Question 1

Which of the following is an example of an industry that would use a process costing-rather than a job costing-system?

Accepted Answer

A) Coca-Cola 
B) Boeing Jets 
C) Centex Custom Homes 
D) Snyder & Lewis,Attorneys at Law 
A) Coca-Cola 
B) Boeing Jets 
C) Centex Custom Homes 
D) Snyder & Lewis,Attorneys at Law A

Question 2

Solid Oak Bureau Company uses job costing.Solid Oak Bureau Company has two departments,Trimming and Finishing.Manufacturing overhead is allocated based on direct labor cost in the Trimming Department and direct labor hours in the Finishing Department.The following additional information is available:
 
Actual data for completed Job No.650 is as follows:
 
What is the total manufacturing overhead cost for Job No.650?

Accepted Answer

A) $72,500 
B) $89,600 
C) $59,731 
D) $78,520 
A) $72,500 
B) $89,600 
C) $59,731 
D) $78,520 D

Question 3

If manufacturing overhead has been underallocated during the period,and most of the jobs produced have been sold,then

Accepted Answer

A) Cost of Goods Sold on the income statement should be increased. 
B) Cost of Goods Sold on the income statement should be decreased. 
C) finished goods inventory should be increased. 
D) work in process inventory should be decreased. 
A) Cost of Goods Sold on the income statement should be increased. 
B) Cost of Goods Sold on the income statement should be decreased. 
C) finished goods inventory should be increased. 
D) work in process inventory should be decreased. A

Question 4

Nadal Corporation manufactures custom molds for use in the extrusion industry.The company allocates manufacturing overhead based on machine hours.Selected data for costs incurred for Job 532 are as follows:
 
What is the manufacturing cost of Job 532?

Accepted Answer

A) $3,300 
B) $40,800 
C) $85,800 
D) $44,100 
A) $3,300 
B) $40,800 
C) $85,800 
D) $44,100

Question 5

How is the cost of direct materials used in production recorded?

Accepted Answer

A) Credit to Manufacturing Overhead account 
B) Credit to Work-in-Process Inventory account 
C) Credit to Direct Materials Expense account 
D) Credit to Raw Materials Inventory account 
A) Credit to Manufacturing Overhead account 
B) Credit to Work-in-Process Inventory account 
C) Credit to Direct Materials Expense account 
D) Credit to Raw Materials Inventory account

Question 6

The cost of indirect materials used in production is credited to

Accepted Answer

A) the Finished Goods Inventory account. 
B) the Manufacturing Overhead account. 
C) the Work-in-Process Inventory account. 
D) the Raw Materials Inventory account. 
A) the Finished Goods Inventory account. 
B) the Manufacturing Overhead account. 
C) the Work-in-Process Inventory account. 
D) the Raw Materials Inventory account.

Question 7

The bill of materials lists all of the raw materials needed to manufacture the job.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) $280,500 
B) $171,400 
C) $258,100 
D) $226,800 
A) $280,500 
B) $171,400 
C) $258,100 
D) $226,800

Question 9

How do you calculate the predetermined manufacturing overhead rate used to allocate manufacturing overhead costs?

Accepted Answer

A) By multiplying the total estimated manufacturing overhead costs by the total estimated amount of the allocation base 
B) By dividing the total estimated amount of the allocation base by the total estimated manufacturing overhead costs 
C) By dividing the total estimated manufacturing overhead costs by the total actual amount of the allocation base 
D) By dividing the total estimated manufacturing overhead costs by the total estimated amount of the allocation base 
A) By multiplying the total estimated manufacturing overhead costs by the total estimated amount of the allocation base 
B) By dividing the total estimated amount of the allocation base by the total estimated manufacturing overhead costs 
C) By dividing the total estimated manufacturing overhead costs by the total actual amount of the allocation base 
D) By dividing the total estimated manufacturing overhead costs by the total estimated amount of the allocation base

Question 10

Job 543 started on June 1 and finished on July 15.Total cost on July 1 was $10,800,and the costs added in July were $164,300.The product was sold.What is the debit to cost of goods sold?

Accepted Answer

A) $153,500 
B) $10,800 
C) $175,100 
D) $164,300 
A) $153,500 
B) $10,800 
C) $175,100 
D) $164,300

Question 11

Here is some basic data for Honey Dukes Corporation:
 
The entry to record the cost of goods completed would be a

Accepted Answer

A) debit to Finished Goods Inventory account for $287,000. 
B) credit to Work-in-Process Inventory account for $255,000. 
C) debit to Work-in-Process Inventory account for $255,000. 
D) credit to Finished Goods Inventory account for $975,000. 
A) debit to Finished Goods Inventory account for $287,000. 
B) credit to Work-in-Process Inventory account for $255,000. 
C) debit to Work-in-Process Inventory account for $255,000. 
D) credit to Finished Goods Inventory account for $975,000.

Question 12

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 13

Assigning manufacturing overhead costs and other indirect costs is 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 14

Service firms follow the same approach for indirect costs as manufacturing companies because they develop a predetermined indirect cost allocation rate.

Accepted Answer

A) True 
 B)False

Question 15

When the products are shipped to customers,the cost of manufacturing those products becomes Cost of Goods Sold (COGS)shown on the company's balance sheet.

