Question 1

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 2

The first three steps to allocating manufacturing overhead are taken before the year begins and include all of the following except

Accepted Answer

A) estimating total manufacturing overhead costs for the coming year. 
B) selecting an allocation base and estimating the total amount that will be used during the year. 
C) allocating some manufacturing overhead to each individual job. 
D) calculating the predetermined manufacturing overhead rate. 
A) estimating total manufacturing overhead costs for the coming year. 
B) selecting an allocation base and estimating the total amount that will be used during the year. 
C) allocating some manufacturing overhead to each individual job. 
D) calculating the predetermined manufacturing overhead rate.

Question 3

In the basic flow of inventory through a manufacturing system, which of the following occurs first in a 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 4

Jasper Carts manufactures custom carts for a variety of uses. The following data have been recorded for Job 651, which was recently completed. Direct materials used cost $7700. There were 178 direct labor hours worked on this job at a direct labor wage rate of $22 per hour. There were 90 machine hours used on this job. The predetermined overhead rate is $32 per machine hour used. What is the total manufacturing cost of Job 651?

Accepted Answer

A) $3916 
B) $2880 
C) $14,496 
D) $7968 
A) $3916 
B) $2880 
C) $14,496 
D) $7968

Question 5

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 6

Determining how much manufacturing overhead is overallocated or underallocated

Accepted Answer

A) is done before the period starts. 
B) is done during the period. 
C) can be done at any time. 
D) is done at the end of the period. 
A) is done before the period starts. 
B) is done during the period. 
C) can be done at any time. 
D) is done at the end of the period.

Question 7

Briefly explain the flow of inventory through a manufacturing system into a company's job costing system from the purchase of materials to the sale of the products.

Accepted Answer

When materials are purchased, they incre

Question 8

Oakland 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:
   Determine the following:
a)Predetermined manufacturing overhead rate using direct labor cost as the allocation base
b)Predetermined manufacturing overhead rate using direct labor hours as the allocation base
c)Allocated manufacturing overhead costs based on direct labor cost for the year
d)Allocated manufacturing overhead costs based on direct labor hours for the year

Accepted Answer

The answer of Oakland Company is debating the use of...

Question 9

The underallocation or overallocation of overhead is a direct result of using a predetermined manufacturing overhead rate rather than the actual manufacturing overhead rate.

Accepted Answer

A) True 
 B)False

Question 10

Smarty Pants Corporation manufactures high end custom batches of designer pant suits. The company allocates manufacturing overhead based on machine hours. Selected data for costs incurred for Job 612 are as follows:   What amount of manufacturing overhead would be allocated to Job 612?

Accepted Answer

A) $6200 
B) $9430 
C) $9360 
D) $7380 
A) $6200 
B) $9430 
C) $9360 
D) $7380

Question 11

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

Accepted Answer

A) $231,700 
B) $285,500 
C) $262,500 
D) $228,800 
A) $231,700 
B) $285,500 
C) $262,500 
D) $228,800

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Before the year began, Butler Manufacturing estimated that manufacturing overhead for the year would be $176,100 and that 13,700 direct labor hours would be worked. Actual results for the year included the following:   The amount of manufacturing overhead allocated for the year based on direct labor hours would have been (Round intermediary calculations to the nearest cent.)

Accepted Answer

A) $167,394. 
B) $194,035. 
C) $176,100. 
D) $184,500. 
A) $167,394. 
B) $194,035. 
C) $176,100. 
D) $184,500.

Question 14

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 15

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

Accepted Answer

A) True 
 B)False

Question 16

When the products are shipped to customers, the cost of manufacturing those products becomes Cost of Goods Sold (COGS)shown on the company's balance sheet.

Accepted Answer

A) True 
 B)False

Question 17

Allocating manufacturing overhead to jobs simply means "splitting up" the total manufacturing overhead costs among the jobs produced during the year.

Accepted Answer

A) True 
 B)False

Question 18

A manufacturer of luxury yachts would use which type of costing system?

Accepted Answer

A) Process costing 
B) Job costing 
C) Neither job or process 
D) Both job and process 
A) Process costing 
B) Job costing 
C) Neither job or process 
D) Both job and process

Question 19

Deco Corporation uses a job costing system. On January 1, Deco corporations work in process inventory account had a balance of $76,000. During the year, materials requisitioned for use in production amounted to $120,100, of which $82,800 represented direct materials. Factory wages for the period were $231,000, of which $220,000 were for direct labor. Manufacturing overhead is allocated on the basis of 80% of direct labor cost. Actual overhead cost for the year was $125,100. Jobs costing $336,500 were completed during the year. The December 31 work in process inventory balance is

Accepted Answer

A) $427,100. 
B) $218,300. 
C) $155,000. 
D) $172,080. 
A) $427,100. 
B) $218,300. 
C) $155,000. 
D) $172,080.

Question 20

Job costing is not commonly used by service firms (such as law firms)or trades people (such as auto mechanics).

Accepted Answer

A) True 
 B)False

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

The first three steps to allocating manufacturing overhead are taken before the year begins and include all of the following except

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

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

Determining how much manufacturing overhead is overallocated or underallocated

Briefly explain the flow of inventory through a manufacturing system into a company's job costing system from the purchase of materials to the sale of the products.

The underallocation or overallocation of overhead is a direct result of using a predetermined manufacturing overhead rate rather than the actual manufacturing overhead rate.

Smarty Pants Corporation manufactures high end custom batches of designer pant suits. The company allocates manufacturing overhead based on machine hours. Selected data for costs incurred for Job 612 are as follows: What amount of manufacturing overhead would be allocated to Job 612?

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

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

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

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

When the products are shipped to customers, the cost of manufacturing those products becomes Cost of Goods Sold (COGS)shown on the company's balance sheet.

Allocating manufacturing overhead to jobs simply means "splitting up" the total manufacturing overhead costs among the jobs produced during the year.

A manufacturer of luxury yachts would use which type of costing system?

Job costing is not commonly used by service firms (such as law firms)or trades people (such as auto mechanics).

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

Exam 3: Job Costing

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

The first three steps to allocating manufacturing overhead are taken before the year begins and include all of the following except

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

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

Determining how much manufacturing overhead is overallocated or underallocated

Briefly explain the flow of inventory through a manufacturing system into a company's job costing system from the purchase of materials to the sale of the products.

The underallocation or overallocation of overhead is a direct result of using a predetermined manufacturing overhead rate rather than the actual manufacturing overhead rate.

Smarty Pants Corporation manufactures high end custom batches of designer pant suits. The company allocates manufacturing overhead based on machine hours. Selected data for costs incurred for Job 612 are as follows: What amount of manufacturing overhead would be allocated to Job 612?

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

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

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

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

When the products are shipped to customers, the cost of manufacturing those products becomes Cost of Goods Sold (COGS)shown on the company's balance sheet.

Allocating manufacturing overhead to jobs simply means "splitting up" the total manufacturing overhead costs among the jobs produced during the year.

A manufacturer of luxury yachts would use which type of costing system?

Job costing is not commonly used by service firms (such as law firms)or trades people (such as auto mechanics).

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