Question 1

A schedule that is used to ensure accuracy in computing product costs is (are)

Accepted Answer

A)  the schedule of the cost of goods manufactured. 
B)  the schedule of the cost of goods sold. 
C)  the schedules of the cost of goods manufactured and cost of goods sold. 
D)  the schedule of raw materials used. 
E)  None of the schedules listed here. 
A)  the schedule of the cost of goods manufactured. 
B)  the schedule of the cost of goods sold. 
C)  the schedules of the cost of goods manufactured and cost of goods sold. 
D)  the schedule of raw materials used. 
E)  None of the schedules listed here.

Question 2

Brady Corporation has estimated overhead to be $250,000 for the year based on an estimated amount of direct labor hours of 40,000. Actual direct labor hours for the year are 41,500 and actual overhead is $258,900.
Required:
A.) Calculate the predetermined overhead rate.
B.) Calculate how much overhead has been applied.
C.) Calculate the overhead variance.
D.) Assuming that the variance is immaterial, prepare the journal entry to close the variance.

Accepted Answer

A.) Overhead rate = $250,000/4

Question 3

In job-order costing, the journal entry for a completed job costing $7,000 but not sold is:

Accepted Answer

A) True 
 B)False

Question 4

When a job is completed but not sold, the accounts affected are

Accepted Answer

A)  Raw Materials and Work-in-Process. 
B)  Work-in-Process and Finished Goods. 
C)  Work-in-Process and Cost of Goods Sold. 
D)  Finished Goods and Cost of Goods Sold. 
E)  Finished Goods and Overhead Control. 
A)  Raw Materials and Work-in-Process. 
B)  Work-in-Process and Finished Goods. 
C)  Work-in-Process and Cost of Goods Sold. 
D)  Finished Goods and Cost of Goods Sold. 
E)  Finished Goods and Overhead Control.

Question 5

The three manufacturing cost elements are direct materials, direct labor, and overhead.

Accepted Answer

A) True 
 B)False

Question 6

There are two major types of companies: those that use a job-order costing system and those that use process-costing systems.

Accepted Answer

The answer of There are two major types of companies:...

Question 7

Match each item with the correct statement below.
-A costing system in which costs are collected and assigned to units of production for each individual job

Accepted Answer

A) actual cost system 
B) job-order costing system 
C) normal cost system 
D) process-costing system 
A) actual cost system 
B) job-order costing system 
C) normal cost system 
D) process-costing system

Question 8

Figure 5-10.The King Corporation manufactures custom-made furniture. The following data pertains to Job X4A:
   Plantwide overhead rate is $22.50 per machine hour.
-Refer to Figure 5-10. Job X4A consists of 500 units. One-half of Job X4A was sold for $10,000. What is the cost per unit for Job X4A?

Accepted Answer

A)  $18 
B)  $31.50 
C)  $27 
D)  $40.50 
A)  $18 
B)  $31.50 
C)  $27 
D)  $40.50

Question 9

The document that lists the total cost for a single job is a

Accepted Answer

A)  job-order cost sheet. 
B)  materials requisition form. 
C)  time ticket. 
D)  purchase order. 
E)  None of these are correct. 
A)  job-order cost sheet. 
B)  materials requisition form. 
C)  time ticket. 
D)  purchase order. 
E)  None of these are correct.

Question 10

cost of materials is removed from materials account and added to work-in- process account

Accepted Answer

A) completion of job 
B) end of each accounting period 
C) materials are moved from storage into production 
D) product is sold 
E) end of year 
A) completion of job 
B) end of each accounting period 
C) materials are moved from storage into production 
D) product is sold 
E) end of year

Question 11

Figure 5-3.Mitchell's Softball Gloves Company estimated the following at the beginning of the year:
   Mitchell uses departmental overhead rates. In the assembly department, direct labor hours are used to apply overhead. Machine hours are used to apply overhead in the testing department.Actual data for August is as follows:
  
-Refer to Figure 5-3. Mitchell decides to continue using departmental overhead rates. What are the predetermined rates for the Assembly and Testing departments respectively?

Accepted Answer

A)  assembly: $4 per direct labor hour; testing: $2 per machine hour 
B)  assembly: $2 per direct labor hour; testing: $4 per machine hour 
C)  assembly: $4 per direct labor hour; testing: $4 per direct labor hour 
D)  assembly: $7.22 per machine hour; testing: $7.22 per machine hour 
E)  None of these. 
A)  assembly: $4 per direct labor hour; testing: $2 per machine hour 
B)  assembly: $2 per direct labor hour; testing: $4 per machine hour 
C)  assembly: $4 per direct labor hour; testing: $4 per direct labor hour 
D)  assembly: $7.22 per machine hour; testing: $7.22 per machine hour 
E)  None of these.

Question 12

________________________ are directly responsible for creating the products or services sold to customers.

Accepted Answer

Producing

Question 13

Match each item with the correct statement below.
-The amount by which actual overhead exceeds applied overhead

Accepted Answer

A) predetermined overhead rate 
B) plantwide overhead rate 
C) departmental overhead rate 
D) overhead variance 
E) overapplied overhead
F)underapplied overhead
G)applied overhead
H)normal cost of goods sold 
A) predetermined overhead rate 
B) plantwide overhead rate 
C) departmental overhead rate 
D) overhead variance 
E) overapplied overhead
F)underapplied overhead
G)applied overhead
H)normal cost of goods sold

Question 14

Match each item with the correct statement below.
-An approach that assigns actual costs of direct materials, direct labor, and overhead to products

Accepted Answer

A) actual cost system 
B) job-order costing system 
C) normal cost system 
D) process-costing system 
A) actual cost system 
B) job-order costing system 
C) normal cost system 
D) process-costing system

Question 15

Match each item with the correct statement below.
-The amount by which applied overhead exceeds actual overhead

Accepted Answer

A) predetermined overhead rate 
B) plantwide overhead rate 
C) departmental overhead rate 
D) overhead variance 
E) overapplied overhead
F)underapplied overhead
G)applied overhead
H)normal cost of goods sold 
A) predetermined overhead rate 
B) plantwide overhead rate 
C) departmental overhead rate 
D) overhead variance 
E) overapplied overhead
F)underapplied overhead
G)applied overhead
H)normal cost of goods sold

Question 16

Pribil Farm Equipment is a job-order costing manufacturer that uses a plantwide overhead rate based on direct labor hours. Estimations for the year include $420,000 in overhead and 30,000 direct labor hours. Pribil worked on five jobs in March. Data are as follows:
   By March 31, Jobs 89 and 91 were completed and sold. The rest of the jobs remained in process.

Accepted Answer

The answer of Pribil Farm Equipment is a job-order costing...

Question 17

Which of the following are easy to trace to individual jobs?

Accepted Answer

A)  direct materials and overhead 
B)  direct materials and direct labor 
C)  direct labor and overhead 
D)  overhead and indirect labor 
E)  depreciation on machinery and indirect labor 
A)  direct materials and overhead 
B)  direct materials and direct labor 
C)  direct labor and overhead 
D)  overhead and indirect labor 
E)  depreciation on machinery and indirect labor

Question 18

Figure 5-14
Deluxe Design Company makes custom furniture. On December 1, there were two jobs in process, Job 683, with a cost of $14,200 and Job 684 with a cost of $23,500. Jobs 685, 686, and 687 were started during the month of December. Data on costs added during the month are as follows:
   Overhead is applied to production at the rate of 80% of direct labor cost. Job 685 was completed on December 17. Job 684 was completed on December 21 and the client was billed at cost plus 45%. All other jobs remained in process.
-Refer to Figure 5-14.
Required:
A.) Determine the amount of overhead to apply to each job for the period.
B.) Calculate the cost of work-in-process at the end of the month.
C.) Calculate the cost of finished goods, assuming that finished goods inventory on December 1st was zero.

Accepted Answer

The answer of Figure 5-14
Deluxe Design Company makes custom furniture....

Question 19

The journal entry for $17 of underapplied overhead is:

Accepted Answer

A) True 
 B)False

Question 20

Match each item with the correct statement below.
-A costing system that accumulates production costs by process or by department for a given period of time

Accepted Answer

A) actual cost system 
B) job-order costing system 
C) normal cost system 
D) process-costing system 
A) actual cost system 
B) job-order costing system 
C) normal cost system 
D) process-costing system

A schedule that is used to ensure accuracy in computing product costs is (are)

In job-order costing, the journal entry for a completed job costing $7,000 but not sold is:

When a job is completed but not sold, the accounts affected are

The three manufacturing cost elements are direct materials, direct labor, and overhead.

There are two major types of companies: those that use a job-order costing system and those that use process-costing systems.

Match each item with the correct statement below. -A costing system in which costs are collected and assigned to units of production for each individual job

Figure 5-10.The King Corporation manufactures custom-made furniture. The following data pertains to Job X4A: Plantwide overhead rate is $22.50 per machine hour. -Refer to Figure 5-10. Job X4A consists of 500 units. One-half of Job X4A was sold for $10,000. What is the cost per unit for Job X4A?

The document that lists the total cost for a single job is a

cost of materials is removed from materials account and added to work-in- process account

________________________ are directly responsible for creating the products or services sold to customers.

Match each item with the correct statement below. -The amount by which actual overhead exceeds applied overhead

Match each item with the correct statement below. -An approach that assigns actual costs of direct materials, direct labor, and overhead to products

Match each item with the correct statement below. -The amount by which applied overhead exceeds actual overhead

Which of the following are easy to trace to individual jobs?

The journal entry for $17 of underapplied overhead is:

Match each item with the correct statement below. -A costing system that accumulates production costs by process or by department for a given period of time

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Profit Planning

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

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Exam 5: Job-Order Costing

A schedule that is used to ensure accuracy in computing product costs is (are)

In job-order costing, the journal entry for a completed job costing $7,000 but not sold is:

When a job is completed but not sold, the accounts affected are

The three manufacturing cost elements are direct materials, direct labor, and overhead.

There are two major types of companies: those that use a job-order costing system and those that use process-costing systems.

Match each item with the correct statement below. -A costing system in which costs are collected and assigned to units of production for each individual job

Figure 5-10.The King Corporation manufactures custom-made furniture. The following data pertains to Job X4A: Plantwide overhead rate is $22.50 per machine hour. -Refer to Figure 5-10. Job X4A consists of 500 units. One-half of Job X4A was sold for $10,000. What is the cost per unit for Job X4A?

The document that lists the total cost for a single job is a

cost of materials is removed from materials account and added to work-in- process account

________________________ are directly responsible for creating the products or services sold to customers.

Match each item with the correct statement below. -The amount by which actual overhead exceeds applied overhead

Match each item with the correct statement below. -An approach that assigns actual costs of direct materials, direct labor, and overhead to products

Match each item with the correct statement below. -The amount by which applied overhead exceeds actual overhead

Which of the following are easy to trace to individual jobs?

The journal entry for $17 of underapplied overhead is:

Match each item with the correct statement below. -A costing system that accumulates production costs by process or by department for a given period of time

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Profit Planning

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters