Question 1

When Job 117 was completed, direct materials totaled $4,400; direct labor, $5,600; and factory overhead, $2,400.A total of 1,000 units were produced at a per-unit cost of

Accepted Answer

A) $12,400 
B) $1,240 
C) $124 
D) $12.40 
A) $12,400 
B) $1,240 
C) $124 
D) $12.40

Question 2

If factory overhead applied exceeds the actual costs, the factory overhead account will have a credit balance.

Accepted Answer

A) True 
 B)False

Question 3

What is the gross profit for Adams Company at the end of the first quarter?

Accepted Answer

A) $1,685 
B) $2,685 
C) $1,000 
D) $685 
A) $1,685 
B) $2,685 
C) $1,000 
D) $685

Question 4

The Winston Company estimates that the factory overhead for the following year will be $1,250,000.The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 50,000 hours.The total machine hours for the year was 54,300.The actual factory overhead for the year was $1,375,000.Determine the over- or under applied amount for the year.

Accepted Answer

A) $17,500 over applied 
B) $17,500 under applied 
C) $118,250 over applied 
D) $118,250 under applied 
A) $17,500 over applied 
B) $17,500 under applied 
C) $118,250 over applied 
D) $118,250 under applied

Question 5

Match each of the following phrases with the term a-e that it most closely describes it.Each term will be used only once.
-the process by which factory overhead is assigned to a cost object

Accepted Answer

A) job cost sheets 
B) materials requisitions 
C) receiving report 
D) time tickets 
E) cost allocation 
A) job cost sheets 
B) materials requisitions 
C) receiving report 
D) time tickets 
E) cost allocation

Question 6

The Cavy Company estimates that the factory overhead for the following year will be $1,250,000.The company has determined that the basis for applying factory overhead will be machine hours, which is estimated to be 40,000 hours.There are 4,780 machine hours for all of the jobs in the month of April.What is the amount that will be applied to all of the jobs for the month of April?

Accepted Answer

$1,250,000/40,000 ho

Question 7

Which of the following costs are not included in finished goods inventory?

Accepted Answer

A) direct labor 
B) factory overhead 
C) chief financial officer's salary 
D) direct materials 
A) direct labor 
B) factory overhead 
C) chief financial officer's salary 
D) direct materials

Question 8

Crain Company budgeted 35,000 direct labor hours and incurred 40,000 direct labor hours.It incurred $780,000 of overhead and estimated overhead was $735,000.
What is Crain's predetermined overhead rate? Was overhead over applied or under applied for the year? By how much?

Accepted Answer

Predetermined overhead rate: $

Question 9

In a job order cost accounting system, the entry to record the flow of direct materials into production is

Accepted Answer

A) to debit Work in Process, and credit Materials 
B) to debit Materials, and credit Work in Process 
C) to debit Factory Overhead, and credit Materials 
D) to debit Work in Process, and credit Supplies 
A) to debit Work in Process, and credit Materials 
B) to debit Materials, and credit Work in Process 
C) to debit Factory Overhead, and credit Materials 
D) to debit Work in Process, and credit Supplies

Question 10

The cost of production of completed and transferred goods during the period amounted to $540,000, and the finished products shipped to customers had total production costs of $375,000.The entry to record the transfer of costs from work in process to finished goods is

Accepted Answer

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

Question 11

The balance of Material Q on May 1 and the receipts and issuances during May are as follows:
Balance, May 1 8 at $32
Received, May 11 23 at $33
Received, May 25 15 at $35
Issued, May 17 14
Issued, May 27 18
Determine the cost of each of the issuances under a perpetual system, using the FIFO method.

Accepted Answer

May 17 issue: 8 × $3

Question 12

For which of the following businesses would the job order cost system be appropriate?

Accepted Answer

A) canned soup processor 
B) oil refinery 
C) lumber mill 
D) hospital 
A) canned soup processor 
B) oil refinery 
C) lumber mill 
D) hospital

Question 13

Match each of the following phrases with the term a-e that it most closely describes it.Each term will be used only once.
-prepared when materials that have been ordered are received and inspected

Accepted Answer

A) job cost sheets 
B) materials requisitions 
C) receiving report 
D) time tickets 
E) cost allocation 
A) job cost sheets 
B) materials requisitions 
C) receiving report 
D) time tickets 
E) cost allocation

Question 14

In a job order cost accounting system for a service business, materials costs are normally included as part of overhead.

Accepted Answer

A) True 
 B)False

Question 15

The recording of the jobs completed would include a debit to

Accepted Answer

A) Factory Overhead 
B) Finished Goods 
C) Work in Process 
D) Cost of Goods Sold 
A) Factory Overhead 
B) Finished Goods 
C) Work in Process 
D) Cost of Goods Sold

Question 16

The job order costing system is not used by service organizations.

Accepted Answer

A) True 
 B)False

Question 17

Nonmanufacturing costs are generally classified into two categories: selling and administrative.

Accepted Answer

A) True 
 B)False

Question 18

If factory overhead applied exceeds the actual costs, overhead is said to be under applied.

Accepted Answer

A) True 
 B)False

Question 19

Match the costs that follow to the type of product cost a-c or designate as not a product cost d.
-machine operator

Accepted Answer

A) direct labor 
B) direct materials 
C) factory overhead 
D) not a product cost 
A) direct labor 
B) direct materials 
C) factory overhead 
D) not a product cost

Question 20

The inventory accounts generally maintained by a manufacturing firm are only finished goods and materials.

Accepted Answer

A) True 
 B)False

When Job 117 was completed, direct materials totaled $4,400; direct labor, $5,600; and factory overhead, $2,400.A total of 1,000 units were produced at a per-unit cost of

If factory overhead applied exceeds the actual costs, the factory overhead account will have a credit balance.

What is the gross profit for Adams Company at the end of the first quarter?

Match each of the following phrases with the term a-e that it most closely describes it.Each term will be used only once. -the process by which factory overhead is assigned to a cost object

Which of the following costs are not included in finished goods inventory?

Crain Company budgeted 35,000 direct labor hours and incurred 40,000 direct labor hours.It incurred $780,000 of overhead and estimated overhead was $735,000. What is Crain's predetermined overhead rate? Was overhead over applied or under applied for the year? By how much?

In a job order cost accounting system, the entry to record the flow of direct materials into production is

The cost of production of completed and transferred goods during the period amounted to $540,000, and the finished products shipped to customers had total production costs of $375,000.The entry to record the transfer of costs from work in process to finished goods is

The balance of Material Q on May 1 and the receipts and issuances during May are as follows: Balance, May 1 8 at $32 Received, May 11 23 at $33 Received, May 25 15 at $35 Issued, May 17 14 Issued, May 27 18 Determine the cost of each of the issuances under a perpetual system, using the FIFO method.

For which of the following businesses would the job order cost system be appropriate?

Match each of the following phrases with the term a-e that it most closely describes it.Each term will be used only once. -prepared when materials that have been ordered are received and inspected

In a job order cost accounting system for a service business, materials costs are normally included as part of overhead.

The recording of the jobs completed would include a debit to

The job order costing system is not used by service organizations.

Nonmanufacturing costs are generally classified into two categories: selling and administrative.

If factory overhead applied exceeds the actual costs, overhead is said to be under applied.

Match the costs that follow to the type of product cost a-c or designate as not a product cost d. -machine operator

The inventory accounts generally maintained by a manufacturing firm are only finished goods and materials.

Managerial Accounting Concepts and Principles

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Lean Principles, Lean Accounting, and Activity Analysis

Statement of Cash Flows

Financial Statement Analysis

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Exam 2: Job Order Costing

When Job 117 was completed, direct materials totaled $4,400; direct labor, $5,600; and factory overhead, $2,400.A total of 1,000 units were produced at a per-unit cost of

If factory overhead applied exceeds the actual costs, the factory overhead account will have a credit balance.

What is the gross profit for Adams Company at the end of the first quarter?

Match each of the following phrases with the term a-e that it most closely describes it.Each term will be used only once. -the process by which factory overhead is assigned to a cost object

Which of the following costs are not included in finished goods inventory?

Crain Company budgeted 35,000 direct labor hours and incurred 40,000 direct labor hours.It incurred $780,000 of overhead and estimated overhead was $735,000. What is Crain's predetermined overhead rate? Was overhead over applied or under applied for the year? By how much?

In a job order cost accounting system, the entry to record the flow of direct materials into production is

The cost of production of completed and transferred goods during the period amounted to $540,000, and the finished products shipped to customers had total production costs of $375,000.The entry to record the transfer of costs from work in process to finished goods is

The balance of Material Q on May 1 and the receipts and issuances during May are as follows: Balance, May 1 8 at $32 Received, May 11 23 at $33 Received, May 25 15 at $35 Issued, May 17 14 Issued, May 27 18 Determine the cost of each of the issuances under a perpetual system, using the FIFO method.

For which of the following businesses would the job order cost system be appropriate?

Match each of the following phrases with the term a-e that it most closely describes it.Each term will be used only once. -prepared when materials that have been ordered are received and inspected

In a job order cost accounting system for a service business, materials costs are normally included as part of overhead.

The recording of the jobs completed would include a debit to

The job order costing system is not used by service organizations.

Nonmanufacturing costs are generally classified into two categories: selling and administrative.

If factory overhead applied exceeds the actual costs, overhead is said to be under applied.

Match the costs that follow to the type of product cost a-c or designate as not a product cost d. -machine operator

The inventory accounts generally maintained by a manufacturing firm are only finished goods and materials.

Managerial Accounting Concepts and Principles

Process Cost Systems

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Lean Principles, Lean Accounting, and Activity Analysis

Statement of Cash Flows

Financial Statement Analysis

Filters