Question 1

Define a job order costing system and list two types of businesses that would us a job order costing system.

Accepted Answer

A job order costing system is an account

Question 2

Iglesias,Inc.completed Job 12 on November 30.The details of Job 12 are given below: $$\begin{array} { | l | r| } 
\hline \text { Direct labor cost } & \$ 860 \
\hline \text { Direct materials cost } & \$ 1,100 \
\hline \text { Machine hours } & 9 \text { hours } \
\hline \text { Direct labor hours } & 23 \text { hours } \
\hline \text { Predetermined overhead allocation rate } & \$ 80 \text { per machine hour } \
\hline
\end{array}$$ What is the total cost of Job 12?

Accepted Answer

A)  $2,680 
B)  $1,960 
C)  $1,580 
D)  $1,820 
A)  $2,680 
B)  $1,960 
C)  $1,580 
D)  $1,820

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is the correct order of the four steps of tracking product costs?

Accepted Answer

A)  assign → accumulate → allocate → adjust 
B)  accumulate → assign → allocate → adjust 
C)  adjust → allocate → accumulate → assign 
D)  allocate → adjust → accumulate → assign 
A)  assign → accumulate → allocate → adjust 
B)  accumulate → assign → allocate → adjust 
C)  adjust → allocate → accumulate → assign 
D)  allocate → adjust → accumulate → assign

Question 5

The actual direct labor costs are assigned to individual jobs,and the actual direct labor cost is recorded with a debit to Work-in-Process Inventory.

Accepted Answer

A) True 
 B)False

Question 6

Actual manufacturing overhead costs are credited to the Manufacturing Overhead account.

Accepted Answer

A) True 
 B)False

Question 7

On June 30,Caroline,Inc.finished Job 750 with total job costs of $4,300 and transferred the costs to Finished Goods Inventory.On July 6,Caroline completed the sale of the goods from Job 750 to a customer for $5,700 cash.Which of the following is the correct entry needed to record the revenue earned?

Accepted Answer

A)  debit Finished Goods Inventory $4,300 and credit Sales Revenue $4,300 
B)  debit Cash $5,700 and credit Sales Revenue $5,700 
C)  debit Sales Revenue $5,700 and credit Cash $5,700 
D)  debit Cost of Goods Sold $4,300 and credit Sales Revenue $4,300 
A)  debit Finished Goods Inventory $4,300 and credit Sales Revenue $4,300 
B)  debit Cash $5,700 and credit Sales Revenue $5,700 
C)  debit Sales Revenue $5,700 and credit Cash $5,700 
D)  debit Cost of Goods Sold $4,300 and credit Sales Revenue $4,300

Question 8

Highland,Inc.,an engineering firm,uses a job order costing system to accumulate client-related costs.The predetermined overhead allocation rate is 50% of staff labor cost.The work by engineers is charged to jobs at a rate of $33 per staff labor hour.A recent job for a client used 70 staff labor hours.How much was the total job cost?

Accepted Answer

A)  $1,155 
B)  $2,310 
C)  $3,465 
D)  $35 
A)  $1,155 
B)  $2,310 
C)  $3,465 
D)  $35

Question 9

The journal entry to record allocation of manufacturing overhead to a particular job includes a ________.

Accepted Answer

A)  debit to the Finished Goods Inventory account and credit to the Manufacturing Overhead account 
B)  debit to the Work-in-Process Inventory account and credit to the Cash account 
C)  debit to the Manufacturing Overhead account and credit to the Finished Goods Inventory account 
D)  debit to the Work-in-Process Inventory account and credit to the Manufacturing Overhead account 
A)  debit to the Finished Goods Inventory account and credit to the Manufacturing Overhead account 
B)  debit to the Work-in-Process Inventory account and credit to the Cash account 
C)  debit to the Manufacturing Overhead account and credit to the Finished Goods Inventory account 
D)  debit to the Work-in-Process Inventory account and credit to the Manufacturing Overhead account

Question 10

Which of the following is a reason why a job order costing system is appropriate for a custom furniture manufacturer?

Accepted Answer

A)  The cost incurred for each job will differ as per the order specifications. 
B)  The direct costs incurred for each job are the same, only indirect costs vary. 
C)  The raw materials used have already been accounted for using process costing. 
D)  Custom furniture manufacturers produce large quantities of similar products. 
A)  The cost incurred for each job will differ as per the order specifications. 
B)  The direct costs incurred for each job are the same, only indirect costs vary. 
C)  The raw materials used have already been accounted for using process costing. 
D)  Custom furniture manufacturers produce large quantities of similar products.

Question 11

Bass Accounting Services expects its accountants to work a total of 29,000 direct labor hours per year.The company's estimated total indirect costs are $348,000.The company uses direct labor hours as the allocation base for indirect costs.What is the indirect cost allocation rate?

