Question 1

If the manufacturing overhead costs applied to jobs worked on were greater than the actual manufacturing costs incurred during a period, overhead is said to be

Accepted Answer

A) underapplied. 
B) overapplied. 
C) in error. 
D) prepaid. 
A) underapplied. 
B) overapplied. 
C) in error. 
D) prepaid.

Question 2

Hayward Manufacturing Company developed the following data: $$\begin{array} { l r } 
\text { Beginning work in process inventory } & \$ 900,000 \
\text { Direct materials used } & 700,000 \
\text { Actual overhead } & 1,100,000 \
\text { Overhead applied } & 800,000 \
\text { Cost of goods manufactured } & 1,200,000 \
\text { Ending work in process } & 1,500,000
\end{array}$$ Hayward Manufacturing Company's total manufacturing costs for the period is

Accepted Answer

A) $1,900,000. 
B) $1,800,000. 
C) $1,300,000. 
D) cannot be determined from the data provided. 
A) $1,900,000. 
B) $1,800,000. 
C) $1,300,000. 
D) cannot be determined from the data provided.

Question 3

In a manufacturing company, the cost of factory labor consists of all of the following except

Accepted Answer

A) employer payroll taxes. 
B) fringe benefits incurred by the employer. 
C) net earnings of factory workers. 
D) gross earnings of factory workers. 
A) employer payroll taxes. 
B) fringe benefits incurred by the employer. 
C) net earnings of factory workers. 
D) gross earnings of factory workers.

Question 4

Manufacturing costs are generally incurred in one period and recorded in a subsequent period.

Accepted Answer

A) True 
 B)False

Question 5

Factory Labor is a(n)

Accepted Answer

A) expense account. 
B) control account. 
C) subsidiary account. 
D) temporary account. 
A) expense account. 
B) control account. 
C) subsidiary account. 
D) temporary account.

Question 6

Actual manufacturing overhead costs are assigned to each job by tracing each overhead cost to a specific job.

Accepted Answer

A) True 
 B)False

Question 7

During 2017, Tanner Manufacturing expected Job No. 26 to cost $300,000 of overhead, $500,000 of materials, and $200,000 in labor. Tanner applied overhead based on direct labor cost. Actual production required an overhead cost of $290,000, $550,000 in materials used, and $220,000 in labor. All of the goods were completed. What amount was transferred to Finished Goods?

Accepted Answer

A) $1,000,000 
B) $1,060,000 
C) $1,070,000 
D) $1,100,000 
A) $1,000,000 
B) $1,060,000 
C) $1,070,000 
D) $1,100,000

Question 8

The Raw Materials Inventory account is

Accepted Answer

A) a subsidiary account. 
B) debited for invoice costs and freight costs chargeable to the purchaser. 
C) debited for purchase discounts taken. 
D) debited for purchase returns and allowances. 
A) a subsidiary account. 
B) debited for invoice costs and freight costs chargeable to the purchaser. 
C) debited for purchase discounts taken. 
D) debited for purchase returns and allowances.

Question 9

On the cost of goods manufactured schedule, the cost of goods manufactured agrees with the

Accepted Answer

A) balance of Finished Goods Inventory at the end of the period. 
B) total debits to Work in Process Inventory during the period. 
C) amount transferred from Work in Process Inventory to Finished Goods during the period. 
D) debits to Cost of Goods Sold during the period. 
A) balance of Finished Goods Inventory at the end of the period. 
B) total debits to Work in Process Inventory during the period. 
C) amount transferred from Work in Process Inventory to Finished Goods during the period. 
D) debits to Cost of Goods Sold during the period.

Question 10

Gulick Company developed the following data for the current year: $$\begin{array} { l l } 
\text { Beginning work in process inventory } & \$ 240,000 \
\text { Direct materials used } & 144,000 \
\text { Actual overhead } & 288,000 \
\text { Overhead applied } & 216,000 \
\text { Cost of goods manufactured } & 264,000 \
\text { Total manufacturing costs } & 720,000
\end{array}$$ Gulick Company's direct labor cost for the year is

Accepted Answer

A) $72,000. 
B) $360,000. 
C) $216,000. 
D) $288,000. 
A) $72,000. 
B) $360,000. 
C) $216,000. 
D) $288,000.

