Question 1

When direct materials are requisitioned,they flow directly into

Accepted Answer

A) cost of goods sold account. 
B) finished goods inventory account. 
C) work in process inventory account. 
D) manufacturing overhead account. 
A) cost of goods sold account. 
B) finished goods inventory account. 
C) work in process inventory account. 
D) manufacturing overhead account.

Question 2

Manufacturing overhead is underallocated if the amount

Accepted Answer

A) estimated for the period is greater than the amount allocated. 
B) estimated for the period is less than the amount allocated. 
C) allocated during the period is less than the actual amount incurred. 
D) allocated during the period is greater than the actual amount incurred. 
A) estimated for the period is greater than the amount allocated. 
B) estimated for the period is less than the amount allocated. 
C) allocated during the period is less than the actual amount incurred. 
D) allocated during the period is greater than the actual amount incurred.

Question 3

A receiving report is typically a duplicate of the purchase order but without the prices and quantities pre-listed on the form.

Accepted Answer

A) True 
 B)False

Question 4

Biltz Company uses a predetermined overhead rate based on direct labor hours to allocate manufacturing overhead to jobs.During the year,the company actually incurred manufacturing overhead costs of $582,000 and 135,000 direct labor hours were worked.The company estimated that it would incur $525,000 of manufacturing overhead during the year and that 150,000 direct labor hours would be worked.
By how much was manufacturing overhead overallocated or underallocated for the year?

Accepted Answer

A) $109,500 underallocated 
B) $57,000 overallocated 
C) $57,000 underallocated 
D) $109,500 overallocated 
A) $109,500 underallocated 
B) $57,000 overallocated 
C) $57,000 underallocated 
D) $109,500 overallocated

Question 5

In job costing,the purchase of raw materials is recorded as a debit to the Raw Materials Inventory account and a credit to accounts payable.

Accepted Answer

A) True 
 B)False

Question 6

The ________ is the hourly price charged to clients for professional labor.

Accepted Answer

A) salary rate 
B) billing rate 
C) wage rate 
D) job rate 
A) salary rate 
B) billing rate 
C) wage rate 
D) job rate

Question 7

To record direct labor costs incurred,which of the following accounts would be debited?

Accepted Answer

A) Finished Goods Inventory account 
B) Manufacturing Overhead Account 
C) Work-in-Process Inventory Account 
D) Wages Payable account 
A) Finished Goods Inventory account 
B) Manufacturing Overhead Account 
C) Work-in-Process Inventory Account 
D) Wages Payable account

Question 8

Missy & Daughters allocates manufacturing overhead to jobs based on direct labor hours.The company has the following estimated costs for the upcoming year:
 
The company estimates that 1,360 direct labor hours will be worked in the upcoming year,while 1,000 machine hours will be used during the year.The predetermined manufacturing overhead rate per direct labor hour will be

Accepted Answer

A) $50. 
B) $91. 
C) $179. 
D) $59. 
A) $50. 
B) $91. 
C) $179. 
D) $59.

Question 9

Briefly explain the difference between job order and process costing and give examples of each.

Accepted Answer

In a job costing system,costs accumulate

Question 10

Cost of Goods Sold account is debited and Finished Goods Inventory is credited for

Accepted Answer

A) purchase of goods on account. 
B) transfer of goods to the Finished Goods Storeroom. 
C) transfer of materials into Work-in-Process Inventory. 
D) the sale of goods to a customer. 
A) purchase of goods on account. 
B) transfer of goods to the Finished Goods Storeroom. 
C) transfer of materials into Work-in-Process Inventory. 
D) the sale of goods to a customer.

Question 11

The following is selected financial data from Turtle Bay Manufacturing for the most recent year.
 
What is the beginning finished goods inventory?

Accepted Answer

A) $138,200 
B) $18,200 
C) $78,200 
D) $(2,800) 
A) $138,200 
B) $18,200 
C) $78,200 
D) $(2,800)

Question 12

Under which of the following situations is Raw Materials Inventory account credited and Work-in-Process Inventory account debited?

Accepted Answer

A) We ship goods to the customer. 
B) Material is transferred to the factory. 
C) We transfer goods to the storeroom. 
D) We purchase goods on account. 
A) We ship goods to the customer. 
B) Material is transferred to the factory. 
C) We transfer goods to the storeroom. 
D) We purchase goods on account.

Question 13

Under a perpetual inventory system,the journal entry needed to record the sale of a job includes a

Accepted Answer

A) debit to Finished Foods Inventory account and credit to Cost of Goods Sold. 
B) debit to Cost of Goods Sold account and credit to Finished Goods Inventory account. 
C) debit to Sales Revenue account and credit to Accounts Receivable account. 
D) debit to Cost of Goods Sold and credit to Sales Revenue account. 
A) debit to Finished Foods Inventory account and credit to Cost of Goods Sold. 
B) debit to Cost of Goods Sold account and credit to Finished Goods Inventory account. 
C) debit to Sales Revenue account and credit to Accounts Receivable account. 
D) debit to Cost of Goods Sold and credit to Sales Revenue account.

Question 14

The following information was gathered for the Wesley Corporation for the most recent year.Manufacturing overhead is allocated using direct labor hours.
 
