Question 1

A production schedule always covers a one-year period of time.

Accepted Answer

A) True 
 B)False

Question 2

Manufacturing overhead costs cannot be directly traced to jobs.

Accepted Answer

A) True 
 B)False

Question 3

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) debit to manufacturing overhead for $4,000. 
D) debit 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) debit to manufacturing overhead for $4,000. 
D) debit to cost of goods sold for $4,000.

Question 4

Matthew Company uses a job cost system. The overhead account shows a $5,000 overallocated balance at the end of the year. Actual overhead incurred was $100,000. Other balances are:   The entry to close manufacturing overhead would include a

Accepted Answer

A) debit to manufacturing overhead for $5,000. 
B) debit to work in process inventory for $5,000. 
C) debit to cost of goods sold for $5,000. 
D) credit to work in process for $5,000. 
A) debit to manufacturing overhead for $5,000. 
B) debit to work in process inventory for $5,000. 
C) debit to cost of goods sold for $5,000. 
D) credit to work in process for $5,000.

Question 5

If the actual amount of the manufacturing overhead allocation base is greater than the estimated amount of the allocation base used to calculate the predetermined rate, then manufacturing overhead must have been underallocated.

Accepted Answer

A) True 
 B)False

Question 6

The cost of direct labor used in production is recorded as a

Accepted Answer

A) credit to manufacturing overhead. 
B) credit to work in process inventory. 
C) credit to wages expense. 
D) credit to wages payable. 
A) credit to manufacturing overhead. 
B) credit to work in process inventory. 
C) credit to wages expense. 
D) credit to wages payable.

Question 7

If manufacturing overhead has been underallocated during the year, it means the jobs have been undercosted.

Accepted Answer

A) True 
 B)False

Question 8

The journal entry needed to record the completion of a job includes a

Accepted Answer

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

Question 9

When job costing is used at a service firm, the bill to the client shows

Accepted Answer

A) the billing rate and hours spent on the job. 
B) the allocation of indirect costs. 
C) the profit on the job. 
D) actual direct cost of providing the service. 
A) the billing rate and hours spent on the job. 
B) the allocation of indirect costs. 
C) the profit on the job. 
D) actual direct cost of providing the service.

Question 10

The journal entry to assign $1,700 of direct labor and $300 of indirect labor involves a debit to

Accepted Answer

A) manufacturing overhead for $2,000. 
B) work in process inventory for $2,000. 
C) work in process inventory for $1,700 and a credit to manufacturing overhead for $300. 
D) work in process inventory for $1,700 and manufacturing overhead for $300. 
A) manufacturing overhead for $2,000. 
B) work in process inventory for $2,000. 
C) work in process inventory for $1,700 and a credit to manufacturing overhead for $300. 
D) work in process inventory for $1,700 and manufacturing overhead for $300.

Question 11

Job costing should only be used by manufacturers.

Accepted Answer

A) True 
 B)False

Question 12

The overhead allocation base should be the cost driver of manufacturing overhead costs.

Accepted Answer

A) True 
 B)False

Question 13

When job costing is used as a service firm

Accepted Answer

A) indirect costs are traced to client jobs. 
B) direct costs are allocated to client jobs. 
C) indirect costs are allocated to client jobs. 
D) all costs are allocated to client jobs. 
A) indirect costs are traced to client jobs. 
B) direct costs are allocated to client jobs. 
C) indirect costs are allocated to client jobs. 
D) all costs are allocated to client jobs.

Question 14

Cost of goods sold is debited and finished goods inventory is credited for

Accepted Answer

A) purchase of goods on account. 
B) transfer of goods to the finished goods storeroom. 
C) transfer of materials into work in process inventory. 
D) the sale of goods to a customer. 
A) purchase of goods on account. 
B) transfer of goods to the finished goods storeroom. 
C) transfer of materials into work in process inventory. 
D) the sale of goods to a customer.

Question 15

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

Accepted Answer

A) $280,500 
B) $171,400 
C) $258,100 
D) $226,800 
A) $280,500 
B) $171,400 
C) $258,100 
D) $226,800

Question 16

Match between columns
                        Premises: ________ carpet manufacturer
________ custom home builder
________ paint manufacturer
________ concrete manufacturer
________ jumbo jet manufacturer

Accepted Answer

The Answer of process costing and job costing is...

