Question 1

If manufacturing overhead has been overallocated 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.

Question 2

To record the requisition of direct materials,which of the following accounts would be debited?

Accepted Answer

A) Finished Goods Inventory account 
B) Work-in-Process Inventory account 
C) Raw Materials Inventory account 
D) Cost of Goods Manufactured account 
A) Finished Goods Inventory account 
B) Work-in-Process Inventory account 
C) Raw Materials Inventory account 
D) Cost of Goods Manufactured account

Question 3

Service firms develop a predetermined rate for some costs.This rate is called the

Accepted Answer

A) labor rate. 
B) direct cost rate. 
C) indirect cost allocation rate. 
D) hourly cost rate. 
A) labor rate. 
B) direct cost rate. 
C) indirect cost allocation rate. 
D) hourly cost rate.

Question 4

What is the primary factor that causes a "cost" 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 5

Here is some basic data for Bella Company:
 
The journal entry to record the allocation of manufacturing overhead involves a debit to work in process inventory of

Accepted Answer

A) $118,750. 
B) $93,500. 
C) $68,750. 
D) $76,000. 
A) $118,750. 
B) $93,500. 
C) $68,750. 
D) $76,000.

Question 6

Here are selected data for Sally Day Corporation:
 
What is the ending work in process inventory balance?

Accepted Answer

A) $147,050 
B) $151,500 
C) $211,200 
D) $207,450 
A) $147,050 
B) $151,500 
C) $211,200 
D) $207,450

Question 7

If manufacturing overhead has been underallocated during the period,then which of the following is true?

Accepted Answer

A) The jobs produced during the period have been overcosted. 
B) The jobs produced during the period have been costed correctly. 
C) The jobs produced during the period have been undercosted. 
D) None of the above 
A) The jobs produced during the period have been overcosted. 
B) The jobs produced during the period have been costed correctly. 
C) The jobs produced during the period have been undercosted. 
D) None of the above

Question 8

Which of the following industries would be most likely to use a job costing system?

Accepted Answer

A) Chemicals 
B) Food and beverage 
C) Commercial building construction 
D) Pharmaceuticals 
A) Chemicals 
B) Food and beverage 
C) Commercial building construction 
D) Pharmaceuticals

Question 9

A company has overallocated manufacturing overhead by $1,500.The entry to close manufacturing overhead account would be to

Accepted Answer

A) debit Manufacturing Overhead account and credit Cost of Goods Sold account for $1,500. 
B) debit Manufacturing Overhead account and credit Work-in-Process account for $1,500. 
C) debit Cost of Goods Sold account and credit Manufacturing Overhead account for $1,500. 
D) debit Cost of Goods Sold account and credit Finished Goods Inventory account for $15,000. 
A) debit Manufacturing Overhead account and credit Cost of Goods Sold account for $1,500. 
B) debit Manufacturing Overhead account and credit Work-in-Process account for $1,500. 
C) debit Cost of Goods Sold account and credit Manufacturing Overhead account for $1,500. 
D) debit Cost of Goods Sold account and credit Finished Goods Inventory account for $15,000.

Question 10

Alpha Technology's work in process inventory on June 1 has a balance of $27,200 representing Job No.72.During June,$68,900 of direct materials were requisitioned for Job No.72 and $5,500 of direct labor cost was incurred on Job No.72.Manufacturing overhead is allocated at a rate of $16.00 per direct labor hour.Actual manufacturing overhead costs incurred in June amounted to $15,000.There were 700 actual direct labor hours worked in June.No new jobs were started during June.Job No.72 is completed on June 28.
a.Determine the total cost assigned to Job No.72.
b.Is manufacturing overhead overallocated or underallocated for the month of June? By how much?

Accepted Answer

The answer of Alpha Technology's work in process inventory on...

Question 11

Peterson Company gathered the following information for the year ended December 31:
 
Peterson Company uses a job costing system.
What would the predetermined manufacturing overhead rate for the year be using direct labor hours as the allocation base?

Accepted Answer

A) $1.11 per direct labor hour 
B) $1.00 per direct labor hour 
C) $1.30 per direct labor hour 
D) $.90 per direct labor hour 
A) $1.11 per direct labor hour 
B) $1.00 per direct labor hour 
C) $1.30 per direct labor hour 
D) $.90 per direct labor hour

Question 12

Job costing is not commonly used by service firms (such as law firms)or trades people (such as auto mechanics).

Accepted Answer

A) True 
 B)False

Question 13

The journal entry needed to record the completion of a job includes a

Accepted Answer

A) debit to Cost of Goods Sold account. 
B) debit to Work-in-Process Inventory account. 
C) debit to Finished Goods Inventory account. 
D) debit to Raw Materials Inventory account. 
A) debit to Cost of Goods Sold account. 
B) debit to Work-in-Process Inventory account. 
C) debit to Finished Goods Inventory account. 
D) debit to Raw Materials Inventory account.

Question 14

Twinkle Ornaments Company uses job costing.Twinkle Ornaments 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) $81,750 
B) $89,600 
C) $65,820 
D) $72,500 
A) $81,750 
B) $89,600 
C) $65,820 
D) $72,500

Question 15

The predetermined manufacturing overhead rate is calculated by multiplying the total estimated manufacturing overhead costs by the total estimated amount of the allocation base.

