Question 1

If Manufacturing Overhead has a credit balance at the end of the period, then

Accepted Answer

A) overhead has been underapplied. 
B) the overhead assigned to Work in Process Inventory is less than the overhead incurred. 
C) overhead has been overapplied. 
D) management must take corrective action. 
A) overhead has been underapplied. 
B) the overhead assigned to Work in Process Inventory is less than the overhead incurred. 
C) overhead has been overapplied. 
D) management must take corrective action.

Question 2

A process cost accounting system is appropriate for similar products that are continuously mass produced.

Accepted Answer

A) True 
 B)False

Question 3

At the end of the year, underapplied overhead is usually credited to Cost of Goods Sold.

Accepted Answer

A) True 
 B)False

Question 4

The Manufacturing Overhead account shows debits of $30,000, $24,000, and $28,000 and one credit for $86,000. Based on this information, manufacturing overhead

Accepted Answer

A) has been overapplied. 
B) has been underapplied. 
C) has not been applied. 
D) shows a zero balance. 
A) has been overapplied. 
B) has been underapplied. 
C) has not been applied. 
D) shows a zero balance.

Question 5

A company may use either a job order cost system or a process cost system, but not both.

Accepted Answer

A) True 
 B)False

Question 6

In determining total manufacturing costs on the cost of goods manufactured schedule,

Accepted Answer

A) beginning work in process inventory should have a zero balance. 
B) actual manufacturing overhead costs appear as a deduction. 
C) manufacturing overhead applied is added to direct materials and direct labor. 
D) ending work in process inventory is deducted from beginning work in process inventory. 
A) beginning work in process inventory should have a zero balance. 
B) actual manufacturing overhead costs appear as a deduction. 
C) manufacturing overhead applied is added to direct materials and direct labor. 
D) ending work in process inventory is deducted from beginning work in process inventory.

Question 7

Manufacturing overhead is applied to each job

Accepted Answer

A) at the time when the overhead cost is incurred. 
B) by means of a predetermined overhead rate. 
C) at the end of the year when actual costs are known. 
D) only if the overhead costs can be directly traced to that job. 
A) at the time when the overhead cost is incurred. 
B) by means of a predetermined overhead rate. 
C) at the end of the year when actual costs are known. 
D) only if the overhead costs can be directly traced to that job.

Question 8

A good system of internal control requires that the job order cost sheet be destroyed as soon as the job is complete.

Accepted Answer

A) True 
 B)False

Question 9

If the entry to assign factory labor showed only a debit to Work In Process Inventory, then all labor costs were

Accepted Answer

A) direct labor. 
B) indirect labor. 
C) overtime related. 
D) regular hours. 
A) direct labor. 
B) indirect labor. 
C) overtime related. 
D) regular hours.

Question 10

If the Manufacturing Overhead account has a debit balance at the end of a period, it means that

Accepted Answer

A) actual overhead costs were less than overhead costs applied to jobs. 
B) actual overhead costs were greater than overhead costs applied to jobs. 
C) actual overhead costs were equal to overhead costs applied to jobs. 
D) no jobs have been completed. 
A) actual overhead costs were less than overhead costs applied to jobs. 
B) actual overhead costs were greater than overhead costs applied to jobs. 
C) actual overhead costs were equal to overhead costs applied to jobs. 
D) no jobs have been completed.

Question 11

If actual overhead is less than applied manufacturing overhead, then manufacturing overhead is:

Accepted Answer

A) underapplied. 
B) overapplied. 
C) a loss on the income statement under "Other Expenses and Losses." 
D) considered a miscellaneous expense. 
A) underapplied. 
B) overapplied. 
C) a loss on the income statement under "Other Expenses and Losses." 
D) considered a miscellaneous expense.

Question 12

Minton Company provided the following information from its accounting records for 2017: $\begin{array}{lr}
\text { Expected production } & 60,000 \text { labor hours } \
\text { Actual production } & 56,000 \text { labor hours } \
\text { Budgeted overhead } & \$ 1,800,000 \
\text { Actual overhead } & \$ 1,740,000
\end{array}$ How much is the overhead application rate if Minton Company bases it on direct labor hours?

Accepted Answer

A) $30.00 per hour 
B) $29.00 per hour 
C) $32.14 per hour 
D) $31.07 per hour 
A) $30.00 per hour 
B) $29.00 per hour 
C) $32.14 per hour 
D) $31.07 per hour

Question 13

Kline Manufacturing has the following labor costs: $$\begin{array} { l r } 
\text { Factory-Gross wages } & \$ 500,000 \
\text { Factory-Net wages } & 420,000 \
\text { Employer Payroll Taxes Payable } & 50,000
\end{array}$$ The entry to record the cost of factory labor and the associated payroll tax expense will include a debit to Factory Labor for

Accepted Answer

A) $550,000. 
B) $500,000. 
C) $470,000. 
D) $450,000. 
A) $550,000. 
B) $500,000. 
C) $470,000. 
D) $450,000.

Question 14

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 ending work in process inventory is

Accepted Answer

A) $696,000. 
B) $480,000. 
C) $456,000. 
D) $216,000. 
A) $696,000. 
B) $480,000. 
C) $456,000. 
D) $216,000.

