Question 1

A time ticket does not indicate the

Accepted Answer

A) employee's name. 
B) account to be charged. 
C) number of personal exemptions claimed by the employee. 
D) job number. 
A) employee's name. 
B) account to be charged. 
C) number of personal exemptions claimed by the employee. 
D) job number.

Question 2

A company expected its annual overhead costs to be $1,500,000 and direct labor costs to be $1,000,000. Actual overhead was $1,450,000, and actual labor costs totaled $1,100,000. How much is the company's predetermined overhead rate to the nearest cent?

Accepted Answer

A) $1.45 
B) $1.31 
C) $1.50 
D) $1.37 
A) $1.45 
B) $1.31 
C) $1.50 
D) $1.37

Question 3

Simpson Company applies overhead on the basis of 200% of direct labor cost. Job No. 305 is charged with $180,000 of direct materials costs and $200,000 of manufacturing overhead. The total manufacturing costs for Job No. 305 is:

Accepted Answer

A) $380,000 
B) $480,000 
C) $560,000 
D) $580,000 
A) $380,000 
B) $480,000 
C) $560,000 
D) $580,000

Question 4

A cost accounting system consists of manufacturing cost accounts that are fully integrated into the general ledger of a company.

Accepted Answer

A) True 
 B)False

Question 5

If Manufacturing Overhead has a debit 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 more 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 more than the overhead incurred. 
C) overhead has been overapplied. 
D) management must take corrective action.

Question 6

Barnes Company applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under- or overapplication of overhead for the period: $\begin{array}{lr}
\text { Estimated annual overhead cost } & \$ 3,000,000 \
\text { Actual annual overhead cost } & \$ 2,970,000 \
\text { Estimated machine hours } & 300,000 \
\text { Actual machine hours } & 295,000
\end{array}$

Accepted Answer

A) $2,950,000 applied and $20,000 overapplied 
B) $3,000,000 applied and $20,000 overapplied 
C) $2,950,000 applied and $20,000 underapplied 
D) $2,970,000 applied and neither under- nor overapplied 
A) $2,950,000 applied and $20,000 overapplied 
B) $3,000,000 applied and $20,000 overapplied 
C) $2,950,000 applied and $20,000 underapplied 
D) $2,970,000 applied and neither under- nor overapplied

Question 7

Which of the following is not a control account?

Accepted Answer

A) Raw Materials Inventory 
B) Factory Labor 
C) Manufacturing Overhead 
D) All of these are control accounts. 
A) Raw Materials Inventory 
B) Factory Labor 
C) Manufacturing Overhead 
D) All of these are control accounts.

Question 8

Which of the following statements about under- or overapplied manufacturing overhead is correct?

Accepted Answer

A) After the entry to transfer over- or underapplied overhead to Cost of Goods Sold is posted, Manufacturing Overhead will have a zero balance. 
B) When Manufacturing Overhead has a credit balance, overhead is said to be under-applied. 
C) At the end of the year, under- or overapplied overhead is eliminated by a closing entry. 
D) When annual financial statements are prepared, overapplied overhead is reported in current liabilities. 
A) After the entry to transfer over- or underapplied overhead to Cost of Goods Sold is posted, Manufacturing Overhead will have a zero balance. 
B) When Manufacturing Overhead has a credit balance, overhead is said to be under-applied. 
C) At the end of the year, under- or overapplied overhead is eliminated by a closing entry. 
D) When annual financial statements are prepared, overapplied overhead is reported in current liabilities.

Question 9

Norman Company manufactures customized desks. The following pertains to Job No. 953: $\begin{array}{lr}
\text { Direct materials used } & \$ 22,800 \
\text { Direct labor hours worked } & 600 \
\text { Direct labor rate per hour } & \$ 16.00 \
\text { Machine hours used } & 400 \
\text { Applied factory overhead rate per machine hour } & \$ 30.00
\end{array}$ What is the total manufacturing cost for Job No. 953?

Accepted Answer

A) $41,200 
B) $44,400 
C) $47,200 
D) $50,400 
A) $41,200 
B) $44,400 
C) $47,200 
D) $50,400

Question 10

If manufacturing overhead has been underapplied during the year, the adjusting entry at the end of the year will show a

Accepted Answer

A) debit to Manufacturing Overhead. 
B) credit to Cost of Goods Sold. 
C) debit to Work in Process Inventory. 
D) debit to Cost of Goods Sold. 
A) debit to Manufacturing Overhead. 
B) credit to Cost of Goods Sold. 
C) debit to Work in Process Inventory. 
D) debit to Cost of Goods Sold.

Question 11

A company assigned overhead to work in process. At year end, what does the amount of overapplied overhead mean?

Accepted Answer

A) The overhead assigned to work in process is greater than the estimated overhead costs. 
B) The overhead assigned to work in process is less than the estimated overhead costs. 
C) The overhead assigned to work in process is less than the actual overhead. 
D) The overhead assigned to work in process is greater than the overhead incurred. 
A) The overhead assigned to work in process is greater than the estimated overhead costs. 
B) The overhead assigned to work in process is less than the estimated overhead costs. 
C) The overhead assigned to work in process is less than the actual overhead. 
D) The overhead assigned to work in process is greater than the overhead incurred.

Question 12

Overapplied overhead means that actual manufacturing overhead costs were greater than the manufacturing overhead costs applied to jobs.

