital Budgeting

Statement of Cash Flows

Measuring and Evaluating Financial Performance

Filters