Question 1

The amount of overallocation or underallocation should be reflected as an adjustment to cost of goods sold under what circumstances?

Accepted Answer

A) In all circumstances 
B) If most of the inventory produced during the period has not been sold 
C) If most of the inventory produced during the period has been sold 
D) Under no circumstance 
A) In all circumstances 
B) If most of the inventory produced during the period has not been sold 
C) If most of the inventory produced during the period has been sold 
D) Under no circumstance

Question 2

Determining how much manufacturing overhead is overallocated or underallocated

Accepted Answer

A) is done before the period starts. 
B) is done during the period. 
C) can be done at any time. 
D) is done at the end of the period. 
A) is done before the period starts. 
B) is done during the period. 
C) can be done at any time. 
D) is done at the end of the period.

Question 3

To record direct labor costs incurred, which of the following would be debited?

Accepted Answer

A) Finished goods inventory 
B) Manufacturing overhead 
C) Work in process inventory 
D) Wages payable 
A) Finished goods inventory 
B) Manufacturing overhead 
C) Work in process inventory 
D) Wages payable

Question 4

Here are selected data for Sally Day Corporation:   What is the ending work in process inventory balance?

Accepted Answer

A) $147,050 
B) $151,500 
C) $211,200 
D) $207,450 
A) $147,050 
B) $151,500 
C) $211,200 
D) $207,450

Question 5

At a service company, the indirect costs of serving the client consists of operating expenses.

Accepted Answer

A) True 
 B)False

Question 6

Job 123 requires $12,000 of direct materials, $5,500 of direct labor, 500 direct labor hours, and 300 machine hours. It also requires 6 hours of inspection at $40 per hour. Manufacturing overhead is computed at $30 per direct labor hour used and $40 per machine hour used. The total amount charged for inspection

Accepted Answer

A) is $40. 
B) is $40 × budgeted hours. 
C) is $240. 
D) does not figure into the total cost of the job. 
A) is $40. 
B) is $40 × budgeted hours. 
C) is $240. 
D) does not figure into the total cost of the job.

Question 7

Here is some basic data for Shannon Company:   The journal entry to record the cost of raw materials placed into production involves a

Accepted Answer

A) debit to overhead for $51,000. 
B) debit to work in process inventory for $53,000. 
C) debit to work in process inventory for $51,000. 
D) credit to manufacturing overhead for $2,000. 
A) debit to overhead for $51,000. 
B) debit to work in process inventory for $53,000. 
C) debit to work in process inventory for $51,000. 
D) credit to manufacturing overhead for $2,000.

Question 8

Manufacturing overhead has an underallocated balance of $6,200; raw materials inventory balance is $50,000; work in process inventory is $30,000; finished goods inventory is $20,000; and cost of goods sold is $100,000. Using this information, which account would have an opening credit balance?

Accepted Answer

A) Raw materials inventory 
B) Finished goods inventory 
C) Work in process inventory 
D) None of the above 
A) Raw materials inventory 
B) Finished goods inventory 
C) Work in process inventory 
D) None of the above

Question 9

A job costing system can be used by which types of companies?

Accepted Answer

A) Manufacturing and merchandising businesses 
B) Service and manufacturing businesses 
C) Service, manufacturing, and merchandising businesses 
D) Service and merchandising businesses 
A) Manufacturing and merchandising businesses 
B) Service and manufacturing businesses 
C) Service, manufacturing, and merchandising businesses 
D) Service and merchandising businesses

Question 10

To allocate manufacturing overhead to specific jobs, the needed journal entry would include a

Accepted Answer

A) credit to work in process inventory. 
B) debit to manufacturing overhead. 
C) debit to cost of goods sold. 
D) credit to manufacturing overhead. 
A) credit to work in process inventory. 
B) debit to manufacturing overhead. 
C) debit to cost of goods sold. 
D) credit to manufacturing overhead.

Question 11

London Ceramics makes custom ceramic tiles. During March, the company started and finished Job #266. Job #266 consists of 2,500 tiles; each tile sells for $12.00. The company's records show the following direct materials were requisitioned for Job #266. Basic terra cotta tiles: 2,500 units at $4.00 per unit
Specialty paint: 5 quarts at $7.00 per quart
High gloss glaze: 4 quarts at $12.00 per quart
Labor time records show the following employees worked on Job #266:
Alice Cooper: 18 hours at $24 per hour
Matthew Kline: 20 hours at $13 per hour
Sierra Ceramics allocates manufacturing overhead at a rate of $27 per direct labor hour.
What is the total amount of direct materials, direct labor, and manufacturing overhead that should be shown on Job #266's job cost record?

Accepted Answer

A) $10,775 
B) $1,026 
C) $30,000 
D) $11,801 
A) $10,775 
B) $1,026 
C) $30,000 
D) $11,801

Question 12

If manufacturing overhead has been underallocated during the period, then which of the following is true?

Accepted Answer

A) The jobs produced during the period have been overcosted. 
B) The jobs produced during the period have been costed correctly. 
C) The jobs produced during the period have been undercosted. 
D) None of the above 
A) The jobs produced during the period have been overcosted. 
B) The jobs produced during the period have been costed correctly. 
C) The jobs produced during the period have been undercosted. 
D) None of the above

Question 13

At a service company, the indirect costs of serving the client include manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 14

Hilltop Manufacturing uses a predetermined manufacturing overhead rate based on direct labor hours to allocate manufacturing overhead to jobs. Selected data about the company's operations follows:   By how much was manufacturing overhead overallocated or underallocated for the year?