What amount of manufacturing overhead would be allocated for the year?

Accepted Answer

A) $1,255,875 
B) $1,071,000 
C) $985,000 
D) $840,000 
A) $1,255,875 
B) $1,071,000 
C) $985,000 
D) $840,000

Question 15

Job order costing might be used by a

Accepted Answer

A) candy manufacturer. 
B) custom home builder. 
C) crude oil refinery. 
D) cereal maker. 
A) candy manufacturer. 
B) custom home builder. 
C) crude oil refinery. 
D) cereal maker.

Question 16

Hardrock Company uses job costing.Hardrock Company has two departments,Sanding and Finishing.Manufacturing overhead is allocated based on direct labor cost in the Sanding Department and direct labor hours in the Finishing Department.The following additional information is available:
   
Actual data for completed Job No.140 is as follows:
   
a.Compute the predetermined manufacturing overhead rate for the Sanding Department.
b.Compute the predetermined manufacturing overhead rate for the Finishing Department.
c.What is the total manufacturing overhead cost for Job.No.140?
d.If Job No.140 consists of 500 units of product,what is the average unit cost of this job?

Accepted Answer

The answer of Hardrock Company uses job costing.Hardrock Company has...

Question 17

The following information was gathered for the Wesley Corporation for the most recent year.Manufacturing overhead is allocated using direct labor hours.
 
What is the amount of overallocated or underallocated overhead for the year?

Accepted Answer

A) $145,000 overallocated 
B) $145,000 underallocated 
C) $86,000 underallocated 
D) $86,00 overrallocated 
A) $145,000 overallocated 
B) $145,000 underallocated 
C) $86,000 underallocated 
D) $86,00 overrallocated

Question 18

A paper mill company like International Paper would most likely use job costing.

Accepted Answer

A) True 
 B)False

Question 19

Denver Company uses a job costing system.The work in process inventory on December 31 consisted of Job No.173 with a balance of $66,200.Job No.173 has been charged with manufacturing overhead costs of $20,000.Denver allocates manufacturing overhead costs at a rate of 50% of direct labor cost.
What was the amount of direct materials charged to Job No.173?

Accepted Answer

A) $10,000 
B) $33,100 
C) $6,200 
D) $46,200 
A) $10,000 
B) $33,100 
C) $6,200 
D) $46,200

Question 20

A manufacturer of luxury yachts would use which type of costing system?

Accepted Answer

A) Process costing 
B) Job costing 
C) Either job or process 
D) Both job and process 
A) Process costing 
B) Job costing 
C) Either job or process 
D) Both job and process

When direct materials are requisitioned,they flow directly into

Manufacturing overhead is underallocated if the amount

A receiving report is typically a duplicate of the purchase order but without the prices and quantities pre-listed on the form.

In job costing,the purchase of raw materials is recorded as a debit to the Raw Materials Inventory account and a credit to accounts payable.

The ________ is the hourly price charged to clients for professional labor.

To record direct labor costs incurred,which of the following accounts would be debited?

Briefly explain the difference between job order and process costing and give examples of each.

Cost of Goods Sold account is debited and Finished Goods Inventory is credited for

The following is selected financial data from Turtle Bay Manufacturing for the most recent year. What is the beginning finished goods inventory?

Under which of the following situations is Raw Materials Inventory account credited and Work-in-Process Inventory account debited?

Under a perpetual inventory system,the journal entry needed to record the sale of a job includes a

The following information was gathered for the Wesley Corporation for the most recent year.Manufacturing overhead is allocated using direct labor hours. What amount of manufacturing overhead would be allocated for the year?

Job order costing might be used by a

The following information was gathered for the Wesley Corporation for the most recent year.Manufacturing overhead is allocated using direct labor hours. What is the amount of overallocated or underallocated overhead for the year?

A paper mill company like International Paper would most likely use job costing.

A manufacturer of luxury yachts would use which type of costing system?

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

When direct materials are requisitioned,they flow directly into

Manufacturing overhead is underallocated if the amount

A receiving report is typically a duplicate of the purchase order but without the prices and quantities pre-listed on the form.

In job costing,the purchase of raw materials is recorded as a debit to the Raw Materials Inventory account and a credit to accounts payable.

The ________ is the hourly price charged to clients for professional labor.

To record direct labor costs incurred,which of the following accounts would be debited?

Briefly explain the difference between job order and process costing and give examples of each.

Cost of Goods Sold account is debited and Finished Goods Inventory is credited for

The following is selected financial data from Turtle Bay Manufacturing for the most recent year. What is the beginning finished goods inventory?

Under which of the following situations is Raw Materials Inventory account credited and Work-in-Process Inventory account debited?

Under a perpetual inventory system,the journal entry needed to record the sale of a job includes a

The following information was gathered for the Wesley Corporation for the most recent year.Manufacturing overhead is allocated using direct labor hours. What amount of manufacturing overhead would be allocated for the year?

Job order costing might be used by a

The following information was gathered for the Wesley Corporation for the most recent year.Manufacturing overhead is allocated using direct labor hours. What is the amount of overallocated or underallocated overhead for the year?

A paper mill company like International Paper would most likely use job costing.

A manufacturer of luxury yachts would use which type of costing system?

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