Accepted Answer

A)  $12 per hour 
B)  $24 per hour 
C)  $120 per hour 
D)  $14.40 per hour 
A)  $12 per hour 
B)  $24 per hour 
C)  $120 per hour 
D)  $14.40 per hour

Question 12

Kalliste,Inc.completed Job C50.Job C50 required $3,000 of direct materials cost,$2,000 of direct labor cost,and $600 of allocated manufacturing overhead.Provide the journal entry needed to record completion and transfer of the job.

Accepted Answer

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

Question 13

Metropolitan Enterprises reports the following information at December 31:
   
Requirements
1.What is the actual manufacturing overhead of Metropolitan Enterprises?
2.What is the allocated manufacturing overhead?
3.Is manufacturing overhead underallocated or overallocated? By how much?

Accepted Answer

1.Actual manufacturing overhead costs ar

Question 14

On June 1,Westbrook Productions had beginning balances as shown in the T-accounts below.

During June,the following transactions took place:
June 2: Issued $3,100 of direct materials and $300 of indirect materials to production.
June 13: Incurred $7,500 of direct factory labor cost and $14,500 of indirect factory labor cost.
What was the balance in the Manufacturing Overhead account following these transactions?

Accepted Answer

A)  $41,300 
B)  $55,800 
C)  $55,500 
D)  $58,600 
A)  $41,300 
B)  $55,800 
C)  $55,500 
D)  $58,600

Question 15

Gardner Machine Shop estimates manufacturing overhead costs for the coming year at $318,000.The manufacturing overhead costs will be allocated based on direct labor hours.Gardner estimates 4,000 direct labor hours for the coming year.In January,Gardner completed Job A33,which used 70 machine hours and 20 direct labor hours.What was the amount of manufacturing overhead allocated to Job A33? (Round any intermediate calculations to the nearest cent,and your final answer to the nearest dollar.)

Accepted Answer

A)  $1,590 
B)  $5,565 
C)  $7,155 
D)  $4,543 
A)  $1,590 
B)  $5,565 
C)  $7,155 
D)  $4,543

Question 16

Which of the following accounts would be debited in the journal entry to record the issuance of direct materials?

Accepted Answer

A)  Cost of Goods Sold 
B)  Work-in-Process Inventory 
C)  Finished Goods Inventory 
D)  Raw Materials Inventory 
A)  Cost of Goods Sold 
B)  Work-in-Process Inventory 
C)  Finished Goods Inventory 
D)  Raw Materials Inventory

Question 17

Both job order and process costing systems use a four-step method to track product costs.List each of the four steps.

Accepted Answer

1.Accumula

Question 18

Adelphia Manufacturing issued $75,000 of direct materials and $8,000 of indirect materials for production.Which of the following journal entries would correctly record the transaction?

Accepted Answer

A)  $$\begin{array} { | l | r | r | } 
\hline \text { Raw Materials Inventory } & 83,000 & \
\hline \text { Finished Goods Inventory } & & 75,000 \
\hline \text { Work-in-Process Inventory } & & 8,000 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | l | r | r | } 
\hline \text { Work-in-Process Inventory } & 83,000 & \
\hline \text { Raw Materials Inventory } & & 83,000 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | c | r | r | } 
\hline \text { Work-in-Process Inventory } & 75,000 & \
\hline \text { Manufacturing Overhead } & 8,000 & \
\hline \text { Raw Materials Inventory } & & 83,000 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Manufacturing Overhead } & 83,000 & \
\hline \text { Raw Materials Inventory } & & 83,000 \
\hline
\end{array}$$ 
A)  $$\begin{array} { | l | r | r | } 
\hline \text { Raw Materials Inventory } & 83,000 & \
\hline \text { Finished Goods Inventory } & & 75,000 \
\hline \text { Work-in-Process Inventory } & & 8,000 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | l | r | r | } 
\hline \text { Work-in-Process Inventory } & 83,000 & \
\hline \text { Raw Materials Inventory } & & 83,000 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | c | r | r | } 
\hline \text { Work-in-Process Inventory } & 75,000 & \
\hline \text { Manufacturing Overhead } & 8,000 & \
\hline \text { Raw Materials Inventory } & & 83,000 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Manufacturing Overhead } & 83,000 & \
\hline \text { Raw Materials Inventory } & & 83,000 \
\hline
\end{array}$$

Question 19

The Equinox Fabrication Plant suffered a fire incident in August,and most of the records for the year were destroyed.The following accounting data for the year were recovered: $$\begin{array} {| l | r | } 
\hline  \begin{array} { l } 
 \text { Total manufacturing overhead estimated at the beginning of the } \
\text { year }
\end{array} & \$ 100,960 \
\hline \text { Total direct labor costs estimated at the beginning of the year } & \$ 184,000 \
\hline \text { Total direct labor hours estimated at the beginning of the year } & 3,200 \text { direct labor hours } \
\hline \text { Actual manufacturing overhead costs for the year } & \$ 99,100 \
\hline \text { Actual direct labor costs for the year } & \$ 140,000 \
\hline \text { Actual direct labor hours for the year } & 2,500 \text { direct labor hours } \
\hline
\end{array}$$
 The company bases its manufacturing overhead allocation on the number of direct labor hours.What was the predetermined overhead allocation rate for the year? (Round your answer to the nearest cent.)

