Question 1

When a job is completed,the total cost of the job is recorded with a debit to Finished Goods Inventory and a credit to Work-in-Process Inventory.

Accepted Answer

A) True 
 B)False  True

Question 2

In a manufacturing operation,depreciation of plant equipment should be debited to the Depreciation Expense account.

Accepted Answer

A) True 
 B)False  False

Question 3

Happy Clicks,Inc.uses a predetermined overhead allocation rate of $5.25 per machine hour.Actual overhead costs incurred during the year are as follows: $$\begin{array} { | l | r | } 
\hline \text { Indirect materials } & \$ 5,600 \
\hline \text { Indirect labor } & \$ 2,000 \
\hline \text { Plant depreciation } & \$ 4,300 \
\hline \text { Plant utilities and insurance } & \$ 9,900 \
\hline \text { Other plant overhead costs } & \$ 12,100 \
\hline \text { Total machine hours used during year } & 7,100 \text { hours } \
\hline
\end{array}$$ 
What is the amount of manufacturing overhead cost allocated to Work-in-Process Inventory during the year?

Accepted Answer

A)  $41,000 
B)  $7,600 
C)  $33,400 
D)  $37,275 
A)  $41,000 
B)  $7,600 
C)  $33,400 
D)  $37,275 D

Question 4

Manufacturing overhead costs are allocated to the Work-in-Process Inventory account by a debit to the Manufacturing Overhead account.

Accepted Answer

A) True 
 B)False

Question 5

At the beginning of the year,Berkshire Manufacturing had the following account balances:

The following additional details are provided for the year:
$$\begin{array} { | l | l } 
\hline \text { Direct materials placed in production } & \$ 80,000 \
\hline \text { Direct labor incurred } & 192,000 \
\hline \text { Manufacturing overhead incurred } & 300,000 \
\hline \text { Manufacturing overhead allocated to production } & 291,000 \
\hline \text { Cost of jobs completed and transferred } & 501,000 \
\hline \text { Total revenue } & 760,000 \
\hline \text { Cost of goods sold } & 441,300 \
\hline
\end{array}$$ Calculate the gross profit Berkshire will report for the year.

Accepted Answer

A)  $259,000 
B)  $309,700 
C)  $318,700 
D)  $450,300 
A)  $259,000 
B)  $309,700 
C)  $318,700 
D)  $450,300

Question 6

Journalize the following transactions for Malone Custom Furniture Manufacturing:
a.Incurred and paid advertising expenses,$3,500.
b.Incurred manufacturing wages of $30,000,60% of which was direct labor and 40% of which was indirect labor.
c.Purchased raw materials on account,$27,000.
d.Used in production: direct materials,$12,000; indirect materials,$5,500
e.Recorded manufacturing overhead: depreciation on plant,$14,000; plant insurance (previously paid),$1,800; plant property tax,$4,500 (credit Property Tax Payable).
f.Allocated manufacturing overhead to jobs,150% of direct labor costs.
g.Completed production on jobs with costs of $55,000.
h.Sold inventory on account,$64,000; cost of goods sold,$35,000.
i.Adjusted for overallocated or underallocated overhead.

Accepted Answer

None

Question 7

Sybil,Inc.uses a predetermined overhead allocation rate to allocate manufacturing overhead costs to jobs.The company recently completed Job 300X.This job used 10 machine hours and 3 direct labor hours.The predetermined overhead allocation rate is calculated to be $45 per machine hour.What is the amount of manufacturing overhead allocated to Job 300X using machine hours as the allocation base?

Accepted Answer

A)  $450 
B)  $135 
C)  $585 
D)  $315 
A)  $450 
B)  $135 
C)  $585 
D)  $315

Question 8

The journal entry to record direct labor costs actually incurred involves a debit to the ________.

Accepted Answer

A)  Work-in-Process Inventory account 
B)  Wages Payable account 
C)  Manufacturing Overhead account 
D)  Raw Materials Inventory account 
A)  Work-in-Process Inventory account 
B)  Wages Payable account 
C)  Manufacturing Overhead account 
D)  Raw Materials Inventory account

Question 9

On June 30,Cleopatra,Inc.finished Job 70 with total job costs of $40,000 and transferred the costs to Finished Goods Inventory.On July 6,Cleopatra completed the sale of the goods to a customer for $55,000 on account.Provide the journal entry to record the sales revenue.

Accepted Answer

\[\begin{array} { | c | r | r

Question 10

Which of the following will be debited to the Manufacturing Overhead account of a watch manufacturer?

Accepted Answer

A)  office telephone costs 
B)  salaries paid to accountants 
C)  factory electricity costs 
D)  cost of printing brochures 
A)  office telephone costs 
B)  salaries paid to accountants 
C)  factory electricity costs 
D)  cost of printing brochures

Question 11

The journal entry to issue $500 of direct materials and $40 of indirect materials to production involves debit(s)to the ________.

Accepted Answer

A)  Work-in-Process Inventory account for $500 and Finished Goods Inventory account for $40 
B)  Manufacturing Overhead account for $540 
C)  Work-in-Process Inventory account for $500 and Manufacturing Overhead account for $40 
D)  Work-in-Process Inventory account for $540 
A)  Work-in-Process Inventory account for $500 and Finished Goods Inventory account for $40 
B)  Manufacturing Overhead account for $540 
C)  Work-in-Process Inventory account for $500 and Manufacturing Overhead account for $40 
D)  Work-in-Process Inventory account for $540

Question 12

At the beginning of the year,Conway Manufacturing had the following account balances:

The following additional details are provided for the year:
$$\begin{array} { | l | r | } 
\hline \text { Direct materials placed in production } & \$ 82,000 \
\hline \text { Direct labor incurred } & 190,100 \
\hline \text { Manufacturing overhead incurred } & 300,600 \
\hline \begin{array} { l } 
\text { Manufacturing overhead allocated to } \
\text { production }
\end{array} & 297,700 \
\hline \text { Cost of jobs completed and transferred } & 500,800 \
\hline
\end{array}$$ The ending balance in the Work-in-Process Inventory account is a ________.

Accepted Answer

A)  credit of $71,000 
B)  debit of $2,000 
C)  credit of $2,000 
D)  debit of $71,000 
A)  credit of $71,000 
B)  debit of $2,000 
C)  credit of $2,000 
D)  debit of $71,000

Question 13

Manufacturing Overhead is a temporary account used to ________ indirect production costs during the accounting period.

Accepted Answer

A)  allocate 
B)  assign 
C)  accumulate 
D)  approximate 
A)  allocate 
B)  assign 
C)  accumulate 
D)  approximate

Question 14

Q-dot Manufacturing uses a predetermined overhead allocation rate based on direct labor hours.It has provided the following information for the year: $$\begin{array} { | l | r | } 
\hline \text { Manufacturing overhead costs allocated to production } & \$ 185,000 \
\hline \text { Actual direct materials cost } & \$ 540,000 \
\hline \text { Actual direct labor cost } & \$ 2,470,000 \
\hline \text { Actual direct labor hours } & 9,020 \text { direct labor hours } \
\hline \text { Estimated machine hours } & 180,000 \text { machine hours } \
\hline
\end{array}$$ 
Based on the above information,calculate Q-dot's predetermined overhead allocation rate.(Round your answer to two decimal places.)

Accepted Answer

A)  $1.03 per machine hour 
B)  7.49% of direct labor cost 
C)  34.26% of direct materials cost 
D)  $20.51 per direct labor hour 
A)  $1.03 per machine hour 
B)  7.49% of direct labor cost 
C)  34.26% of direct materials cost 
D)  $20.51 per direct labor hour

Question 15

What causes manufacturing overhead to be underallocated? When manufacturing overhead is underallocated,will the Manufacturing Overhead account have a debit or a credit balance?

