Question 1

What was the total cost added to Work in Process during May?

Accepted Answer

A)  $101,000. 
B)  $106,000. 
C)  $61,000. 
D)  $111,000. 
A)  $101,000. 
B)  $106,000. 
C)  $61,000. 
D)  $111,000.

Question 2

Suppose Job #461 contained 100 units.What unit cost would appear on the job cost sheet for job #461?

Accepted Answer

A)  $55.00 per unit. 
B)  $61.00 per unit. 
C)  $61.75 per unit. 
D)  $62.50 per unit.OH rate = $50,000/20,000 DLH = $2.5.Therefore $6,250/100 units = $62.50 per unit. 
A)  $55.00 per unit. 
B)  $61.00 per unit. 
C)  $61.75 per unit. 
D)  $62.50 per unit.OH rate = $50,000/20,000 DLH = $2.5.Therefore $6,250/100 units = $62.50 per unit.

Question 3

What was the balance in the Finished Goods inventory account at the beginning of the year?

Accepted Answer

A)  $28,000. 
B)  $13,000. 
C)  $17,500. 
D)  $8,500. 
A)  $28,000. 
B)  $13,000. 
C)  $17,500. 
D)  $8,500.

Question 4

In a normal job-order costing system,the salary of the factory supervisor would usually be recorded as a debit to which of the following accounts?

Accepted Answer

A)  Manufacturing Overhead. 
B)  Salary Expense. 
C)  Work in Process. 
D)  Finished Goods. 
A)  Manufacturing Overhead. 
B)  Salary Expense. 
C)  Work in Process. 
D)  Finished Goods.

Question 5

What is the cost of goods manufactured?

Accepted Answer

A)  $50,000. 
B)  $55,000. 
C)  $56,000. 
D)  $61,000. 
A)  $50,000. 
B)  $55,000. 
C)  $56,000. 
D)  $61,000.

Question 6

X Company reported the following actual cost data for the year:   
X Company used a 150% predetermined overhead rate based on direct labour cost.The rate was based on annual estimated overhead cost and direct labour cost of $252,000 and $168,000,respectively.
Required:
a.Calculate the cost of goods manufactured.
b.What was the cost of goods sold before adjusting for any under or overapplied overhead?
c.By how much was manufacturing overhead cost under or overapplied?
d.Prepare a summary journal entry to close any under or overapplied manufacturing overhead cost to cost of goods sold.Is such an entry appropriate in this situation? Why or why not?
e.Analyze the under or overapplied manufacturing overhead costs calculated in part c above into two separate components: amount due to incorrect estimate of the annual manufacturing overhead costs and an amount due to incorrect estimate of the annual direct labour cost.

Accepted Answer

@#IMG-DLM& 
 @#IMG-DLM& 
 @#IMG-DLM& 
 @#IMG-DLM& 
Yes,closing the entire amount

Question 7

What is the cost of raw materials used in production?

Accepted Answer

A)  $26,000. 
B)  $71,000. 
C)  $76,000. 
D)  $66,000. 
A)  $26,000. 
B)  $71,000. 
C)  $76,000. 
D)  $66,000.

Question 8

Which entry records amortization on manufacturing equipment?

Accepted Answer

A)  1. 
B)  3. 
C)  4. 
D)  5. 
A)  1. 
B)  3. 
C)  4. 
D)  5.

Question 9

What is the amount of direct materials cost in the March 31 work in process inventory account?

Accepted Answer

A)  $5,150. 
B)  $9,350. 
C)  $9,000. 
D)  $3,850. 
A)  $5,150. 
B)  $9,350. 
C)  $9,000. 
D)  $3,850.

Question 10

Which entry records the application of overhead?

Accepted Answer

A)  1. 
B)  5. 
C)  6. 
D)  3. 
A)  1. 
B)  5. 
C)  6. 
D)  3.

Question 11

What was the cost of goods sold for the year (before disposition of any under- or overapplied overhead)?

Accepted Answer

A)  $736,000. 
B)  $716,000. 
C)  $691,000. 
D)  $801,000. 
A)  $736,000. 
B)  $716,000. 
C)  $691,000. 
D)  $801,000.

Question 12

Indirect materials are NOT charged to a specific job but rather are included in manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 13

How much direct labour cost was incurred during January?

Accepted Answer

A)  $170,000. 
B)  $175,000. 
C)  $180,000. 
D)  $186,000. 
A)  $170,000. 
B)  $175,000. 
C)  $180,000. 
D)  $186,000.

Question 14

For the current year,Paxman Company incurred $150,000 in actual manufacturing overhead cost.The Manufacturing Overhead account showed that overhead was overapplied in the amount of $6,000 for the year.If the predetermined overhead rate was $8.00 per direct labour hour,how many hours were worked during the year?

Accepted Answer

A)  17,750 hours. 
B)  18,000 hours. 
C)  18,750 hours. 
D)  19,500 hours.DL Hours = $156,000/$8/hr = 19,500 hours 
A)  17,750 hours. 
B)  18,000 hours. 
C)  18,750 hours. 
D)  19,500 hours.DL Hours = $156,000/$8/hr = 19,500 hours

Question 15

What is the cost of goods manufactured for September?