Accepted Answer

A) $50,000 underallocated 
B) $160,000 overallocated 
C) $100,000 underallocated 
D) $50,000 overallocated 
A) $50,000 underallocated 
B) $160,000 overallocated 
C) $100,000 underallocated 
D) $50,000 overallocated

Question 15

The difference between the sales price and the job cost is

Accepted Answer

A) gross profit. 
B) cost of goods sold. 
C) net income. 
D) operating income. 
A) gross profit. 
B) cost of goods sold. 
C) net income. 
D) operating income.

Question 16

Nadal Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year:   If Nadal Company uses direct labor cost as the allocation base, what would the allocated manufacturing overhead be for the year?

Accepted Answer

A) $325,500 
B) $372,000 
C) $701,509 
D) $400,000 
A) $325,500 
B) $372,000 
C) $701,509 
D) $400,000

Question 17

Davy Company had a beginning work in process inventory balance of $32,000. During the year, $54,500 of direct materials was placed into production. Direct labor was $63,400, and indirect labor was $19,500. Manufacturing overhead is allocated at 125% of direct labor costs. Actual manufacturing overhead was $86,500, and jobs costing $225,000 were completed during the year. What is the ending work in process inventory balance?

Accepted Answer

A) $172,400 
B) $11,400 
C) $4,150 
D) $79,250 
A) $172,400 
B) $11,400 
C) $4,150 
D) $79,250

Question 18

Manufacturing overhead is overallocated if the amount

Accepted Answer

A) allocated during the period is greater than the actual amount incurred. 
B) estimated for the period is less than the amount allocated. 
C) estimated for the period is greater than the amount allocated. 
D) allocated during the period is less than the actual amount incurred. 
A) allocated during the period is greater than the actual amount incurred. 
B) estimated for the period is less than the amount allocated. 
C) estimated for the period is greater than the amount allocated. 
D) allocated during the period is less than the actual amount incurred.

Question 19

To record the requisition of direct materials, which of the following would be debited?

Accepted Answer

A) Finished goods inventory 
B) Work in process inventory 
C) Raw materials inventory 
D) Cost of goods manufactured 
A) Finished goods inventory 
B) Work in process inventory 
C) Raw materials inventory 
D) Cost of goods manufactured

Question 20

Nemec Manufacturing uses job costing. In May, material requisitions were $44,000 ($39,000 of these were direct materials), and raw material purchases were $60,000. The end of month balance in raw materials inventory was $24,300. What was the beginning raw materials inventory balance?

Accepted Answer

A) $74,700 
B) $45,300 
C) $8,300 
D) $23,000 
A) $74,700 
B) $45,300 
C) $8,300 
D) $23,000

The amount of overallocation or underallocation should be reflected as an adjustment to cost of goods sold under what circumstances?

Determining how much manufacturing overhead is overallocated or underallocated

To record direct labor costs incurred, which of the following would be debited?

Here are selected data for Sally Day Corporation: What is the ending work in process inventory balance?

At a service company, the indirect costs of serving the client consists of operating expenses.

Here is some basic data for Shannon Company: The journal entry to record the cost of raw materials placed into production involves a

Manufacturing overhead has an underallocated balance of $6,200; raw materials inventory balance is $50,000; work in process inventory is $30,000; finished goods inventory is $20,000; and cost of goods sold is $100,000. Using this information, which account would have an opening credit balance?

A job costing system can be used by which types of companies?

To allocate manufacturing overhead to specific jobs, the needed journal entry would include a

If manufacturing overhead has been underallocated during the period, then which of the following is true?

At a service company, the indirect costs of serving the client include manufacturing overhead.

Hilltop Manufacturing uses a predetermined manufacturing overhead rate based on direct labor hours to allocate manufacturing overhead to jobs. Selected data about the company's operations follows: By how much was manufacturing overhead overallocated or underallocated for the year?

The difference between the sales price and the job cost is

Manufacturing overhead is overallocated if the amount

To record the requisition of direct materials, which of the following would be debited?

Nemec Manufacturing uses job costing. In May, material requisitions were $44,000 ($39,000 of these were direct materials), and raw material purchases were $60,000. The end of month balance in raw materials inventory was $24,300. What was the beginning raw materials inventory balance?

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Activity-Based Costing, Lean Operations, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Performance Evaluation

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters

Exam 3: Job Costing

The amount of overallocation or underallocation should be reflected as an adjustment to cost of goods sold under what circumstances?

Determining how much manufacturing overhead is overallocated or underallocated

To record direct labor costs incurred, which of the following would be debited?

Here are selected data for Sally Day Corporation: What is the ending work in process inventory balance?

At a service company, the indirect costs of serving the client consists of operating expenses.

Here is some basic data for Shannon Company: The journal entry to record the cost of raw materials placed into production involves a

Manufacturing overhead has an underallocated balance of $6,200; raw materials inventory balance is $50,000; work in process inventory is $30,000; finished goods inventory is $20,000; and cost of goods sold is $100,000. Using this information, which account would have an opening credit balance?

A job costing system can be used by which types of companies?

To allocate manufacturing overhead to specific jobs, the needed journal entry would include a

If manufacturing overhead has been underallocated during the period, then which of the following is true?

At a service company, the indirect costs of serving the client include manufacturing overhead.

Hilltop Manufacturing uses a predetermined manufacturing overhead rate based on direct labor hours to allocate manufacturing overhead to jobs. Selected data about the company's operations follows: By how much was manufacturing overhead overallocated or underallocated for the year?

The difference between the sales price and the job cost is

Manufacturing overhead is overallocated if the amount

To record the requisition of direct materials, which of the following would be debited?

Nemec Manufacturing uses job costing. In May, material requisitions were $44,000 ($39,000 of these were direct materials), and raw material purchases were $60,000. The end of month balance in raw materials inventory was $24,300. What was the beginning raw materials inventory balance?

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Activity-Based Costing, Lean Operations, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Performance Evaluation

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters