Question 1

A ________ is a source document for tracking employee hours.

Accepted Answer

A) labor time record 
B) process costing 
C) job cost record 
D) job costing 
A) labor time record 
B) process costing 
C) job cost record 
D) job costing

Question 2

Zanny Moldings has the following estimated costs for the upcoming year:   The company estimates that 1,600 direct labor hours will be worked in the upcoming year, while 2,000 machine hours will be used during the year. The predetermined manufacturing overhead rate per direct labor hour is closest to

Accepted Answer

A) $120. 
B) $66. 
C) $38. 
D) $40. 
A) $120. 
B) $66. 
C) $38. 
D) $40.

Question 3

Job 365 has an ending balance of $28,500. The rate is 80% of direct labor. It has been charged manufacturing overhead costs of $7,000. What was the amount of direct materials charged to the job?

Accepted Answer

A) $22,800 
B) $27,100 
C) $21,500 
D) $12,750 
A) $22,800 
B) $27,100 
C) $21,500 
D) $12,750

Question 4

For each of the following statements, determine if it would be handled:
A)Before the period
B)During the period
C)At the end of the period Put the correct letter on the line in front of each statement.
____ Calculate the amount of overallocated or underallocated manufacturing overhead.
____ Compute the predetermined manufacturing overhead rate.
____ Adjust cost of goods sold for the amount of overallocated or underallocated manufacturing overhead.
____ Allocate the manufacturing overhead costs.

Accepted Answer

The answer of For each of the following statements, determine...

Question 5

Finished goods inventory is debited when the product is sold.

Accepted Answer

A) True 
 B)False

Question 6

Since service firms do not carry large amounts of inventory, it is not necessary to know the costs related to the different jobs.

Accepted Answer

A) True 
 B)False

Question 7

Twinkle Ornaments Company uses job costing. Twinkle Ornaments Company has two departments, Trimming and Finishing. Manufacturing overhead is allocated based on direct labor cost in the Trimming Department and direct labor hours in the Finishing Department. The following additional information is available:   Actual data for completed Job No. 650 is as follows:
  What is the total manufacturing overhead cost for Job No. 650?

Accepted Answer

A) $81,750 
B) $89,600 
C) $65,820 
D) $72,500 
A) $81,750 
B) $89,600 
C) $65,820 
D) $72,500

Question 8

A labor time record is an essential component of accounting in a service firm.

Accepted Answer

A) True 
 B)False

Question 9

At a manufacturing company, inventory flows from work in process inventory, to raw materials inventory, to finished goods inventory.

Accepted Answer

A) True 
 B)False

Question 10

The following account balances at the beginning of January were selected from the general ledger of Ocean City Manufacturing Company:   Additional data:1)Actual manufacturing overhead for January amounted to $62,000.
2)Total direct labor cost for January was $63,000.
3)The predetermined manufacturing overhead rate is based on direct labor cost. The budget for the year called for $250,000 of direct labor cost and $350,000 of manufacturing overhead costs.
4)The only job unfinished on January 31 was Job No. 151, for which total direct labor charges were $5,200 (800 direct labor hours)and total direct material charges were $14,000.
5)Cost of direct materials placed in production during January totaled $123,000. There were no indirect material requisitions during January.
6)January 31 balance in raw materials inventory was $35,000.
"7)Finished goods inventory balance on January 31 was $34,500.
What is the work in process inventory balance on January 31?"

Accepted Answer

A) $ 7,280 
B) $ 22,914 
C) $ 26,480 
D) $ 50,914 
A) $ 7,280 
B) $ 22,914 
C) $ 26,480 
D) $ 50,914

Question 11

Sales revenue is $750,000; actual manufacturing overhead is $120,000; allocated manufacturing overhead is $95,000; and cost of goods sold before adjustment is $380,000. What is the actual gross profit?

Accepted Answer

A) $395,000 
B) $370,000 
C) $345,000 
D) $250,000 
A) $395,000 
B) $370,000 
C) $345,000 
D) $250,000

Question 12

Service firms follow the same approach for indirect costs as manufacturing companies because they develop a predetermined indirect cost allocation rate.

Accepted Answer

A) True 
 B)False

Question 13

A typical manufacturing overhead cost would be

Accepted Answer

A) direct labor. 
B) depreciation on the plant. 
C) net income. 
D) direct materials. 
A) direct labor. 
B) depreciation on the plant. 
C) net income. 
D) direct materials.

Question 14

Here is some basic data for Bella Company:   The journal entry to record the allocation of manufacturing overhead involves a debit to work in process inventory of

Accepted Answer

A) $118,750. 
B) $93,500. 
C) $68,750. 
D) $76,000. 
A) $118,750. 
B) $93,500. 
C) $68,750. 
D) $76,000.

Question 15

Job 590 has an ending balance of $28,500. It has been charged manufacturing overhead costs of $7,000. The rate is 70% of direct labor. What was the amount of direct materials charged to the job?