Accepted Answer

A) True 
 B)False

Question 16

The assignment of direct and indirect materials to a cost object reduces the

Accepted Answer

A) finished goods inventory account. 
B) raw materials inventory account. 
C) manufacturing overhead account. 
D) work in process inventory account. 
A) finished goods inventory account. 
B) raw materials inventory account. 
C) manufacturing overhead account. 
D) work in process inventory account.

Question 17

The journal entry to issue $600 of direct materials and $40 of indirect materials involves a debit to

Accepted Answer

A) the Manufacturing Overhead account for $640. 
B) the Work-in-Process Inventory account for $640. 
C) the Work-in-Process Inventory account for $600 and a credit to the Manufacturing Overhead account for $40. 
D) the Work-in-Process Inventory account for $600 and a debit to the Manufacturing Overhead account for $40. 
A) the Manufacturing Overhead account for $640. 
B) the Work-in-Process Inventory account for $640. 
C) the Work-in-Process Inventory account for $600 and a credit to the Manufacturing Overhead account for $40. 
D) the Work-in-Process Inventory account for $600 and a debit to the Manufacturing Overhead account for $40.

Question 18

The predetermined manufacturing overhead rate is calculated by dividing the total estimated manufacturing overhead costs by the total estimated amount of the allocation base.

Accepted Answer

A) True 
 B)False

Question 19

Briefly explain the flow of inventory through a manufacturing system into a company's job costing system from the purchase of materials to the sale of the products.

Accepted Answer

When materials are purchased,they increa

Question 20

Sales revenue is $750,000;actual manufacturing overhead is $120,000;allocated manufacturing overhead is $95,000;and cost of goods sold before adjustment is $380,000.What is the actual gross profit?

Accepted Answer

A) $395,000 
B) $370,000 
C) $345,000 
D) $250,000 
A) $395,000 
B) $370,000 
C) $345,000 
D) $250,000

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

To record the requisition of direct materials,which of the following accounts would be debited?

Service firms develop a predetermined rate for some costs.This rate is called the

What is the primary factor that causes a "cost" called?

Here is some basic data for Bella Company: The journal entry to record the allocation of manufacturing overhead involves a debit to work in process inventory of

Here are selected data for Sally Day Corporation: What is the ending work in process inventory balance?

If manufacturing overhead has been underallocated during the period,then which of the following is true?

Which of the following industries would be most likely to use a job costing system?

A company has overallocated manufacturing overhead by $1,500.The entry to close manufacturing overhead account would be to

Peterson Company gathered the following information for the year ended December 31: Peterson Company uses a job costing system. What would the predetermined manufacturing overhead rate for the year be using direct labor hours as the allocation base?

Job costing is not commonly used by service firms (such as law firms)or trades people (such as auto mechanics).

The journal entry needed to record the completion of a job includes a

The predetermined manufacturing overhead rate is calculated by multiplying the total estimated manufacturing overhead costs by the total estimated amount of the allocation base.

The assignment of direct and indirect materials to a cost object reduces the

The journal entry to issue $600 of direct materials and $40 of indirect materials involves a debit to

The predetermined manufacturing overhead rate is calculated by dividing the total estimated manufacturing overhead costs by the total estimated amount of the allocation base.

Briefly explain the flow of inventory through a manufacturing system into a company's job costing system from the purchase of materials to the sale of the products.

Sales revenue is $750,000;actual manufacturing overhead is $120,000;allocated manufacturing overhead is $95,000;and cost of goods sold before adjustment is $380,000.What is the actual gross profit?

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

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

To record the requisition of direct materials,which of the following accounts would be debited?

Service firms develop a predetermined rate for some costs.This rate is called the

What is the primary factor that causes a "cost" called?

Here is some basic data for Bella Company: The journal entry to record the allocation of manufacturing overhead involves a debit to work in process inventory of

Here are selected data for Sally Day Corporation: What is the ending work in process inventory balance?

If manufacturing overhead has been underallocated during the period,then which of the following is true?

Which of the following industries would be most likely to use a job costing system?

A company has overallocated manufacturing overhead by $1,500.The entry to close manufacturing overhead account would be to

Peterson Company gathered the following information for the year ended December 31: Peterson Company uses a job costing system. What would the predetermined manufacturing overhead rate for the year be using direct labor hours as the allocation base?

Job costing is not commonly used by service firms (such as law firms)or trades people (such as auto mechanics).

The journal entry needed to record the completion of a job includes a

The predetermined manufacturing overhead rate is calculated by multiplying the total estimated manufacturing overhead costs by the total estimated amount of the allocation base.

The assignment of direct and indirect materials to a cost object reduces the

The journal entry to issue $600 of direct materials and $40 of indirect materials involves a debit to

The predetermined manufacturing overhead rate is calculated by dividing the total estimated manufacturing overhead costs by the total estimated amount of the allocation base.

Briefly explain the flow of inventory through a manufacturing system into a company's job costing system from the purchase of materials to the sale of the products.

Sales revenue is $750,000;actual manufacturing overhead is $120,000;allocated manufacturing overhead is $95,000;and cost of goods sold before adjustment is $380,000.What is the actual gross profit?

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