Question 1

The journal entry needed to record the receipt of a bill from the company's marketing agency would include a

Accepted Answer

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

Question 2

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

Accepted Answer

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

Question 3

Before the year began,Milkway Manufacturing estimated that manufacturing overhead for the year would be $175,000 and that 25,000 direct labor hours would be worked.Actual results for the year included the following:
 
If the company allocates manufacturing overhead based on direct labor hours,the manufacturing overhead for the year would have been

Accepted Answer

A) $42,000 overallocated. 
B) $7,000 underallocated. 
C) $7,000 overallocated. 
D) $42,000 underallocated. 
A) $42,000 overallocated. 
B) $7,000 underallocated. 
C) $7,000 overallocated. 
D) $42,000 underallocated.

Question 4

All manufacturers use either a pure process costing system or a pure job costing system.

Accepted Answer

A) True 
 B)False

Question 5

For each of the following statements,determine if manufacturing overhead was:
A)Underallocated
B)Overallocated
Put the correct letter on the line in front of each statement.

Accepted Answer

The answer of For each of the following statements,determine if...

Question 6

Here are selected data for Sunny Sky Corporation:
 
What is the finished goods ending inventory?

Accepted Answer

A) $80,300 
B) $493,700 
C) $79,300 
D) $287,000 
A) $80,300 
B) $493,700 
C) $79,300 
D) $287,000

Question 7

Morgan Corporation uses estimated direct labor hours of 200,000 and estimated manufacturing overhead costs of $920,000 in establishing manufacturing overhead rates.Actual manufacturing overhead was $970,000,and allocated manufacturing overhead was $1,012,000.What was the number of actual direct hours worked?

Accepted Answer

A) 200,000 
B) 208,660 
C) 189,691 
D) 220,000 
A) 200,000 
B) 208,660 
C) 189,691 
D) 220,000

Question 8

A labor time record identifies the employee and the amount of time the employee spent on a particular job.

Accepted Answer

A) True 
 B)False

Question 9

A labor time record is an essential component of accounting in a service firm.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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 direct labor hour is closest to

Accepted Answer

A) $120. 
B) $66. 
C) $38. 
D) $40. 
A) $120. 
B) $66. 
C) $38. 
D) $40.

Question 12

Showboat Corporation had actual manufacturing overhead costs for the most recent year of $29,500.Manufacturing overhead is allocated using a predetermined manufacturing overhead rate of $1.50 per direct labor hour.Direct labor cost is $19 per hour.At the end of the year,Cabaret Corporation found it had overallocated manufacturing overhead by $1,250.How many direct labor hours were worked in total during the year?

Accepted Answer

A) 20,500 
B) 18,833 
C) 19,667 
D) 833 
A) 20,500 
B) 18,833 
C) 19,667 
D) 833

Question 13

The journal entries needed for job costing at a service company

Accepted Answer

A) are more complicated than those needed at a manufacturing company. 
B) are virtually the same as those needed at a manufacturing company. 
C) include the movement of inventory. 
D) are simpler than those needed at a manufacturing company. 
A) are more complicated than those needed at a manufacturing company. 
B) are virtually the same as those needed at a manufacturing company. 
C) include the movement of inventory. 
D) are simpler than those needed at a manufacturing company.

Question 14

A ________ is a document manufacturing production personnel use to request that the itemized materials be sent from the showroom into the factory.

Accepted Answer

A) cost ticket 
B) job cost record 
C) materials requisition 
D) manufacturing ticket 
A) cost ticket 
B) job cost record 
C) materials requisition 
D) manufacturing ticket

Question 15

When raw materials are transferred out of the storeroom to the factory,their cost is transferred out of raw materials inventory and into work in process inventory.