Question 17

Here are selected data for Stehli Company:   If the company allocates overhead based on direct labor cost, what is the predetermined manufacturing overhead rate?

Accepted Answer

A) 78% of direct labor cost 
B) 128% of direct labor cost 
C) 79% of direct labor cost 
D) 102% of direct labor cost 
A) 78% of direct labor cost 
B) 128% of direct labor cost 
C) 79% of direct labor cost 
D) 102% of direct labor cost

Question 18

Underallocated manufacturing overhead results when

Accepted Answer

A) production is greater than last year. 
B) actual overhead is greater than expected. 
C) actual overhead is greater than allocated overhead. 
D) estimated overhead is greater than actual overhead. 
A) production is greater than last year. 
B) actual overhead is greater than expected. 
C) actual overhead is greater than allocated overhead. 
D) estimated overhead is greater than actual overhead.

Question 19

Companies should always use job costing rather than process costing.

Accepted Answer

A) True 
 B)False

Question 20

Hilltop Manufacturing uses a predetermined manufacturing overhead rate based on machine 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) $118,750 underallocated 
B) $118,750 overallocated 
C) $112,500 underallocated 
D) $112,500 overallocated 
A) $118,750 underallocated 
B) $118,750 overallocated 
C) $112,500 underallocated 
D) $112,500 overallocated

A production schedule always covers a one-year period of time.

Manufacturing overhead costs cannot be directly traced to jobs.

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

Matthew Company uses a job cost system. The overhead account shows a $5,000 overallocated balance at the end of the year. Actual overhead incurred was $100,000. Other balances are: The entry to close manufacturing overhead would include a

If the actual amount of the manufacturing overhead allocation base is greater than the estimated amount of the allocation base used to calculate the predetermined rate, then manufacturing overhead must have been underallocated.

The cost of direct labor used in production is recorded as a

If manufacturing overhead has been underallocated during the year, it means the jobs have been undercosted.

The journal entry needed to record the completion of a job includes a

When job costing is used at a service firm, the bill to the client shows

The journal entry to assign $1,700 of direct labor and $300 of indirect labor involves a debit to

Job costing should only be used by manufacturers.

The overhead allocation base should be the cost driver of manufacturing overhead costs.

When job costing is used as a service firm

Cost of goods sold is debited and finished goods inventory is credited for

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

Here are selected data for Stehli Company: If the company allocates overhead based on direct labor cost, what is the predetermined manufacturing overhead rate?

Underallocated manufacturing overhead results when

Companies should always use job costing rather than process costing.

Hilltop Manufacturing uses a predetermined manufacturing overhead rate based on machine 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?

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 production schedule always covers a one-year period of time.

Manufacturing overhead costs cannot be directly traced to jobs.

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

Matthew Company uses a job cost system. The overhead account shows a $5,000 overallocated balance at the end of the year. Actual overhead incurred was $100,000. Other balances are: The entry to close manufacturing overhead would include a

If the actual amount of the manufacturing overhead allocation base is greater than the estimated amount of the allocation base used to calculate the predetermined rate, then manufacturing overhead must have been underallocated.

The cost of direct labor used in production is recorded as a

If manufacturing overhead has been underallocated during the year, it means the jobs have been undercosted.

The journal entry needed to record the completion of a job includes a

When job costing is used at a service firm, the bill to the client shows

The journal entry to assign $1,700 of direct labor and $300 of indirect labor involves a debit to

Job costing should only be used by manufacturers.

The overhead allocation base should be the cost driver of manufacturing overhead costs.

When job costing is used as a service firm

Cost of goods sold is debited and finished goods inventory is credited for

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

Here are selected data for Stehli Company: If the company allocates overhead based on direct labor cost, what is the predetermined manufacturing overhead rate?

Underallocated manufacturing overhead results when

Companies should always use job costing rather than process costing.

Hilltop Manufacturing uses a predetermined manufacturing overhead rate based on machine 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?

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