Accepted Answer

Manufacturing overhead is underallocated

Question 16

Warren Manufacturing began business on January 1.During its first year of operation,Warren worked on five industrial jobs and reported the following information at year-end: $$\begin{array} { | l | r | r | r | r | r | } 
\hline & \text { Job 1 } & \text { Job 2 } & \text { Job 3 } & \text { Job 4 } & \text { Job 5 } \
\hline \text { Direct Materials } & 1,000 & 7,500 & 5,000 & 3,300 & 1,500 \
\hline \text { Direct Labor } & 12,000 & 20,000 & 13,400 & 12,000 & 800 \
\hline \text { Allocated Mfg. Overhead } & 1,500 & 6,000 & 2,300 & 7,600 & 200 \
\hline & & & & & \text { Not } \
 \text { Job completed: } & \text { Jun 30 } & \text { Sep 1 } & \text { Oct 15 } & \text { Nov 1 } & \text { completed } \
\hline \text { Job sold: } & \text { Jul 10 } & \text { Sep 12 } & \text { Not sold } & \text { Not sold } & \text { N/A } \
\hline \text { Revenues: } & 25,000 & 39,000 & \text { N/A } & \text { N/A } & \text { N/A } \
\hline
\end{array}$$ What was the balance in Finished Goods Inventory at year-end?

Accepted Answer

A)  $33,700 
B)  $20,700 
C)  $43,600 
D)  $22,900 
A)  $33,700 
B)  $20,700 
C)  $43,600 
D)  $22,900

Question 17

For each of the following accounts,indicate what event causes the account to increase and to decrease.The answer is not debit or credit.
 $$\begin{array} { | l | l | l | } 
\hline \text { Account } & \text { Is increased by: } & \text { Is decreased by: } \
\hline \text { Raw Materials } & & \
\hline \text { Work-in-Process } & & \
\text { Inventory } & & \
\hline \text { Finished Goods } & & \
\text { Inventory } & & \
\hline \text { Cost of Goods Sold } & & \
\hline
\end{array}$$

Accepted Answer

\[\begin{array} { | l | l | l | } 
\hlin

Question 18

At the beginning of the year,Barrington Manufacturing had the following account balances:

The following additional details are provided for the year:
 $$\begin{array} { | l | r | } 
\hline \text { Direct materials placed in production } & \$ 80,000 \
\hline \text { Direct labor incurred } & 190,000 \
\hline \text { Manufacturing overhead incurred } & 300,000 \
\hline \text { Manufacturing overhead allocated to production } & 295,000 \
\hline \text { Cost of jobs completed } & 500,000 \
\hline
\end{array}$$ Record these transactions in the T-accounts and calculate the ending balances for Work-in-Process Inventory,Finished Goods Inventory,and Manufacturing Overhead accounts (unadjusted).

Accepted Answer

Work-in-Process Inventory:
 Beginning ba

Question 19

At the beginning of the year,Green Street Manufacturing had the following account balances:

The following additional details are provided for the year:

$$\begin{array} { | l | l } 
\hline \text { Direct materials placed in production } & \$ 83,000 \
\hline \text { Direct labor incurred } & 192,000 \
\hline \text { Manufacturing overhead incurred } & 301,000 \
\hline \text { Manufacturing overhead allocated to production } & 290,000 \
\hline \text { Cost of jobs completed and transferred } & 500,000 \
\hline \text { Total revenue } & 750,000 \
\hline \text { Cost of goods sold } & 441,000 \
\hline
\end{array}$$ After adjusting the balance in Manufacturing Overhead,the ending balance in the Finished Goods Inventory account is a ________.