Question 15

Cost of raw materials is debited to Raw Materials Inventory when the

Accepted Answer

A) materials are ordered. 
B) materials are received. 
C) materials are put into production. 
D) bill for the materials is paid. 
A) materials are ordered. 
B) materials are received. 
C) materials are put into production. 
D) bill for the materials is paid.

Question 16

A copy of the materials requisition slip would not include the:

Accepted Answer

A) quantity. 
B) stock number. 
C) cost per unit. 
D) name of the supplier. 
A) quantity. 
B) stock number. 
C) cost per unit. 
D) name of the supplier.

Question 17

At the end of the year, any balance in the Manufacturing Overhead account is generally eliminated by adjusting

Accepted Answer

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

Question 18

Overhead application is recorded with a

Accepted Answer

A) credit to Work in Process Inventory. 
B) credit to Manufacturing Overhead. 
C) debit to Manufacturing Overhead. 
D) credit to job cost sheets. 
A) credit to Work in Process Inventory. 
B) credit to Manufacturing Overhead. 
C) debit to Manufacturing Overhead. 
D) credit to job cost sheets.

Question 19

The flow of costs in a job order cost system

Accepted Answer

A) involves accumulating manufacturing costs incurred and assigning the accumulated costs to work done. 
B) cannot be measured until all jobs are complete. 
C) measures product costs for a set time period. 
D) generally follows a LIFO cost flow assumption. 
A) involves accumulating manufacturing costs incurred and assigning the accumulated costs to work done. 
B) cannot be measured until all jobs are complete. 
C) measures product costs for a set time period. 
D) generally follows a LIFO cost flow assumption.

Question 20

Greer Company developed the following data for the current year: $$\begin{array} { l l } 
\text { Beginning work in process inventory } & \$ 136,000 \
\text { Direct materials used } & 208,000 \
\text { Actual overhead } & 176,000 \
\text { Cverhead applied } & 184,000 \
\text { Cost of goods manufactured } & 900,000 \
\text { Total manufacturing costs } & 856,000
\end{array}$$ How much is Greer Company's ending work in process inventory for the year?

Accepted Answer

A) $92,000 
B) $484,000 
C) $84,000 
D) $372,000 
A) $92,000 
B) $484,000 
C) $84,000 
D) $372,000

If Manufacturing Overhead has a credit balance at the end of the period, then

A process cost accounting system is appropriate for similar products that are continuously mass produced.

At the end of the year, underapplied overhead is usually credited to Cost of Goods Sold.

The Manufacturing Overhead account shows debits of $30,000, $24,000, and $28,000 and one credit for $86,000. Based on this information, manufacturing overhead

A company may use either a job order cost system or a process cost system, but not both.

In determining total manufacturing costs on the cost of goods manufactured schedule,

Manufacturing overhead is applied to each job

A good system of internal control requires that the job order cost sheet be destroyed as soon as the job is complete.

If the entry to assign factory labor showed only a debit to Work In Process Inventory, then all labor costs were

If the Manufacturing Overhead account has a debit balance at the end of a period, it means that

If actual overhead is less than applied manufacturing overhead, then manufacturing overhead is:

Kline Manufacturing has the following labor costs: Factory-Gross wages \ 500,000 Factory-Net wages 420,000 Employer Payroll Taxes Payable 50,000 The entry to record the cost of factory labor and the associated payroll tax expense will include a debit to Factory Labor for

Cost of raw materials is debited to Raw Materials Inventory when the

A copy of the materials requisition slip would not include the:

At the end of the year, any balance in the Manufacturing Overhead account is generally eliminated by adjusting

Overhead application is recorded with a

The flow of costs in a job order cost system

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 Manufacturing Overhead has a credit balance at the end of the period, then

A process cost accounting system is appropriate for similar products that are continuously mass produced.

At the end of the year, underapplied overhead is usually credited to Cost of Goods Sold.

The Manufacturing Overhead account shows debits of $30,000, $24,000, and $28,000 and one credit for $86,000. Based on this information, manufacturing overhead

A company may use either a job order cost system or a process cost system, but not both.

In determining total manufacturing costs on the cost of goods manufactured schedule,

Manufacturing overhead is applied to each job

A good system of internal control requires that the job order cost sheet be destroyed as soon as the job is complete.

If the entry to assign factory labor showed only a debit to Work In Process Inventory, then all labor costs were

If the Manufacturing Overhead account has a debit balance at the end of a period, it means that

If actual overhead is less than applied manufacturing overhead, then manufacturing overhead is:

Kline Manufacturing has the following labor costs: Factory-Gross wages \ 500,000 Factory-Net wages 420,000 Employer Payroll Taxes Payable 50,000 The entry to record the cost of factory labor and the associated payroll tax expense will include a debit to Factory Labor for

Cost of raw materials is debited to Raw Materials Inventory when the

A copy of the materials requisition slip would not include the:

At the end of the year, any balance in the Manufacturing Overhead account is generally eliminated by adjusting

Overhead application is recorded with a

The flow of costs in a job order cost system

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