Question 1

At the end of the year, the direct costs traced to jobs using the budgeted rates will equal actual direct costs.

Accepted Answer

A) True 
 B)False

Question 2

Manufacturing overhead costs incurred for the month are:   Which is the correct journal entry assuming utilities and repairs were on account?

Accepted Answer

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

Question 3

To allocate or spread the under/overallocated overhead between Ending Inventory, Cost of Goods Sold, and the Work-in-Process control accounts is called the

Accepted Answer

A)  adjusted allocation-rate approach. 
B)  proration approach. 
C)  flexible budget approach. 
D)  allocation variance approach. 
E)  inventory adjustment approach. 
A)  adjusted allocation-rate approach. 
B)  proration approach. 
C)  flexible budget approach. 
D)  allocation variance approach. 
E)  inventory adjustment approach.

Question 4

When using the proration approach the final balance in the Manufacturing Overhead Control account can be closed to which account(s) at year-end?

Accepted Answer

A)  Work-in-Process Control 
B)  Income Summary 
C)  Finished Goods Inventory 
D)  Cost of Goods Sold 
E)  Work-in-Process Control, Finished Goods Inventory or Cost of Goods Sold would normally be used. 
A)  Work-in-Process Control 
B)  Income Summary 
C)  Finished Goods Inventory 
D)  Cost of Goods Sold 
E)  Work-in-Process Control, Finished Goods Inventory or Cost of Goods Sold would normally be used.

Question 5

Use the information below to answer the following question(s).
Jim's Computer Products manufactures keyboards for computers. In June, the two production departments had budgeted allocation bases of 10,000 machine hours in Department 1 and 5,000 direct manufacturing labour hours in Department 2. The budgeted manufacturing overheads for the month were $34,500 and $37,500, respectively. For Job 501, the actual costs incurred in the two departments were as follows:
   Job 501 incurred 1,000 machine hours in Department 1 and 300 manufacturing labour hours in Department 2. The company uses a budgeted departmental overhead rate for applying overhead to production.
-What is the total manufacturing cost of Job 892 using normal costing?

Accepted Answer

A)  $9,900 
B)  $12,300 
C)  $12,080 
D)  $12,255 
E)  $12,075 
A)  $9,900 
B)  $12,300 
C)  $12,080 
D)  $12,255 
E)  $12,075

Question 6

In each period, job costing divides the total cost of producing an identical or similar product by the total number of units produced to obtain a per-unit cost.

Accepted Answer

A) True 
 B)False

Question 7

The first step in job costing is to

Accepted Answer

A)  identify the cost object. 
B)  identify the direct costs. 
C)  select the cost allocation base. 
D)  identify the indirect costs. 
E)  compute the rate per unit. 
A)  identify the cost object. 
B)  identify the direct costs. 
C)  select the cost allocation base. 
D)  identify the indirect costs. 
E)  compute the rate per unit.

Question 8

A manufacturing company has actual overhead of $570,000, budgeted overhead of $620,000, and budgeted 18,000 direct labour hours. Management believes that direct labour hours are the best allocation base to use for allocation of overhead. Actual direct labour hours were 20,000 hours.
Assuming that the company used normal costing methods for allocation, and has the following account balances in its General Ledger, what are the adjustments for each account using the proration method?

Accepted Answer

@#IMG-DLM& Calculations
58,000

Question 9

Which of the following is part of the approach to computing the budgeted indirect cost allocation rate?

Accepted Answer

A)  identify the costs which are part of the indirect cost pool 
B)  identify costs associated with the direct cost pool 
C)  estimate the cost items for direct cost pool 
D)  adjust the cost allocation base for variances 
E)  divide the total quantity of the cost allocation base into the total costs in the direct cost pool 
A)  identify the costs which are part of the indirect cost pool 
B)  identify costs associated with the direct cost pool 
C)  estimate the cost items for direct cost pool 
D)  adjust the cost allocation base for variances 
E)  divide the total quantity of the cost allocation base into the total costs in the direct cost pool

Question 10

For each item below indicate the source documents that would most likely authorize the journal entry in a job-costing system. Required:
A) direct materials purchased
B) direct materials used
C) direct manufacturing labour
D) indirect manufacturing labour
E) finished goods control
F) cost of goods sold

Accepted Answer

A. PURCHASE INVOICE
b. materia

Question 11

Job-cost records for Boucher Company contained the following data:
   Required:
a. Compute WIP inventory at June 30.
b. Compute finished goods inventory at June 30.
c. Compute cost of goods sold for June.

Accepted Answer

a. $7,000 + $8,000 =

Question 12

A local financial consulting firm employs 30 full-time staff. The budgeted compensation per employee is $50,000, for 2,000 hours. All direct labour costs are charged to clients. Any other costs are included in a single indirect-cost pool, allocated according to labour-hours. Actual indirect costs were $750,000. Budgeted indirect costs for the year are $525,000 and the firm expects to have 60 clients during the coming year.
What is the total cost of a job which took 27 hours, using normal costing?

