Question 1

Under a perpetual inventory system, when goods are sold the Cost of Goods Sold account is----------.

Accepted Answer

The answer of Under a perpetual inventory system, when goods...

Question 2

When perpetual inventories are maintained in a job order cost system, the balance of the Work in Process Inventory account represents:

Accepted Answer

A) the actual costs for the labor and materials used in uncompleted jobs and estimate of the overhead associated with these jobs. 
B) the actual costs incurred for labor, materials, and overhead on all jobs that were started but are not yet complete. 
C) only the actual costs for the labor and materials used in uncompleted jobs. 
D) only the actual costs for the labor and materials used in completed jobs. 
A) the actual costs for the labor and materials used in uncompleted jobs and estimate of the overhead associated with these jobs. 
B) the actual costs incurred for labor, materials, and overhead on all jobs that were started but are not yet complete. 
C) only the actual costs for the labor and materials used in uncompleted jobs. 
D) only the actual costs for the labor and materials used in completed jobs.

Question 3

Based on the information given, complete the Job Order Cost Sheet for Job C3-19.

Accepted Answer

The answer of Based on the information given, complete the...

Question 4

The total direct labor charged to all job cost sheets must agree with the direct labor debited to:

Accepted Answer

A) Time Tickets. 
B) Wages Payable. 
C) Wages Expense. 
D) Work in Process Inventory. 
A) Time Tickets. 
B) Wages Payable. 
C) Wages Expense. 
D) Work in Process Inventory.

Question 5

A(n)-----------accounting system is normally used when standard types of products are made in continuous operations.

Accepted Answer

The answer of A(n)-----------accounting system is normally used when standard...

Question 6

The McGreen Company employees worked 12,200 hours last year with an average hourly rate of
$13 per hour. The overhead was $793,000. If overhead is based on direct labor costs, then the overhead rate per direct labor dollar is

Accepted Answer

A) $13.00 
B) $5.00 
C) $65.00 
D) $0.20 
A) $13.00 
B) $5.00 
C) $65.00 
D) $0.20

Question 7

Standard cost accounting may be used with either a job order cost system or a process cost system.

Accepted Answer

A) True 
 B)False

Question 8

At the end of the year, Harding Company had a balance in Manufacturing Overhead of $26,000, and a balance in Manufacturing Overhead Applied of $23,000. 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 9

Martinez Manufacturing applies overhead based on direct labor hours. The company estimates that their overhead for the year will be $180,000, and that they will use 72,000 direct labor hours. Martinez Manufacturing actually used 71,000 direct labor hours. The journal entry to record manufacturing overhead would include a:

Accepted Answer

A) Debit to Work in Process Inventory for $180,000. 
B) Credit to Manufacturing Overhead Applied for $180,000. 
C) Debit to Work in Process Inventory for $177,500. 
D) Debit to Manufacturing Overhead Applied for $177,500. 
A) Debit to Work in Process Inventory for $180,000. 
B) Credit to Manufacturing Overhead Applied for $180,000. 
C) Debit to Work in Process Inventory for $177,500. 
D) Debit to Manufacturing Overhead Applied for $177,500.

Question 10

Indirect materials issued to production are recorded with a debit to Work in Process and a credit to Raw Materials.

Accepted Answer

A) True 
 B)False

Question 11

When indirect materials are requisitioned from the materials storeroom and placed in production, an entry is made crediting Raw Materials Inventory and debiting

Accepted Answer

A) Work in Process Inventory. 
B) Cost of Goods Manufactured. 
C) Manufacturing Overhead. 
D) Manufacturing Overhead Applied. 
A) Work in Process Inventory. 
B) Cost of Goods Manufactured. 
C) Manufacturing Overhead. 
D) Manufacturing Overhead Applied.

Question 12

Workers who perform direct labor prepare a series of------------ to account for all time spent in the plant.

Accepted Answer

The answer of Workers who perform direct labor prepare a...

Question 13

The monthly total of the Overhead Applied section of all job order cost sheets should agree with the balance in the control account Manufacturing Overhead.

