Question 1

A receiving report is typically a duplicate of the purchase order but without the prices and quantities pre-listed on the form.

Accepted Answer

A) True 
 B)False

Question 2

What is the primary factor causing a "cost" called?

Accepted Answer

A) Cost driver 
B) Cost allocation 
C) Materials requisition 
D) Predetermined manufacturing overhead rate 
A) Cost driver 
B) Cost allocation 
C) Materials requisition 
D) Predetermined manufacturing overhead rate

Question 3

Perry Moldings has the following estimated costs for the upcoming year:   The company estimates that 1,200 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 machine hour is closest to

Accepted Answer

A) $52. 
B) $97. 
C) $14. 
D) $33. 
A) $52. 
B) $97. 
C) $14. 
D) $33.

Question 4

The amount of overallocation or underallocation is typically corrected by adjusting cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 5

What is a document that accumulates job costs called?

Accepted Answer

A) Bill of materials 
B) A job cost record 
C) Labor time record 
D) Production schedule 
A) Bill of materials 
B) A job cost record 
C) Labor time record 
D) Production schedule

Question 6

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

Accepted Answer

A) $227,400 
B) $281,100 
C) $258,700 
D) $172,000 
A) $227,400 
B) $281,100 
C) $258,700 
D) $172,000

Question 7

Jasper Carts manufactures custom carts for a variety of uses. The following data have been recorded for Job 651, which was recently completed. Direct materials used cost $7,200. There were 175 direct labor hours worked on this job at a direct labor wage rate of $22 per hour. There were 82 machine hours used on this job. The predetermined overhead rate is $30 per machine hour used. What is the total manufacturing cost of Job 651?

Accepted Answer

A) $3,850 
B) $2,460 
C) $13,510 
D) $7,457 
A) $3,850 
B) $2,460 
C) $13,510 
D) $7,457

Question 8

Morgan Company uses a job costing system. Morgan Company estimated manufacturing overhead costs for the year at $330,000, based on 60,000 estimated direct labor hours. Actual direct labor hours for the year totaled 75,000. Actual manufacturing overhead for the year was $384,700. By how much was manufacturing overhead overallocated or underallocated for the year?

Accepted Answer

A) $27,800 overallocated 
B) $27,800 underallocated 
C) $54,700 overallocated 
D) $54,700 underallocated 
A) $27,800 overallocated 
B) $27,800 underallocated 
C) $54,700 overallocated 
D) $54,700 underallocated

Question 9

Manufacturers follow four steps to implement a manufacturing overhead allocation system. The first step is to estimate the total manufacturing overhead costs for the coming year.

Accepted Answer

A) True 
 B)False

Question 10

An underallocation of manufacturing overhead is typically corrected by decreasing cost of goods sold on the income statement.

Accepted Answer

A) True 
 B)False

Question 11

Greatwater Manufacturing uses job costing. In May, material requisitions were $44,000 ($39,000 of these were direct materials), and raw material purchases were $57,700. The end of month balance in raw materials inventory was $24,300. What was the beginning raw materials inventory balance?

Accepted Answer

A) $10,600 
B) $43,000 
C) $72,400 
D) $25,300 
A) $10,600 
B) $43,000 
C) $72,400 
D) $25,300

Question 12

The most significant cost for a service firm is direct labor cost.

Accepted Answer

A) True 
 B)False

Question 13

Job costing is not commonly used by service firms (such as law firms)or trades people (such as auto mechanics).

Accepted Answer

A) True 
 B)False

Question 14

Here is some basic data for Honey Dukes Corporation:   The journal entry to record the cost of jobs sold would include a

Accepted Answer

A) debit to finished goods inventory for $255,000. 
B) credit to finished goods inventory for $287,000. 
C) debit to cost of goods sold for $287,000. 
D) credit to finished goods inventory for $255,000. 
A) debit to finished goods inventory for $255,000. 
B) credit to finished goods inventory for $287,000. 
C) debit to cost of goods sold for $287,000. 
D) credit to finished goods inventory for $255,000.

Question 15

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

Accepted Answer

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

Question 16

The manufacturing overhead account is credited for actual manufacturing overhead costs incurred in the period.

Accepted Answer

A) True 
 B)False

Question 17

Before the year began, Coia Manufacturing estimated that manufacturing overhead for the year would be $200,000 and that 25,000 direct labor hours would be worked. Actual results for the year included the following:   If the company allocates manufacturing overhead based on direct labor hours, the manufacturing overhead for the year would have been

Accepted Answer

A) $18,000 overallocated. 
B) $22,000 underallocated. 
C) $22,000 overallocated. 
D) $18,000 underallocated. 
A) $18,000 overallocated. 
B) $22,000 underallocated. 
C) $22,000 overallocated. 
D) $18,000 underallocated.

