Question 1

Which of these documents authorizes the purchase of specific raw materials from a specific supplier?

Accepted Answer

A) Labor time record 
B) Materials inventory requisition form 
C) Job cost record 
D) Purchase order 
A) Labor time record 
B) Materials inventory requisition form 
C) Job cost record 
D) Purchase order

Question 2

Wet N Wild Sports Equipment Company's work in process inventory on June 1 has a balance of $22,400 representing Job No. 265. During June, $50,000 of direct materials were requisitioned for Job No. 265 and $35,000 of direct labor cost was incurred on Job No. 265. Manufacturing overhead is allocated at 125% of direct labor cost. Actual manufacturing overhead costs incurred in June amounted to $41,000. No new jobs were started during June. Job No. 265 is completed on June 28. What is the total cost assigned to Job No. 265?

Accepted Answer

A) $148,400 
B) $135,400 
C) $151,150 
D) $ 43,750 
A) $148,400 
B) $135,400 
C) $151,150 
D) $ 43,750

Question 3

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 amount of materials purchased during January?"

Accepted Answer

A) $123,000 
B) $158,000 
C) $ 60,000 
D) $130,000 
A) $123,000 
B) $158,000 
C) $ 60,000 
D) $130,000

Question 4

Here is some basic data for Morgenstern Company:   Manufacturing overhead is allocated at 70% of direct labor cost.
What are the total costs debited to work in process inventory during the period?

Accepted Answer

A) $560,000 
B) $540,000 
C) $690,000 
D) $670,000 
A) $560,000 
B) $540,000 
C) $690,000 
D) $670,000

Question 5

The entry to transfer sold goods includes a debit to finished goods inventory.

Accepted Answer

A) True 
 B)False

Question 6

Here is selected data for Lori Corporation:   The journal entry to close manufacturing overhead would include a:

Accepted Answer

A) credit to manufacturing overhead for $4,000. 
B) debit to work in process inventory for $4,000. 
C) credit to work in process inventory for $4,000. 
D) credit to cost of goods sold for $4,000. 
A) credit to manufacturing overhead for $4,000. 
B) debit to work in process inventory for $4,000. 
C) credit to work in process inventory for $4,000. 
D) credit to cost of goods sold for $4,000.

Question 7

When direct materials are requisitioned, they flow directly into

Accepted Answer

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

Question 8

Job 140 requires $12,000 of direct materials, $6,700 of direct labor, 550 direct labor hours, and 270 machine hours. It also requires 9 hours of inspection at $40 per hour. Manufacturing overhead is computed at $28 per direct labor hour used and $42 per machine hour used. The total amount of overhead allocated is

Accepted Answer

A) $34,100. 
B) $26,740. 
C) $45,440. 
D) $15,400. 
A) $34,100. 
B) $26,740. 
C) $45,440. 
D) $15,400.

Question 9

To follow is selected financial data from Turtle Bay Manufacturing for the most recent year.   What is the beginning raw materials inventory?

Accepted Answer

A) $19,500 
B) $ 5,700 
C) $26,700 
D) $72,000 
A) $19,500 
B) $ 5,700 
C) $26,700 
D) $72,000

Question 10

When is the adjusting of cost of goods sold for the underallocation or overallocation of manufacturing overhead generally done?

Accepted Answer

A) At the end of the period 
B) During the period 
C) Before the period starts 
D) Never 
A) At the end of the period 
B) During the period 
C) Before the period starts 
D) Never

Question 11

How is the cost-plus price determined?

Accepted Answer

A) Cost - markup on cost 
B) Cost + markup on cost 
C) Cost × markup on cost 
D) Cost ÷ markup on cost 
A) Cost - markup on cost 
B) Cost + markup on cost 
C) Cost × markup on cost 
D) Cost ÷ markup on cost

Question 12

Denver Company uses a job costing system. The work in process inventory on December 31 consisted of Job No. 173 with a balance of $66,200. Job No. 173 has been charged with manufacturing overhead costs of $20,000. Denver allocates manufacturing overhead costs at a rate of 50% of direct labor cost. What was the amount of direct materials charged to Job No. 173?

Accepted Answer

A) $10,000 
B) $33,100 
C) $6,200 
D) $46,200 
A) $10,000 
B) $33,100 
C) $6,200 
D) $46,200

Question 13

The predetermined indirect cost allocation rate is computed as

Accepted Answer

A) total estimated indirect costs / total estimated amount of the allocation base. 
B) total amount of the allocation base / total estimated indirect costs. 
C) total estimated indirect costs + total estimated amount of the allocation base. 
D) total amount of the allocation base - total estimated indirect costs. 
A) total estimated indirect costs / total estimated amount of the allocation base. 
B) total amount of the allocation base / total estimated indirect costs. 
C) total estimated indirect costs + total estimated amount of the allocation base. 
D) total amount of the allocation base - total estimated indirect costs.

Question 14

An example of an industry that uses process costing might be a

Accepted Answer

A) custom printer. 
B) homebuilder. 
C) shipbuilder. 
D) company that makes cement. 
A) custom printer. 
B) homebuilder. 
C) shipbuilder. 
D) company that makes cement.

Question 15

Sales revenue is $725,000; allocated manufacturing overhead is $95,000; actual manufacturing overhead is $120,000; and cost of goods sold before adjustment is $380,000. What is the actual gross profit?

