Question 1

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

Accepted Answer

A)  Work In Process Inventory. 
B)  Finished Goods Inventory. 
C)  Cost of Goods Sold. 
D)  Raw Materials Inventory. 
A)  Work In Process Inventory. 
B)  Finished Goods Inventory. 
C)  Cost of Goods Sold. 
D)  Raw Materials Inventory.

Question 2

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

Question 3

For Wilton Company, the predetermined overhead rate is 70% of direct labor cost. During the month, $720,000 of factory labor costs are incurred of which $200,000 is indirect labor. Actual overhead incurred was $360,000. The amount of overhead debited to Work in Process Inventory should be:

Accepted Answer

A)  $364,000 
B)  $360,000 
C)  $504,000 
D)  $520,000 
A)  $364,000 
B)  $360,000 
C)  $504,000 
D)  $520,000

Question 4

As of December 31, 2019, Stand Still Industries had $2,500 of raw materials inventory. At the beginning of 2019, 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 2019?

Accepted Answer

A)  $362,000 
B)  $374,500 
C)  $375,500 
D)  $363,000 
A)  $362,000 
B)  $374,500 
C)  $375,500 
D)  $363,000

Question 5

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 6

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 7

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

Accepted Answer

A)  Cost of goods sold is recognized 
B)  Raw materials are purchased 
C)  Factory labor is incurred 
D)  Manufacturing overhead is incurred 
A)  Cost of goods sold is recognized 
B)  Raw materials are purchased 
C)  Factory labor is incurred 
D)  Manufacturing overhead is incurred

Question 8

A company expected its annual overhead costs to be $1,500,000 and direct labor costs to be $1,000,000. Actual overhead was $1,450,000, and actual labor costs totaled $1,100,000. How much is the company's predetermined overhead rate to the nearest cent?

Accepted Answer

A)  $1.45 
B)  $1.31 
C)  $1.50 
D)  $1.37 
A)  $1.45 
B)  $1.31 
C)  $1.50 
D)  $1.37

Question 9

When raw materials are purchased, the Work in Process Inventory account is debited.

Accepted Answer

A) True 
 B)False

Question 10

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 11

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

Accepted Answer

A)  The production of personal computers. 
B)  The production of automobiles. 
C)  The refining of petroleum. 
D)  The construction of a new campus building. 
A)  The production of personal computers. 
B)  The production of automobiles. 
C)  The refining of petroleum. 
D)  The construction of a new campus building.

Question 12

Cost of goods manufactured equals $85,000 for 2019. Finished goods inventory is $2,000 at the beginning of the year and $5,500 at the end of the year. Beginning and ending work in process for 2019 are $4,000 and $5,000, respectively. How much is cost of goods sold for the year?

Accepted Answer

A)  $87,500 
B)  $83,000 
C)  $81,500 
D)  $88,500 
A)  $87,500 
B)  $83,000 
C)  $81,500 
D)  $88,500

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

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

For Wilton Company, the predetermined overhead rate is 70% of direct labor cost. During the month, $720,000 of factory labor costs are incurred of which $200,000 is indirect labor. Actual overhead incurred was $360,000. The amount of overhead debited to Work in Process Inventory should be:

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

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

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

A company expected its annual overhead costs to be $1,500,000 and direct labor costs to be $1,000,000. Actual overhead was $1,450,000, and actual labor costs totaled $1,100,000. How much is the company's predetermined overhead rate to the nearest cent?

When raw materials are purchased, the Work in Process Inventory account is debited.

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

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

Cost of goods manufactured equals $85,000 for 2019. Finished goods inventory is $2,000 at the beginning of the year and $5,500 at the end of the year. Beginning and ending work in process for 2019 are $4,000 and $5,000, respectively. How much is cost of goods sold for the year?

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

Exam 2: Job Order Costing

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

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

For Wilton Company, the predetermined overhead rate is 70% of direct labor cost. During the month, $720,000 of factory labor costs are incurred of which $200,000 is indirect labor. Actual overhead incurred was $360,000. The amount of overhead debited to Work in Process Inventory should be:

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

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

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

A company expected its annual overhead costs to be $1,500,000 and direct labor costs to be $1,000,000. Actual overhead was $1,450,000, and actual labor costs totaled $1,100,000. How much is the company's predetermined overhead rate to the nearest cent?

When raw materials are purchased, the Work in Process Inventory account is debited.

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

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

Cost of goods manufactured equals $85,000 for 2019. Finished goods inventory is $2,000 at the beginning of the year and $5,500 at the end of the year. Beginning and ending work in process for 2019 are $4,000 and $5,000, respectively. How much is cost of goods sold for the year?

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