Question 1

If actual overhead costs exceed the overhead applied during the year, the difference represents---------overhead.

Accepted Answer

underapplied

Question 2

Morion Hat Manufacturing made the following charge purchases on February 4 of the current year. Felt $5,687; Ribbon $1,234; Straw $6,723; Dye (for the straw)$39; Thread $47;
Various plastic fruits, flowers, etc. $179; and Glue $28. Assume that all items purchased were requisitioned for production during the year. Complete one journal entry for all purchases and one summary journal entry dated February 20 for the requisitioning of those materials into production. Also, explain the internal controls applied to safeguard raw materials.

Accepted Answer

Note:Only the dye, glue, and thread are considered overhead. Some students may put the various plastic fruits, flower, etc. into indirect materials. If so the direct material would be
$13,644 and the total for indirect materials would be $293.
   
To promote strong internal control, prenumbered purchase orders are used. The materials an supplies are checked to the included documentation to ensure that the material ordered was received and that the quantity is correct. A report with this information accompanies the items to the storeroom. Before the invoice is approved for payment, it is checked against the
receiving report and the purchase order.
Internal controls over materials are also in place for the releasing of materials into productio Materials Requisition forms are used. These forms describe the item and quantity needed and shows the job and/or purpose. The forms are also used as documentation for recording them on the individual raw materials ledger cards.

Question 3

A job order cost sheet would be utilized to track the cost of the following costs except for:

Accepted Answer

A) labor hours worked. 
B) material issued to the job. 
C) sales commission on the job. 
D) overhead allocated. 
A) labor hours worked. 
B) material issued to the job. 
C) sales commission on the job. 
D) overhead allocated. C

Question 4

Fill in the blanks for each of the following. (Blanks are indicated by numbers in parentheses.)

Accepted Answer

The answer of Fill in the blanks for each of...

Question 5

The Manufacturing Overhead Applied account for Cullverin Manufacturing had activity of $860 in indirect materials and supplies, $992 in indirect labor, and $4,654 in other overhead costs recorded in the account at April 30 of the current year. The Manufacturing Overhead Applied account had a total of $6,740 in overhead applied during April. What is the over- or underapplied overhead for April? Prepare the journal entry to close the related overhead accounts.

Accepted Answer

The overap

Question 6

Purchases of raw materials are debited to the Work in Process Inventory account.

Accepted Answer

A) True 
 B)False

Question 7

During the year, a firm's direct labor costs were $126,000. The firm applies overhead at the rate of 82% of direct labor costs. The firm's actual overhead costs for the year were $101,620.
1. What was the amount of overhead applied?
2. Did the firm have overapplied or underapplied overhead for the year?
3. What amount was overapplied or underapplied?

Accepted Answer

1. $103,32

Question 8

Acceptable methods for determining the cost of inventory include FIFO, LIFO, weighted average cost, specific identification and standard cost.

Accepted Answer

A) True 
 B)False

Question 9

At the end of each year, the underapplied or overapplied overhead is closed to the Work in Process inventory account.

Accepted Answer

A) True 
 B)False

Question 10

Manufacturing costs for each unit produced are calculated by dividing job order costs by-----------.

Accepted Answer

units manu

Question 11

If manufacturing overhead is applied at a rate of $1.62 per direct labor dollar and the Department B employee worked 198 hours at $12.50 an hour on Job L1147, then the applied overhead would be

Accepted Answer

A) $2,475.00. 
B) $320.76. 
C) $4,009.50. 
D) $12.50. 
A) $2,475.00. 
B) $320.76. 
C) $4,009.50. 
D) $12.50.

Question 12

Wilson Enterprises applies overhead based on direct labor cost. The company estimates that their overhead for the year will be $240,000, and direct labor cost to be $300,000. Actual direct labor cost for Martinez Manufacturing was $316,000. The journal entry to record manufacturing overhead would include a:

Accepted Answer

A) Debit to Work in Process Inventory for $316,000. 
B) Credit to Manufacturing Overhead Applied for $252,800. 
C) Credit to Work in Process Inventory for $252,800. 
D) Credit to Manufacturing Overhead Applied for $316,000. 
A) Debit to Work in Process Inventory for $316,000. 
B) Credit to Manufacturing Overhead Applied for $252,800. 
C) Credit to Work in Process Inventory for $252,800. 
D) Credit to Manufacturing Overhead Applied for $316,000.

Question 13

Finished Goods beginning and ending balances are $23,000 and $17,000, respectively. The cost of goods manufactured for the period was $187,500. Actual manufacturing overhead for the period was $32,000 and applied overhead was $34,000. The adjusted cost of goods sold was:

Accepted Answer

A) $191,500. 
B) $193.500. 
C) $225,500. 
D) $227,500. 
A) $191,500. 
B) $193.500. 
C) $225,500. 
D) $227,500.