Accepted Answer

A) $320,000 
B) $370,000 
C) $345,000 
D) $225,000 
A) $320,000 
B) $370,000 
C) $345,000 
D) $225,000

Question 16

When a job is completed, the journal entry involves a:

Accepted Answer

A) debit to work in process inventory and a credit to finished goods inventory. 
B) debit to cost of goods sold and a credit to finished goods inventory. 
C) debit to finished goods inventory and a credit to work in process inventory. 
D) debit to finished goods and a credit to cost of goods sold. 
A) debit to work in process inventory and a credit to finished goods inventory. 
B) debit to cost of goods sold and a credit to finished goods inventory. 
C) debit to finished goods inventory and a credit to work in process inventory. 
D) debit to finished goods and a credit to cost of goods sold.

Question 17

Match between columns
                        Premises: system for assigning costs to large numbers of identical units that usually proceed in a continuous fashion through a series of uniform production steps or processes
a list of all of the raw materials needed to manufacture a job
system for assigning costs to a specific unit or to a small batch of products or services that pass through production steps as a distinct identifiable job
a written or electronic document listing the quantity and type of raw materials received in an incoming shipment
a written or electronic document authorizing the purchase of specific raw materials from a specific supplier
a written or electronic document that requests specific materials be transferred from the raw materials inventory storeroom to the production floor
a bill from a supplier

Accepted Answer

The Answer of purchase order and receiving report and bill is...

Question 18

Shiloh Company uses a job costing system. The company's schedule of cost of goods manufactured showed the following amounts for September.   Manufacturing overhead cost is allocated at the rate of $11 per direct labor hour.
What is the amount of allocated manufacturing overhead costs for the month?

Accepted Answer

A) $24,000 
B) $63,000 
C) $16,500 
D) $25,500 
A) $24,000 
B) $63,000 
C) $16,500 
D) $25,500

Question 19

Here are selected data for Wilson Company:   If the company allocates manufacturing overhead based on direct labor cost, what are the allocated manufacturing overhead costs?

Accepted Answer

A) $243,750 
B) $226,800 
C) $426,667 
D) $240,000 
A) $243,750 
B) $226,800 
C) $426,667 
D) $240,000

Question 20

The total cost of a job shown on the job cost record is the sum of the direct materials traced to the job and the manufacturing overhead allocated to the job.

Accepted Answer

A) True 
 B)False

Which of these documents authorizes the purchase of specific raw materials from a specific supplier?

Here is some basic data for Morgenstern Company: Manufacturing overhead is allocated at 70% of direct labor cost. What are the total costs debited to work in process inventory during the period?

The entry to transfer sold goods includes a debit to finished goods inventory.

Here is selected data for Lori Corporation: The journal entry to close manufacturing overhead would include a:

When direct materials are requisitioned, they flow directly into

To follow is selected financial data from Turtle Bay Manufacturing for the most recent year. What is the beginning raw materials inventory?

When is the adjusting of cost of goods sold for the underallocation or overallocation of manufacturing overhead generally done?

How is the cost-plus price determined?

The predetermined indirect cost allocation rate is computed as

An example of an industry that uses process costing might be a

Sales revenue is $725,000; allocated manufacturing overhead is $95,000; actual manufacturing overhead is $120,000; and cost of goods sold before adjustment is $380,000. What is the actual gross profit?

When a job is completed, the journal entry involves a:

Shiloh Company uses a job costing system. The company's schedule of cost of goods manufactured showed the following amounts for September. Manufacturing overhead cost is allocated at the rate of $11 per direct labor hour. What is the amount of allocated manufacturing overhead costs for the month?

Here are selected data for Wilson Company: If the company allocates manufacturing overhead based on direct labor cost, what are the allocated manufacturing overhead costs?

The total cost of a job shown on the job cost record is the sum of the direct materials traced to the job and the manufacturing overhead allocated to the job.

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

Which of these documents authorizes the purchase of specific raw materials from a specific supplier?

Here is some basic data for Morgenstern Company: Manufacturing overhead is allocated at 70% of direct labor cost. What are the total costs debited to work in process inventory during the period?

The entry to transfer sold goods includes a debit to finished goods inventory.

Here is selected data for Lori Corporation: The journal entry to close manufacturing overhead would include a:

When direct materials are requisitioned, they flow directly into

To follow is selected financial data from Turtle Bay Manufacturing for the most recent year. What is the beginning raw materials inventory?

When is the adjusting of cost of goods sold for the underallocation or overallocation of manufacturing overhead generally done?

How is the cost-plus price determined?

The predetermined indirect cost allocation rate is computed as

An example of an industry that uses process costing might be a

Sales revenue is $725,000; allocated manufacturing overhead is $95,000; actual manufacturing overhead is $120,000; and cost of goods sold before adjustment is $380,000. What is the actual gross profit?

When a job is completed, the journal entry involves a:

Shiloh Company uses a job costing system. The company's schedule of cost of goods manufactured showed the following amounts for September. Manufacturing overhead cost is allocated at the rate of $11 per direct labor hour. What is the amount of allocated manufacturing overhead costs for the month?

Here are selected data for Wilson Company: If the company allocates manufacturing overhead based on direct labor cost, what are the allocated manufacturing overhead costs?

The total cost of a job shown on the job cost record is the sum of the direct materials traced to the job and the manufacturing overhead allocated to the job.

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