Question 18

Manufacturers follow four steps to implement a manufacturing overhead allocation system. The last step is

Accepted Answer

A) allocate some manufacturing overhead to each individual job. 
B) select an allocation base and estimate the total amount that will be used during the year. 
C) estimate total manufacturing overhead costs for the coming year. 
D) calculate a predetermined manufacturing overhead rate. 
A) allocate some manufacturing overhead to each individual job. 
B) select an allocation base and estimate the total amount that will be used during the year. 
C) estimate total manufacturing overhead costs for the coming year. 
D) calculate a predetermined manufacturing overhead rate.

Question 19

Overallocated overhead costs occur when the overhead costs allocated are greater than the amount actually incurred.

Accepted Answer

A) True 
 B)False

Question 20

XYZ uses job costing. Actual manufacturing overhead for the period is $20,000 while allocated manufacturing overhead is $18,000. What entry will close the manufacturing overhead balance?

Accepted Answer

A) Debit manufacturing overhead and credit work in process for $2,000 
B) Debit manufacturing overhead and credit cost of goods sold for $2,000 
C) Debit cost of goods sold and credit finished goods inventory for $2,000 
D) Debit cost of goods sold and credit manufacturing overhead for $2,000 
A) Debit manufacturing overhead and credit work in process for $2,000 
B) Debit manufacturing overhead and credit cost of goods sold for $2,000 
C) Debit cost of goods sold and credit finished goods inventory for $2,000 
D) Debit cost of goods sold and credit manufacturing overhead for $2,000

A receiving report is typically a duplicate of the purchase order but without the prices and quantities pre-listed on the form.

What is the primary factor causing a "cost" called?

Perry Moldings has the following estimated costs for the upcoming year: The company estimates that 1,200 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 machine hour is closest to

The amount of overallocation or underallocation is typically corrected by adjusting cost of goods sold.

What is a document that accumulates job costs called?

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

Manufacturers follow four steps to implement a manufacturing overhead allocation system. The first step is to estimate the total manufacturing overhead costs for the coming year.

An underallocation of manufacturing overhead is typically corrected by decreasing cost of goods sold on the income statement.

Greatwater Manufacturing uses job costing. In May, material requisitions were $44,000 ($39,000 of these were direct materials), and raw material purchases were $57,700. The end of month balance in raw materials inventory was $24,300. What was the beginning raw materials inventory balance?

The most significant cost for a service firm is direct labor cost.

Job costing is not commonly used by service firms (such as law firms)or trades people (such as auto mechanics).

Here is some basic data for Honey Dukes Corporation: The journal entry to record the cost of jobs sold would include a

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

The manufacturing overhead account is credited for actual manufacturing overhead costs incurred in the period.

Manufacturers follow four steps to implement a manufacturing overhead allocation system. The last step is

Overallocated overhead costs occur when the overhead costs allocated are greater than the amount actually incurred.

XYZ uses job costing. Actual manufacturing overhead for the period is $20,000 while allocated manufacturing overhead is $18,000. What entry will close the manufacturing overhead 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

A receiving report is typically a duplicate of the purchase order but without the prices and quantities pre-listed on the form.

What is the primary factor causing a "cost" called?

Perry Moldings has the following estimated costs for the upcoming year: The company estimates that 1,200 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 machine hour is closest to

The amount of overallocation or underallocation is typically corrected by adjusting cost of goods sold.

What is a document that accumulates job costs called?

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

Manufacturers follow four steps to implement a manufacturing overhead allocation system. The first step is to estimate the total manufacturing overhead costs for the coming year.

An underallocation of manufacturing overhead is typically corrected by decreasing cost of goods sold on the income statement.

Greatwater Manufacturing uses job costing. In May, material requisitions were $44,000 ($39,000 of these were direct materials), and raw material purchases were $57,700. The end of month balance in raw materials inventory was $24,300. What was the beginning raw materials inventory balance?

The most significant cost for a service firm is direct labor cost.

Job costing is not commonly used by service firms (such as law firms)or trades people (such as auto mechanics).

Here is some basic data for Honey Dukes Corporation: The journal entry to record the cost of jobs sold would include a

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

The manufacturing overhead account is credited for actual manufacturing overhead costs incurred in the period.

Manufacturers follow four steps to implement a manufacturing overhead allocation system. The last step is

Overallocated overhead costs occur when the overhead costs allocated are greater than the amount actually incurred.

XYZ uses job costing. Actual manufacturing overhead for the period is $20,000 while allocated manufacturing overhead is $18,000. What entry will close the manufacturing overhead 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