Question 1

At the end of the year, the accountant credits the amount of the overapplied overhead to Cost of Goods Sold.

Accepted Answer

A) True 
 B)False

Question 2

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 3

Companies assign manufacturing overhead to work in process on an estimated basis through the use of a(n)

Accepted Answer

A) actual overhead rate. 
B) estimated overhead rate. 
C) assigned overhead rate. 
D) predetermined overhead rate. 
A) actual overhead rate. 
B) estimated overhead rate. 
C) assigned overhead rate. 
D) predetermined overhead rate.

Question 4

Under an effective system of internal control, the authorization for issuing materials is made

Accepted Answer

A) orally. 
B) on a prenumbered materials requisition slip. 
C) by the accounting department. 
D) by anyone on the production line. 
A) orally. 
B) on a prenumbered materials requisition slip. 
C) by the accounting department. 
D) by anyone on the production line.

Question 5

Manufacturing overhead applied is added to direct labor incurred and to what other item to equal total manufacturing costs for the period?

Accepted Answer

A) Goods available for sale. 
B) Raw materials purchased. 
C) Work in process. 
D) Direct materials used. 
A) Goods available for sale. 
B) Raw materials purchased. 
C) Work in process. 
D) Direct materials used.

Question 6

Postings to control accounts in a costing system are made

Accepted Answer

A) monthly. 
B) daily. 
C) annually. 
D) semi-annually. 
A) monthly. 
B) daily. 
C) annually. 
D) semi-annually.

Question 7

Which one of the following best describes a job cost sheet?

Accepted Answer

A) It is a form used to record the costs chargeable to a specific job and to determine the total and unit costs of the completed job. 
B) It is used to track manufacturing overhead costs to specific jobs. 
C) It is used by management to understand how direct costs affect profitability. 
D) It is a daily form that management uses for tracking worker productivity on which employee raises are based. 
A) It is a form used to record the costs chargeable to a specific job and to determine the total and unit costs of the completed job. 
B) It is used to track manufacturing overhead costs to specific jobs. 
C) It is used by management to understand how direct costs affect profitability. 
D) It is a daily form that management uses for tracking worker productivity on which employee raises are based.

Question 8

Gulick Company developed the following data for the current year: $\begin{array}{lr}
\text { Beginning mork in process inventory } & \$ 240,000 \
\text { Direct materials used } & 144,000 \
\text { Actual overhead } & 288,000 \
\text { Overhead applied } & 216,000 \
\text { Cost of goods manufactured } & 264,000 \
 \text { Total manufacturing costs } & 720,000
\end{array}$ 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 9

Factory labor should be assigned to selling and administrative expenses on a proportionate basis.

Accepted Answer

A) True 
 B)False

Question 10

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 11

Redman Company manufactures customized desks. The following pertains to Job No.978: $$\begin{array} { l r } 
\text { Direct materials used } & \$ 15,450 \
\text { Direct labor hours worked } & 360 \
\text { Direct labor rate per hour } & \$ 15.00 \
\text { Machine hours used } & 300 \
\text { Applied factory overhead rate per machine hour } & \$ 22.00
\end{array}$$ What is the total manufacturing cost for Job No.978?

Accepted Answer

A) $25,650 
B) $27,450 
C) $28,950 
D) $30,750 
A) $25,650 
B) $27,450 
C) $28,950 
D) $30,750

Question 12

Barger Company had the following information at December 31: Finished goods inventory, January $ 1 \quad \$ 90,000 $ 
Finished goods inventory December $ 31 \quad 126,000 $ If the cost of goods manufactured during the year amounted to $1,895,000 and annual sales were $2,994,000, how much is the amount of gross profit for the year?

Accepted Answer

A) $1,099,000 
B) $1,009,000 
C) $1,859,000 
D) $1,135,000 
A) $1,099,000 
B) $1,009,000 
C) $1,859,000 
D) $1,135,000

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

Factory labor costs

Accepted Answer

A) are accumulated in a control account. 
B) do not include pension costs. 
C) include vacation pay. 
D) are based on workers' net pay. 
A) are accumulated in a control account. 
B) do not include pension costs. 
C) include vacation pay. 
D) are based on workers' net pay.

Question 15

A materials requisition slip showed that direct materials requested were $66,000 and indirect materials requested were $9,000.The entry to record the transfer of materials from the storeroom is $\begin{array}{lr}
\text {a. Work In Process Inventory}&66,000\
\quad \text {Raw Materials Inventory}&&6,000\
\text {b. Direct Materials}&66,000\
\quad \text { Indirect Materials}&9,000\
\quad \text {Work in Process Inventory}&&75,000\
\text {c. Manufacturing Overhead}&75,000\
\quad \text {Raw Materials Inventory}&&75,000\
\text {d. Work In Process Inventory}&66,000\
\quad \text {Manufacturing Overhead}&9,000\
\quad \text {Raw Materials Inventor}&&75,000\
\end{array}$

Accepted Answer

The answer of A materials requisition slip showed that direct...

Question 16

If manufacturing overhead has been overapplied 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 Finished Goods Inventory 
C) debit to Cost of Goods Sold. 
D) credit to Work in Process Inventory. 
A) debit to Manufacturing Overhead. 
B) credit to Finished Goods Inventory 
C) debit to Cost of Goods Sold. 
D) credit to Work in Process Inventory.

Question 17

Which one of the following should be equal to the balance of the Work In Process Inventory account at the end of the period?

Accepted Answer

A) The total of the amounts transferred from raw materials for the current period 
B) The sum of the costs shown on the job cost sheets of unfinished jobs 
C) The total of manufacturing overhead applied to work in process for the period 
D) The total manufacturing costs for the period 
A) The total of the amounts transferred from raw materials for the current period 
B) The sum of the costs shown on the job cost sheets of unfinished jobs 
C) The total of manufacturing overhead applied to work in process for the period 
D) The total manufacturing costs for the period

Question 18

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.

Question 19

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 20

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.

At the end of the year, the accountant credits the amount of the overapplied overhead to Cost of Goods Sold.

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

Companies assign manufacturing overhead to work in process on an estimated basis through the use of a(n)

Under an effective system of internal control, the authorization for issuing materials is made

Manufacturing overhead applied is added to direct labor incurred and to what other item to equal total manufacturing costs for the period?

Postings to control accounts in a costing system are made

Which one of the following best describes a job cost sheet?

Factory labor should be assigned to selling and administrative expenses on a proportionate basis.

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

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

Factory labor costs

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

Which one of the following should be equal to the balance of the Work In Process Inventory account at the end of the period?

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

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

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

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

At the end of the year, the accountant credits the amount of the overapplied overhead to Cost of Goods Sold.

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

Companies assign manufacturing overhead to work in process on an estimated basis through the use of a(n)

Under an effective system of internal control, the authorization for issuing materials is made

Manufacturing overhead applied is added to direct labor incurred and to what other item to equal total manufacturing costs for the period?

Postings to control accounts in a costing system are made

Which one of the following best describes a job cost sheet?

Factory labor should be assigned to selling and administrative expenses on a proportionate basis.

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

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

Factory labor costs

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

Which one of the following should be equal to the balance of the Work In Process Inventory account at the end of the period?

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

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

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

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

Filters