Accepted Answer

A)  $911.25 
B)  $1,012.50 
C)  $27,337.50 
D)  $30,375.00 
E)  $50,000.00 
A)  $911.25 
B)  $1,012.50 
C)  $27,337.50 
D)  $30,375.00 
E)  $50,000.00

Question 13

Use the information below to answer the following question(s).
Jim's Computer Products manufactures keyboards for computers. In June, the two production departments had budgeted allocation bases of 10,000 machine hours in Department 1 and 5,000 direct manufacturing labour hours in Department 2. The budgeted manufacturing overheads for the month were $34,500 and $37,500, respectively. For Job 501, the actual costs incurred in the two departments were as follows:
   Job 501 incurred 1,000 machine hours in Department 1 and 300 manufacturing labour hours in Department 2. The company uses a budgeted departmental overhead rate for applying overhead to production.
-Sara employs 25 professional cleaners. Budgeted costs total $900,000 of which $525,000 are direct costs. Actual indirect costs were $396,900. Budgeted professional labour hours are 500,000 and actual hours were 525,000. What is the budgeted direct cost assignment rate?

Accepted Answer

A)  $1.80 per hour 
B)  $1.7857 per hour 
C)  $0.75 per hour 
D)  $1.05 per hour 
E)  $1.00 per hour 
A)  $1.80 per hour 
B)  $1.7857 per hour 
C)  $0.75 per hour 
D)  $1.05 per hour 
E)  $1.00 per hour

Question 14

Sedgewick County Hospital uses a job-costing system for all patients. In June, the nursing care charges for each department and the cost allocation bases of nursing days are as follows:
   Patient Ms. Graves spent six days in Critical Care and eight days in Special Care during June. The remainder of the 30-day month was spent in the General Care area.
Required:
a. Determine the budgeted overhead rate for each department.
b. What are the total charges to Ms. Graves if she was in the facility the entire month?

Accepted Answer

The answer of Sedgewick County Hospital uses a job-costing system...

Question 15

Use the information below to answer the following question(s).
Jim's Computer Products manufactures keyboards for computers. In June, the two production departments had budgeted allocation bases of 10,000 machine hours in Department 1 and 5,000 direct manufacturing labour hours in Department 2. The budgeted manufacturing overheads for the month were $34,500 and $37,500, respectively. For Job 501, the actual costs incurred in the two departments were as follows:
   Job 501 incurred 1,000 machine hours in Department 1 and 300 manufacturing labour hours in Department 2. The company uses a budgeted departmental overhead rate for applying overhead to production.
-What is the total cost assigned to Job 501 based on normal costing?

Accepted Answer

A)  $27,600 
B)  $91,200 
C)  $96,900 
D)  $123,900 
E)  $126,500 
A)  $27,600 
B)  $91,200 
C)  $96,900 
D)  $123,900 
E)  $126,500

Question 16

LeBlanc Company has the following balances as of the year ended December 31, 2012.
   Additional information is as follows:
   Required:
a. Compute beginning direct materials inventory.
b. Compute beginning WIP inventory.
c. Compute beginning finished goods inventory.
d. Compute actual factory overhead incurred.

Accepted Answer

a. $47,000 - $41,000 + $15,000

Question 17

Answer the following question(s) using the information below.
Sunny Company manufactures pipes and applies manufacturing overhead costs to production at a budgeted indirect cost allocation rate of $15 per direct labour hour. The following data are obtained from the accounting records for June 2012:
  
-For June 2012, manufacturing overhead was

Accepted Answer

A)  overallocated by $90,000. 
B)  underallocated by $5,000. 
C)  neither underallocated or overallocated. 
D)  underallocated by $33,000. 
E)  overallocated by $5,000. 
A)  overallocated by $90,000. 
B)  underallocated by $5,000. 
C)  neither underallocated or overallocated. 
D)  underallocated by $33,000. 
E)  overallocated by $5,000.

Question 18

Manufacturing Overhead Control and Manufacturing Overhead Allocated in the General Ledger respectively, refer to

Accepted Answer

A)  the record of actual overhead costs, and the record of overhead allocated to specific jobs using budgeted rates × actual base units. 
B)  the record of total budgeted overhead costs and the record of actual overhead allocated to date. 
C)  the record of actual overhead costs, and the record of overhead allocated to specific jobs using actual rates × budgeted base units. 
D)  the record of total budgeted overhead costs, and the record of overhead allocated to specific jobs using budgeted rates × actual base units. 
E)  the record of actual overhead costs, and the record of overhead allocated to specific jobs using budgeted rates × budgeted base units. 
A)  the record of actual overhead costs, and the record of overhead allocated to specific jobs using budgeted rates × actual base units. 
B)  the record of total budgeted overhead costs and the record of actual overhead allocated to date. 
C)  the record of actual overhead costs, and the record of overhead allocated to specific jobs using actual rates × budgeted base units. 
D)  the record of total budgeted overhead costs, and the record of overhead allocated to specific jobs using budgeted rates × actual base units. 
E)  the record of actual overhead costs, and the record of overhead allocated to specific jobs using budgeted rates × budgeted base units.