Accepted Answer

A) True 
 B)False

Question 13

The principal accounting record used in assigning costs to jobs is

Accepted Answer

A) a job cost sheet. 
B) the cost of goods manufactured schedule. 
C) the Manufacturing Overhead control account. 
D) the stores ledger cards. 
A) a job cost sheet. 
B) the cost of goods manufactured schedule. 
C) the Manufacturing Overhead control account. 
D) the stores ledger cards.

Question 14

Kinney Company applies overhead on the basis of 150% of direct labor cost. Job No. 176 is charged with $150,000 of direct materials costs and $180,000 of manufacturing overhead. The total manufacturing costs for Job No. 176 is

Accepted Answer

A) $330,000. 
B) $600,000. 
C) $450,000. 
D) $405,000. 
A) $330,000. 
B) $600,000. 
C) $450,000. 
D) $405,000.

Question 15

When goods are sold, the Cost of Goods Sold account is debited and Work in Process Inventory account is credited.

Accepted Answer

A) True 
 B)False

Question 16

When raw materials are purchased, the Work in Process Inventory account is debited.

Accepted Answer

A) True 
 B)False

Question 17

Gannon Company had the following information at December 31: Finished goods inventory, January $1 \quad \$ 50,000$
Finished goods inventory, December $31 \quad 150,000$ If the cost of goods manufactured during the year amounted to $2,200,000 and annual sales were $2,750,000, the amount of gross profit for the year is

Accepted Answer

A) $550,000. 
B) $2,100,000. 
C) $650,000. 
D) $450,000. 
A) $550,000. 
B) $2,100,000. 
C) $650,000. 
D) $450,000.

Question 18

Conceptually, any under- or overapplied overhead at the end of the year should be allocated among all of the following except

Accepted Answer

A) cost of goods sold. 
B) ending work in process inventory. 
C) ending raw materials inventory. 
D) ending finished goods inventory. 
A) cost of goods sold. 
B) ending work in process inventory. 
C) ending raw materials inventory. 
D) ending finished goods inventory.

Question 19

Job order cost sheets constitute the subsidiary ledger of the control account Work In Process Inventory.

Accepted Answer

A) True 
 B)False

Question 20

Cost of goods sold is obtained from

Accepted Answer

A) analysis of all the control accounts in the cost system. 
B) the finished goods inventory records. 
C) the work in process inventory records. 
D) the Raw Materials Inventory control account. 
A) analysis of all the control accounts in the cost system. 
B) the finished goods inventory records. 
C) the work in process inventory records. 
D) the Raw Materials Inventory control account.

A time ticket does not indicate the

A company expected its annual overhead costs to be $1,500,000 and direct labor costs to be $1,000,000. Actual overhead was $1,450,000, and actual labor costs totaled $1,100,000. How much is the company's predetermined overhead rate to the nearest cent?

Simpson Company applies overhead on the basis of 200% of direct labor cost. Job No. 305 is charged with $180,000 of direct materials costs and $200,000 of manufacturing overhead. The total manufacturing costs for Job No. 305 is:

A cost accounting system consists of manufacturing cost accounts that are fully integrated into the general ledger of a company.

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

Which of the following is not a control account?

Which of the following statements about under- or overapplied manufacturing overhead is correct?

If manufacturing overhead has been underapplied during the year, the adjusting entry at the end of the year will show a

A company assigned overhead to work in process. At year end, what does the amount of overapplied overhead mean?

Overapplied overhead means that actual manufacturing overhead costs were greater than the manufacturing overhead costs applied to jobs.

The principal accounting record used in assigning costs to jobs is

Kinney Company applies overhead on the basis of 150% of direct labor cost. Job No. 176 is charged with $150,000 of direct materials costs and $180,000 of manufacturing overhead. The total manufacturing costs for Job No. 176 is

When goods are sold, the Cost of Goods Sold account is debited and Work in Process Inventory account is credited.

When raw materials are purchased, the Work in Process Inventory account is debited.

Conceptually, any under- or overapplied overhead at the end of the year should be allocated among all of the following except

Job order cost sheets constitute the subsidiary ledger of the control account Work In Process Inventory.

Cost of goods sold is obtained from

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

A time ticket does not indicate the

A company expected its annual overhead costs to be $1,500,000 and direct labor costs to be $1,000,000. Actual overhead was $1,450,000, and actual labor costs totaled $1,100,000. How much is the company's predetermined overhead rate to the nearest cent?

Simpson Company applies overhead on the basis of 200% of direct labor cost. Job No. 305 is charged with $180,000 of direct materials costs and $200,000 of manufacturing overhead. The total manufacturing costs for Job No. 305 is:

A cost accounting system consists of manufacturing cost accounts that are fully integrated into the general ledger of a company.

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

Which of the following is not a control account?

Which of the following statements about under- or overapplied manufacturing overhead is correct?

If manufacturing overhead has been underapplied during the year, the adjusting entry at the end of the year will show a

A company assigned overhead to work in process. At year end, what does the amount of overapplied overhead mean?

Overapplied overhead means that actual manufacturing overhead costs were greater than the manufacturing overhead costs applied to jobs.

The principal accounting record used in assigning costs to jobs is

Kinney Company applies overhead on the basis of 150% of direct labor cost. Job No. 176 is charged with $150,000 of direct materials costs and $180,000 of manufacturing overhead. The total manufacturing costs for Job No. 176 is

When goods are sold, the Cost of Goods Sold account is debited and Work in Process Inventory account is credited.

When raw materials are purchased, the Work in Process Inventory account is debited.

Conceptually, any under- or overapplied overhead at the end of the year should be allocated among all of the following except

Job order cost sheets constitute the subsidiary ledger of the control account Work In Process Inventory.

Cost of goods sold is obtained from

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