Question 1

Which product costing system would be better for custom-order products?

Accepted Answer

A) Product costing system 
B) Company costing system 
C) Job costing system 
D) Overhead costing system 
A) Product costing system 
B) Company costing system 
C) Job costing system 
D) Overhead costing system

Question 2

Serena Corporation uses estimated manufacturing overhead costs of $880,000 and estimated direct labor hours of 200,000 in establishing manufacturing overhead rates. Allocated manufacturing overhead was $1,012,000 and actual manufacturing overhead was $970,000. What were the number of actual direct hours worked?

Accepted Answer

A) 230,000 
B) 200,000 
C) 181,443 
D) 208,660 
A) 230,000 
B) 200,000 
C) 181,443 
D) 208,660

Question 3

Grassland Corporation had actual manufacturing overhead costs of $32,500 for the past year. Direct labor cost is $12.00 per hour. Manufacturing overhead is allocated at a rate of $4.00 per direct labor hour. Manufacturing overhead was overallocated for the year by $2,500.
Calculate:
a)allocated manufacturing overhead costs for year
b)actual number of direct labor hours worked in year

Accepted Answer

The answer of Grassland Corporation had actual manufacturing overhead costs...

Question 4

The following information was gathered for the Wesley Corporation for the most recent year. Manufacturing overhead is allocated using direct labor hours.   What is the amount of overallocated or underallocated overhead for the year?

Accepted Answer

A) $ 145,000 overallocated 
B) $ 145,000 underallocated 
C) $ 86,000 underallocated 
D) $ 86,00 overrallocated 
A) $ 145,000 overallocated 
B) $ 145,000 underallocated 
C) $ 86,000 underallocated 
D) $ 86,00 overrallocated

Question 5

Calculate the unknowns for the following independent situations.
1)Selected data for Lion Corporation:
   Allocated manufacturing overhead is based on 50% of direct labor cost.
a)Calculate the allocated manufacturing overhead cost.
b)Calculate the direct labor cost.
2)Selected data for Tiger Corporation:
   Manufacturing overhead is allocated at $15 per machine hour.
a)Calculate the allocated manufacturing overhead cost.
b)Calculate the number of machine hours incurred.

Accepted Answer

The answer of Calculate the unknowns for the following independent...

Question 6

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 predetermined manufacturing overhead rate for the Finishing Department?

Accepted Answer

A) $10.00 per direct labor hour 
B) $12.00 per direct labor hour 
C) $7.50 per direct labor hour 
D) $60.00 per direct labor hour 
A) $10.00 per direct labor hour 
B) $12.00 per direct labor hour 
C) $7.50 per direct labor hour 
D) $60.00 per direct labor hour

Question 7

Here are selected data for Sally Day Corporation:   What is the finished goods ending inventory?

Accepted Answer

A) $67,300 
B) $287,000 
C) $78,300 
D) $495,700 
A) $67,300 
B) $287,000 
C) $78,300 
D) $495,700

Question 8

The assignment of direct and indirect materials to cost objects reduces

Accepted Answer

A) finished goods inventory. 
B) raw materials inventory. 
C) manufacturing overhead. 
D) work in process inventory. 
A) finished goods inventory. 
B) raw materials inventory. 
C) manufacturing overhead. 
D) work in process inventory.

Question 9

The ________ substantiates the balance of the raw materials inventory account shown on the company's balance sheet.

Accepted Answer

A) bill of materials 
B) raw materials records 
C) materials requisition 
D) labor time record 
A) bill of materials 
B) raw materials records 
C) materials requisition 
D) labor time record

Question 10

For a manufacturer that uses job costing, show the order of the cost flow through the following accounts by numbering them from 1 to 4.
____ finished goods inventory
____ raw materials inventory
____ cost of goods sold
____ work in process inventory

Accepted Answer

The answer of For a manufacturer that uses job costing,...

Question 11

Guys and Dolls Corporation uses job costing. The following selected financial data from the company is for the most recent year.
   Compute:
a)Beginning raw materials inventory
b)Beginning work in process inventory
c)Beginning finished goods inventory
d)Actual manufacturing overhead costs incurred during the year

Accepted Answer

The answer of Guys and Dolls Corporation uses job costing....

Question 12

Here is some basic data for Delta Manufacturing:   The journal entry to record actual manufacturing overhead costs includes a

Accepted Answer

A) debit to manufacturing overhead for $98,000. 
B) debit to work in process inventory for $96,000. 
C) credit to work in process inventory for $98,000. 
D) credit to manufacturing overhead for $96,000. 
A) debit to manufacturing overhead for $98,000. 
B) debit to work in process inventory for $96,000. 
C) credit to work in process inventory for $98,000. 
D) credit to manufacturing overhead for $96,000.

Question 13

If manufacturing overhead has been overallocated during the period, and most of the jobs produced have been sold, then

Accepted Answer

A) cost of goods sold should be increased. 
B) cost of goods sold should be decreased. 
C) finished goods inventory should be increased. 
D) work in process inventory should be decreased. 
A) cost of goods sold should be increased. 
B) cost of goods sold should be decreased. 
C) finished goods inventory should be increased. 
D) work in process inventory should be decreased.

