Exam 2: A Further Look at Financial Statements

Process costing is not used when

A process cost system would be used for all of the following except the

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

Which one of the following is a source document that impacts the job cost sheet?

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

Requisitions for direct materials are posted daily to the individual job cost sheets.

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

A job order cost system is most appropriate when a large volume of uniform products are produced.

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:

During 2017, Durham Manufacturing expected Job No.51 to cost $300,000 of overhead, $500,000 of materials, and $200,000 in labor.Durham 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.What amount was transferred to Finished Goods?

If annual overhead costs are expected to be $750,000 and direct labor costs are expected to be $1,000,000, then if the activity base is direct labor costs:

Materials requisition slips are costed

Which of the following would be accounted for using a job order cost system?

Fringe benefits and payroll taxes associated with factory workers should be accumulated as a part of Factory Labor.

The predetermined overhead rate is based on the relationship between estimated annual overhead costs and expected annual operating activity expressed in terms of a common activity base.

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

There should be a separate job cost sheet for each job.

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

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?

An important feature of a job order cost system is that each job