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) Brugman Custom Cabinetry 
B) Computer Repair 
C) Pepsi 
D) Smith & Zu Certified Public Accountants 
A) Brugman Custom Cabinetry 
B) Computer Repair 
C) Pepsi 
D) Smith & Zu Certified Public Accountants

Question 2

An internal request to transfer raw materials requires personnel to complete a

Accepted Answer

A) materials requisition document. 
B) bill of materials document. 
C) purchase order document. 
D) labor time record document. 
A) materials requisition document. 
B) bill of materials document. 
C) purchase order document. 
D) labor time record document.

Question 3

Manufacturers follow four steps to implement a manufacturing overhead allocation system.In the first step,the company estimates its total manufacturing overhead costs for the coming year.

Accepted Answer

A) True 
 B)False

Question 4

Solid Oak Bureau 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:
 
If Job No.650 consists of 500 units of product,the average unit cost of this job is closest to

Accepted Answer

A) $452.04. 
B) $414.46. 
C) $157.04. 
D) $295.00. 
A) $452.04. 
B) $414.46. 
C) $157.04. 
D) $295.00.

Question 5

Companies use job costing when their products or services vary in terms of materials needed,time required to complete the product,and/or the complexity of the production process.

Accepted Answer

A) True 
 B)False

Question 6

Job 140 requires $12,000 of direct materials,$6,700 of direct labor,550 direct labor hours,and 270 machine hours.It also requires 9 hours of inspection at $40 per hour.Manufacturing overhead is computed at $28 per direct labor hour used and $42 per machine hour used.
The total dollars of conversion costs are

Accepted Answer

A) $15,400. 
B) $26,740. 
C) $33,440. 
D) $45,440. 
A) $15,400. 
B) $26,740. 
C) $33,440. 
D) $45,440.

Question 7

Hollinger Ceramics makes custom ceramic tiles.During March,the company started and finished Job #755.The company's records show the following direct materials were requisitioned for Job #755.   
Labor time records show the following employees worked on Job #755:   
Hollinger Ceramics allocates manufacturing overhead at a rate of $14 per direct labor hour.
a.Compute the total amount of direct materials,direct labor,and manufacturing overhead that should be shown on Job #755's job cost record.
b.Job #755 consists of 1,200 tiles.If each tile sells for $12.00,what is the gross profit per tile?

Accepted Answer

The answer of Hollinger Ceramics makes custom ceramic tiles.During March,the...

Question 8

The overhead allocation base should be the cost driver of manufacturing overhead costs.

Accepted Answer

A) True 
 B)False

Question 9

Actual manufacturing overhead costs are accumulated as debits to a single general ledger account called Manufacturing Overhead.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) Credit to Manufacturing Overhead account 
B) Credit to wages payable 
C) Credit to Work-in-Process Inventory account 
D) Credit to Wage Expense account 
A) Credit to Manufacturing Overhead account 
B) Credit to wages payable 
C) Credit to Work-in-Process Inventory account 
D) Credit to Wage Expense account

Question 11

Here are selected data for Campbell Company:
 
Manufacturing overhead is allocated at 60% of direct labor cost.
What was the amount of direct labor costs?

Accepted Answer

A) $78,000 
B) $162,581 
C) $151,250 
D) $242,000 
A) $78,000 
B) $162,581 
C) $151,250 
D) $242,000

Question 12

If jobs have been undercosted due to underallocation of manufacturing overhead,then Cost of Goods Sold (COGS)is too low and which of the following corrections must be made?

Accepted Answer

A) Decrease COGS for the amount of the underallocation 
B) Increase COGS for double the amount of the underallocation 
C) Decrease COGS for double the amount of the underallocation 
D) Increase COGS for the amount of the underallocation 
A) Decrease COGS for the amount of the underallocation 
B) Increase COGS for double the amount of the underallocation 
C) Decrease COGS for double the amount of the underallocation 
D) Increase COGS for the amount of the underallocation

Question 13

Maple Company uses a job costing system.Maple Company's schedule of cost of goods manufactured showed the following amounts for the month ended August 31.
 
Manufacturing overhead cost is allocated at the rate of $13 per direct labor hour.
What is the amount of allocated manufacturing overhead costs for August?

Accepted Answer

A) $42,000 
B) $75,000 
C) $124,000 
D) $39,000 
A) $42,000 
B) $75,000 
C) $124,000 
D) $39,000

Question 14

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

Question 15

Job 365 has an ending balance of $28,500.The rate is 80% of direct labor.It has been charged manufacturing overhead costs of $7,000.What was the amount of direct materials charged to the job?

Accepted Answer

A) $22,800 
B) $27,100 
C) $21,500 
D) $12,750 
A) $22,800 
B) $27,100 
C) $21,500 
D) $12,750

Question 16

If the actual amount of the manufacturing overhead allocation base is greater than the estimated amount of the allocation base used to calculate the predetermined rate,then manufacturing overhead must have been underallocated.