Accepted Answer

A)  $10,750. 
B)  $11,275. 
C)  $5,925. 
D)  $7,625.= 2,900 + 2,050 + 650 + (650 * $5/$10)= $5,925 
A)  $10,750. 
B)  $11,275. 
C)  $5,925. 
D)  $7,625.= 2,900 + 2,050 + 650 + (650 * $5/$10)= $5,925

Question 16

Worrell Corporation has a job-order costing system.The following debits (credits)appeared in the Work in Process account for the month of March:  
Worrell applies overhead at a predetermined rate of 90% of direct labour cost.Job No.232,the only job still in process at the end of March,has been charged with manufacturing overhead of $2,250.What was the amount of direct materials charged to Job No.232?

Accepted Answer

A)  $2,250. 
B)  $2,500. 
C)  $4,250. 
D)  $9,000.DL = 2250/.9 = $2,500.DM = $9,000 - 2500 - 2250 = $4,250 
A)  $2,250. 
B)  $2,500. 
C)  $4,250. 
D)  $9,000.DL = 2250/.9 = $2,500.DM = $9,000 - 2500 - 2250 = $4,250

Question 17

The Work in Process inventory account of a manufacturing company shows a balance of $2,400 at the end of an accounting period.The job cost sheets of two uncompleted jobs show charges of $400 and $200 for direct materials and charges of $300 and $500 for direct labour.From this information,what predetermined overhead rate,as a percentage of direct labour costs,does the company appear to be using?

Accepted Answer

A)  80%. 
B)  125%. 
C)  240%. 
D)  300%. 
A)  80%. 
B)  125%. 
C)  240%. 
D)  300%.

Question 18

Job-order costing is used in manufacturing companies and process costing is used in service firms.

Accepted Answer

A) True 
 B)False

Question 19

What amount of direct labour cost was charged to production during the year?

Accepted Answer

A)  $135,000. 
B)  $225,000. 
C)  $360,000. 
D)  $216,000. 
A)  $135,000. 
B)  $225,000. 
C)  $360,000. 
D)  $216,000.

Question 20

What is the cost of direct materials used?

Accepted Answer

A)  $11,000. 
B)  $12,000. 
C)  $15,000. 
D)  $20,000. 
A)  $11,000. 
B)  $12,000. 
C)  $15,000. 
D)  $20,000.

What was the total cost added to Work in Process during May?

Suppose Job #461 contained 100 units.What unit cost would appear on the job cost sheet for job #461?

What was the balance in the Finished Goods inventory account at the beginning of the year?

In a normal job-order costing system,the salary of the factory supervisor would usually be recorded as a debit to which of the following accounts?

What is the cost of goods manufactured?

What is the cost of raw materials used in production?

Which entry records amortization on manufacturing equipment?

What is the amount of direct materials cost in the March 31 work in process inventory account?

Which entry records the application of overhead?

What was the cost of goods sold for the year (before disposition of any under- or overapplied overhead)?

Indirect materials are NOT charged to a specific job but rather are included in manufacturing overhead.

How much direct labour cost was incurred during January?

What is the cost of goods manufactured for September?

Job-order costing is used in manufacturing companies and process costing is used in service firms.

What amount of direct labour cost was charged to production during the year?

What is the cost of direct materials used?

Managerial Accounting and the Business Environment

Cost Terms, Concepts, and Classifications

Cost Behaviour: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Process Costing

Activity-Based Costing: a Tool to Aid Decision Making

Variable Costing: a Tool for Management

Budgeting

Standard Costs and Overhead Analysis

Reporting for Control

Relevant Costs for Decision Making

Capital Budgeting Decisions

Financial Statement Analysis Online

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Exam 5: Systems Design: Job-Order Costing

What was the total cost added to Work in Process during May?

Suppose Job #461 contained 100 units.What unit cost would appear on the job cost sheet for job #461?

What was the balance in the Finished Goods inventory account at the beginning of the year?

In a normal job-order costing system,the salary of the factory supervisor would usually be recorded as a debit to which of the following accounts?

What is the cost of goods manufactured?

What is the cost of raw materials used in production?

Which entry records amortization on manufacturing equipment?

What is the amount of direct materials cost in the March 31 work in process inventory account?

Which entry records the application of overhead?

What was the cost of goods sold for the year (before disposition of any under- or overapplied overhead)?

Indirect materials are NOT charged to a specific job but rather are included in manufacturing overhead.

How much direct labour cost was incurred during January?

What is the cost of goods manufactured for September?

Job-order costing is used in manufacturing companies and process costing is used in service firms.

What amount of direct labour cost was charged to production during the year?

What is the cost of direct materials used?

Managerial Accounting and the Business Environment

Cost Terms, Concepts, and Classifications

Cost Behaviour: Analysis and Use

Cost-Volume-Profit Relationships

Systems Design: Process Costing

Activity-Based Costing: a Tool to Aid Decision Making

Variable Costing: a Tool for Management

Budgeting

Standard Costs and Overhead Analysis

Reporting for Control

Relevant Costs for Decision Making

Capital Budgeting Decisions

Financial Statement Analysis Online

Filters