Question 1

The ________ adjusts individual job-cost records to account for underallocated or overallocated overhead.

Accepted Answer

A)  adjusted allocation-rate 
B)  proration approach 
C)  write-off to cost of goods sold approach 
D)  weighted-average cost approach 
A)  adjusted allocation-rate 
B)  proration approach 
C)  write-off to cost of goods sold approach 
D)  weighted-average cost approach

Question 2

Answer the following questions using the information below:
Comfort Manufacturing is a small textile manufacturer using machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the company and for the Winton High School band jacket job.
 $\begin{array}{llc}&\text { Company }&\text { Winton High School Job }\
\text { Direct materials } & \$ 40,000 & \$ 2,000 \
\text { Direct labor } & \$ 10,000 & \$ 400 \
\text { Manufacturing overhead costs } & \$ 45,000 & \
\text { Machine-hours } & 100,000 \mathrm{mh} & 900 \mathrm{mh}
\end{array}$
-What are the total manufacturing costs of this job?

Accepted Answer

A)  $1,970 
B)  $2,805 
C)  $2,905 
D)  $1,920 
A)  $1,970 
B)  $2,805 
C)  $2,905 
D)  $1,920

Question 3

Differentiate between a cost pool and a cost-allocation base.

Accepted Answer

A cost pool is a grouping of individual

Question 4

When actual indirect costs exceed allocated indirect costs,indirect costs have been underapplied.

Accepted Answer

A) True 
 B)False

Question 5

A ________ is a grouping of individual indirect cost items.

Accepted Answer

A)  cost allocation base 
B)  cost assignment 
C)  cost pool 
D)  job-costing system 
A)  cost allocation base 
B)  cost assignment 
C)  cost pool 
D)  job-costing system

Question 6

Direct materials and direct manufacturing labor become a part of work-in-process inventory on the balance sheet because the direct manufacturing labor transforms the direct materials to another asset,work-in-process inventory.

Accepted Answer

A) True 
 B)False

Question 7

Manufacturing overhead costs incurred for the month are: $\begin{array}{ll}
\text { Utilities } & \$ 30,000 \
\text { Depreciation on equipment } & \$ 25,000 \
\text { Repairs } & \$ 20,000
\end{array}$ Which account is debited assuming utilities and repairs were on account?

Accepted Answer

A)  Manufacturing Overhead Control, 75,000 
B)  Utilities Overhead Control, 30,000 
C)  Accumulated Depreciation Control, 25,000 
D)  Accounts Payable Control, 50,000 
A)  Manufacturing Overhead Control, 75,000 
B)  Utilities Overhead Control, 30,000 
C)  Accumulated Depreciation Control, 25,000 
D)  Accounts Payable Control, 50,000

Question 8

Process costing ________.

Accepted Answer

A)  allocates all product costs, including materials, and labor 
B)  results in different costs for different units produced 
C)  is commonly used by general contractors who construct custom-built homes 
D)  is used exclusively in manufacturing 
A)  allocates all product costs, including materials, and labor 
B)  results in different costs for different units produced 
C)  is commonly used by general contractors who construct custom-built homes 
D)  is used exclusively in manufacturing

Question 9

Why does the manufacturing overhead control account (debit)need to equal the manufacturing overhead allocated account (credit)?

Accepted Answer

If these accounts do not equal,then over

Question 10

Work-in-Process Control will be decreased (credited)for the amount of direct-labor costs incurred.

Accepted Answer

A) True 
 B)False

Question 11

A cost object is anything for which a measurement of costs is desired.

Accepted Answer

A) True 
 B)False

Question 12

Job costing is ________.

Accepted Answer

A)  used by businesses to price identical products 
B)  used by businesses to price unique products for different jobs 
C)  used to calculate equivalent units 
D)  used to calculate the percentage of work completed 
A)  used by businesses to price identical products 
B)  used by businesses to price unique products for different jobs 
C)  used to calculate equivalent units 
D)  used to calculate the percentage of work completed

Question 13

Vision Enterprises manufactures digital video equipment.For each unit,$3,000 of direct material is used and there is $2,000 of direct manufacturing labor at $20 per hour.Manufacturing overhead is applied at $25 per direct manufacturing labor hour.Calculate the profit earned on 50 units if each unit sells for $9,000.