Question 14

At the end of the year, Easton Company had a balance in Manufacturing Overhead of $23,000, and a balance in Manufacturing Overhead Applied of $26,000. When the Manufacturing Overhead account is closed, the Cost of Goods Sold account will:

Accepted Answer

A) Increase by $3,000. 
B) Decrease by $3,000. 
C) not be affected. 
D) be closed to Manufacturing Overhead Applied. 
A) Increase by $3,000. 
B) Decrease by $3,000. 
C) not be affected. 
D) be closed to Manufacturing Overhead Applied.

Question 15

Process cost accounting is appropriate:

Accepted Answer

A) when there are continuous operations on standard types of products. 
B) when a company produces more than one product in batches rather than on a continuous basis. 
C) when a company produces what each customer wants on special order. 
D) exclusively for companies that produce only one product. 
A) when there are continuous operations on standard types of products. 
B) when a company produces more than one product in batches rather than on a continuous basis. 
C) when a company produces what each customer wants on special order. 
D) exclusively for companies that produce only one product.

Question 16

The entry to record applied overhead includes a(n)-----------to the Work in Process Inventory account.

Accepted Answer

The answer of The entry to record applied overhead includes...

Question 17

The entry to charge work in process inventory with the appropriate amount of applied overhead consists of a debit to Work in Process Inventory and a credit to Manufacturing Overhead Applied.

Accepted Answer

A) True 
 B)False

Question 18

A raw material subsidiary ledger:

Accepted Answer

A) contains a raw materials card for each item of direct materials only. 
B) contains a raw materials card for each item of indirect materials only. 
C) contains a raw material card for each supplier of raw materials. 
D) contains a raw materials card for each item of direct materials and indirect materials. 
A) contains a raw materials card for each item of direct materials only. 
B) contains a raw materials card for each item of indirect materials only. 
C) contains a raw material card for each supplier of raw materials. 
D) contains a raw materials card for each item of direct materials and indirect materials.

Question 19

Use the following information for the questions.
Adams Manufacturing has three jobs in process in October of the current year, B2-19, C3-19, and D4-4. All thr were begun during the first week of October.  Job C3-19 was completed on October 10 with total labor costs of
$14,750 and total material costs of $8,855 (details of the individual direct material and direct labor costs charged to job C3-19 are given on the Job Order Cost Sheet provided). No other jobs were completed in October.  The total balance in Job D4-4 is $8,250 ($4,275 in materials and $3,975 in labor) and in Job B2-19 is
$17,850 ($10,425 in materials and $7,425 in labor) before overhead is applied. Overhead is applied based on total direct labor dollars. Estimated total direct labor dollars for the year is $440,000 and total estimated manufacturing overhead is $352,000.
-Based on the information given:
1. Determine the overhead rate for Adams Manufacturing;
2. Prepare the journal entry to apply manufacturing overhead to manufacturing process for the month of October;
3. Determine the balance in the Work in Process account at the end of October.

Accepted Answer

1. The overhead application rate for the

Question 20

Direct labor costs of $10,000 and indirect labor costs of $1,500 associated with a job would be recorded on the job cost sheet with a corresponding debit to Work in Process for $11,500.

Accepted Answer

A) True 
 B)False

Exam 27: Job Order Cost Accounting

If actual overhead costs exceed the overhead applied during the year, the difference represents---------overhead.

A job order cost sheet would be utilized to track the cost of the following costs except for:

Fill in the blanks for each of the following. (Blanks are indicated by numbers in parentheses.)

Purchases of raw materials are debited to the Work in Process Inventory account.

Acceptable methods for determining the cost of inventory include FIFO, LIFO, weighted average cost, specific identification and standard cost.

At the end of each year, the underapplied or overapplied overhead is closed to the Work in Process inventory account.

Manufacturing costs for each unit produced are calculated by dividing job order costs by-----------.

If manufacturing overhead is applied at a rate of $1.62 per direct labor dollar and the Department B employee worked 198 hours at $12.50 an hour on Job L1147, then the applied overhead would be

Finished Goods beginning and ending balances are $23,000 and $17,000, respectively. The cost of goods manufactured for the period was $187,500. Actual manufacturing overhead for the period was $32,000 and applied overhead was $34,000. The adjusted cost of goods sold was:

At the end of the year, Easton Company had a balance in Manufacturing Overhead of $23,000, and a balance in Manufacturing Overhead Applied of $26,000. When the Manufacturing Overhead account is closed, the Cost of Goods Sold account will:

Process cost accounting is appropriate:

The entry to record applied overhead includes a(n)-----------to the Work in Process Inventory account.

The entry to charge work in process inventory with the appropriate amount of applied overhead consists of a debit to Work in Process Inventory and a credit to Manufacturing Overhead Applied.

A raw material subsidiary ledger:

Direct labor costs of $10,000 and indirect labor costs of $1,500 associated with a job would be recorded on the job cost sheet with a corresponding debit to Work in Process for $11,500.

Accounting: The Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and Teh Postclosing Trial Balance

Accounting for Sales and Accounts Receivable

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Financial Statements and Closing Procedures

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analysis

The Statement of Cash Flows

Departmentalized Profit and Cost Centers

Accounting for Manufacturing Activities

Process Cost Accounting

Controlling Manufacturing Costs: Standard Costs

Cost-Revenue Analysis for Decision Making

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