Accepted Answer

A)  credit of $51,000 
B)  debit of $59,000 
C)  credit of $433,000 
D)  debit of $67,000 
A)  credit of $51,000 
B)  debit of $59,000 
C)  credit of $433,000 
D)  debit of $67,000

Question 20

South Bay Manufacturing began business on January 1.During its first year of operation,South Bay worked on five industrial jobs and reported the following information at year-end: $$\begin{array} { | l | r | r | r | r | r | } 
\hline & \text { Job 1 } & \text { Job 2 } & \text { Job 3 } & \text { Job 4 } & \text { Job 5 } \
\hline \text { Direct Materials } & 1,500 & 7,900 & 4,000 & 3,500 & 1,500 \
\hline \text { Direct Labor } & 15,000 & 21,500 & 13,000 & 12,000 & 800 \
\hline \text { Allocated Mfg. Overhead } & 1,500 & 7,800 & 2,500 & 7,500 & 200 \
\hline & & & & & \text { Not } \
\text { Job completed: } & \text { Jun 30 } & \text { Sep 1 } & \text { Oct 15 } & \text { Nov 1 } & \text { completed } \
\hline \text { Job sold: } & \text { Jul 10 } & \text { Sep 12 } & \text { Not sold } & \text { Not sold } & \text { N/A } \
\hline \text { Revenues: } & 44,000 & 39,000 & \text { N/A } & \text { N/A } & \text { N/A } \
\hline
\end{array}$$ South Bay's allocation of overhead costs left a debit balance of $1,100 in the Manufacturing Overhead account,which was adjusted to zero at year-end.What was the amount of gross profit earned during the year?

Accepted Answer

A)  $26,700 
B)  $700 
C)  $27,800 
D)  $24,900 
A)  $26,700 
B)  $700 
C)  $27,800 
D)  $24,900

When a job is completed,the total cost of the job is recorded with a debit to Finished Goods Inventory and a credit to Work-in-Process Inventory.

In a manufacturing operation,depreciation of plant equipment should be debited to the Depreciation Expense account.

Manufacturing overhead costs are allocated to the Work-in-Process Inventory account by a debit to the Manufacturing Overhead account.

The journal entry to record direct labor costs actually incurred involves a debit to the ________.

On June 30,Cleopatra,Inc.finished Job 70 with total job costs of $40,000 and transferred the costs to Finished Goods Inventory.On July 6,Cleopatra completed the sale of the goods to a customer for $55,000 on account.Provide the journal entry to record the sales revenue.

Which of the following will be debited to the Manufacturing Overhead account of a watch manufacturer?

The journal entry to issue $500 of direct materials and $40 of indirect materials to production involves debit(s)to the ________.

Manufacturing Overhead is a temporary account used to ________ indirect production costs during the accounting period.

What causes manufacturing overhead to be underallocated? When manufacturing overhead is underallocated,will the Manufacturing Overhead account have a debit or a credit balance?

For each of the following accounts,indicate what event causes the account to increase and to decrease.The answer is not debit or credit. Account Is increased by: Is decreased by: Raw Materials Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold

Introduction to Managerial Accounting

Process Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

Filters

Exam 19: Job Order Costing

When a job is completed,the total cost of the job is recorded with a debit to Finished Goods Inventory and a credit to Work-in-Process Inventory.

In a manufacturing operation,depreciation of plant equipment should be debited to the Depreciation Expense account.

Manufacturing overhead costs are allocated to the Work-in-Process Inventory account by a debit to the Manufacturing Overhead account.

The journal entry to record direct labor costs actually incurred involves a debit to the ________.

On June 30,Cleopatra,Inc.finished Job 70 with total job costs of $40,000 and transferred the costs to Finished Goods Inventory.On July 6,Cleopatra completed the sale of the goods to a customer for $55,000 on account.Provide the journal entry to record the sales revenue.

Which of the following will be debited to the Manufacturing Overhead account of a watch manufacturer?

The journal entry to issue $500 of direct materials and $40 of indirect materials to production involves debit(s)to the ________.

Manufacturing Overhead is a temporary account used to ________ indirect production costs during the accounting period.

What causes manufacturing overhead to be underallocated? When manufacturing overhead is underallocated,will the Manufacturing Overhead account have a debit or a credit balance?

For each of the following accounts,indicate what event causes the account to increase and to decrease.The answer is not debit or credit. Account Is increased by: Is decreased by: Raw Materials Work-in-Process Inventory Finished Goods Inventory Cost of Goods Sold

Introduction to Managerial Accounting

Process Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

Filters