Question 1

When a job is completed and all costs have been accumulated on a job cost sheet, the journal entry that should be made is

Accepted Answer

A)  Finished Goods Inventory Direct Materials
Direct Labor
Manufacturing Overhead 
B)  Work In Process Inventory Direct Materials
Direct Labor
Manufacturing Overhead 
C)  Raw Materials Inventory Work In Process Inventory 
D)  Finished Goods Inventory Work In Process Inventory 
A)  Finished Goods Inventory Direct Materials
Direct Labor
Manufacturing Overhead 
B)  Work In Process Inventory Direct Materials
Direct Labor
Manufacturing Overhead 
C)  Raw Materials Inventory Work In Process Inventory 
D)  Finished Goods Inventory Work In Process Inventory D

Question 2

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 A

Question 3

A company assigned overhead to work in process. At year end, what does the amount of overapplied overhead mean?

Accepted Answer

A)  The overhead assigned to work in process is greater than the estimated overhead costs. 
B)  The overhead assigned to work in process is less than the estimated overhead costs. 
C)  The overhead assigned to work in process is less than the actual overhead. 
D)  The overhead assigned to work in process is greater than the overhead incurred. 
A)  The overhead assigned to work in process is greater than the estimated overhead costs. 
B)  The overhead assigned to work in process is less than the estimated overhead costs. 
C)  The overhead assigned to work in process is less than the actual overhead. 
D)  The overhead assigned to work in process is greater than the overhead incurred. D

Question 4

Factory labor costs

Accepted Answer

A)  accumulate in advance of utilization. 
B)  accumulate in a control account. 
C)  include sick pay earned by factory workers. 
D)  accumulate in the Factory Labor Expense account. 
A)  accumulate in advance of utilization. 
B)  accumulate in a control account. 
C)  include sick pay earned by factory workers. 
D)  accumulate in the Factory Labor Expense account.

Question 5

A company may use either a job order cost system or a process cost system, but not both.

Accepted Answer

A) True 
 B)False

Question 6

Spencer Inc. applies overhead to production at a predetermined rate of 80% based on direct labor cost. Job No. 130, the only job still in process at the end of August, has been charged with manufacturing overhead of $6,400. What was the amount of direct materials charged to Job 130 assuming the balance in Work in Process inventory is $20,000?

Accepted Answer

A)  $7,000. 
B)  $6,400. 
C)  $5,600. 
D)  $20,000. 
A)  $7,000. 
B)  $6,400. 
C)  $5,600. 
D)  $20,000.

Question 7

In determining total manufacturing costs on the cost of goods manufactured schedule,

Accepted Answer

A)  beginning work in process inventory should have a zero balance. 
B)  actual manufacturing overhead costs appear as a deduction. 
C)  manufacturing overhead applied is added to direct materials and direct labor. 
D)  ending work in process inventory is deducted from beginning work in process inventory. 
A)  beginning work in process inventory should have a zero balance. 
B)  actual manufacturing overhead costs appear as a deduction. 
C)  manufacturing overhead applied is added to direct materials and direct labor. 
D)  ending work in process inventory is deducted from beginning work in process inventory.

Question 8

Vektek, Inc. thinks machine hours is the best activity base for its manufacturing overhead. The estimate of annual overhead costs for its jobs was $2,050,000. The company used 1,000 hours of processing on Job No. B12 during the period and incurred overhead costs totaling $2,100,000. The budgeted machine hours for the year totaled 20,000. How much overhead should be applied to Job No. B12?

Accepted Answer

A)  $2,100 
B)  $102,500 
C)  $105,000 
D)  $2,050 
A)  $2,100 
B)  $102,500 
C)  $105,000 
D)  $2,050

Question 9

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 10

A major purpose of cost accounting is to

Accepted Answer

A)  classify all costs as operating or nonoperating. 
B)  measure, record, and report period costs. 
C)  provide information to stockholders for investment decisions. 
D)  measure, record, and report product costs. 
A)  classify all costs as operating or nonoperating. 
B)  measure, record, and report period costs. 
C)  provide information to stockholders for investment decisions. 
D)  measure, record, and report product costs.

Question 11

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 12

Which of the following is not used in assigning manufacturing costs to work in process inventory?

Accepted Answer

A)  Actual manufacturing overhead 
B)  Time tickets 
C)  Materials requisitions 
D)  Predetermined overhead rate 
A)  Actual manufacturing overhead 
B)  Time tickets 
C)  Materials requisitions 
D)  Predetermined overhead rate

Question 13

The cost of raw materials purchased is credited to Raw Materials Inventory when materials are received.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Total manufacturing costs for a period consists of the costs of direct materials used, the cost of direct labor incurred, and the manufacturing overhead applied during the period.

Accepted Answer

A) True 
 B)False

Question 16

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 17

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 18

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 19

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

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is not included in factory labor costs?

Accepted Answer

A)  Gross earnings. 
B)  Employer payroll taxes. 
C)  Fringe benefits. 
D)  All of these are included. 
A)  Gross earnings. 
B)  Employer payroll taxes. 
C)  Fringe benefits. 
D)  All of these are included.

When a job is completed and all costs have been accumulated on a job cost sheet, the journal entry that should be made is

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:

A company assigned overhead to work in process. At year end, what does the amount of overapplied overhead mean?

Factory labor costs

A company may use either a job order cost system or a process cost system, but not both.

In determining total manufacturing costs on the cost of goods manufactured schedule,

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

A major purpose of cost accounting is to

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

Which of the following is not used in assigning manufacturing costs to work in process inventory?

The cost of raw materials purchased is credited to Raw Materials Inventory when materials are received.

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

Total manufacturing costs for a period consists of the costs of direct materials used, the cost of direct labor incurred, and the manufacturing overhead applied during the period.

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

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

Postings to control accounts in a costing system are made

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

Which of the following is not included in factory labor costs?

Managerial Accounting

Process Costing

Activity-Based Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Pricing

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Statement of Cash Flows

Financial Statement Analysis

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Exam 2: Job Order Costing

When a job is completed and all costs have been accumulated on a job cost sheet, the journal entry that should be made is

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:

A company assigned overhead to work in process. At year end, what does the amount of overapplied overhead mean?

Factory labor costs

A company may use either a job order cost system or a process cost system, but not both.

In determining total manufacturing costs on the cost of goods manufactured schedule,

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

A major purpose of cost accounting is to

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

Which of the following is not used in assigning manufacturing costs to work in process inventory?

The cost of raw materials purchased is credited to Raw Materials Inventory when materials are received.

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

Total manufacturing costs for a period consists of the costs of direct materials used, the cost of direct labor incurred, and the manufacturing overhead applied during the period.

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

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

Postings to control accounts in a costing system are made

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

Which of the following is not included in factory labor costs?

Managerial Accounting

Process Costing

Activity-Based Costing

Cost-Volume-Profit

Cost-Volume-Profit Analysis: Additional Issues

Incremental Analysis

Pricing

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Statement of Cash Flows

Financial Statement Analysis

Filters