Question 1

An overallocation of manufacturing overhead is typically corrected by decreasing Cost of Goods Sold on the income statement.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

The following information was gathered for the Boiling Springs Corporation for the most recent year. Manufacturing overhead is allocated using machine hours.   By how much is manufacturing overhead over or underallocated?

Accepted Answer

A) $12,000 overallocated 
B) $12,000 underallocated 
C) $87,000 overallocated 
D) $87,000 underallocated 
A) $12,000 overallocated 
B) $12,000 underallocated 
C) $87,000 overallocated 
D) $87,000 underallocated

Question 4

The amount of overallocation or underallocation is typically corrected by adjusting Cost of
Goods Sold on the income statement.

Accepted Answer

A) True 
 B)False

Question 5

Manufacturing overhead has an overallocated balance of $7800; raw materials inventory balance is $62,900; work in process inventory is $34,300; finished goods inventory is $25,600; and cost of goods sold is $135,500. After adjusting for the overallocated manufacturing overhead, what is cost of goods sold?

Accepted Answer

A) $127,700 
B) $97,200 
C) $143,300 
D) $135,500 
A) $127,700 
B) $97,200 
C) $143,300 
D) $135,500

Question 6

Maple Company uses a job costing system. Maple 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 $21 per direct labor hour.
What is the amount of allocated manufacturing overhead costs for August?

Accepted Answer

A) $42,800 
B) $76,700 
C) $124,900 
D) $61,950 
A) $42,800 
B) $76,700 
C) $124,900 
D) $61,950

Question 7

How is the cost of indirect materials used in the factory recorded?

Accepted Answer

A) Credit to Manufacturing Overhead account 
B) Credit to Raw Materials Inventory account 
C) Credit to Work-in-Process Inventory account 
D) Credit to Direct Materials Expense account 
A) Credit to Manufacturing Overhead account 
B) Credit to Raw Materials Inventory account 
C) Credit to Work-in-Process Inventory account 
D) Credit to Direct Materials Expense account

Question 8

How is the cost of indirect materials used in the factory recorded?

Accepted Answer

A) Debit to Work-in-Process Inventory account 
B) Debit to Manufacturing Overhead account 
C) Debit to Raw Materials Inventory account 
D) Debit to Direct Materials Expense 
A) Debit to Work-in-Process Inventory account 
B) Debit to Manufacturing Overhead account 
C) Debit to Raw Materials Inventory account 
D) Debit to Direct Materials Expense

Question 9

XYZ uses job costing. Actual manufacturing overhead for the period is $20,200 while allocated manufacturing overhead is $18,500. What entry will close the manufacturing overhead balance?

Accepted Answer

A) Debit the Manufacturing Overhead account and credit the Work-in-Process account for $1700. 
B) Debit the Manufacturing Overhead account and credit the Cost of Goods Sold account for $1700. 
C) Debit the Cost of Goods Sold account and credit the Finished Goods Inventory account for $1700. 
D) Debit the Cost of Goods Sold account and credit the Manufacturing Overhead account for $1700. 
A) Debit the Manufacturing Overhead account and credit the Work-in-Process account for $1700. 
B) Debit the Manufacturing Overhead account and credit the Cost of Goods Sold account for $1700. 
C) Debit the Cost of Goods Sold account and credit the Finished Goods Inventory account for $1700. 
D) Debit the Cost of Goods Sold account and credit the Manufacturing Overhead account for $1700.

Question 10

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? (Round intermediary calculations to the nearest cent.)

Accepted Answer

A) $50,100.00 underallocated 
B) $162,428.00 overallocated 
C) $162,428.00 underallocated 
D) $50,100.00 overallocated 
A) $50,100.00 underallocated 
B) $162,428.00 overallocated 
C) $162,428.00 underallocated 
D) $50,100.00 overallocated

Question 11

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 (Round intermediary calculations to the nearest cent.)

Accepted Answer

A) $9600 overallocated. 
B) $9600 underallocated. 
C) $29,774 overallocated. 
D) $29,774 underallocated. 
A) $9600 overallocated. 
B) $9600 underallocated. 
C) $29,774 overallocated. 
D) $29,774 underallocated.

Question 12

The journal entry to record $300 of depreciation expense on factory equipment involves a

Accepted Answer

A) debit to Accumulated Depreciation account for $300. 
B) debit to Manufacturing Overhead account for $300. 
C) debit to Factory Equipment account for $300. 
D) credit to Manufacturing Overhead account for $300. 
A) debit to Accumulated Depreciation account for $300. 
B) debit to Manufacturing Overhead account for $300. 
C) debit to Factory Equipment account for $300. 
D) credit to Manufacturing Overhead account for $300.

Question 13

Hilltop Manufacturing uses a predetermined manufacturing overhead rate based on machine 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? (Round intermediary calculations to the nearest cent.)

