Question 1

To record direct labor costs incurred, which of the following accounts would be debited?

Accepted Answer

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

Question 2

The predetermined indirect cost allocation rate is computed as

Accepted Answer

A) total estimated indirect costs / total estimated amount of the allocation base. 
B) total amount of the allocation base / total estimated indirect costs. 
C) total estimated indirect costs + total estimated amount of the allocation base. 
D) total amount of the allocation base - total estimated indirect costs. 
A) total estimated indirect costs / total estimated amount of the allocation base. 
B) total amount of the allocation base / total estimated indirect costs. 
C) total estimated indirect costs + total estimated amount of the allocation base. 
D) total amount of the allocation base - total estimated indirect costs.

Question 3

The journal entry to issue $630 of direct materials and $150 of indirect materials involves a debit to

Accepted Answer

A) the Manufacturing Overhead account for $780. 
B) the Work-in-Process Inventory account for $780. 
C) the Work-in-Process Inventory account for $630 and a credit to the Manufacturing Overhead account for $150. 
D) the Work-in-Process Inventory account for $630 and a debit to the Manufacturing Overhead account for $150. 
A) the Manufacturing Overhead account for $780. 
B) the Work-in-Process Inventory account for $780. 
C) the Work-in-Process Inventory account for $630 and a credit to the Manufacturing Overhead account for $150. 
D) the Work-in-Process Inventory account for $630 and a debit to the Manufacturing Overhead account for $150.

Question 4

The cost of direct labor used in production is recorded as a

Accepted Answer

A) debit to Work-in-Process Inventory account. 
B) debit to Manufacturing Overhead account. 
C) debit to wages expense. 
D) debit to wages payable. 
A) debit to Work-in-Process Inventory account. 
B) debit to Manufacturing Overhead account. 
C) debit to wages expense. 
D) debit to wages payable.

Question 5

Process costing would be most likely used by a

Accepted Answer

A) cereal company. 
B) salsa company. 
C) soft drink manufacturer. 
D) all of the above would use process costing. 
A) cereal company. 
B) salsa company. 
C) soft drink manufacturer. 
D) all of the above would use process costing.

Question 6

Beta Company uses a predetermined overhead rate based on direct labor hours to allocate manufacturing overhead to jobs. The company estimated that it would incur $600,400 of manufacturing overhead during the year and that 150,100 direct labor hours would be worked. During the year, the company actually incurred manufacturing overhead costs of $582,200 and 135,400 direct labor hours were worked. By how much was manufacturing overhead overallocated or underallocated for the year? (Round intermediary calculations to the nearest cent and the final answer to the nearest dollar.)

Accepted Answer

A) $18,200 underallocated 
B) $40,600 overallocated 
C) $40,600 underallocated 
D) $18,200 overallocated 
A) $18,200 underallocated 
B) $40,600 overallocated 
C) $40,600 underallocated 
D) $18,200 overallocated

Question 7

A ________ is a document manufacturing production personnel use to request that the itemized materials be sent from the showroom into the factory.

Accepted Answer

A) cost ticket 
B) job cost record 
C) materials requisition 
D) manufacturing ticket 
A) cost ticket 
B) job cost record 
C) materials requisition 
D) manufacturing ticket

Question 8

The goal of EPR (Extended Producer Responsibility)laws is to:

Accepted Answer

A) reduce the amount of potentially dangerous waste in landfills by holding manufacturers accountable for the end-of-life disposal costs. 
B) motivate manufacturers to design products that are more easily repaired, reused, and recycled. 
C) Neither A nor B are correct. 
D) Both A & B are correct. 
A) reduce the amount of potentially dangerous waste in landfills by holding manufacturers accountable for the end-of-life disposal costs. 
B) motivate manufacturers to design products that are more easily repaired, reused, and recycled. 
C) Neither A nor B are correct. 
D) Both A & B are correct.

Question 9

To record the costs of indirect labor, which of the following accounts would be debited?

Accepted Answer

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

Question 10

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 $66,100.
2) Total direct labor cost for January was $64,000.
3) The predetermined manufacturing overhead rate is based on direct labor cost. The budget for the year called for $248,000 of direct labor cost and $322,400 of manufacturing overhead costs.
4) The only job unfinished on January 31 was Job No. 151, for which total direct labor charges were $5600 (1600 direct labor hours)and total direct material charges were $14,400.
5) Cost of direct materials placed in production during January totaled $124,000. There were no indirect material requisitions during January.
6) January 31 balance in raw materials inventory was $35,400.
7) Finished goods inventory balance on January 31 was $35,200.
What is the work in process inventory balance on January 31?

Accepted Answer

A) $7280 
B) $69,231 
C) $27,280 
D) $98,031 
A) $7280 
B) $69,231 
C) $27,280 
D) $98,031

Question 11

The job cost record summarizes which of the following sets of information for each job?

Accepted Answer

A) Direct materials, direct labor, and manufacturing overhead 
B) Direct materials and direct labor 
C) Manufacturing overhead only 
D) Indirect materials, indirect labor, and direct labor 
A) Direct materials, direct labor, and manufacturing overhead 
B) Direct materials and direct labor 
C) Manufacturing overhead only 
D) Indirect materials, indirect labor, and direct labor

Question 12

The assignment of direct and indirect materials to a cost object reduces the

Accepted Answer

A) finished goods inventory account. 
B) raw materials inventory account. 
C) manufacturing overhead account. 
D) work in process inventory account. 
A) finished goods inventory account. 
B) raw materials inventory account. 
C) manufacturing overhead account. 
D) work in process inventory account.