Question 19

The General Ledger account that combines the separate job cost records is called the ________ account.

Accepted Answer

A)  Cost of Goods Sold 
B)  Finished Goods Control 
C)  Manufacturing Overhead Allocated 
D)  Manufacturing Overhead Control 
E)  Work-in-Process Control 
A)  Cost of Goods Sold 
B)  Finished Goods Control 
C)  Manufacturing Overhead Allocated 
D)  Manufacturing Overhead Control 
E)  Work-in-Process Control

Question 20

John wants to identify the total cost for computing the corporate tax return he prepared for his client. Labour is the only direct cost at $50 per hour. Indirect costs are $60 per labour hour. What is the total direct cost, indirect cost, and job cost, respectively, if 15 hours are spent preparing the tax return?

Accepted Answer

A)  $700, $850, $1,550 
B)  $750, $800, $1,550 
C)  $750, $900, $1,650 
D)  $800, $640, $1,440 
E)  $800, $900, $1,440 
A)  $700, $850, $1,550 
B)  $750, $800, $1,550 
C)  $750, $900, $1,650 
D)  $800, $640, $1,440 
E)  $800, $900, $1,440

At the end of the year, the direct costs traced to jobs using the budgeted rates will equal actual direct costs.

Manufacturing overhead costs incurred for the month are: Which is the correct journal entry assuming utilities and repairs were on account?

To allocate or spread the under/overallocated overhead between Ending Inventory, Cost of Goods Sold, and the Work-in-Process control accounts is called the

When using the proration approach the final balance in the Manufacturing Overhead Control account can be closed to which account(s) at year-end?

In each period, job costing divides the total cost of producing an identical or similar product by the total number of units produced to obtain a per-unit cost.

The first step in job costing is to

Which of the following is part of the approach to computing the budgeted indirect cost allocation rate?

Job-cost records for Boucher Company contained the following data: Required: a. Compute WIP inventory at June 30. b. Compute finished goods inventory at June 30. c. Compute cost of goods sold for June.

Manufacturing Overhead Control and Manufacturing Overhead Allocated in the General Ledger respectively, refer to

The General Ledger account that combines the separate job cost records is called the ________ account.

The Accountants Vital Role in Decision Making

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Activity-Based Costing and Management

Master Budget and Responsibility Accounting

Flexible Budgets, Variances, and Management Control: I

Flexible Budgets, Variances, and Management Control: II

Income Effects of Denominator Level on Inventory Valuation

Quantitative Analyses of Cost Functions

Decision Making and Relevant Information

Pricing Decisions, Product Profitability Decisions, and Cost Management

Strategy, Balanced Scorecard, and Profitability Analysis

Period Cost Allocation

Cost Allocation: Joint Products and Byproducts

Revenue and Customer Profitability Analysis

Process Costing

Spoilage, Rework, and Scrap

Cost Management: Quality, Time, and the Theory of Constraints

Inventory Cost Management Strategies

Capital Budgeting: Methods of Investment Analysis

Capital Budgeting: a Closer Look

Transfer Pricing and Multinational Management Control Systems

Multinational Performance Measurement and Compensation

Filters

Exam 4: Job Costing

At the end of the year, the direct costs traced to jobs using the budgeted rates will equal actual direct costs.

Manufacturing overhead costs incurred for the month are: Which is the correct journal entry assuming utilities and repairs were on account?

To allocate or spread the under/overallocated overhead between Ending Inventory, Cost of Goods Sold, and the Work-in-Process control accounts is called the

When using the proration approach the final balance in the Manufacturing Overhead Control account can be closed to which account(s) at year-end?

In each period, job costing divides the total cost of producing an identical or similar product by the total number of units produced to obtain a per-unit cost.

The first step in job costing is to

Which of the following is part of the approach to computing the budgeted indirect cost allocation rate?

Job-cost records for Boucher Company contained the following data: Required: a. Compute WIP inventory at June 30. b. Compute finished goods inventory at June 30. c. Compute cost of goods sold for June.

Manufacturing Overhead Control and Manufacturing Overhead Allocated in the General Ledger respectively, refer to

The General Ledger account that combines the separate job cost records is called the ________ account.

The Accountants Vital Role in Decision Making

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Activity-Based Costing and Management

Master Budget and Responsibility Accounting

Flexible Budgets, Variances, and Management Control: I

Flexible Budgets, Variances, and Management Control: II

Income Effects of Denominator Level on Inventory Valuation

Quantitative Analyses of Cost Functions

Decision Making and Relevant Information

Pricing Decisions, Product Profitability Decisions, and Cost Management

Strategy, Balanced Scorecard, and Profitability Analysis

Period Cost Allocation

Cost Allocation: Joint Products and Byproducts

Revenue and Customer Profitability Analysis

Process Costing

Spoilage, Rework, and Scrap

Cost Management: Quality, Time, and the Theory of Constraints

Inventory Cost Management Strategies

Capital Budgeting: Methods of Investment Analysis

Capital Budgeting: a Closer Look

Transfer Pricing and Multinational Management Control Systems

Multinational Performance Measurement and Compensation

Filters