Question 1

Process costing is used by companies that produce large numbers of identical units of production in a continuous fashion.

Accepted Answer

A) True 
 B)False

Question 2

Here are selected data for Wilson Company:
 
If the company allocates overhead based on direct labor cost,what is the predetermined manufacturing overhead rate?

Accepted Answer

A) 76% of direct labor cost 
B) 133% of direct labor cost 
C) 75% of direct labor cost 
D) 102% of direct labor cost 
A) 76% of direct labor cost 
B) 133% of direct labor cost 
C) 75% of direct labor cost 
D) 102% of direct labor cost

Question 3

At Plastastic,Inc. ,the beginning balance of the work in process inventory account in April of the most recent year was $19,000.Direct materials used during April totaled $130,000.Total manufacturing labor incurred in April was $180,000,75% of this amount represented direct labor.The predetermined manufacturing overhead rate is 130% of direct labor cost.Actual manufacturing overhead costs for April amounted to $160,000.
In April,two jobs were completed with total costs of $110,000 and $95,000,respectively.In April,the two jobs were sold on account for $187,000 and $124,000,respectively.
a.Compute the balance in work in process inventory on April 30.
b.Record the journal entry for direct materials used in April.
c.Record the journal entry to record labor costs for April.
d.Record the journal entry for allocated manufacturing overhead for April.
e.Record the entry to move the completed jobs into finished goods inventory in April.
f.Record the entry to sell the two completed jobs on account in April.

Accepted Answer

The answer of At Plastastic,Inc. ,the beginning balance of the...

Question 4

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

Accepted Answer

A) Transfer of goods to the finished goods storeroom 
B) Purchase of goods on account 
C) Transfer goods out of the factory 
D) Transfer of material to Work-in-Process Inventory account 
A) Transfer of goods to the finished goods storeroom 
B) Purchase of goods on account 
C) Transfer goods out of the factory 
D) Transfer of material to Work-in-Process Inventory account

Question 5

A purchase order is used to order needed materials from suppliers.

Accepted Answer

A) True 
 B)False

Question 6

Zanny Moldings has the following estimated costs for the upcoming year:
 
The company estimates that 1,600 direct labor hours will be worked in the upcoming year,while 2,000 machine hours will be used during the year.The predetermined manufacturing overhead rate per machine hour is closest to

Accepted Answer

A) $32. 
B) $96. 
C) $14. 
D) $53. 
A) $32. 
B) $96. 
C) $14. 
D) $53.

Question 7

How is the cost of indirect materials used in the factory recorded?

Accepted Answer

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

Question 8

A job costing system can be used by which types of companies?

Accepted Answer

A) Manufacturing and merchandising businesses 
B) Service and manufacturing businesses 
C) Service,manufacturing,and merchandising businesses 
D) Service and merchandising businesses 
A) Manufacturing and merchandising businesses 
B) Service and manufacturing businesses 
C) Service,manufacturing,and merchandising businesses 
D) Service and merchandising businesses

Question 9

Which of the following is not a way in which management can use job cost information?

Accepted Answer

A) Assessing and comparing the profitability of each product type 
B) Using the cost information in determining the bid price for custom orders 
C) Preparing the financial statements 
D) Determining the balance in raw materials inventory 
A) Assessing and comparing the profitability of each product type 
B) Using the cost information in determining the bid price for custom orders 
C) Preparing the financial statements 
D) Determining the balance in raw materials inventory

Question 10

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

Accepted Answer

A) $10,400 
B) $65,500 
C) $32,200 
D) $60,400 
A) $10,400 
B) $65,500 
C) $32,200 
D) $60,400

Question 11

The two basic types of costing systems are

Accepted Answer

A) product costing and materials inventory costing. 
B) periodic costing and perpetual costing. 
C) job costing and process costing. 
D) periodic costing and process costing. 
A) product costing and materials inventory costing. 
B) periodic costing and perpetual costing. 
C) job costing and process costing. 
D) periodic costing and process costing.

Question 12

Which of the following entries would be made to record the purchase of $30,000 of raw materials?

Accepted Answer

A)    
B)    
C)    
D)    
A)    
B)    
C)    
D)

Question 13

The journal entry to record $300 of depreciation expense on factory equipment involves a

Accepted Answer

A) debit to Accumulated Depreciation account for $300. 
B) debit to Manufacturing Overhead account for $300. 
C) debit to Depreciation Expense account for $300. 
D) credit to Manufacturing Overhead account for $300. 
A) debit to Accumulated Depreciation account for $300. 
B) debit to Manufacturing Overhead account for $300. 
C) debit to Depreciation Expense account for $300. 
D) credit to Manufacturing Overhead account for $300.

Question 14

In the basic flow of inventory through a manufacturing system,which of the following occurs second in the job costing system?

