Question 1

Overallocated manufacturing overhead is adjusted by debiting the Cost of Goods Sold account.

Accepted Answer

A) True 
 B)False  False

Question 2

The journal entry to record $1,500 of direct labor and $200 of indirect labor incurred will include debit(s)to the:

Accepted Answer

A) Manufacturing Overhead account for $1,700. 
B) Work-in-Process Inventory account for $1,500 and Finished Goods Inventory account for $200. 
C) Finished Goods Inventory account for $1,700. 
D) Work-in-Process Inventory account for $1,500 and Manufacturing Overhead account for $200. 
A) Manufacturing Overhead account for $1,700. 
B) Work-in-Process Inventory account for $1,500 and Finished Goods Inventory account for $200. 
C) Finished Goods Inventory account for $1,700. 
D) Work-in-Process Inventory account for $1,500 and Manufacturing Overhead account for $200. D

Question 3

At the beginning of 2015, Conway Manufacturing had the following account balances:   Following additional details are provided for the year:   Calculate the gross profit will Conway report for the year 2015.

Accepted Answer

A) $315,000 
B) $305,000 
C) $310,000 
D) $345,000 
A) $315,000 
B) $305,000 
C) $310,000 
D) $345,000 B

Question 4

Jorst Manufacturing began business on January 1, 2015. During its first year of operation, Jorst worked on five industrial jobs, and reported the following information at year-end:   At year-end, what was the balance in Finished Goods Inventory?

Accepted Answer

A) $90,500 
B) $19,500 
C) $42,500 
D) $45,000 
A) $90,500 
B) $19,500 
C) $42,500 
D) $45,000

Question 5

Jeremy Corporation estimated manufacturing overhead costs for the year to be $500,000. Jeremy also estimated 8,000 machine hours and 2,000 direct labor hours for the year. It bases the predetermined overhead allocation rate on machine hours. On January 31, Job 25 was completed. It required 6 machine hours and 1 direct labor hour. What is the amount of manufacturing overhead allocated to the completed job? (Round your intermediate calculations to one decimal place)

Accepted Answer

A) $1,500.00 
B) $437.50 
C) $375.00 
D) $350.00 
A) $1,500.00 
B) $437.50 
C) $375.00 
D) $350.00

Question 6

The journal entry to record indirect labor costs incurred involves a debit to the:

Accepted Answer

A) Manufacturing Overhead account. 
B) Wages Payable account. 
C) Finished Goods Inventory account. 
D) Work-in-Process Inventory account. 
A) Manufacturing Overhead account. 
B) Wages Payable account. 
C) Finished Goods Inventory account. 
D) Work-in-Process Inventory account.

Question 7

On June 1, 2014, Dalton Productions had beginning balances as shown in the T-accounts below.   During June, the following transactions took place: June 2: Issued $2,400 of direct materials and $200 of indirect materials to production
June 13: Paid $7,500 of direct factory labor cost and $14,100 of indirect factory labor cost
Following these transactions, what was the balance in the Manufacturing Overhead account?

Accepted Answer

A) $50,900 
B) $55,300 
C) $44,200 
D) $65,200 
A) $50,900 
B) $55,300 
C) $44,200 
D) $65,200

Question 8

Forsyth Company uses estimated direct labor hours of 175,000 and estimated manufacturing overhead costs of $350,000 in establishing its 2014 predetermined overhead allocation rate. Actual results showed:   The number of direct labor hours worked during the period was:

Accepted Answer

A) 175,000 hours. 
B) 160,000 hours. 
C) 173,250 hours. 
D) 191,406 hours. 
A) 175,000 hours. 
B) 160,000 hours. 
C) 173,250 hours. 
D) 191,406 hours.

Question 9

At the beginning of 2015, Conway Manufacturing had the following account balances:   Following additional details are provided for the year:   After adjusting the balance in Manufacturing Overhead, the ending balance in the Finished Goods Inventory account is a:

Accepted Answer

A) credit of $52,000. 
B) debit of $60,000. 
C) credit of $432,000. 
D) debit of $68,000. 
A) credit of $52,000. 
B) debit of $60,000. 
C) credit of $432,000. 
D) debit of $68,000.

Question 10

Specialty Wood Products Company had the following manufacturing labor costs last month:   Provide the journal entry to record the labor costs incurred, which will be paid at a later date.