Accepted Answer

A)  $40.38 
B)  $1.86 
C)  $31.55 
D)  $73.60 
A)  $40.38 
B)  $1.86 
C)  $31.55 
D)  $73.60

Question 20

Haddows,Inc.completed Job GH6 last month.The cost details of GH6 are shown below. $$\begin{array} { | l | r | } 
\hline \text { Direct labor cost } & \$ 2,100 \
\hline \text { Direct materials cost } & \$ 86 \
\hline \text { Direct labor hours } & 5 \text { hours } \
\hline \text { Predetermined overhead allocation rate per direct labor } & \$ 71 \
\text { hour } &  \
\hline \text { Number of units of finished product } & 32\
\hline
\end{array}$$
 Calculate the cost per unit of the finished product of Job GH6.(Round your answer to the nearest cent.)

Accepted Answer

A)  $441.00 
B)  $13.78 
C)  $76.72 
D)  $79.41 
A)  $441.00 
B)  $13.78 
C)  $76.72 
D)  $79.41

Define a job order costing system and list two types of businesses that would us a job order costing system.

Iglesias,Inc.completed Job 12 on November 30.The details of Job 12 are given below: Direct labor cost \ 860 Direct materials cost \ 1,100 Machine hours 9 hours Direct labor hours 23 hours Predetermined overhead allocation rate \ 80 per machine hour What is the total cost of Job 12?

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

Which of the following is the correct order of the four steps of tracking product costs?

The actual direct labor costs are assigned to individual jobs,and the actual direct labor cost is recorded with a debit to Work-in-Process Inventory.

Actual manufacturing overhead costs are credited to the Manufacturing Overhead account.

On June 30,Caroline,Inc.finished Job 750 with total job costs of $4,300 and transferred the costs to Finished Goods Inventory.On July 6,Caroline completed the sale of the goods from Job 750 to a customer for $5,700 cash.Which of the following is the correct entry needed to record the revenue earned?

The journal entry to record allocation of manufacturing overhead to a particular job includes a ________.

Which of the following is a reason why a job order costing system is appropriate for a custom furniture manufacturer?

Bass Accounting Services expects its accountants to work a total of 29,000 direct labor hours per year.The company's estimated total indirect costs are $348,000.The company uses direct labor hours as the allocation base for indirect costs.What is the indirect cost allocation rate?

Kalliste,Inc.completed Job C50.Job C50 required $3,000 of direct materials cost,$2,000 of direct labor cost,and $600 of allocated manufacturing overhead.Provide the journal entry needed to record completion and transfer of the job.

Metropolitan Enterprises reports the following information at December 31: Requirements 1.What is the actual manufacturing overhead of Metropolitan Enterprises? 2.What is the allocated manufacturing overhead? 3.Is manufacturing overhead underallocated or overallocated? By how much?

Which of the following accounts would be debited in the journal entry to record the issuance of direct materials?

Both job order and process costing systems use a four-step method to track product costs.List each of the four steps.

Adelphia Manufacturing issued $75,000 of direct materials and $8,000 of indirect materials for production.Which of the following journal entries would correctly record the transaction?

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

Define a job order costing system and list two types of businesses that would us a job order costing system.

Iglesias,Inc.completed Job 12 on November 30.The details of Job 12 are given below: Direct labor cost \ 860 Direct materials cost \ 1,100 Machine hours 9 hours Direct labor hours 23 hours Predetermined overhead allocation rate \ 80 per machine hour What is the total cost of Job 12?

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

Which of the following is the correct order of the four steps of tracking product costs?

The actual direct labor costs are assigned to individual jobs,and the actual direct labor cost is recorded with a debit to Work-in-Process Inventory.

Actual manufacturing overhead costs are credited to the Manufacturing Overhead account.

The journal entry to record allocation of manufacturing overhead to a particular job includes a ________.

Which of the following is a reason why a job order costing system is appropriate for a custom furniture manufacturer?

Bass Accounting Services expects its accountants to work a total of 29,000 direct labor hours per year.The company's estimated total indirect costs are $348,000.The company uses direct labor hours as the allocation base for indirect costs.What is the indirect cost allocation rate?

Kalliste,Inc.completed Job C50.Job C50 required $3,000 of direct materials cost,$2,000 of direct labor cost,and $600 of allocated manufacturing overhead.Provide the journal entry needed to record completion and transfer of the job.

Metropolitan Enterprises reports the following information at December 31: Requirements 1.What is the actual manufacturing overhead of Metropolitan Enterprises? 2.What is the allocated manufacturing overhead? 3.Is manufacturing overhead underallocated or overallocated? By how much?

Which of the following accounts would be debited in the journal entry to record the issuance of direct materials?

Both job order and process costing systems use a four-step method to track product costs.List each of the four steps.

Adelphia Manufacturing issued $75,000 of direct materials and $8,000 of indirect materials for production.Which of the following journal entries would correctly record the transaction?

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