Accepted Answer

A)  $65,000 
B)  $80,000 
C)  $75,000 
D)  $2,500 
A)  $65,000 
B)  $80,000 
C)  $75,000 
D)  $2,500

Question 14

Answer the following questions using the information below:
Sky High Company has two departments, X and Y. The following estimates are for the coming year:
 $\begin{array}{lrr}&X&Y\
\text { Direct manufacturing labor-hours } & 20,000 & 40,000 \
\text { Machine-hours } & 40,000 & 20,000 \
\text { Manufacturing overhead } & \$ 200,000 & \$ 400,000
\end{array}$
-A single indirect-cost rate based on direct manufacturing labor-hours for the entire plant is ________.

Accepted Answer

A)  $15 per direct labor-hour 
B)  $10 per direct labor-hour 
C)  $21 per direct labor-hour 
D)  $12 per direct labor-hour 
A)  $15 per direct labor-hour 
B)  $10 per direct labor-hour 
C)  $21 per direct labor-hour 
D)  $12 per direct labor-hour

Question 15

Answer the following questions using the information below:
Wayland Manufacturing uses a normal cost system and had the following data available for 2010:
 $\begin{array}{lr}
\text { Direct materials purchased on account } & \$ 148,000 \
\text { Direct materials requisitioned } & 82,000 \
\text { Direct labor cost incurred } & 130,000\\
\text { Factory overhead incurred } & 146,000 \
\text { Cost of goods completed } & 292,000 \
\text { Cost of goods sold } & 256,000\\
\text { Beginning direct materials inventory } & 26,000 \
\text { Beginning WIP inventory } & 64,000 \
\text { Beginning finished goods inventory } & 58,000 \
\text { Overhead application rate, as a percent of direct-labor costs } & 125 \text { percent }
\end{array}$
-The ending balance of finished goods inventory is ________.

Accepted Answer

A)  $58,000 
B)  $36,000 
C)  $94,000 
D)  $292,000 
A)  $58,000 
B)  $36,000 
C)  $94,000 
D)  $292,000

Question 16

Filippucci Company used a budgeted indirect-cost rate for its manufacturing operations, the amount allocated ($200,000) is different from the actual amount incurred ($225,000).
 Ending balances in the relevant accounts are:
$\begin{array}{lr}
\text { Work-in-Process } & \$ 10,000 \
\text { Finished Goods } & 20,000 \
\text { Cost of Goods Sold } & 170,000
\end{array}$
-Which account is credited to write off the difference between allocated and actual overhead using the proration approach?

Accepted Answer

A)  Work-in Process Control 
B)  Manufacturing Overhead Allocated 
C)  Finished Goods Control 
D)  Manufacturing Overhead Control 
A)  Work-in Process Control 
B)  Manufacturing Overhead Allocated 
C)  Finished Goods Control 
D)  Manufacturing Overhead Control

Question 17

Answer the following questions using the information below:
Comfort Manufacturing is a small textile manufacturer using machine-hours as the single indirect-cost rate to allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the company and for the Winton High School band jacket job.
 $\begin{array}{llc}&\text { Company }&\text { Winton High School Job }\
\text { Direct materials } & \$ 40,000 & \$ 2,000 \
\text { Direct labor } & \$ 10,000 & \$ 400 \
\text { Manufacturing overhead costs } & \$ 45,000 & \
\text { Machine-hours } & 100,000 \mathrm{mh} & 900 \mathrm{mh}
\end{array}$
-What amount of manufacturing overhead costs will be allocated to this job?

Accepted Answer

A)  $405 
B)  $425 
C)  $270 
D)  $465 
A)  $405 
B)  $425 
C)  $270 
D)  $465

Question 18

A company may choose to use budgeted rates to allocate direct labor accounts if direct labor costs are difficult to trace to jobs as they are completed.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is true of the Work-in-Process Control account?

Accepted Answer

A)  It tracks all direct material purchases. 
B)  Its balance is the sum of amounts from all in-process individual job-cost records. 
C)  It is an expense account. 
D)  It tracks overhead costs in-process from beginning through completion. 
A)  It tracks all direct material purchases. 
B)  Its balance is the sum of amounts from all in-process individual job-cost records. 
C)  It is an expense account. 
D)  It tracks overhead costs in-process from beginning through completion.