Accepted Answer

A) $21,500 
B) $11,500 
C) $26,400 
D) $19,950 
A) $21,500 
B) $11,500 
C) $26,400 
D) $19,950

Question 16

Service firms develop a predetermined rate for some costs. This rate is called the

Accepted Answer

A) labor rate. 
B) direct cost rate. 
C) indirect cost allocation rate. 
D) hourly cost rate. 
A) labor rate. 
B) direct cost rate. 
C) indirect cost allocation rate. 
D) hourly cost rate.

Question 17

Here is selected data for Lori Corporation:   The journal entry to transfer completed goods to the finished goods inventory account would include a

Accepted Answer

A) debit to work in process inventory for $233,500. 
B) debit to finished goods inventory for $237,500. 
C) credit to work in process inventory for $237,500. 
D) debit to finished goods for $233,500. 
A) debit to work in process inventory for $233,500. 
B) debit to finished goods inventory for $237,500. 
C) credit to work in process inventory for $237,500. 
D) debit to finished goods for $233,500.

Question 18

In the flow of costs, which of the following comes first?

Accepted Answer

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

Question 19

Before the year began, Murphy Manufacturing estimated that manufacturing overhead for the year would be $175,500 and that 13,000 direct labor hours would be worked. Actual results for the year included the following:   The amount of manufacturing overhead allocated for the year based on direct labor hours would have been

Accepted Answer

A) $179,750. 
B) $195,750. 
C) $175,500. 
D) $184,000. 
A) $179,750. 
B) $195,750. 
C) $175,500. 
D) $184,000.

Question 20

How is the cost of indirect materials used in the factory recorded?

Accepted Answer

A) Credit to manufacturing overhead 
B) Credit to raw materials inventory 
C) Credit to work in process inventory 
D) Credit to direct materials expense 
A) Credit to manufacturing overhead 
B) Credit to raw materials inventory 
C) Credit to work in process inventory 
D) Credit to direct materials expense

A ________ is a source document for tracking employee hours.

Zanny Moldings has the following estimated costs for the upcoming year: The company estimates that 1,600 direct labor hours will be worked in the upcoming year, while 2,000 machine hours will be used during the year. The predetermined manufacturing overhead rate per direct labor hour is closest to

Job 365 has an ending balance of $28,500. The rate is 80% of direct labor. It has been charged manufacturing overhead costs of $7,000. What was the amount of direct materials charged to the job?

Finished goods inventory is debited when the product is sold.

Since service firms do not carry large amounts of inventory, it is not necessary to know the costs related to the different jobs.

A labor time record is an essential component of accounting in a service firm.

At a manufacturing company, inventory flows from work in process inventory, to raw materials inventory, to finished goods inventory.

Sales revenue is $750,000; actual manufacturing overhead is $120,000; allocated manufacturing overhead is $95,000; and cost of goods sold before adjustment is $380,000. What is the actual gross profit?

Service firms follow the same approach for indirect costs as manufacturing companies because they develop a predetermined indirect cost allocation rate.

A typical manufacturing overhead cost would be

Here is some basic data for Bella Company: The journal entry to record the allocation of manufacturing overhead involves a debit to work in process inventory of

Job 590 has an ending balance of $28,500. It has been charged manufacturing overhead costs of $7,000. The rate is 70% of direct labor. What was the amount of direct materials charged to the job?

Service firms develop a predetermined rate for some costs. This rate is called the

Here is selected data for Lori Corporation: The journal entry to transfer completed goods to the finished goods inventory account would include a

In the flow of costs, which of the following comes first?

How is the cost of indirect materials used in the factory recorded?

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

A ________ is a source document for tracking employee hours.

Zanny Moldings has the following estimated costs for the upcoming year: The company estimates that 1,600 direct labor hours will be worked in the upcoming year, while 2,000 machine hours will be used during the year. The predetermined manufacturing overhead rate per direct labor hour is closest to

Job 365 has an ending balance of $28,500. The rate is 80% of direct labor. It has been charged manufacturing overhead costs of $7,000. What was the amount of direct materials charged to the job?

Finished goods inventory is debited when the product is sold.

Since service firms do not carry large amounts of inventory, it is not necessary to know the costs related to the different jobs.

A labor time record is an essential component of accounting in a service firm.

At a manufacturing company, inventory flows from work in process inventory, to raw materials inventory, to finished goods inventory.

Sales revenue is $750,000; actual manufacturing overhead is $120,000; allocated manufacturing overhead is $95,000; and cost of goods sold before adjustment is $380,000. What is the actual gross profit?

Service firms follow the same approach for indirect costs as manufacturing companies because they develop a predetermined indirect cost allocation rate.

A typical manufacturing overhead cost would be

Here is some basic data for Bella Company: The journal entry to record the allocation of manufacturing overhead involves a debit to work in process inventory of

Job 590 has an ending balance of $28,500. It has been charged manufacturing overhead costs of $7,000. The rate is 70% of direct labor. What was the amount of direct materials charged to the job?

Service firms develop a predetermined rate for some costs. This rate is called the

Here is selected data for Lori Corporation: The journal entry to transfer completed goods to the finished goods inventory account would include a

In the flow of costs, which of the following comes first?

How is the cost of indirect materials used in the factory recorded?

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