Question 1

The key to allocating indirect manufacturing costs to jobs is to identify an appropriate allocation base.

Accepted Answer

A) True 
 B)False

Question 2

Spruce Company uses a job costing system.Spruce Company's schedule of cost of goods manufactured showed the following amounts for the month ended August 331.
 
Allocated manufacturing overhead costs for August amount to $44,000.
What is the amount of work in process inventory (before any adjustment for overallocated or underallocated manufacturing overhead)on August 31?

Accepted Answer

A) $29,500 
B) $162,000 
C) $52,500 
D) $138,500 
A) $29,500 
B) $162,000 
C) $52,500 
D) $138,500

Question 3

The gross profit on the sale of a job is the difference between the sales price and the total unit cost reported on the job cost record.

Accepted Answer

A) True 
 B)False

Question 4

The entry to record the purchase of raw materials on account using a job costing system would include a

Accepted Answer

A) credit to Work-in-Process Inventory account. 
B) debit to Accounts Payable account. 
C) debit to Work-in-Process Inventory account. 
D) debit to Raw Materials Inventory account. 
A) credit to Work-in-Process Inventory account. 
B) debit to Accounts Payable account. 
C) debit to Work-in-Process Inventory account. 
D) debit to Raw Materials Inventory account.

Question 5

Which product costing system would be better for custom-order products?

Accepted Answer

A) Product costing system 
B) Company costing system 
C) Job costing system 
D) Overhead costing system 
A) Product costing system 
B) Company costing system 
C) Job costing system 
D) Overhead costing system

Question 6

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

Accepted Answer

A) $227,400 
B) $281,100 
C) $258,700 
D) $172,000 
A) $227,400 
B) $281,100 
C) $258,700 
D) $172,000

Question 7

Management can use job cost information to control costs on jobs produced in the future.

Accepted Answer

A) True 
 B)False

Question 8

The total cost of a job shown on the job cost record is the sum of the direct materials traced to the job and the manufacturing overhead allocated to the job.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following entries would be made to record $20,000 of labor-80% of which is direct,and 20% of which is indirect- to jobs?

Accepted Answer

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

Question 10

Generally Accepted Accounting Principles (GAAP)mandates the type of product costing system (job costing or process costing)that must be used by a manufacturer.

Accepted Answer

A) True 
 B)False

Question 11

If a manufacturer finds that the amount of manufacturing overhead allocated to a job is less than the actual amount of manufacturing overhead incurred,then the jobs are overcosted.

Accepted Answer

A) True 
 B)False

Question 12

Hilltop Manufacturing uses a predetermined manufacturing overhead rate based on machine hours to allocate manufacturing overhead to jobs.Selected data about the company's operations follows:
 
By how much was manufacturing overhead overallocated or underallocated for the year?

Accepted Answer

A) $28,500 underallocated 
B) $28,500 overallocated 
C) $18,750 underallocated 
D) $18,750 overallocated 
A) $28,500 underallocated 
B) $28,500 overallocated 
C) $18,750 underallocated 
D) $18,750 overallocated

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.
 
Allocated manufacturing overhead costs for August amount to $50,000.
What is the amount of work in process inventory (before any adjustment for overallocated or underallocated manufacturing overhead)on August 31?

Accepted Answer

A) $57,500 
B) $167,000 
C) $35,500 
D) $138,500 
A) $57,500 
B) $167,000 
C) $35,500 
D) $138,500

Question 14

To record depreciation on the factory equipment,the journal entry would include a

Accepted Answer

A) debit to Work-in-Process Inventory account. 
B) debit to Manufacturing Overhead account. 
C) debit to Depreciation Expense account. 
D) debit to Accumulated Depreciation account. 
A) debit to Work-in-Process Inventory account. 
B) debit to Manufacturing Overhead account. 
C) debit to Depreciation Expense account. 
D) debit to Accumulated Depreciation account.

Question 15

Before the year began,Murphy Manufacturing estimated that manufacturing overhead for the year would be $175,500 and that 13,000 direct labor hours would be worked.Actual results for the year included the following:
 
The predetermined manufacturing overhead rate per direct labor hour is closest to

Accepted Answer

A) $12.10. 
B) $12.69. 
C) $13.50. 
D) $14.15. 
A) $12.10. 
B) $12.69. 
C) $13.50. 
D) $14.15.

Question 16

Beta Company uses a predetermined overhead rate based on machine hours to allocate manufacturing overhead to jobs.The company estimated that it would incur $600,000 of manufacturing overhead during the year and that 250,000 machine hours would be used.During the year,the company actually incurred manufacturing overhead costs of $582,000 and 240,000 machine hours were used.
By how much was manufacturing overhead overallocated or underallocated for the year?

Accepted Answer

A) $6,000 overallocated 
B) $6,000 undererallocated 
C) $18,000 underallocated 
D) $18,000 overallocated 
A) $6,000 overallocated 
B) $6,000 undererallocated 
C) $18,000 underallocated 
D) $18,000 overallocated

Question 17

Stanley Company uses a job cost system.Manufacturing overhead has been overapplied by $5,600 for the year.Actual overhead incurred was $105,000.Other balances are:
 
What will be adjusted cost of goods sold after closing manufacturing overhead?

