Question 1

The most significant cost for a service firm is direct labor cost.

Accepted Answer

A) True 
 B)False

Question 2

A ___________ is the primary factor that causes a cost to be incurred.

Accepted Answer

A) cost driver 
B) cost allocation 
C) materials requisition 
D) predetermined manufacturing overhead rate 
A) cost driver 
B) cost allocation 
C) materials requisition 
D) predetermined manufacturing overhead rate

Question 3

The following account balances at the beginning of January were selected from the general ledger of Fresh Bagel Manufacturing Company:   Additional data:
1) Actual manufacturing overhead for January amounted to $63,000.
2) Total direct labor cost for January was $63,200.
3) The predetermined manufacturing overhead rate is based on direct labor cost. The budget for the year called for $240,000 of direct labor cost and $336,000 of manufacturing overhead costs.
4) The only job unfinished on January 31 was Job No. 151, for which total direct labor charges were $6200 (1300 direct labor hours)and total direct material charges were $14,300.
5) Cost of direct materials placed in production during January totaled $123,900. There were no indirect material requisitions during January.
6) January 31 balance in raw materials inventory was $35,700.
7) Finished goods inventory balance on January 31 was $34,900.
What is the cost of goods sold for January?

Accepted Answer

A) $252,300 
B) $317,200 
C) $201,571 
D) $226,500 
A) $252,300 
B) $317,200 
C) $201,571 
D) $226,500

Question 4

Records for Speedy's Custom Networks contained the following data.
   Compute:
a. Work in process inventory on June 30
b. Finished goods inventory on June 30
c. Cost of goods sold for June

Accepted Answer

The answer of Records for Speedy's Custom Networks contained the...

Question 5

London Ceramics makes custom ceramic tiles. During March, the company started and finished Job #266. Job #266 consists of 2600 tiles; each tile sells for $14.00. The company's records show the following direct materials were requisitioned for Job #266. Basic terra cotta tiles: 2600 units at 4.00 per unit
Specialty paint: 7 quarts at $13.00 per quart
High gloss glaze: 14 quarts at $17.00 per quart
Labor time records show the following employees worked on Job #266:
Alice Cooper: 24 hours at $27 per hour
Matthew Kline: 25 hours at $16 per hour
Sierra Ceramics allocates manufacturing overhead at a rate of $30 per direct labor hour.
What is the total amount of direct materials, direct labor, and manufacturing overhead that should be shown on Job #266's job cost record?

Accepted Answer

A) $11,630 
B) $1470 
C) $36,400 
D) $13,247 
A) $11,630 
B) $1470 
C) $36,400 
D) $13,247

Question 6

Squire Corporation charged Job 110 with $14,000 of direct materials and $12,600 of direct labor. Allocation for manufacturing overhead is 70% of direct labor costs. What is the total cost of Job 110?

Accepted Answer

A) $35,420 
B) $8820 
C) $44,600 
D) $26,600 
A) $35,420 
B) $8820 
C) $44,600 
D) $26,600

Question 7

The following is selected financial data from Turtle Bay Manufacturing for the most recent year.   What is the actual manufacturing overhead?

Accepted Answer

A) $66,600 
B) $54,400 
C) $6100 
D) $60,500 
A) $66,600 
B) $54,400 
C) $6100 
D) $60,500

Question 8

Cost of Goods Sold account is debited and Finished Goods Inventory is credited for

Accepted Answer

A) purchase of goods on account. 
B) transfer of goods to the Finished Goods Storeroom. 
C) transfer of materials into Work-in-Process Inventory. 
D) the sale of goods to a customer. 
A) purchase of goods on account. 
B) transfer of goods to the Finished Goods Storeroom. 
C) transfer of materials into Work-in-Process Inventory. 
D) the sale of goods to a customer.

Question 9

Manufacturing overhead is allocated on the basis of

Accepted Answer

A) machine hours. 
B) direct labor hours. 
C) direct labor costs. 
D) all of the above. 
A) machine hours. 
B) direct labor hours. 
C) direct labor costs. 
D) all of the above.

Question 10

The journal entry needed to record the transfer of raw materials, including both direct and indirect materials, into the factory is:

Accepted Answer

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

Question 11

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

Accepted Answer

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

Question 12

Sales revenue is $750,200; actual manufacturing overhead is $120,500; allocated manufacturing overhead is $96,000; and cost of goods sold before adjustment is $380,800. What is the actual gross profit?

Accepted Answer

A) $393,900 
B) $369,400 
C) $344,900 
D) $248,900 
A) $393,900 
B) $369,400 
C) $344,900 
D) $248,900

Question 13

Here are selected data for King Friday Corporation:   What is the finished goods ending inventory?

Accepted Answer

A) $67,200 
B) $287,800 
C) $78,700 
D) $497,400 
A) $67,200 
B) $287,800 
C) $78,700 
D) $497,400

Question 14

On the line in front of each statement, enter either a D for debit or a C for credit to indicate the normal entry that would be needed for each account named.
________ added purchases to Raw Materials Inventory account
________ added indirect materials to Manufacturing Overhead account
________ requisitioned raw materials from Raw Materials Inventory account
________ added direct raw materials to Work-in-Process Inventory account

Accepted Answer

The answer of On the line in front of each...

Question 15

To record the requisition of direct materials, which of the following accounts would be debited?