Accepted Answer

A) Cost of goods sold 
B) Finished goods inventory 
C) Work in process inventory 
D) Raw materials inventory 
A) Cost of goods sold 
B) Finished goods inventory 
C) Work in process inventory 
D) Raw materials inventory

Question 15

Manufacturing overhead costs cannot be directly traced to jobs.

Accepted Answer

A) True 
 B)False

Question 16

Federer Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead.The following information is available for the most recent year:
 
If Federer Company uses direct labor cost as the allocation base,what would the predetermined manufacturing overhead rate be?

Accepted Answer

A) 70% 
B) 75% 
C) 91% 
D) 85% 
A) 70% 
B) 75% 
C) 91% 
D) 85%

Question 17

Greatwater Manufacturing uses job costing.In May,material requisitions were $44,000 ($39,000 of these were direct materials),and raw material purchases were $57,700.The end of month balance in raw materials inventory was $24,300.What was the beginning raw materials inventory balance?

Accepted Answer

A) $10,600 
B) $43,000 
C) $72,400 
D) $25,300 
A) $10,600 
B) $43,000 
C) $72,400 
D) $25,300

Question 18

Manufacturing overhead is overallocated if the amount

Accepted Answer

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

Question 19

Allocating manufacturing overhead costs is done

Accepted Answer

A) during the period. 
B) before the period starts. 
C) at the end of the period. 
D) never. 
A) during the period. 
B) before the period starts. 
C) at the end of the period. 
D) never.

Question 20

Poland's Paints allocates overhead based on machine hours.Selected data for the most recent year follow.
 
The estimates were made as of the beginning of the year,while the actual results were for the entire year.
The predetermined manufacturing overhead rate per machine hour is closest to

Accepted Answer

A) $10.58. 
B) $12.20. 
C) $10.84. 
D) $11.90. 
A) $10.58. 
B) $12.20. 
C) $10.84. 
D) $11.90.

Process costing is used by companies that produce large numbers of identical units of production in a continuous fashion.

Here are selected data for Wilson Company: If the company allocates overhead based on direct labor cost,what is the predetermined manufacturing overhead rate?

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

A purchase order is used to order needed materials from suppliers.

Zanny Moldings has the following estimated costs for the upcoming year: The company estimates that 1,600 direct labor hours will be worked in the upcoming year,while 2,000 machine hours will be used during the year.The predetermined manufacturing overhead rate per machine hour is closest to

How is the cost of indirect materials used in the factory recorded?

A job costing system can be used by which types of companies?

Which of the following is not a way in which management can use job cost information?

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

The two basic types of costing systems are

Which of the following entries would be made to record the purchase of $30,000 of raw materials?

The journal entry to record $300 of depreciation expense on factory equipment involves a

In the basic flow of inventory through a manufacturing system,which of the following occurs second in the job costing system?

Manufacturing overhead costs cannot be directly traced to jobs.

Greatwater Manufacturing uses job costing.In May,material requisitions were $44,000 ($39,000 of these were direct materials),and raw material purchases were $57,700.The end of month balance in raw materials inventory was $24,300.What was the beginning raw materials inventory balance?

Manufacturing overhead is overallocated if the amount

Allocating manufacturing overhead costs is done

Poland's Paints allocates overhead based on machine hours.Selected data for the most recent year follow. The estimates were made as of the beginning of the year,while the actual results were for the entire year. The predetermined manufacturing overhead rate per machine hour is closest to

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

Process costing is used by companies that produce large numbers of identical units of production in a continuous fashion.

Here are selected data for Wilson Company: If the company allocates overhead based on direct labor cost,what is the predetermined manufacturing overhead rate?

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

A purchase order is used to order needed materials from suppliers.

Zanny Moldings has the following estimated costs for the upcoming year: The company estimates that 1,600 direct labor hours will be worked in the upcoming year,while 2,000 machine hours will be used during the year.The predetermined manufacturing overhead rate per machine hour is closest to

How is the cost of indirect materials used in the factory recorded?

A job costing system can be used by which types of companies?

Which of the following is not a way in which management can use job cost information?

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

The two basic types of costing systems are

Which of the following entries would be made to record the purchase of $30,000 of raw materials?

The journal entry to record $300 of depreciation expense on factory equipment involves a

In the basic flow of inventory through a manufacturing system,which of the following occurs second in the job costing system?

Manufacturing overhead costs cannot be directly traced to jobs.

Greatwater Manufacturing uses job costing.In May,material requisitions were $44,000 ($39,000 of these were direct materials),and raw material purchases were $57,700.The end of month balance in raw materials inventory was $24,300.What was the beginning raw materials inventory balance?

Manufacturing overhead is overallocated if the amount

Allocating manufacturing overhead costs is done

Poland's Paints allocates overhead based on machine hours.Selected data for the most recent year follow. The estimates were made as of the beginning of the year,while the actual results were for the entire year. The predetermined manufacturing overhead rate per machine hour is closest to

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