Accepted Answer

A) $295,600 
B) $284,400 
C) $226,500 
D) $254,100 
A) $295,600 
B) $284,400 
C) $226,500 
D) $254,100

Question 18

Since a service firm does not carry a large amount of inventory,it is not necessary to know the individual costs related to each individual job.

Accepted Answer

A) True 
 B)False

Question 19

Here is some basic data for Honey Dukes Corporation:
 
The journal entry to record the cost of jobs sold would include a

Accepted Answer

A) debit to Finished Goods Inventory account for $255,000. 
B) credit to Finished Goods Inventory account for $287,000. 
C) debit to Cost of Goods Sold account for $287,000. 
D) credit to Finished Goods Inventory account for $255,000. 
A) debit to Finished Goods Inventory account for $255,000. 
B) credit to Finished Goods Inventory account for $287,000. 
C) debit to Cost of Goods Sold account for $287,000. 
D) credit to Finished Goods Inventory account for $255,000.

Question 20

Morgan Company uses a job costing system.Morgan Company estimated manufacturing overhead costs for the year at $330,000,based on 60,000 estimated direct labor hours.Actual direct labor hours for the year totaled 75,000.Actual manufacturing overhead for the year was $384,700.
By how much was manufacturing overhead overallocated or underallocated for the year?

Accepted Answer

A) $27,800 overallocated 
B) $27,800 underallocated 
C) $54,700 overallocated 
D) $54,700 underallocated 
A) $27,800 overallocated 
B) $27,800 underallocated 
C) $54,700 overallocated 
D) $54,700 underallocated

The key to allocating indirect manufacturing costs to jobs is to identify an appropriate allocation base.

The gross profit on the sale of a job is the difference between the sales price and the total unit cost reported on the job cost record.

The entry to record the purchase of raw materials on account using a job costing system would include a

Which product costing system would be better for custom-order products?

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

Management can use job cost information to control costs on jobs produced in the future.

The total cost of a job shown on the job cost record is the sum of the direct materials traced to the job and the manufacturing overhead allocated to the job.

Which of the following entries would be made to record $20,000 of labor-80% of which is direct,and 20% of which is indirect- to jobs?

Generally Accepted Accounting Principles (GAAP)mandates the type of product costing system (job costing or process costing)that must be used by a manufacturer.

If a manufacturer finds that the amount of manufacturing overhead allocated to a job is less than the actual amount of manufacturing overhead incurred,then the jobs are overcosted.

Hilltop Manufacturing uses a predetermined manufacturing overhead rate based on machine hours to allocate manufacturing overhead to jobs.Selected data about the company's operations follows: By how much was manufacturing overhead overallocated or underallocated for the year?

To record depreciation on the factory equipment,the journal entry would include a

Before the year began,Murphy Manufacturing estimated that manufacturing overhead for the year would be $175,500 and that 13,000 direct labor hours would be worked.Actual results for the year included the following: The predetermined manufacturing overhead rate per direct labor hour is closest to

Stanley Company uses a job cost system.Manufacturing overhead has been overapplied by $5,600 for the year.Actual overhead incurred was $105,000.Other balances are: What will be adjusted cost of goods sold after closing manufacturing overhead?

Since a service firm does not carry a large amount of inventory,it is not necessary to know the individual costs related to each individual job.

Here is some basic data for Honey Dukes Corporation: The journal entry to record the cost of jobs sold would include a

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

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Exam 3: Job Costing

The key to allocating indirect manufacturing costs to jobs is to identify an appropriate allocation base.

The gross profit on the sale of a job is the difference between the sales price and the total unit cost reported on the job cost record.

The entry to record the purchase of raw materials on account using a job costing system would include a

Which product costing system would be better for custom-order products?

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

Management can use job cost information to control costs on jobs produced in the future.

The total cost of a job shown on the job cost record is the sum of the direct materials traced to the job and the manufacturing overhead allocated to the job.

Which of the following entries would be made to record $20,000 of labor-80% of which is direct,and 20% of which is indirect- to jobs?

Generally Accepted Accounting Principles (GAAP)mandates the type of product costing system (job costing or process costing)that must be used by a manufacturer.

If a manufacturer finds that the amount of manufacturing overhead allocated to a job is less than the actual amount of manufacturing overhead incurred,then the jobs are overcosted.

Hilltop Manufacturing uses a predetermined manufacturing overhead rate based on machine hours to allocate manufacturing overhead to jobs.Selected data about the company's operations follows: By how much was manufacturing overhead overallocated or underallocated for the year?

To record depreciation on the factory equipment,the journal entry would include a

Before the year began,Murphy Manufacturing estimated that manufacturing overhead for the year would be $175,500 and that 13,000 direct labor hours would be worked.Actual results for the year included the following: The predetermined manufacturing overhead rate per direct labor hour is closest to

Stanley Company uses a job cost system.Manufacturing overhead has been overapplied by $5,600 for the year.Actual overhead incurred was $105,000.Other balances are: What will be adjusted cost of goods sold after closing manufacturing overhead?

Since a service firm does not carry a large amount of inventory,it is not necessary to know the individual costs related to each individual job.

Here is some basic data for Honey Dukes Corporation: The journal entry to record the cost of jobs sold would include a

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