Accepted Answer

A) True 
 B)False

Question 14

In a just-in-time inventory system, the------- account is debited when goods arrive.

Accepted Answer

Work in Pr

Question 15

At the end of the accounting period, the balance in the Raw Materials inventory account reflects the cost of materials:

Accepted Answer

A) on hand and available for use. 
B) issued to production. 
C) purchased during the period. 
D) assigned to manufacturing overhead. 
A) on hand and available for use. 
B) issued to production. 
C) purchased during the period. 
D) assigned to manufacturing overhead.

Question 16

Ridley Company estimates that overhead costs for the next year will be $6,870,000 for indirect labor and $450,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. If 160,000 direct labor hours are budgeted for next year. If the actual direct labor hours in the next year totaled 158,200, what is the amount of manufacturing overhead applied for the year?

Accepted Answer

A) $7,320,000 
B) $7,237,650 
C) $6,870,000 
D) $7,314,938. 
A) $7,320,000 
B) $7,237,650 
C) $6,870,000 
D) $7,314,938.

Question 17

Kamper Company allocates their manufacturing overhead based on direct labor hours. The total estimated overhead is $475,000 and total estimated direct labor hours are 30,800. If the actual direct labor hours were 31,360, what was the total manufacturing overhead applied? (Round intermediate calculations to two decimal places.)

Accepted Answer

A) $466,517.86 
B) $475,000.00 
C) $483,571.20 
D) $467,558.64. 
A) $466,517.86 
B) $475,000.00 
C) $483,571.20 
D) $467,558.64.

Question 18

Which of the following IS NOT a benefit of a standard cost system?

Accepted Answer

A) consistently costed products. 
B) assistance in the identification of manufacturing inefficiencies. 
C) provides a basis for setting selling prices. 
D) reduction of the accounting workload. 
A) consistently costed products. 
B) assistance in the identification of manufacturing inefficiencies. 
C) provides a basis for setting selling prices. 
D) reduction of the accounting workload.

Question 19

At the end of each year, the underapplied or overapplied overhead is as an adjustment to the Cost of Goods Sold account.

Accepted Answer

A) True 
 B)False

Question 20

Actual overhead costs are:

Accepted Answer

A) debited to Work in Process Inventory when incurred. 
B) credited to Manufacturing Overhead when incurred. 
C) debited to Manufacturing Overhead Applied when incurred. 
D) debited to Manufacturing Overhead when incurred. 
A) debited to Work in Process Inventory when incurred. 
B) credited to Manufacturing Overhead when incurred. 
C) debited to Manufacturing Overhead Applied when incurred. 
D) debited to Manufacturing Overhead when incurred.

Exam 27: Job Order Cost Accounting

Under a perpetual inventory system, when goods are sold the Cost of Goods Sold account is----------.

When perpetual inventories are maintained in a job order cost system, the balance of the Work in Process Inventory account represents:

Based on the information given, complete the Job Order Cost Sheet for Job C3-19.

The total direct labor charged to all job cost sheets must agree with the direct labor debited to:

A(n)-----------accounting system is normally used when standard types of products are made in continuous operations.

The McGreen Company employees worked 12,200 hours last year with an average hourly rate of $13 per hour. The overhead was $793,000. If overhead is based on direct labor costs, then the overhead rate per direct labor dollar is

Standard cost accounting may be used with either a job order cost system or a process cost system.

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

Indirect materials issued to production are recorded with a debit to Work in Process and a credit to Raw Materials.

When indirect materials are requisitioned from the materials storeroom and placed in production, an entry is made crediting Raw Materials Inventory and debiting

Workers who perform direct labor prepare a series of------------ to account for all time spent in the plant.

The monthly total of the Overhead Applied section of all job order cost sheets should agree with the balance in the control account Manufacturing Overhead.

In a just-in-time inventory system, the------- account is debited when goods arrive.

At the end of the accounting period, the balance in the Raw Materials inventory account reflects the cost of materials:

Which of the following IS NOT a benefit of a standard cost system?

At the end of each year, the underapplied or overapplied overhead is as an adjustment to the Cost of Goods Sold account.

Actual overhead costs are:

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

Filters