Accepted Answer

A) True 
 B)False

Question 16

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 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) $30,875 
B) $76,000 
C) $124,000 
D) $42,000 
A) $30,875 
B) $76,000 
C) $124,000 
D) $42,000

Question 17

The following account balances at the beginning of January were selected from the general ledger of Ocean City Manufacturing Company:
 
Additional data:
1.Actual manufacturing overhead for January amounted to $62,000.
2.Total direct labor cost for January was $63,000.
3.The predetermined manufacturing overhead rate is based on direct labor cost.The budget for the year called for $250,000 of direct labor cost and $350,000 of manufacturing overhead costs.
4.The only job unfinished on January 31 was Job No.151,for which total direct labor charges were $5,200 (800 direct labor hours)and total direct material charges were $14,000.
5.Cost of direct materials placed in production during January totaled $123,000.There were no indirect material requisitions during January.
6.January 31 balance in raw materials inventory was $35,000.
7.Finished goods inventory balance on January 31 was $34,500.
Has manufacturing overhead been overallocated or underallocated and by what amount as of January 31?

Accepted Answer

A) $26,200 overallocated 
B) $26,200 underallocated 
C) $17,000 overallocated 
D) $17,000 underallocated 
A) $26,200 overallocated 
B) $26,200 underallocated 
C) $17,000 overallocated 
D) $17,000 underallocated

Question 18

When job costing is used at a service firm,the bill to the client shows

Accepted Answer

A) the billing rate and hours spent on the job. 
B) the allocation of indirect costs. 
C) the profit on the job. 
D) actual direct cost of providing the service. 
A) the billing rate and hours spent on the job. 
B) the allocation of indirect costs. 
C) the profit on the job. 
D) actual direct cost of providing the service.

Question 19

Earnst & Earnst Consulting pays Amber Kelly $58,000 per year.The cost of her annual benefits is $17,000.Kelly works 2,500 hours per year.
A.What is the hourly rate to Earnst & Earnst Consulting of employing Amber Kelly?
B.If Amber works 30 hours for client 252,what is the direct labor cost associated with that client?

Accepted Answer

The answer of Earnst & Earnst Consulting pays Amber Kelly...

Question 20

The cost of direct labor used in production is recorded as a

Accepted Answer

A) credit to Manufacturing Overhead account. 
B) credit to Work-in-Process Inventory account. 
C) credit to wages expense. 
D) credit to wages payable. 
A) credit to Manufacturing Overhead account. 
B) credit to Work-in-Process Inventory account. 
C) credit to wages expense. 
D) credit to wages payable.

The journal entry needed to record the receipt of a bill from the company's marketing agency would include a

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

All manufacturers use either a pure process costing system or a pure job costing system.

For each of the following statements,determine if manufacturing overhead was: A)Underallocated B)Overallocated Put the correct letter on the line in front of each statement.

Here are selected data for Sunny Sky Corporation: What is the finished goods ending inventory?

A labor time record identifies the employee and the amount of time the employee spent on a particular job.

A labor time record is an essential component of accounting in a service firm.

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

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 direct labor hour is closest to

The journal entries needed for job costing at a service company

A ________ is a document manufacturing production personnel use to request that the itemized materials be sent from the showroom into the factory.

When raw materials are transferred out of the storeroom to the factory,their cost is transferred out of raw materials inventory and into work in process inventory.

When job costing is used at a service firm,the bill to the client shows

The cost of direct labor used in production is recorded as 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

Exam 3: Job Costing

The journal entry needed to record the receipt of a bill from the company's marketing agency would include a

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

All manufacturers use either a pure process costing system or a pure job costing system.

For each of the following statements,determine if manufacturing overhead was: A)Underallocated B)Overallocated Put the correct letter on the line in front of each statement.

Here are selected data for Sunny Sky Corporation: What is the finished goods ending inventory?

A labor time record identifies the employee and the amount of time the employee spent on a particular job.

A labor time record is an essential component of accounting in a service firm.

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

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 direct labor hour is closest to

The journal entries needed for job costing at a service company

A ________ is a document manufacturing production personnel use to request that the itemized materials be sent from the showroom into the factory.

When raw materials are transferred out of the storeroom to the factory,their cost is transferred out of raw materials inventory and into work in process inventory.

When job costing is used at a service firm,the bill to the client shows

The cost of direct labor used in production is recorded as 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