Accepted Answer

A) Finished Goods Inventory account 
B) Work-in-Process Inventory account 
C) Raw Materials Inventory account 
D) Cost of Goods Manufactured account 
A) Finished Goods Inventory account 
B) Work-in-Process Inventory account 
C) Raw Materials Inventory account 
D) Cost of Goods Manufactured account

Question 16

The cost of wages paid to assembly-line workers should be treated as a manufacturing overhead cost.

Accepted Answer

A) True 
 B)False

Question 17

Weekly Company gathered the following information for the year ended December 31:   Peterson Company uses a job costing system.
What would the predetermined manufacturing overhead rate for the year be using direct labor hours as the allocation base?

Accepted Answer

A) $1.17 per direct labor hour 
B) $1.05 per direct labor hour 
C) $1.30 per direct labor hour 
D) $0.85 per direct labor hour 
A) $1.17 per direct labor hour 
B) $1.05 per direct labor hour 
C) $1.30 per direct labor hour 
D) $0.85 per direct labor hour

Question 18

Before the year began, Butler Manufacturing estimated that manufacturing overhead for the year would be $176,400 and that 13,800 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) $12.08. 
B) $12.67. 
C) $12.78. 
D) $13.41. 
A) $12.08. 
B) $12.67. 
C) $12.78. 
D) $13.41.

Question 19

Actual manufacturing overhead is always recorded

Accepted Answer

A) with a debit to work-in-process inventory. 
B) with a credit to raw materials inventory. 
C) with a credit to manufacturing overhead. 
D) with a debit to manufacturing overhead. 
A) with a debit to work-in-process inventory. 
B) with a credit to raw materials inventory. 
C) with a credit to manufacturing overhead. 
D) with a debit to manufacturing overhead.

Question 20

Here is selected data for Betty Boo Corporation:   The journal entry to transfer completed goods to the finished goods inventory account would include a

Accepted Answer

A) debit to Work-in-Process Inventory account for $233,900. 
B) debit to Finished Goods Inventory account for $238,100. 
C) credit to Work-in-Process Inventory account for $238,100. 
D) debit to Finished Goods account for $233,900. 
A) debit to Work-in-Process Inventory account for $233,900. 
B) debit to Finished Goods Inventory account for $238,100. 
C) credit to Work-in-Process Inventory account for $238,100. 
D) debit to Finished Goods account for $233,900.

The most significant cost for a service firm is direct labor cost.

A ___________ is the primary factor that causes a cost to be incurred.

Records for Speedy's Custom Networks contained the following data. Compute: a. Work in process inventory on June 30 b. Finished goods inventory on June 30 c. Cost of goods sold for June

Squire Corporation charged Job 110 with $14,000 of direct materials and $12,600 of direct labor. Allocation for manufacturing overhead is 70% of direct labor costs. What is the total cost of Job 110?

The following is selected financial data from Turtle Bay Manufacturing for the most recent year. What is the actual manufacturing overhead?

Cost of Goods Sold account is debited and Finished Goods Inventory is credited for

Manufacturing overhead is allocated on the basis of

The journal entry needed to record the transfer of raw materials, including both direct and indirect materials, into the factory is:

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

Sales revenue is $750,200; actual manufacturing overhead is $120,500; allocated manufacturing overhead is $96,000; and cost of goods sold before adjustment is $380,800. What is the actual gross profit?

Here are selected data for King Friday Corporation: What is the finished goods ending inventory?

To record the requisition of direct materials, which of the following accounts would be debited?

The cost of wages paid to assembly-line workers should be treated as a manufacturing overhead cost.

Weekly Company gathered the following information for the year ended December 31: Peterson Company uses a job costing system. What would the predetermined manufacturing overhead rate for the year be using direct labor hours as the allocation base?

Before the year began, Butler Manufacturing estimated that manufacturing overhead for the year would be $176,400 and that 13,800 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

Actual manufacturing overhead is always recorded

Here is selected data for Betty Boo Corporation: The journal entry to transfer completed goods to the finished goods inventory account 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 Evalulation

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 most significant cost for a service firm is direct labor cost.

A ___________ is the primary factor that causes a cost to be incurred.

Records for Speedy's Custom Networks contained the following data. Compute: a. Work in process inventory on June 30 b. Finished goods inventory on June 30 c. Cost of goods sold for June

Squire Corporation charged Job 110 with $14,000 of direct materials and $12,600 of direct labor. Allocation for manufacturing overhead is 70% of direct labor costs. What is the total cost of Job 110?

The following is selected financial data from Turtle Bay Manufacturing for the most recent year. What is the actual manufacturing overhead?

Cost of Goods Sold account is debited and Finished Goods Inventory is credited for

Manufacturing overhead is allocated on the basis of

The journal entry needed to record the transfer of raw materials, including both direct and indirect materials, into the factory is:

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

Sales revenue is $750,200; actual manufacturing overhead is $120,500; allocated manufacturing overhead is $96,000; and cost of goods sold before adjustment is $380,800. What is the actual gross profit?

Here are selected data for King Friday Corporation: What is the finished goods ending inventory?

To record the requisition of direct materials, which of the following accounts would be debited?

The cost of wages paid to assembly-line workers should be treated as a manufacturing overhead cost.

Weekly Company gathered the following information for the year ended December 31: Peterson Company uses a job costing system. What would the predetermined manufacturing overhead rate for the year be using direct labor hours as the allocation base?

Before the year began, Butler Manufacturing estimated that manufacturing overhead for the year would be $176,400 and that 13,800 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

Actual manufacturing overhead is always recorded

Here is selected data for Betty Boo Corporation: The journal entry to transfer completed goods to the finished goods inventory account 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 Evalulation

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters