Question 1

For a manufacturing system,inventory flows from raw materials inventory to work in process inventory to finished goods inventory.

Accepted Answer

A) True 
 B)False

Question 2

An equal amount of manufacturing overhead should be allocated to each job.

Accepted Answer

A) True 
 B)False

Question 3

Nadal 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 Nadal Company uses direct labor hours as the allocation base,what would the allocated manufacturing overhead be for the year?

Accepted Answer

A) $324,800 
B) $350,000 
C) $400,000 
D) $371,200 
A) $324,800 
B) $350,000 
C) $400,000 
D) $371,200

Question 4

The Finished Goods Inventory account is debited when the product is sold.

Accepted Answer

A) True 
 B)False

Question 5

Hilltop Manufacturing uses a predetermined manufacturing overhead rate based on direct labor 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) $50,000 underallocated 
B) $160,000 overallocated 
C) $100,000 underallocated 
D) $50,000 overallocated 
A) $50,000 underallocated 
B) $160,000 overallocated 
C) $100,000 underallocated 
D) $50,000 overallocated

Question 6

Ryan'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 manufacturing overhead for the year would have been

Accepted Answer

A) $10,000 overallocated. 
B) $10,000 underallocated. 
C) $40,000 overallocated. 
D) $40,000 underallocated. 
A) $10,000 overallocated. 
B) $10,000 underallocated. 
C) $40,000 overallocated. 
D) $40,000 underallocated.

Question 7

Perry Moldings has the following estimated costs for the upcoming year:
 
The company estimates that 1,200 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) $52. 
B) $97. 
C) $14. 
D) $33. 
A) $52. 
B) $97. 
C) $14. 
D) $33.

Question 8

Manufacturing overhead is overallocated if the amount

Accepted Answer

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

Question 9

How is the cost-plus price determined?

Accepted Answer

A) Cost - markup on cost 
B) Cost + markup on cost 
C) Cost × markup on cost 
D) Cost ÷ markup on cost 
A) Cost - markup on cost 
B) Cost + markup on cost 
C) Cost × markup on cost 
D) Cost ÷ markup on cost

Question 10

When an item is sold,Finished Goods Inventory account is credited and Cost of Goods Sold is debited.

Accepted Answer

A) True 
 B)False

Question 11

A typical manufacturing overhead cost would be

Accepted Answer

A) direct labor. 
B) depreciation on the plant. 
C) net income. 
D) direct materials. 
A) direct labor. 
B) depreciation on the plant. 
C) net income. 
D) direct materials.

Question 12

Matthew Company uses a job cost system.The overhead account shows a $5,000 overallocated balance at the end of the year.Actual overhead incurred was $100,000.Other balances are:
 
The entry to close manufacturing overhead would include a

Accepted Answer

A) debit to Manufacturing Overhead account for $5,000. 
B) debit to Work-in-Process Inventory account for $5,000. 
C) debit to Cost of Goods Sold account for $5,000. 
D) credit to Work-in-Process Inventory account for $5,000. 
A) debit to Manufacturing Overhead account for $5,000. 
B) debit to Work-in-Process Inventory account for $5,000. 
C) debit to Cost of Goods Sold account for $5,000. 
D) credit to Work-in-Process Inventory account for $5,000.

Question 13

Management can use job cost information for each of the following except

Accepted Answer

A) determining cost of goods sold. 
B) determining the profitability of different jobs. 
C) bidding on custom jobs. 
D) all of the listed choices are possible uses of job cost information. 
A) determining cost of goods sold. 
B) determining the profitability of different jobs. 
C) bidding on custom jobs. 
D) all of the listed choices are possible uses of job cost information.

Question 14

Manufacturing overhead may include depreciation on the factory plant and equipment,utilities to run the plant,property taxes and insurance on the plant,and salaries of plant janitors.

Accepted Answer

A) True 
 B)False

Question 15

If manufacturing overhead has been overallocated during the year,it means the jobs have been overcosted.

Accepted Answer

A) True 
 B)False

Question 16

Here is selected data for Lori Corporation:
 
The journal entry to close manufacturing overhead would include a

Accepted Answer

A) credit to Manufacturing Overhead account for $4,000. 
B) debit to Work-in-Process Inventory account for $4,000. 
C) debit to Manufacturing Overhead account for $4,000. 
D) debit to Cost of Goods Sold for $4,000. 
A) credit to Manufacturing Overhead account for $4,000. 
B) debit to Work-in-Process Inventory account for $4,000. 
C) debit to Manufacturing Overhead account for $4,000. 
D) debit to Cost of Goods Sold for $4,000.

Question 17

Which of these documents authorizes the purchase of specific raw materials from a specific supplier?

Accepted Answer

A) Labor time record 
B) Materials inventory requisition form 
C) Job cost record 
D) Purchase order 
A) Labor time record 
B) Materials inventory requisition form 
C) Job cost record 
D) Purchase order

Question 18

The entry to allocate manufacturing overhead costs to work-in-process requires a debit to Work-in Process account.

Accepted Answer

A) True 
 B)False

Question 19

Manufacturing overhead has an underallocated balance of $12,000;raw materials inventory balance is $145,000;work in process inventory is $122,000;finished goods inventory is $140,000;and cost of goods sold is $170,000.After adjusting for the underallocated manufacturing overhead,what is cost of goods sold?

Accepted Answer

A) $170,000 
B) $12,000 
C) $182,000 
D) $158,000 
A) $170,000 
B) $12,000 
C) $182,000 
D) $158,000

Question 20

Here are selected data for Sally Day Corporation:
 
What is the finished goods ending inventory?

Accepted Answer

A) $67,300 
B) $287,000 
C) $78,300 
D) $495,700 
A) $67,300 
B) $287,000 
C) $78,300 
D) $495,700

For a manufacturing system,inventory flows from raw materials inventory to work in process inventory to finished goods inventory.

An equal amount of manufacturing overhead should be allocated to each job.

The Finished Goods Inventory account is debited when the product is sold.

Hilltop Manufacturing uses a predetermined manufacturing overhead rate based on direct labor 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?

Ryan'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 manufacturing overhead for the year would have been

Perry Moldings has the following estimated costs for the upcoming year: The company estimates that 1,200 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

Manufacturing overhead is overallocated if the amount

How is the cost-plus price determined?

When an item is sold,Finished Goods Inventory account is credited and Cost of Goods Sold is debited.

A typical manufacturing overhead cost would be

Matthew Company uses a job cost system.The overhead account shows a $5,000 overallocated balance at the end of the year.Actual overhead incurred was $100,000.Other balances are: The entry to close manufacturing overhead would include a

Management can use job cost information for each of the following except

Manufacturing overhead may include depreciation on the factory plant and equipment,utilities to run the plant,property taxes and insurance on the plant,and salaries of plant janitors.

If manufacturing overhead has been overallocated during the year,it means the jobs have been overcosted.

Here is selected data for Lori Corporation: The journal entry to close manufacturing overhead would include a

Which of these documents authorizes the purchase of specific raw materials from a specific supplier?

The entry to allocate manufacturing overhead costs to work-in-process requires a debit to Work-in Process account.

Here are selected data for Sally Day Corporation: What is the finished goods ending inventory?

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

For a manufacturing system,inventory flows from raw materials inventory to work in process inventory to finished goods inventory.

An equal amount of manufacturing overhead should be allocated to each job.

The Finished Goods Inventory account is debited when the product is sold.

Hilltop Manufacturing uses a predetermined manufacturing overhead rate based on direct labor 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?

Ryan'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 manufacturing overhead for the year would have been

Perry Moldings has the following estimated costs for the upcoming year: The company estimates that 1,200 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

Manufacturing overhead is overallocated if the amount

How is the cost-plus price determined?

When an item is sold,Finished Goods Inventory account is credited and Cost of Goods Sold is debited.

A typical manufacturing overhead cost would be

Matthew Company uses a job cost system.The overhead account shows a $5,000 overallocated balance at the end of the year.Actual overhead incurred was $100,000.Other balances are: The entry to close manufacturing overhead would include a

Management can use job cost information for each of the following except

Manufacturing overhead may include depreciation on the factory plant and equipment,utilities to run the plant,property taxes and insurance on the plant,and salaries of plant janitors.

If manufacturing overhead has been overallocated during the year,it means the jobs have been overcosted.

Here is selected data for Lori Corporation: The journal entry to close manufacturing overhead would include a

Which of these documents authorizes the purchase of specific raw materials from a specific supplier?

The entry to allocate manufacturing overhead costs to work-in-process requires a debit to Work-in Process account.

Here are selected data for Sally Day Corporation: What is the finished goods ending inventory?

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