Exam 2: A Further Look at Financial Statements

In a manufacturing company, the cost of factory labor consists of all of the following except

In a job order cost system, each entry to the Work In Process Inventory account should be accompanied by a posting to one or more job cost sheets.

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

Which of the following is not viewed as part of accumulating manufacturing costs in a job order cost system?

Gulick Company developed the following data for the current year: Beginning mork in process inventory \ 240,000 Direct materials used 144,000 Actual overhead 288,000 Overhead applied 216,000 Cost of goods manufactured 264,000 Total manufacturing costs 720,000 Gulick Company's ending work in process inventory is

Manufacturing overhead is the only product cost that can be assigned to jobs as soon as the costs are incurred.

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

When raw materials are received, there is no effort at this point to associate the cost of materials with specific jobs.

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

As of December 31, 2017, Stand Still Industries had $2,500 of raw materials inventory.At the beginning of 2017, there was $2,000 of materials on hand.During the year, the company purchased $375,000 of materials; however, it paid for only $312,500.How much inventory was requisitioned for use on jobs during 2017?

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

Kimble 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: Estimated annual overhead cost \ 1,600,000 Actual annual overhead cost \ 1,575,000 Estimated machine hours 400,000 Actual machine hours 390,000

As of December 31, 2017, Nilsen Industries had $2,000 of raw materials inventory.At the beginning of 2017, there was $1,600 of materials on hand.During the year, the company purchased $354,000 of materials; however it paid for only $314,000.How much inventory was requisitioned for use on jobs during 2017?

Sportly, Inc.completed Job No.B14 during 2017.The job cost sheet listed the following: Direct materials \ 110,000 Direct labor \ 60,000 Manufacturing overhead applied \ 40,000 Units produced 3,000 units Units sold 1,800 units How much is the cost of the finished goods on hand from this job?

The predetermined overhead rate is

Factory Labor is a(n)

In a job order cost system, it would be correct in recording the purchase of raw materials to debit

When determining costs of jobs, how does a company account for indirect materials?

When a job is completed and all costs have been accumulated on a job cost sheet, the journal entry that should be made is a. Finished Goods Inventory $\quad$ Direct Materials $\quad$ Direct Labor $\quad$ Manufacturing Overhead b. Work In Process Inventory $\quad$ Direct Materials Direct Labor $\quad$ Manufacturing Overhead c. Raw Materials Inventory $\quad$ Work In Process Inventory d. Finished Goods Inventory $\quad$ Work In Process Inventory

Actual manufacturing overhead costs should be charged to the Work in Process Inventory account as they are incurred.