Accepted Answer

The answer of Specialty Wood Products Company had the following...

Question 11

Neptune Fabrication Plant has provided you with the following information.   The company bases its manufacturing overhead allocation on direct labor hours. What was the unadjusted ending balance in the manufacturing overhead account?

Accepted Answer

A) $10,000 credit balance 
B) $10,000 debit balance 
C) $15,000 credit balance 
D) $15,000 debit balance 
A) $10,000 credit balance 
B) $10,000 debit balance 
C) $15,000 credit balance 
D) $15,000 debit balance

Question 12

The cost of goods manufactured is recorded with a debit to the Finished Goods Inventory account and a credit to the Work-in-Process Inventory account.

Accepted Answer

A) True 
 B)False

Question 13

The engineering firm of Dobbs and Smith uses a job order costing system to accumulate client-related costs. The overhead rate is 60% of direct labor cost. Staff engineer's time is charged at a rate of $80 per hour. A recent job for a client involved 30 staff labor hours. How much was the total job cost?

Accepted Answer

A) $1,600 
B) $2,400 
C) $3,840 
D) $360 
A) $1,600 
B) $2,400 
C) $3,840 
D) $360

Question 14

Archangel Manufacturing has finished production activities for the year 2015. The company allocates manufacturing overhead based on a percentage of direct labor costs. The company has provided the following information:   Based on the above data, calculate the unadjusted ending balance in the Manufacturing Overhead account.

Accepted Answer

A) $19,000 credit balance 
B) $19,000 debit balance 
C) $14,200 credit balance 
D) $14,200 debit balance 
A) $19,000 credit balance 
B) $19,000 debit balance 
C) $14,200 credit balance 
D) $14,200 debit balance

Question 15

Gia Machine Shop uses a predetermined overhead allocation rate of $63.20 per direct labor hour. In January, Gia completed Job A23 which utilized 15 direct labor hours. Which of the following correctly describes the journal entry to allocate overhead to the job?

Accepted Answer

A) Debit Finished Goods Inventory $948, credit Manufacturing Overhead $948 
B) Debit Manufacturing Overhead $63.20, credit Work-in-Process Inventory $63.20 
C) Debit Work-in-Process Inventory $948, credit Manufacturing Overhead $948 
D) Debit Cost of Goods Sold $63.20, credit Finished Goods Inventory $63.20 
A) Debit Finished Goods Inventory $948, credit Manufacturing Overhead $948 
B) Debit Manufacturing Overhead $63.20, credit Work-in-Process Inventory $63.20 
C) Debit Work-in-Process Inventory $948, credit Manufacturing Overhead $948 
D) Debit Cost of Goods Sold $63.20, credit Finished Goods Inventory $63.20

Question 16

Which of the following will be debited to the Manufacturing Overhead account of a watch manufacturer?

Accepted Answer

A) office telephone expenses 
B) salaries paid to accountants 
C) factory electricity expense 
D) cost of printing brochures 
A) office telephone expenses 
B) salaries paid to accountants 
C) factory electricity expense 
D) cost of printing brochures

Question 17

Actual manufacturing overhead costs are credited to the Manufacturing Overhead account.

Accepted Answer

A) True 
 B)False

Question 18

On January 1, 2014, Matthew Company's Work-in-Process Inventory account had a balance of $30,000. During 2014, $58,000 of direct materials was placed into production. Manufacturing wages incurred amounted to $84,000, of which $66,000 were for direct labor. Manufacturing overhead is allocated on the basis of 120% of direct labor cost. Actual manufacturing overhead was $90,000. Jobs costing $220,400 were completed during 2014. What is the December 31, 2014 balance of Work-in-Process Inventory?

Accepted Answer

A) $16,800 
B) $34,800 
C) $6,000 
D) $12,800 
A) $16,800 
B) $34,800 
C) $6,000 
D) $12,800

Question 19

Venus Manufacturing uses a predetermined overhead allocation rate based on percentage of direct labor cost. At the beginning of the year, they fixed the manufacturing overhead rate at 20% times the direct labor cost. In the month of June, Venus completed Job 13C the costs of which are as follows:   What is the cost per unit of finished product of Job 13C?

Accepted Answer

A) $29.20 
B) $33.46 
C) $28.48 
D) $36.70 
A) $29.20 
B) $33.46 
C) $28.48 
D) $36.70

Question 20

Manufacturing overhead costs are allocated to the Work-in-Process Inventory account by a debit to the Manufacturing Overhead account.

Accepted Answer

A) True 
 B)False

Overallocated manufacturing overhead is adjusted by debiting the Cost of Goods Sold account.

The journal entry to record $1,500 of direct labor and $200 of indirect labor incurred will include debit(s)to the:

At the beginning of 2015, Conway Manufacturing had the following account balances: Following additional details are provided for the year: Calculate the gross profit will Conway report for the year 2015.

Jorst Manufacturing began business on January 1, 2015. During its first year of operation, Jorst worked on five industrial jobs, and reported the following information at year-end: At year-end, what was the balance in Finished Goods Inventory?

The journal entry to record indirect labor costs incurred involves a debit to the:

Forsyth Company uses estimated direct labor hours of 175,000 and estimated manufacturing overhead costs of $350,000 in establishing its 2014 predetermined overhead allocation rate. Actual results showed: The number of direct labor hours worked during the period was:

At the beginning of 2015, Conway Manufacturing had the following account balances: Following additional details are provided for the year: After adjusting the balance in Manufacturing Overhead, the ending balance in the Finished Goods Inventory account is a:

Specialty Wood Products Company had the following manufacturing labor costs last month: Provide the journal entry to record the labor costs incurred, which will be paid at a later date.

Neptune Fabrication Plant has provided you with the following information. The company bases its manufacturing overhead allocation on direct labor hours. What was the unadjusted ending balance in the manufacturing overhead account?

The cost of goods manufactured is recorded with a debit to the Finished Goods Inventory account and a credit to the Work-in-Process Inventory account.

Gia Machine Shop uses a predetermined overhead allocation rate of $63.20 per direct labor hour. In January, Gia completed Job A23 which utilized 15 direct labor hours. Which of the following correctly describes the journal entry to allocate overhead to the job?

Which of the following will be debited to the Manufacturing Overhead account of a watch manufacturer?

Actual manufacturing overhead costs are credited to the Manufacturing Overhead account.

Manufacturing overhead costs are allocated to the Work-in-Process Inventory account by a debit to the Manufacturing Overhead account.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Process Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

Filters

Exam 19: Job Order Costing

Overallocated manufacturing overhead is adjusted by debiting the Cost of Goods Sold account.

The journal entry to record $1,500 of direct labor and $200 of indirect labor incurred will include debit(s)to the:

At the beginning of 2015, Conway Manufacturing had the following account balances: Following additional details are provided for the year: Calculate the gross profit will Conway report for the year 2015.

Jorst Manufacturing began business on January 1, 2015. During its first year of operation, Jorst worked on five industrial jobs, and reported the following information at year-end: At year-end, what was the balance in Finished Goods Inventory?

The journal entry to record indirect labor costs incurred involves a debit to the:

Forsyth Company uses estimated direct labor hours of 175,000 and estimated manufacturing overhead costs of $350,000 in establishing its 2014 predetermined overhead allocation rate. Actual results showed: The number of direct labor hours worked during the period was:

At the beginning of 2015, Conway Manufacturing had the following account balances: Following additional details are provided for the year: After adjusting the balance in Manufacturing Overhead, the ending balance in the Finished Goods Inventory account is a:

Specialty Wood Products Company had the following manufacturing labor costs last month: Provide the journal entry to record the labor costs incurred, which will be paid at a later date.

Neptune Fabrication Plant has provided you with the following information. The company bases its manufacturing overhead allocation on direct labor hours. What was the unadjusted ending balance in the manufacturing overhead account?

The cost of goods manufactured is recorded with a debit to the Finished Goods Inventory account and a credit to the Work-in-Process Inventory account.

Gia Machine Shop uses a predetermined overhead allocation rate of $63.20 per direct labor hour. In January, Gia completed Job A23 which utilized 15 direct labor hours. Which of the following correctly describes the journal entry to allocate overhead to the job?

Which of the following will be debited to the Manufacturing Overhead account of a watch manufacturer?

Actual manufacturing overhead costs are credited to the Manufacturing Overhead account.

Manufacturing overhead costs are allocated to the Work-in-Process Inventory account by a debit to the Manufacturing Overhead account.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Process Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

Filters