Question 1

Which of the following shows entries only to control accounts?

Accepted Answer

A)  Factory Labor Wages Payable 
B)  Work in Process Factory Labor
Raw Materials Inventory
Wages Payable 
C)  Work in Process Manufacturing Overhead
Raw Materials Inventory 
D)  Factory Labor Raw Materials Inventory
Accounts Payable
Wages Payable 
A)  Factory Labor Wages Payable 
B)  Work in Process Factory Labor
Raw Materials Inventory
Wages Payable 
C)  Work in Process Manufacturing Overhead
Raw Materials Inventory 
D)  Factory Labor Raw Materials Inventory
Accounts Payable
Wages Payable

Question 2

Finished Goods Inventory is charged for the cost of jobs completed during a period.

Accepted Answer

A) True 
 B)False

Question 3

Hayward Manufacturing Company developed the following data:   Hayward Manufacturing Company's total manufacturing costs for the period is

Accepted Answer

A)  $570,000. 
B)  $540,000. 
C)  $390,000. 
D)  cannot be determined from the data provided. 
A)  $570,000. 
B)  $540,000. 
C)  $390,000. 
D)  cannot be determined from the data provided.

Question 4

Sportly, Inc. completed Job No. B14 during 2010. The job cost sheet listed the following:   How much is the cost of the finished goods on hand from this job?

Accepted Answer

A)  $84,000 
B)  $50,400 
C)  $33,600 
D)  $40,800 
A)  $84,000 
B)  $50,400 
C)  $33,600 
D)  $40,800

Question 5

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 6

Garner Company begins operations on July 1, 2010. Information from job cost sheets shows the following:   
Job 102 was completed in July. Job 100 was completed in August, and Jobs 101 and 103 were completed in September. Each job was sold for 60% above its cost in the month following completion.
Instructions
(a) Compute the balance in Work in Process Inventory at the end of July.
(b) Compute the balance in Finished Goods Inventory at the end of September.
(c) Compute the gross profit for August.

Accepted Answer

The answer of Garner Company begins operations on July 1,...

Question 7

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 8

A time ticket does not indicate the

Accepted Answer

A)  employee's name. 
B)  account to be charged. 
C)  number of personal exemptions claimed by the employee. 
D)  job number. 
A)  employee's name. 
B)  account to be charged. 
C)  number of personal exemptions claimed by the employee. 
D)  job number.

Question 9

Jinnah Company applies overhead on the basis of 200% of direct labor cost. Job No. 501 is charged with $90,000 of direct materials costs and $120,000 of manufacturing overhead. The total manufacturing costs for Job No. 501 is

Accepted Answer

A)  $210,000. 
B)  $330,000. 
C)  $270,000. 
D)  $300,000. 
A)  $210,000. 
B)  $330,000. 
C)  $270,000. 
D)  $300,000.

Question 10

A copy of the materials requisition slip would not include the:

Accepted Answer

A)  quantity. 
B)  stock number. 
C)  cost per unit. 
D)  name of the supplier. 
A)  quantity. 
B)  stock number. 
C)  cost per unit. 
D)  name of the supplier.

Question 11

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 12

The principal accounting record used in assigning costs to jobs is

Accepted Answer

A)  a job cost sheet. 
B)  the cost of goods manufactured schedule. 
C)  the Manufacturing Overhead control account. 
D)  the stores ledger cards. 
A)  a job cost sheet. 
B)  the cost of goods manufactured schedule. 
C)  the Manufacturing Overhead control account. 
D)  the stores ledger cards.

Question 13

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

Question 14

Redman Company manufactures customized desks. The following pertains to Job No. 978:   What is the total manufacturing cost for Job No. 978?

Accepted Answer

A)  $19,650 
B)  $21,450 
C)  $22,950 
D)  $24,750 
A)  $19,650 
B)  $21,450 
C)  $22,950 
D)  $24,750

Question 15

At December 31, Ding Company reported the following balances in its accounts:   
The company's balance in its Manufacturing Overhead account at the same date was a debit of $4,400.
Instructions
Prepare the entry to adjust the over- or underapplied overhead amount at December 31.

Accepted Answer

The answer of At December 31, Ding Company reported the...

Question 16

The predetermined overhead rate is based on the relationship between estimated annual overhead costs and expected annual operating activity expressed in terms of a common activity base.

Accepted Answer

A) True 
 B)False

Question 17

A materials requisition slip showed that direct materials requested were $58,000 and indirect materials requested were $9,000. The entry to record the transfer of materials from the storeroom is

Accepted Answer

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

Question 18

Colby Company estimates that annual manufacturing overhead costs will be $800,000. Estimated annual operating activity bases are: direct labor cost $460,000, direct labor hours 40,000 and machine hours 80,000. The actual manufacturing overhead cost for the year was $801,000 and the actual direct labor cost for the year was $456,000. Actual direct labor hours totaled 40,200 and machine hours totaled 79,000. Colby applies overhead based on direct labor hours.
Instructions
Compute the predetermined overhead rate and determine the amount of manufacturing overhead applied. Determine if overhead is over- or underapplied and the amount.

Accepted Answer

Rate = $800,000 ÷ 40,000 = $20

Question 19

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

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)  Net earnings. 
C)  Fringe benefits. 
D)  Employer payroll taxes. 
A)  Gross earnings. 
B)  Net earnings. 
C)  Fringe benefits. 
D)  Employer payroll taxes.

Exam 20: Job Order Costing

Which of the following shows entries only to control accounts?

Finished Goods Inventory is charged for the cost of jobs completed during a period.

Hayward Manufacturing Company developed the following data: Hayward Manufacturing Company's total manufacturing costs for the period is

Sportly, Inc. completed Job No. B14 during 2010. The job cost sheet listed the following: How much is the cost of the finished goods on hand from this job?

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

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

A time ticket does not indicate the

Jinnah Company applies overhead on the basis of 200% of direct labor cost. Job No. 501 is charged with $90,000 of direct materials costs and $120,000 of manufacturing overhead. The total manufacturing costs for Job No. 501 is

A copy of the materials requisition slip would not include the:

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

The principal accounting record used in assigning costs to jobs is

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

Redman Company manufactures customized desks. The following pertains to Job No. 978: What is the total manufacturing cost for Job No. 978?

At December 31, Ding Company reported the following balances in its accounts: The company's balance in its Manufacturing Overhead account at the same date was a debit of $4,400. Instructions Prepare the entry to adjust the over- or underapplied overhead amount at December 31.

The predetermined overhead rate is based on the relationship between estimated annual overhead costs and expected annual operating activity expressed in terms of a common activity base.

A materials requisition slip showed that direct materials requested were $58,000 and indirect materials requested were $9,000. The entry to record the transfer of materials from the storeroom is

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

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

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Accounting Information Systems

Fraud, Internal Control, and Cash

Accounting for Receivables

Plant Assets, Natural Resources, and Intangible Assets

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Corporations: Organization and Capital Stock Transactions

Corporations: Dividends, Retained Earnings, and Income Reporting

Long-Term Liabilities

Investments

Statement of Cash Flows

Financial Analysis: the Big Picture

Managerial Accounting

Process Costing

Cost-Volume-Profit

Incremental Analysis

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

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