Question 20

The difference between actual costing and normal costing is ________.

Accepted Answer

A)  normal costing uses actual quantities of direct-costs 
B)  actual costing uses actual quantities of direct-costs 
C)  normal costing uses budgeted indirect-costs 
D)  actual costing uses actual quantities of cost-allocation bases 
A)  normal costing uses actual quantities of direct-costs 
B)  actual costing uses actual quantities of direct-costs 
C)  normal costing uses budgeted indirect-costs 
D)  actual costing uses actual quantities of cost-allocation bases

The ________ adjusts individual job-cost records to account for underallocated or overallocated overhead.

Differentiate between a cost pool and a cost-allocation base.

When actual indirect costs exceed allocated indirect costs,indirect costs have been underapplied.

A ________ is a grouping of individual indirect cost items.

Direct materials and direct manufacturing labor become a part of work-in-process inventory on the balance sheet because the direct manufacturing labor transforms the direct materials to another asset,work-in-process inventory.

Manufacturing overhead costs incurred for the month are: Utilities \ 30,000 Depreciation on equipment \ 25,000 Repairs \ 20,000 Which account is debited assuming utilities and repairs were on account?

Process costing ________.

Why does the manufacturing overhead control account (debit)need to equal the manufacturing overhead allocated account (credit)?

Work-in-Process Control will be decreased (credited)for the amount of direct-labor costs incurred.

A cost object is anything for which a measurement of costs is desired.

Job costing is ________.

A company may choose to use budgeted rates to allocate direct labor accounts if direct labor costs are difficult to trace to jobs as they are completed.

Which of the following is true of the Work-in-Process Control account?

The difference between actual costing and normal costing is ________.

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Activity-Based Costing and Activity-Based Management

Master Budget and Responsibility Accounting

Flexible Budgets, direct-Cost Variances, and Management Control

Flexible Budgets, overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Strategy, balanced Scorecard, and Strategic Profitability Analysis

Pricing Decisions and Cost Management

Cost Allocation, customer-Profitability Analysis, and Sales-Variance Analysis

Allocation of Support-Department Costs, common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, rework, and Scrap

Balanced Scorecard: Quality and Time

Inventory Management, just-In-Time, and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, transfer Pricing, and Multinational Considerations

Performance Measurement, compensation, and Multinational Considerations

Filters

Exam 4: Job Costing

The ________ adjusts individual job-cost records to account for underallocated or overallocated overhead.

Differentiate between a cost pool and a cost-allocation base.

When actual indirect costs exceed allocated indirect costs,indirect costs have been underapplied.

A ________ is a grouping of individual indirect cost items.

Direct materials and direct manufacturing labor become a part of work-in-process inventory on the balance sheet because the direct manufacturing labor transforms the direct materials to another asset,work-in-process inventory.

Manufacturing overhead costs incurred for the month are: Utilities \ 30,000 Depreciation on equipment \ 25,000 Repairs \ 20,000 Which account is debited assuming utilities and repairs were on account?

Process costing ________.

Why does the manufacturing overhead control account (debit)need to equal the manufacturing overhead allocated account (credit)?

Work-in-Process Control will be decreased (credited)for the amount of direct-labor costs incurred.

A cost object is anything for which a measurement of costs is desired.

Job costing is ________.

A company may choose to use budgeted rates to allocate direct labor accounts if direct labor costs are difficult to trace to jobs as they are completed.

Which of the following is true of the Work-in-Process Control account?

The difference between actual costing and normal costing is ________.

The Manager and Management Accounting

An Introduction to Cost Terms and Purposes

Cost-Volume-Profit Analysis

Activity-Based Costing and Activity-Based Management

Master Budget and Responsibility Accounting

Flexible Budgets, direct-Cost Variances, and Management Control

Flexible Budgets, overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Strategy, balanced Scorecard, and Strategic Profitability Analysis

Pricing Decisions and Cost Management

Cost Allocation, customer-Profitability Analysis, and Sales-Variance Analysis

Allocation of Support-Department Costs, common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, rework, and Scrap

Balanced Scorecard: Quality and Time

Inventory Management, just-In-Time, and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, transfer Pricing, and Multinational Considerations

Performance Measurement, compensation, and Multinational Considerations

Filters