Question 14

The predetermined manufacturing overhead rate is calculated by multiplying the total estimated manufacturing overhead costs by the total estimated amount of the allocation base.

Accepted Answer

A) True 
 B)False

Question 15

If a job consists of a batch of identical units, managers find the unit cost by dividing the total job cost by the number of units in the job.

Accepted Answer

A) True 
 B)False

Question 16

On the line in front of each statement, enter either a D for debit or a C for credit to indicate the normal entry that would be needed for each account named.
____ added purchases to raw materials inventory account
____ added indirect materials to manufacturing overhead account
____ requisitioned raw materials from raw materials inventory account
____ added direct raw materials to work in process inventory account

Accepted Answer

The answer of On the line in front of each...

Question 17

Spruce Company uses a job costing system. Spruce Company's schedule of cost of goods manufactured showed the following amounts for the month ended August 31.   Allocated manufacturing overhead costs for August amount to $44,000.
What is the amount of work in process inventory (before any adjustment for overallocated or underallocated manufacturing overhead)on August 31?

Accepted Answer

A) $29,500 
B) $162,000 
C) $52,500 
D) $138,500 
A) $29,500 
B) $162,000 
C) $52,500 
D) $138,500

Question 18

The first three steps to allocating manufacturing overhead are taken before the year begins and include all of the following except

Accepted Answer

A) estimating total manufacturing overhead costs for the coming year. 
B) selecting an allocation base and estimating the total amount that will be used during the year. 
C) allocating some manufacturing overhead to each individual job. 
D) calculating the predetermined manufacturing overhead rate. 
A) estimating total manufacturing overhead costs for the coming year. 
B) selecting an allocation base and estimating the total amount that will be used during the year. 
C) allocating some manufacturing overhead to each individual job. 
D) calculating the predetermined manufacturing overhead rate.

Question 19

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:
  If Job No. 650 consists of 500 units of product, the average unit cost of this job is closest to:

Accepted Answer

A) $426.64. 
B) $163.50. 
C) $458.50. 
D) $295.00. 
A) $426.64. 
B) $163.50. 
C) $458.50. 
D) $295.00.

Question 20

A service firm's costs are comprised of direct materials, direct labor and manufacturing overhead.

Accepted Answer

A) True 
 B)False

Which product costing system would be better for custom-order products?

The following information was gathered for the Wesley Corporation for the most recent year. Manufacturing overhead is allocated using direct labor hours. What is the amount of overallocated or underallocated overhead for the year?

Here are selected data for Sally Day Corporation: What is the finished goods ending inventory?

The assignment of direct and indirect materials to cost objects reduces

The ________ substantiates the balance of the raw materials inventory account shown on the company's balance sheet.

For a manufacturer that uses job costing, show the order of the cost flow through the following accounts by numbering them from 1 to 4. finished goods inventory raw materials inventory cost of goods sold work in process inventory

Here is some basic data for Delta Manufacturing: The journal entry to record actual manufacturing overhead costs includes a

If manufacturing overhead has been overallocated during the period, and most of the jobs produced have been sold, then

The predetermined manufacturing overhead rate is calculated by multiplying the total estimated manufacturing overhead costs by the total estimated amount of the allocation base.

If a job consists of a batch of identical units, managers find the unit cost by dividing the total job cost by the number of units in the job.

The first three steps to allocating manufacturing overhead are taken before the year begins and include all of the following except

A service firm's costs are comprised of direct materials, direct labor and manufacturing overhead.

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 product costing system would be better for custom-order products?

The following information was gathered for the Wesley Corporation for the most recent year. Manufacturing overhead is allocated using direct labor hours. What is the amount of overallocated or underallocated overhead for the year?

Here are selected data for Sally Day Corporation: What is the finished goods ending inventory?

The assignment of direct and indirect materials to cost objects reduces

The ________ substantiates the balance of the raw materials inventory account shown on the company's balance sheet.

For a manufacturer that uses job costing, show the order of the cost flow through the following accounts by numbering them from 1 to 4. ____ finished goods inventory ____ raw materials inventory ____ cost of goods sold ____ work in process inventory

Here is some basic data for Delta Manufacturing: The journal entry to record actual manufacturing overhead costs includes a

If manufacturing overhead has been overallocated during the period, and most of the jobs produced have been sold, then

The predetermined manufacturing overhead rate is calculated by multiplying the total estimated manufacturing overhead costs by the total estimated amount of the allocation base.

If a job consists of a batch of identical units, managers find the unit cost by dividing the total job cost by the number of units in the job.

The first three steps to allocating manufacturing overhead are taken before the year begins and include all of the following except

A service firm's costs are comprised of direct materials, direct labor and manufacturing overhead.

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

For a manufacturer that uses job costing, show the order of the cost flow through the following accounts by numbering them from 1 to 4. finished goods inventory raw materials inventory cost of goods sold work in process inventory