Accepted Answer

A) True 
 B)False

Question 16

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 the Manufacturing Overhead account and credit the Work-in-Process account for $2,000. 
B) Debit the Manufacturing Overhead account and credit the Cost of Goods Sold account for $2,000. 
C) Debit the Cost of Goods Sold account and credit the Finished Goods Inventory account for $2,000. 
D) Debit the Cost of Goods Sold account and credit the Manufacturing Overhead account for $2,000. 
A) Debit the Manufacturing Overhead account and credit the Work-in-Process account for $2,000. 
B) Debit the Manufacturing Overhead account and credit the Cost of Goods Sold account for $2,000. 
C) Debit the Cost of Goods Sold account and credit the Finished Goods Inventory account for $2,000. 
D) Debit the Cost of Goods Sold account and credit the Manufacturing Overhead account for $2,000.

Question 17

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 18

A(n)________ is an estimated manufacturing overhead rate computed during the year.

Accepted Answer

A) cost allocation 
B) cost driver 
C) predetermined manufacturing overhead rate 
D) actual manufacturing overhead rate 
A) cost allocation 
B) cost driver 
C) predetermined manufacturing overhead rate 
D) actual manufacturing overhead rate

Question 19

Sykes Company has sales revenue of $585,000.Cost of goods sold before adjustment is $335,000.The company's actual manufacturing overhead is $91,000,while allocated manufacturing overhead is $104,400.What is the actual gross profit?

Accepted Answer

A) $159,000 
B) $236,600 
C) $250,000 
D) $263,400 
A) $159,000 
B) $236,600 
C) $250,000 
D) $263,400

Question 20

For each of the following statements,determine if it would be handled:
A)Before the period
B)During the period
C)At the end of the period
Put the correct letter on the line in front of each statement.

Accepted Answer

The answer of For each of the following statements,determine if...

Which of the following is an example of an industry that would use a process costing-rather than a job costing-system?

If manufacturing overhead has been underallocated during the period,and most of the jobs produced have been sold,then

Nadal Corporation manufactures custom molds for use in the extrusion industry.The company allocates manufacturing overhead based on machine hours.Selected data for costs incurred for Job 532 are as follows: What is the manufacturing cost of Job 532?

How is the cost of direct materials used in production recorded?

The cost of indirect materials used in production is credited to

The bill of materials lists all of the raw materials needed to manufacture the job.

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

How do you calculate the predetermined manufacturing overhead rate used to allocate manufacturing overhead costs?

Job 543 started on June 1 and finished on July 15.Total cost on July 1 was $10,800,and the costs added in July were $164,300.The product was sold.What is the debit to cost of goods sold?

Here is some basic data for Honey Dukes Corporation: The entry to record the cost of goods completed would be a

An underallocation of manufacturing overhead is typically corrected by decreasing Cost of Goods Sold on the income statement.

Assigning manufacturing overhead costs and other indirect costs is called

Service firms follow the same approach for indirect costs as manufacturing companies because they develop a predetermined indirect cost allocation rate.

When the products are shipped to customers,the cost of manufacturing those products becomes Cost of Goods Sold (COGS)shown on the company's balance sheet.

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?

A(n)________ is an estimated manufacturing overhead rate computed during the year.

Sykes Company has sales revenue of $585,000.Cost of goods sold before adjustment is $335,000.The company's actual manufacturing overhead is $91,000,while allocated manufacturing overhead is $104,400.What is the actual gross profit?

For each of the following statements,determine if it would be handled: A)Before the period B)During the period C)At the end of the period Put the correct letter on the line in front of each statement.

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

Which of the following is an example of an industry that would use a process costing-rather than a job costing-system?

If manufacturing overhead has been underallocated during the period,and most of the jobs produced have been sold,then

Nadal Corporation manufactures custom molds for use in the extrusion industry.The company allocates manufacturing overhead based on machine hours.Selected data for costs incurred for Job 532 are as follows: What is the manufacturing cost of Job 532?

How is the cost of direct materials used in production recorded?

The cost of indirect materials used in production is credited to

The bill of materials lists all of the raw materials needed to manufacture the job.

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

How do you calculate the predetermined manufacturing overhead rate used to allocate manufacturing overhead costs?

Job 543 started on June 1 and finished on July 15.Total cost on July 1 was $10,800,and the costs added in July were $164,300.The product was sold.What is the debit to cost of goods sold?

Here is some basic data for Honey Dukes Corporation: The entry to record the cost of goods completed would be a

An underallocation of manufacturing overhead is typically corrected by decreasing Cost of Goods Sold on the income statement.

Assigning manufacturing overhead costs and other indirect costs is called

Service firms follow the same approach for indirect costs as manufacturing companies because they develop a predetermined indirect cost allocation rate.

When the products are shipped to customers,the cost of manufacturing those products becomes Cost of Goods Sold (COGS)shown on the company's balance sheet.

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?

A(n)________ is an estimated manufacturing overhead rate computed during the year.

Sykes Company has sales revenue of $585,000.Cost of goods sold before adjustment is $335,000.The company's actual manufacturing overhead is $91,000,while allocated manufacturing overhead is $104,400.What is the actual gross profit?

For each of the following statements,determine if it would be handled: A)Before the period B)During the period C)At the end of the period Put the correct letter on the line in front of each statement.

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