Question 11

Sportly, Inc. completed Job No. B14 during 2017. The job cost sheet listed the following: $$\begin{array} { l r } 
\text { Direct materials } & \$ 110,000 \
\text { Direct labor } & 60,000 \
\text { Manufacturing overhead applied } & 40,000 \
\text { Units produced } & 3,000 \text { units } \
\text { Units sold } & 1,800 \text { units }
\end{array}$$ How much is the cost of the finished goods on hand from this job?

Accepted Answer

A) $210,000 
B) $126,000 
C) $ 84,000 
D) $102,000 
A) $210,000 
B) $126,000 
C) $ 84,000 
D) $102,000

Question 12

The predetermined overhead rate is based on the relationship between

Accepted Answer

A) estimated annual costs and actual activity. 
B) estimated annual costs and expected annual activity. 
C) actual monthly costs and actual annual activity. 
D) estimated monthly costs and actual monthly activity. 
A) estimated annual costs and actual activity. 
B) estimated annual costs and expected annual activity. 
C) actual monthly costs and actual annual activity. 
D) estimated monthly costs and actual monthly activity.

Question 13

Simmons Inc. applies overhead to production at a predetermined rate of 90% based on direct labor cost. Job No. 250, the only job still in process at the end of August, has been charged with manufacturing overhead of $8,100. What was the amount of direct materials charged to Job 250 assuming the balance in Work in Process inventory is $30,000?

Accepted Answer

A) $ 8,100. 
B) $ 9,000. 
C) $12,900. 
D) $30,000. 
A) $ 8,100. 
B) $ 9,000. 
C) $12,900. 
D) $30,000.

Question 14

In a job order cost accounting system, the Raw Materials Inventory account is

Accepted Answer

A) an expense. 
B) a control account. 
C) not used. 
D) a period cost. 
A) an expense. 
B) a control account. 
C) not used. 
D) a period cost.

Question 15

Manufacturing overhead is the only product cost that can be assigned to jobs as soon as the costs are incurred.

Accepted Answer

A) True 
 B)False

Question 16

The labor costs that have been identified as indirect labor should be charged to

Accepted Answer

A) manufacturing overhead. 
B) direct labor. 
C) the individual jobs worked on. 
D) salary expense. 
A) manufacturing overhead. 
B) direct labor. 
C) the individual jobs worked on. 
D) salary expense.

Question 17

Henson Company applies overhead on the basis of 120% of direct labor cost. Job No. 190 is charged with $140,000 of direct materials costs and $180,000 of manufacturing overhead. The total manufacturing costs for Job No. 190 is

Accepted Answer

A) $320,000. 
B) $536,000. 
C) $348,000. 
D) $470,000. 
A) $320,000. 
B) $536,000. 
C) $348,000. 
D) $470,000.

Question 18

During 2017, Cotte Manufacturing expected Job No. 59 to cost $300,000 of overhead, $500,000 of materials, and $200,000 in labor. Cotte applied overhead based on direct labor cost. Actual production required an overhead cost of $295,000, $570,000 in materials used, and $220,000 in labor. All of the goods were completed. How much is the amount of over- or underapplied overhead?

Accepted Answer

A) $5,000 underapplied 
B) $5,000 overapplied 
C) $35,000 underapplied 
D) $35,000 overapplied 
A) $5,000 underapplied 
B) $5,000 overapplied 
C) $35,000 underapplied 
D) $35,000 overapplied

Question 19

Records of individual items of raw materials would not be maintained

Accepted Answer

A) electronically. 
B) manually. 
C) on stores ledger cards. 
D) in the Raw Materials Inventory account. 
A) electronically. 
B) manually. 
C) on stores ledger cards. 
D) in the Raw Materials Inventory account.