Question 13

Stars and Stripes Corporation uses job costing. The following is selected financial data from the company for the most recent year.
   Compute:
a)Beginning raw materials inventory
b)Beginning work in process inventory
c)Beginning finished goods inventory
d)Actual manufacturing overhead costs incurred during the year

Accepted Answer

The answer of Stars and Stripes Corporation uses job costing....

Question 14

Service firms follow the same approach for indirect costs as manufacturing companies because they develop a predetermined indirect cost allocation rate.

Accepted Answer

A) True 
 B)False

Question 15

Quick Step 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 Quick Step Company uses direct labor cost as the allocation base, what would the predetermined manufacturing overhead rate be?

Accepted Answer

A) 70% 
B) 75% 
C) 91% 
D) 85% 
A) 70% 
B) 75% 
C) 91% 
D) 85%

Question 16

When job costing is used at a service firm, the bill to the client shows

Accepted Answer

A) the billing rate and hours spent on the job. 
B) the allocation of indirect costs. 
C) the profit on the job. 
D) actual direct cost of providing the service. 
A) the billing rate and hours spent on the job. 
B) the allocation of indirect costs. 
C) the profit on the job. 
D) actual direct cost of providing the service.

Question 17

Here is some basic data for Honey Dukes Corporation:   The entry to record the cost of goods completed would be a

Accepted Answer

A) debit to Finished Goods Inventory account for $287,200. 
B) credit to Work-in-Process Inventory account for $255,400. 
C) debit to Work-in-Process Inventory account for $255,400. 
D) credit to Finished Goods Inventory account for $287,200. 
A) debit to Finished Goods Inventory account for $287,200. 
B) credit to Work-in-Process Inventory account for $255,400. 
C) debit to Work-in-Process Inventory account for $255,400. 
D) credit to Finished Goods Inventory account for $287,200.

Question 18

To record depreciation on factory equipment, the needed journal entry would include a

Accepted Answer

A) credit to Manufacturing Overhead account. 
B) debit to Work-in-Process Inventory account. 
C) credit to Accumulated Depreciation account. 
D) debit to Factory Equipment account. 
A) credit to Manufacturing Overhead account. 
B) debit to Work-in-Process Inventory account. 
C) credit to Accumulated Depreciation account. 
D) debit to Factory Equipment account.

Question 19

Before the year began, Venus Manufacturing estimated that manufacturing overhead for the year would be $175,900 and that 25,900 direct labor hours would be worked. Actual results for the year included the following:   If the company allocates manufacturing overhead based on direct labor hours, the manufacturing overhead for the year would have been (Round intermediary calculations to the nearest cent.)

Accepted Answer

A) $45,642.00 overallocated. 
B) $6900.00 underallocated. 
C) $6900.00 overallocated. 
D) $45,642.00 underallocated. 
A) $45,642.00 overallocated. 
B) $6900.00 underallocated. 
C) $6900.00 overallocated. 
D) $45,642.00 underallocated.

Question 20

London Ceramics makes custom ceramic tiles. During March, the company started and finished Job #266. Job #266 consists of 2800 tiles; each tile sells for $13.00. The company's records show the following direct materials were requisitioned for Job #266. Basic terra cotta tiles: 2800 units at $9.00 per unit
Specialty paint: 7 quarts at $12.00 per quart
High gloss glaze: 14 quarts at $16.00 per quart
Labor time records show the following employees worked on Job #266:
Alice Cooper: 24 hours at $31 per hour
Matthew Kline: 24 hours at $17 per hour
Sierra Ceramics allocates manufacturing overhead at a rate of $30 per direct labor hour.
What is the gross profit per tile on Job #266?

Accepted Answer

A) $13.00 
B) $2.96 
C) $3.89 
D) $12.49 
A) $13.00 
B) $2.96 
C) $3.89 
D) $12.49

To record direct labor costs incurred, which of the following accounts would be debited?

The predetermined indirect cost allocation rate is computed as

The journal entry to issue $630 of direct materials and $150 of indirect materials involves a debit to

The cost of direct labor used in production is recorded as a

Process costing would be most likely used by a

A ________ is a document manufacturing production personnel use to request that the itemized materials be sent from the showroom into the factory.

The goal of EPR (Extended Producer Responsibility)laws is to:

To record the costs of indirect labor, which of the following accounts would be debited?

The job cost record summarizes which of the following sets of information for each job?

The assignment of direct and indirect materials to a cost object reduces the

Service firms follow the same approach for indirect costs as manufacturing companies because they develop a predetermined indirect cost allocation rate.

When job costing is used at a service firm, the bill to the client shows

Here is some basic data for Honey Dukes Corporation: The entry to record the cost of goods completed would be a

To record depreciation on factory equipment, the needed journal entry 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

Exam 3: Job Costing

To record direct labor costs incurred, which of the following accounts would be debited?

The predetermined indirect cost allocation rate is computed as

The journal entry to issue $630 of direct materials and $150 of indirect materials involves a debit to

The cost of direct labor used in production is recorded as a

Process costing would be most likely used by a

A ________ is a document manufacturing production personnel use to request that the itemized materials be sent from the showroom into the factory.

The goal of EPR (Extended Producer Responsibility)laws is to:

To record the costs of indirect labor, which of the following accounts would be debited?

The job cost record summarizes which of the following sets of information for each job?

The assignment of direct and indirect materials to a cost object reduces the

Service firms follow the same approach for indirect costs as manufacturing companies because they develop a predetermined indirect cost allocation rate.

When job costing is used at a service firm, the bill to the client shows

Here is some basic data for Honey Dukes Corporation: The entry to record the cost of goods completed would be a

To record depreciation on factory equipment, the needed journal entry 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