Accepted Answer

A) $64,910 underallocated 
B) $64,910 overallocated 
C) $14,910 underallocated 
D) $14,910 overallocated 
A) $64,910 underallocated 
B) $64,910 overallocated 
C) $14,910 underallocated 
D) $14,910 overallocated

Question 14

Omega Technology's work in process inventory on June 1 has a balance of $27,200 representing Job No. 36. During June, $68,900 of direct materials were requisitioned for Job No. 36 and $5,500 of direct labor cost was incurred on Job No. 36. Manufacturing overhead is allocated at a rate of $16.00 per direct labor hour. Actual manufacturing overhead costs incurred in June amounted to $15,000. There were 825 actual direct labor hours worked in June. No new jobs were started during June. Job No. 36 is completed on June 28.
a. Determine the total cost assigned to Job No. 36.
b. Is manufacturing overhead overallocated or underallocated for the month of June? By how much?

Accepted Answer

The answer of Omega Technology's work in process inventory on...

Question 15

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

Accepted Answer

A) credit to Manufacturing Overhead account for $9350. 
B) debit to Work-in-Process Inventory account for $9350. 
C) credit to Work-in-Process Inventory account for $9350. 
D) credit to Cost of Goods Sold account for $9350. 
A) credit to Manufacturing Overhead account for $9350. 
B) debit to Work-in-Process Inventory account for $9350. 
C) credit to Work-in-Process Inventory account for $9350. 
D) credit to Cost of Goods Sold account for $9350.

Question 16

Here are selected data for Wilson Company:   If the company allocates manufacturing overhead based on direct labor cost, what are the allocated manufacturing overhead costs?

Accepted Answer

A) $243,750 
B) $226,800 
C) $427,733 
D) $240,600 
A) $243,750 
B) $226,800 
C) $427,733 
D) $240,600

Question 17

If jobs have been undercosted due to underallocation of manufacturing overhead, then Cost of Goods Sold (COGS)is too low and which of the following corrections must be made?

Accepted Answer

A) Decrease COGS for the amount of the underallocation 
B) Increase COGS for double the amount of the underallocation 
C) Decrease COGS for double the amount of the underallocation 
D) Increase COGS for the amount of the underallocation 
A) Decrease COGS for the amount of the underallocation 
B) Increase COGS for double the amount of the underallocation 
C) Decrease COGS for double the amount of the underallocation 
D) Increase COGS for the amount of the underallocation

Question 18

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 19

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

Accepted Answer

A) True 
 B)False

Question 20

Calculate the unknowns for the following independent situations.
1. Selected data for Lion Corporation:
   Allocated manufacturing overhead is based on 50% of direct labor cost.
a. Calculate the allocated manufacturing overhead cost.
b. Calculate the direct labor cost.
2. Selected data for Tiger Corporation:
   Manufacturing overhead is allocated at $15 per machine hour.
a. Calculate the allocated manufacturing overhead cost.
b. Calculate the number of machine hours incurred.

Accepted Answer

The answer of Calculate the unknowns for the following independent...

An overallocation of manufacturing overhead is typically corrected by decreasing Cost of Goods Sold on the income statement.

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

The following information was gathered for the Boiling Springs Corporation for the most recent year. Manufacturing overhead is allocated using machine hours. By how much is manufacturing overhead over or underallocated?

The amount of overallocation or underallocation is typically corrected by adjusting Cost of Goods Sold on the income statement.

How is the cost of indirect materials used in the factory recorded?

How is the cost of indirect materials used in the factory recorded?

XYZ uses job costing. Actual manufacturing overhead for the period is $20,200 while allocated manufacturing overhead is $18,500. What entry will close the manufacturing overhead balance?

The journal entry to record $300 of depreciation expense on factory equipment involves a

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

Here are selected data for Wilson Company: If the company allocates manufacturing overhead based on direct labor cost, what are the allocated manufacturing overhead costs?

If jobs have been undercosted due to underallocation of manufacturing overhead, then Cost of Goods Sold (COGS)is too low and which of the following corrections must be made?

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.

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

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

An overallocation of manufacturing overhead is typically corrected by decreasing Cost of Goods Sold on the income statement.

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

The following information was gathered for the Boiling Springs Corporation for the most recent year. Manufacturing overhead is allocated using machine hours. By how much is manufacturing overhead over or underallocated?

The amount of overallocation or underallocation is typically corrected by adjusting Cost of Goods Sold on the income statement.

How is the cost of indirect materials used in the factory recorded?

How is the cost of indirect materials used in the factory recorded?

XYZ uses job costing. Actual manufacturing overhead for the period is $20,200 while allocated manufacturing overhead is $18,500. What entry will close the manufacturing overhead balance?

The journal entry to record $300 of depreciation expense on factory equipment involves a

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

Here are selected data for Wilson Company: If the company allocates manufacturing overhead based on direct labor cost, what are the allocated manufacturing overhead costs?

If jobs have been undercosted due to underallocation of manufacturing overhead, then Cost of Goods Sold (COGS)is too low and which of the following corrections must be made?

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.

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

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