Question 1

Increase in the Work-in-Process account occur when:

Accepted Answer

A) materials are received into the storeroom. 
B) factory overhead costs are incurred. 
C) direct labor is recorded from the time sheets. 
D) materials are ordered. 
A) materials are received into the storeroom. 
B) factory overhead costs are incurred. 
C) direct labor is recorded from the time sheets. 
D) materials are ordered. C

Question 2

In a job order cost system,materials and supply costs for a service business are normally included as part of overhead cost.

Accepted Answer

A) True 
 B)False  True

Question 3

After the goods are completed,their costs are transferred from Work in Process to Finished Goods.

Accepted Answer

A) True 
 B)False  True

Question 4

For a construction contractor,the wages of carpenters would be classified as direct labor cost.

Accepted Answer

A) True 
 B)False

Question 5

Applying of factory overhead costs to jobs would decrease:

Accepted Answer

A) Factory Overhead. 
B) Wages Payable. 
C) Work-in-Process. 
D) Cost of Goods Sold. 
A) Factory Overhead. 
B) Wages Payable. 
C) Work-in-Process. 
D) Cost of Goods Sold.

Question 6

For an automotive repair shop,the wages of mechanics would be classified as direct labor cost.

Accepted Answer

A) True 
 B)False

Question 7

Each account in the subsidiary ledger for work in process is called a:

Accepted Answer

A) finished goods sheet. 
B) stock record. 
C) materials requisition. 
D) job cost sheet. 
A) finished goods sheet. 
B) stock record. 
C) materials requisition. 
D) job cost sheet.

Question 8

Hudson,Inc.has estimated total factory overhead costs of $400,000 and 20,000 direct labor hours for the current fiscal year.If direct labor hours for the year totals 18,000 and actual factory overhead totals $350,000,what is the amount of overapplied or underapplied overhead for the year?

Accepted Answer

A) $10,000 overapplied 
B) $10,000 underapplied 
C) $50,000 underapplied 
D) $50,000 overapplied 
A) $10,000 overapplied 
B) $10,000 underapplied 
C) $50,000 underapplied 
D) $50,000 overapplied

Question 9

Calculate direct labor cost for Brandt,Inc.

Accepted Answer

A) $226,000 
B) $206,000 
C) $231,000 
D) $218,000 
A) $226,000 
B) $206,000 
C) $231,000 
D) $218,000

Question 10

Heedy Winery accumulates the costs incurred in the labeling process in an activity cost pool.Costs for the labeling process are estimated to be $320,000,and the winery expects to generate 640,000 labels for the coming year.Production for its top-selling wine is estimated at 160,000 bottles.How much overhead from the labeling process will be allocated to this particular variety of wine?

Accepted Answer

A) $40,000 
B) $80,000 
C) $160,000 
D) $320,000 
A) $40,000 
B) $80,000 
C) $160,000 
D) $320,000

Question 11

The cost of a manufactured product generally consists of direct materials cost,direct labor cost,and factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 12

The Harold Company forecasts that total overhead for the current year will be $12,000,000 and total machine hours will be 200,000 hours.However,the actual overhead is $4,000,000 and the actual machine hours are 100,000 hours.If the company uses a predetermined overhead rate based on machine hours for applying overhead,the overhead will be:

Accepted Answer

A) overapplied by $2,000,000. 
B) underapplied by $2,000,000. 
C) overapplied by $4,000,000. 
D) underapplied by $4,000,000. 
A) overapplied by $2,000,000. 
B) underapplied by $2,000,000. 
C) overapplied by $4,000,000. 
D) underapplied by $4,000,000.

Question 13

The cost of wages paid to employees directly involved in the manufacturing process of converting materials into finished product is classified as:

Accepted Answer

A) factory overhead cost. 
B) direct labor cost. 
C) wages expense. 
D) direct materials cost. 
A) factory overhead cost. 
B) direct labor cost. 
C) wages expense. 
D) direct materials cost.

Question 14

Mountain View Manufacturers Inc.has estimated total factory overhead costs of $90,000,and 15,000 direct labor hours for the current fiscal year.If job number 112 incurred 1,000 direct labor hours,the work-in-process account will be increased and factory overhead will be decreased by:

Accepted Answer

A) $15,000. 
B) $0. 
C) $6,000. 
D) $1,000. 
A) $15,000. 
B) $0. 
C) $6,000. 
D) $1,000.

Question 15

Recording direct labor costs in a job order cost accounting system:

Accepted Answer

A) increases Factory Overhead and decreases Work-in-Process. 
B) increases Finished Goods and increases Wages Payable. 
C) increases Work-in-Process and increases Wages Payable. 
D) increases Factory Overhead and increases Wages Payable. 
A) increases Factory Overhead and decreases Work-in-Process. 
B) increases Finished Goods and increases Wages Payable. 
C) increases Work-in-Process and increases Wages Payable. 
D) increases Factory Overhead and increases Wages Payable.

Question 16

Which of the following items would be classified as a part of prime cost?

Accepted Answer

A) Direct labor cost 
B) Factory overhead cost 
C) Selling cost 
D) Administrative cost 
A) Direct labor cost 
B) Factory overhead cost 
C) Selling cost 
D) Administrative cost

Question 17

In job order cost accounting system,perpetual inventory records are maintained in controlling accounts and subsidiary ledgers for materials,work in process,and finished goods.

Accepted Answer

A) True 
 B)False

Question 18

In a job order cost accounting system,when goods that have been ordered are received,the receiving department personnel inspects the goods and completes the:

Accepted Answer

A) purchase order. 
B) sales invoice. 
C) receiving report. 
D) purchase requisition. 
A) purchase order. 
B) sales invoice. 
C) receiving report. 
D) purchase requisition.

Question 19

The recording of the jobs completed would increase:

Accepted Answer

A) Factory Overhead. 
B) Finished Goods. 
C) Work-in-Process. 
D) Cost of Goods Sold. 
A) Factory Overhead. 
B) Finished Goods. 
C) Work-in-Process. 
D) Cost of Goods Sold.

Question 20

Upon completing a job,direct materials totaled $3,000; direct labor,$3,500; and factory overhead,$1,500.Units produced totaled 1,000.What is the per unit cost?

Accepted Answer

A) $8,000 
B) $6,500 
C) $6.50 
D) $8 
A) $8,000 
B) $6,500 
C) $6.50 
D) $8

Increase in the Work-in-Process account occur when:

In a job order cost system,materials and supply costs for a service business are normally included as part of overhead cost.

After the goods are completed,their costs are transferred from Work in Process to Finished Goods.

For a construction contractor,the wages of carpenters would be classified as direct labor cost.

Applying of factory overhead costs to jobs would decrease:

For an automotive repair shop,the wages of mechanics would be classified as direct labor cost.

Each account in the subsidiary ledger for work in process is called a:

Hudson,Inc.has estimated total factory overhead costs of $400,000 and 20,000 direct labor hours for the current fiscal year.If direct labor hours for the year totals 18,000 and actual factory overhead totals $350,000,what is the amount of overapplied or underapplied overhead for the year?

Calculate direct labor cost for Brandt,Inc.

The cost of a manufactured product generally consists of direct materials cost,direct labor cost,and factory overhead cost.

The cost of wages paid to employees directly involved in the manufacturing process of converting materials into finished product is classified as:

Mountain View Manufacturers Inc.has estimated total factory overhead costs of $90,000,and 15,000 direct labor hours for the current fiscal year.If job number 112 incurred 1,000 direct labor hours,the work-in-process account will be increased and factory overhead will be decreased by:

Recording direct labor costs in a job order cost accounting system:

Which of the following items would be classified as a part of prime cost?

In job order cost accounting system,perpetual inventory records are maintained in controlling accounts and subsidiary ledgers for materials,work in process,and finished goods.

In a job order cost accounting system,when goods that have been ordered are received,the receiving department personnel inspects the goods and completes the:

The recording of the jobs completed would increase:

Upon completing a job,direct materials totaled $3,000; direct labor,$3,500; and factory overhead,$1,500.Units produced totaled 1,000.What is the per unit cost?

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley, internal Control, and Cash

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

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Exam 10: Accounting Systems for Manufacturing Businesses

Increase in the Work-in-Process account occur when:

In a job order cost system,materials and supply costs for a service business are normally included as part of overhead cost.

After the goods are completed,their costs are transferred from Work in Process to Finished Goods.

For a construction contractor,the wages of carpenters would be classified as direct labor cost.

Applying of factory overhead costs to jobs would decrease:

For an automotive repair shop,the wages of mechanics would be classified as direct labor cost.

Each account in the subsidiary ledger for work in process is called a:

Hudson,Inc.has estimated total factory overhead costs of $400,000 and 20,000 direct labor hours for the current fiscal year.If direct labor hours for the year totals 18,000 and actual factory overhead totals $350,000,what is the amount of overapplied or underapplied overhead for the year?

Calculate direct labor cost for Brandt,Inc.

The cost of a manufactured product generally consists of direct materials cost,direct labor cost,and factory overhead cost.

The cost of wages paid to employees directly involved in the manufacturing process of converting materials into finished product is classified as:

Mountain View Manufacturers Inc.has estimated total factory overhead costs of $90,000,and 15,000 direct labor hours for the current fiscal year.If job number 112 incurred 1,000 direct labor hours,the work-in-process account will be increased and factory overhead will be decreased by:

Recording direct labor costs in a job order cost accounting system:

Which of the following items would be classified as a part of prime cost?

In job order cost accounting system,perpetual inventory records are maintained in controlling accounts and subsidiary ledgers for materials,work in process,and finished goods.

In a job order cost accounting system,when goods that have been ordered are received,the receiving department personnel inspects the goods and completes the:

The recording of the jobs completed would increase:

Upon completing a job,direct materials totaled $3,000; direct labor,$3,500; and factory overhead,$1,500.Units produced totaled 1,000.What is the per unit cost?

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley, internal Control, and Cash

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

Filters