Rayfield Company's management accountant collected the following inventory and transaction data for the month: $\begin{array}{lll}\text { Inventories }& \text { Ending }& \text { Beginning }\\ \text { Direct materials } & \$ 220 & \$ 190 \\ \text { Work in process } & 160 & 140 \\ \text { Finished goods } & 190 & 220 \end{array}$ The cost of goods available for sale was $1,370. Total manufacturing costs assigned to work in process during the month was $1,170. Manufacturing overhead was $334; and direct materials used were $386. Cost of goods sold for the month was:

A) $1,150 B) $1,370 C) $1,180 D) $1,120 A) $1,150 B) $1,370 C) $1,180 D) $1,120

A) Flow into the overhead account B) Can be traced to each product C) Are always material in amount D) Are ignored in job costing A) Flow into the overhead account B) Can be traced to each product C) Are always material in amount D) Are ignored in job costing

A) Always tracked B) Never tracked C) Sometimes tracked D) Deferred until the cash cycle is complete A) Always tracked B) Never tracked C) Sometimes tracked D) Deferred until the cash cycle is complete

Collins Company uses a job costing system and allocates overhead using an estimated overhead allocation rate based on direct labour hours. Information for 2017 is as follows: $\begin{array}{lrr}&\text { Estimated }&\text { Actual }\\ \text { Manufacturing overhead } & \$ 166,500 & \$ 165,000 \\ \text { Direct labour hours } & 50,000 & 60,000 \end{array}$ The overhead allocated to work in process during 2017 before the year-end adjustment was:

A) $199,800 B) $165,000 C) $166,500 D) $198,000 A) $199,800 B) $165,000 C) $166,500 D) $198,000

Collins Company uses a job costing system and allocates overhead using an estimated overhead allocation rate based on direct labour hours. Information for 2017 is as follows: $\begin{array}{lrr}&\text { Estimated }&\text { Actual }\\ \text { Manufacturing overhead } & \$ 166,500 & \$ 165,000 \\ \text { Direct labour hours } & 50,000 & 60,000 \end{array}$ The amount of over- or underapplied overhead for 2017 was:

A) $1,500 underapplied B) $3,000 underapplied C) $1,500 overapplied D) $34,800 overapplied A) $1,500 underapplied B) $3,000 underapplied C) $1,500 overapplied D) $34,800 overapplied

Rayfield Company's management accountant collected the following inventory and transaction data for the month: $\begin{array}{lll}\text { Inventories }& \text { Ending }& \text { Beginning }\\ \text { Direct materials } & \$ 220 & \$ 190 \\ \text { Work in process } & 160 & 140 \\ \text { Finished goods } & 190 & 220 \end{array}$ The cost of goods available for sale was $1,370. Total manufacturing costs assigned to work in process during the month was $1,170. Manufacturing overhead was $334; and direct materials used were $386. Cost of jobs completed for the month was:

A) $1,170 B) $1,310 C) $1,190 D) $1,150 A) $1,170 B) $1,310 C) $1,190 D) $1,150

Exam 5: Job Costing

Rayfield Company's management accountant collected the following inventory and transaction data for the month: Inventories Ending Beginning Direct materials \ 220 \ 190 Work in process 160 140 Finished goods 190 220 The cost of goods available for sale was $1,370. Total manufacturing costs assigned to work in process during the month was $1,170. Manufacturing overhead was $334; and direct materials used were $386. Cost of goods sold for the month was:

(Multiple Choice)

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Question 41

Which costing system does not include over- or underapplied overhead?

(Multiple Choice)

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Question 42

When underapplied or overapplied overhead is large it is:

(Multiple Choice)

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Question 43

Which of the following statements regarding the uses and limitations of job costing is true?

(Multiple Choice)

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Question 44

Which of the following costs are credited to a separate loss account? I. Abnormal spoilage II. Rework for abnormal defects III. Rework for normal spoilage

(Multiple Choice)

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Question 45

Indirect materials:

(Multiple Choice)

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Question 46

Rework costs are:

(Multiple Choice)

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Question 47

Information from job costing systems is subject to uncertainties and implementing a job costing system requires judgment.

(True/False)

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Question 48

Abnormal spoilage is recorded in a Loss from Abnormal Spoilage account so that managers can:

(Multiple Choice)

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Question 49

Collins Company uses a job costing system and allocates overhead using an estimated overhead allocation rate based on direct labour hours. Information for 2017 is as follows: Estimated Actual Manufacturing overhead \ 166,500 \ 165,000 Direct labour hours 50,000 60,000 The overhead allocated to work in process during 2017 before the year-end adjustment was:

(Multiple Choice)

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Question 50

Tern's Toys incurred $1,500 in production costs for the week. Work in process decreased by $100, and finished goods inventory increased by $500. What was the cost of jobs completed?

(Multiple Choice)

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(69)

Question 51

Collins Company uses a job costing system and allocates overhead using an estimated overhead allocation rate based on direct labour hours. Information for 2017 is as follows: Estimated Actual Manufacturing overhead \ 166,500 \ 165,000 Direct labour hours 50,000 60,000 The amount of over- or underapplied overhead for 2017 was:

(Multiple Choice)

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Question 52

In actual costing systems, overhead is allocated using the following formula: actual allocation base volume / actual allocation rate.

(True/False)

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Question 53

Raw Material 9/1 12,000 Work in Process Inventory 9/1 4,500 Work in Process Inventory 9/1 4,500 Overhead Cost Control 14,800 Accounts Payable 8,000 9/30 • The overhead is allocated to jobs using an estimated rate applied to direct labour hours. The budget for the year called for $180,000 of overhead cost and 60,000 direct labour hours. • Accounts payable is used for materials only. The balance on 9/1 was $6,000. September's payments were $40,000. • September 1 finished goods inventory was $11,000. • Cost of jobs completed in September was $89,000. • On September 30 there was a single job unfinished, consisting of $1,800 (300 hours) of direct labour and $2,600 of direct material. • 5,200 direct hours were worked during September. All workers earn the same rate of pay. • All actual overhead costs incurred have been recorded. Work in process balance at September 30 was:

(Multiple Choice)

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Question 54

Rayfield Company's management accountant collected the following inventory and transaction data for the month: Inventories Ending Beginning Direct materials \ 220 \ 190 Work in process 160 140 Finished goods 190 220 The cost of goods available for sale was $1,370. Total manufacturing costs assigned to work in process during the month was $1,170. Manufacturing overhead was $334; and direct materials used were $386. Cost of jobs completed for the month was:

(Multiple Choice)

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Question 55

Assume that variable overhead is overapplied by $200 and fixed overhead is underapplied by $100. If these variances are considered immaterial, the effect on cost of goods sold is:

(Multiple Choice)

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Question 56

Raw Material 9/1 12,000 Work in Process Inventory 9/1 4,500 Work in Process Inventory 9/1 4,500 Overhead Cost Control 14,800 Accounts Payable 8,000 9/30 • The overhead is allocated to jobs using an estimated rate applied to direct labour hours. The budget for the year called for $180,000 of overhead cost and 60,000 direct labour hours. • Accounts payable is used for materials only. The balance on 9/1 was $6,000. September's payments were $40,000. • September 1 finished goods inventory was $11,000. • Cost of jobs completed in September was $89,000. • On September 30 there was a single job unfinished, consisting of $1,800 (300 hours) of direct labour and $2,600 of direct material. • 5,200 direct hours were worked during September. All workers earn the same rate of pay. • All actual overhead costs incurred have been recorded. Materials used during September were:

(Multiple Choice)

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Question 57

In a job costing system, costs flow out of work-in-process into finished goods inventory.

(True/False)

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Question 58

Under job costing, the cost of inventory in finished goods:

(Multiple Choice)

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Question 59

An out-of-control manufacturing process is most likely to produce:

(Multiple Choice)

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Question 60

Which costing system does not include over- or underapplied overhead?

When underapplied or overapplied overhead is large it is:

Which of the following statements regarding the uses and limitations of job costing is true?

Which of the following costs are credited to a separate loss account? I. Abnormal spoilage II. Rework for abnormal defects III. Rework for normal spoilage

Indirect materials:

Rework costs are:

Information from job costing systems is subject to uncertainties and implementing a job costing system requires judgment.

Abnormal spoilage is recorded in a Loss from Abnormal Spoilage account so that managers can:

Tern's Toys incurred $1,500 in production costs for the week. Work in process decreased by $100, and finished goods inventory increased by $500. What was the cost of jobs completed?

In actual costing systems, overhead is allocated using the following formula: actual allocation base volume / actual allocation rate.

Assume that variable overhead is overapplied by $200 and fixed overhead is underapplied by $100. If these variances are considered immaterial, the effect on cost of goods sold is:

In a job costing system, costs flow out of work-in-process into finished goods inventory.

Under job costing, the cost of inventory in finished goods:

An out-of-control manufacturing process is most likely to produce:

The Role of Accounting Information in Ethical Management Decision Making

Cost Concepts, Behaviour, and Estimation

Cost-Volume-Profit Analysis

Relevant Information for Decision Making

Process Costing

Activity-Based Costing and Management

Measuring and Assigning Support Department Costs

Joint Product and By-Product Costing

Static and Flexible Budgets

Standard Costs and Variance Analysis

Strategic Investment Decisions

Pricing Decisions

Strategic Management of Costs

Measuring and Assigning Costs for Income Statements

Performance Evaluation and Compensation

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