Question 20

The following information is available for completed Job No. 402: Direct materials, $120,000; direct labor, $180,000; manufacturing overhead applied, $90,000; units produced, 5,000 units; units sold, 4,000 units. The cost of the finished goods on hand from this job is

Accepted Answer

A) $60,000. 
B) $390,000. 
C) $78,000. 
D) $312,000. 
A) $60,000. 
B) $390,000. 
C) $78,000. 
D) $312,000.

If the manufacturing overhead costs applied to jobs worked on were greater than the actual manufacturing costs incurred during a period, overhead is said to be

In a manufacturing company, the cost of factory labor consists of all of the following except

Manufacturing costs are generally incurred in one period and recorded in a subsequent period.

Factory Labor is a(n)

Actual manufacturing overhead costs are assigned to each job by tracing each overhead cost to a specific job.

The Raw Materials Inventory account is

On the cost of goods manufactured schedule, the cost of goods manufactured agrees with the

Sportly, Inc. completed Job No. B14 during 2017. The job cost sheet listed the following: Direct materials \ 110,000 Direct labor 60,000 Manufacturing overhead applied 40,000 Units produced 3,000 units Units sold 1,800 units How much is the cost of the finished goods on hand from this job?

The predetermined overhead rate is based on the relationship between

In a job order cost accounting system, the Raw Materials Inventory account is

Manufacturing overhead is the only product cost that can be assigned to jobs as soon as the costs are incurred.

The labor costs that have been identified as indirect labor should be charged to

Henson Company applies overhead on the basis of 120% of direct labor cost. Job No. 190 is charged with $140,000 of direct materials costs and $180,000 of manufacturing overhead. The total manufacturing costs for Job No. 190 is

Records of individual items of raw materials would not be maintained

The following information is available for completed Job No. 402: Direct materials, $120,000; direct labor, $180,000; manufacturing overhead applied, $90,000; units produced, 5,000 units; units sold, 4,000 units. The cost of the finished goods on hand from this job is

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Managerial Accounting

Process Costing

Activity-Based Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Filters

Exam 14: Job Order Costing

If the manufacturing overhead costs applied to jobs worked on were greater than the actual manufacturing costs incurred during a period, overhead is said to be

In a manufacturing company, the cost of factory labor consists of all of the following except

Manufacturing costs are generally incurred in one period and recorded in a subsequent period.

Factory Labor is a(n)

Actual manufacturing overhead costs are assigned to each job by tracing each overhead cost to a specific job.

The Raw Materials Inventory account is

On the cost of goods manufactured schedule, the cost of goods manufactured agrees with the

Sportly, Inc. completed Job No. B14 during 2017. The job cost sheet listed the following: Direct materials \ 110,000 Direct labor 60,000 Manufacturing overhead applied 40,000 Units produced 3,000 units Units sold 1,800 units How much is the cost of the finished goods on hand from this job?

The predetermined overhead rate is based on the relationship between

In a job order cost accounting system, the Raw Materials Inventory account is

Manufacturing overhead is the only product cost that can be assigned to jobs as soon as the costs are incurred.

The labor costs that have been identified as indirect labor should be charged to

Henson Company applies overhead on the basis of 120% of direct labor cost. Job No. 190 is charged with $140,000 of direct materials costs and $180,000 of manufacturing overhead. The total manufacturing costs for Job No. 190 is

Records of individual items of raw materials would not be maintained

The following information is available for completed Job No. 402: Direct materials, $120,000; direct labor, $180,000; manufacturing overhead applied, $90,000; units produced, 5,000 units; units sold, 4,000 units. The cost of the finished goods on hand from this job is

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Merchandising Operations and the Multiple-Step Income Statement

Reporting and Analyzing Inventory

Fraud, Internal Control, and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities

Reporting and Analyzing Stockholders Equity

Statement of Cash Flows

Financial Analysis: The Big Picture

Managerial Accounting

Process Costing

Activity-Based Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Filters