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

Which of the following shows entries only to control accounts?
a. Factory Labor
$\quad$Factory Wages Payable
b. Work in Process
$\quad$Factory Labor
$\quad$Raw Materials Inventory
$\quad$Factory Wages Payable
c. Work in Process
$\quad$Manufacturing Overhead
$\quad$Raw Materials Inventory
d. Factory Labor
$\quad$Raw Materials Inventory
$\quad$Accounts Payable
$\quad$Factory Wages Payable

Accepted Answer

The answer of Which of the following shows entries only...

Question 3

Recording the acquisition of raw materials is a part of accumulating manufacturing costs.

Accepted Answer

A) True 
 B)False

Question 4

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 5

For Jacobs Company, the predetermined overhead rate is 70% of direct labor cost.During the month, $600,000 of factory labor costs are incurred of which $140,000 is indirect labor.Actual overhead incurred was $320,000.The amount of overhead debited to Work in Process Inventory should be:

Accepted Answer

A) $322,000 
B) $320,000 
C) $420,000 
D) $460,000 
A) $322,000 
B) $320,000 
C) $420,000 
D) $460,000

Question 6

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 7

When the company assigns factory labor costs to jobs, the direct labor cost is debited to

Accepted Answer

A) Direct Labor. 
B) Factory Labor. 
C) Manufacturing Overhead. 
D) Work in Process Inventory. 
A) Direct Labor. 
B) Factory Labor. 
C) Manufacturing Overhead. 
D) Work in Process Inventory.

Question 8

Job cost sheets constitute the subsidiary ledger for the

Accepted Answer

A) Finished Goods Inventory account. 
B) Cost of Goods Sold account. 
C) Work In Process Inventory account. 
D) Cost of Goods Manufactured account. 
A) Finished Goods Inventory account. 
B) Cost of Goods Sold account. 
C) Work In Process Inventory account. 
D) Cost of Goods Manufactured account.

Question 9

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 10

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 11

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 12

The perpetual inventory method cannot be used in a job order cost system.

Accepted Answer

A) True 
 B)False

Question 13

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 14

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 15

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 16

At the beginning of the year, Monroe Company estimates annual overhead costs to be $2,400,000 and that 300,000 machine hours will be operated.Using machine hours as a base, the amount of overhead applied during the year if actual machine hours for the year was 315,000 hours is

Accepted Answer

A) $2,400,000. 
B) $2,285,714. 
C) $1,680,000. 
D) $2,520,000. 
A) $2,400,000. 
B) $2,285,714. 
C) $1,680,000. 
D) $2,520,000.

Question 17

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 18

Usually, under- or overapplied overhead is considered to be an adjustment to

Accepted Answer

A) work in process. 
B) finished goods. 
C) finished goods and cost of goods sold. 
D) cost of goods sold. 
A) work in process. 
B) finished goods. 
C) finished goods and cost of goods sold. 
D) cost of goods sold.

Question 19

For Wilton Company, the predetermined overhead rate is 70% of direct labor cost.During the month, $720,000 of factory labor costs are incurred of which $200,000 is indirect labor.Actual overhead incurred was $360,000.The amount of overhead debited to Work in Process Inventory should be:

Accepted Answer

A) $364,000 
B) $360,000 
C) $504,000 
D) $520,000 
A) $364,000 
B) $360,000 
C) $504,000 
D) $520,000

Question 20

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.

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

Recording the acquisition of raw materials is a part of accumulating manufacturing costs.

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

For Jacobs Company, the predetermined overhead rate is 70% of direct labor cost.During the month, $600,000 of factory labor costs are incurred of which $140,000 is indirect labor.Actual overhead incurred was $320,000.The amount of overhead debited to Work in Process Inventory should be:

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

When the company assigns factory labor costs to jobs, the direct labor cost is debited to

Job cost sheets constitute the subsidiary ledger for the

Manufacturing overhead is applied to each job

The principal accounting record used in assigning costs to jobs is

The Raw Materials Inventory account is

The perpetual inventory method cannot be used in a job order cost system.

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

Which of the following is not a control account?

At the beginning of the year, Monroe Company estimates annual overhead costs to be $2,400,000 and that 300,000 machine hours will be operated.Using machine hours as a base, the amount of overhead applied during the year if actual machine hours for the year was 315,000 hours is

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

Usually, under- or overapplied overhead is considered to be an adjustment to

For Wilton Company, the predetermined overhead rate is 70% of direct labor cost.During the month, $720,000 of factory labor costs are incurred of which $200,000 is indirect labor.Actual overhead incurred was $360,000.The amount of overhead debited to Work in Process Inventory should be:

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

Introduction to Financial Statements

The Accounting Information System

Accrual Accounting Concepts

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

Time Value of Money

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Exam 2: A Further Look at Financial Statements

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

Recording the acquisition of raw materials is a part of accumulating manufacturing costs.

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

For Jacobs Company, the predetermined overhead rate is 70% of direct labor cost.During the month, $600,000 of factory labor costs are incurred of which $140,000 is indirect labor.Actual overhead incurred was $320,000.The amount of overhead debited to Work in Process Inventory should be:

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

When the company assigns factory labor costs to jobs, the direct labor cost is debited to

Job cost sheets constitute the subsidiary ledger for the

Manufacturing overhead is applied to each job

The principal accounting record used in assigning costs to jobs is

The Raw Materials Inventory account is

The perpetual inventory method cannot be used in a job order cost system.

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

Which of the following is not a control account?

At the beginning of the year, Monroe Company estimates annual overhead costs to be $2,400,000 and that 300,000 machine hours will be operated.Using machine hours as a base, the amount of overhead applied during the year if actual machine hours for the year was 315,000 hours is

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

Usually, under- or overapplied overhead is considered to be an adjustment to

For Wilton Company, the predetermined overhead rate is 70% of direct labor cost.During the month, $720,000 of factory labor costs are incurred of which $200,000 is indirect labor.Actual overhead incurred was $360,000.The amount of overhead debited to Work in Process Inventory should be:

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

Introduction to Financial Statements

The Accounting Information System

Accrual Accounting Concepts

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

Time Value of Money

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