Accepted Answer

A) True 
 B)False

Question 17

The journal entry to assign $1,700 of direct labor and $300 of indirect labor involves a debit to

Accepted Answer

A) the Manufacturing Overhead account for $2,000. 
B) the Work-in-Process Inventory account for $2,000. 
C) the Work-in-Process Inventory account for $1,700 and a credit to Manufacturing Overhead account for $300. 
D) the Work-in-Process Inventory account for $1,700 and a debit to the Manufacturing Overhead account for $300;and a credit to the Wages Payable account for $2,000. 
A) the Manufacturing Overhead account for $2,000. 
B) the Work-in-Process Inventory account for $2,000. 
C) the Work-in-Process Inventory account for $1,700 and a credit to Manufacturing Overhead account for $300. 
D) the Work-in-Process Inventory account for $1,700 and a debit to the Manufacturing Overhead account for $300;and a credit to the Wages Payable account for $2,000.

Question 18

Shiloh Company uses a job costing system.The company's schedule of cost of goods manufactured showed the following amounts for September.
 
Manufacturing overhead cost is allocated at the rate of $11 per direct labor hour.
What is the amount of allocated manufacturing overhead costs for the month?

Accepted Answer

A) $24,000 
B) $63,000 
C) $16,500 
D) $25,500 
A) $24,000 
B) $63,000 
C) $16,500 
D) $25,500

Question 19

Allocating manufacturing overhead to jobs simply means "splitting up" the total manufacturing overhead costs among the jobs produced during the year.

Accepted Answer

A) True 
 B)False

Question 20

When job costing is used at a service firm

Accepted Answer

A) indirect costs are traced to client jobs. 
B) direct costs are allocated to client jobs. 
C) indirect costs are allocated to client jobs. 
D) all costs are allocated to client jobs. 
A) indirect costs are traced to client jobs. 
B) direct costs are allocated to client jobs. 
C) indirect costs are allocated to client jobs. 
D) all costs are allocated to client jobs.

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

An internal request to transfer raw materials requires personnel to complete a

Manufacturers follow four steps to implement a manufacturing overhead allocation system.In the first step,the company estimates its total manufacturing overhead costs for the coming year.

Companies use job costing when their products or services vary in terms of materials needed,time required to complete the product,and/or the complexity of the production process.

The overhead allocation base should be the cost driver of manufacturing overhead costs.

Actual manufacturing overhead costs are accumulated as debits to a single general ledger account called Manufacturing Overhead.

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

Here are selected data for Campbell Company: Manufacturing overhead is allocated at 60% of direct labor cost. What was the amount of direct labor costs?

If jobs have been undercosted due to underallocation of manufacturing overhead,then Cost of Goods Sold (COGS)is too low and which of the following corrections must be made?

Job 365 has an ending balance of $28,500.The rate is 80% of direct labor.It has been charged manufacturing overhead costs of $7,000.What was the amount of direct materials charged to the job?

If the actual amount of the manufacturing overhead allocation base is greater than the estimated amount of the allocation base used to calculate the predetermined rate,then manufacturing overhead must have been underallocated.

The journal entry to assign $1,700 of direct labor and $300 of indirect labor involves a debit to

Shiloh Company uses a job costing system.The company's schedule of cost of goods manufactured showed the following amounts for September. Manufacturing overhead cost is allocated at the rate of $11 per direct labor hour. What is the amount of allocated manufacturing overhead costs for the month?

Allocating manufacturing overhead to jobs simply means "splitting up" the total manufacturing overhead costs among the jobs produced during the year.

When job costing is used at a service firm

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?

An internal request to transfer raw materials requires personnel to complete a

Manufacturers follow four steps to implement a manufacturing overhead allocation system.In the first step,the company estimates its total manufacturing overhead costs for the coming year.

Companies use job costing when their products or services vary in terms of materials needed,time required to complete the product,and/or the complexity of the production process.

The overhead allocation base should be the cost driver of manufacturing overhead costs.

Actual manufacturing overhead costs are accumulated as debits to a single general ledger account called Manufacturing Overhead.

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

Here are selected data for Campbell Company: Manufacturing overhead is allocated at 60% of direct labor cost. What was the amount of direct labor costs?

If jobs have been undercosted due to underallocation of manufacturing overhead,then Cost of Goods Sold (COGS)is too low and which of the following corrections must be made?

Job 365 has an ending balance of $28,500.The rate is 80% of direct labor.It has been charged manufacturing overhead costs of $7,000.What was the amount of direct materials charged to the job?

If the actual amount of the manufacturing overhead allocation base is greater than the estimated amount of the allocation base used to calculate the predetermined rate,then manufacturing overhead must have been underallocated.

The journal entry to assign $1,700 of direct labor and $300 of indirect labor involves a debit to

Shiloh Company uses a job costing system.The company's schedule of cost of goods manufactured showed the following amounts for September. Manufacturing overhead cost is allocated at the rate of $11 per direct labor hour. What is the amount of allocated manufacturing overhead costs for the month?

Allocating manufacturing overhead to jobs simply means "splitting up" the total manufacturing overhead costs among the jobs produced during the year.

When job costing is used at a service firm

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