Question 1

When direct materials are received on the production floor,they are recorded on the job cost record.

Accepted Answer

A) True 
 B)False

Question 2

At the end of the year,Beta,Inc.has an unadjusted debit balance in the Manufacturing Overhead account of $3,990.The adjusting journal entry needed to adjust the balance to zero will include a ________.

Accepted Answer

A)  debit to Cost of Goods Sold $3,990 and credit to Manufacturing Overhead $3,990 
B)  debit to Manufacturing Overhead $3,990 and credit to Cost of Goods Sold $3,990 
C)  debit to Work-in-Process Inventory $3,990 and credit to Manufacturing Overhead $3,990 
D)  debit to Gross Profit $3,990 and credit to Cost of Goods Sold $3,990 
A)  debit to Cost of Goods Sold $3,990 and credit to Manufacturing Overhead $3,990 
B)  debit to Manufacturing Overhead $3,990 and credit to Cost of Goods Sold $3,990 
C)  debit to Work-in-Process Inventory $3,990 and credit to Manufacturing Overhead $3,990 
D)  debit to Gross Profit $3,990 and credit to Cost of Goods Sold $3,990

Question 3

Uniq Works purchased raw materials amounting to $122,000 on account and $20,000 for cash.The materials will be used to manufacture upholstery for furniture manufacturers on a contract basis.Which of the following journal entries correctly records this transaction?

Accepted Answer

A)  $$\begin{array} { | c | r | r | } 
\hline \text { Accounts Payable } & 122,000 & \
\hline \text { Cash } & 20,000 & \
\hline \text { Raw Materials Inventory } & & 142,000 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | c | r | r | } 
\hline \text { Finished Goods Inventory } & 142,000 & \
\hline \text { Accounts Payable } & & 142,000 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | c | r | r | } 
\hline \text { Work-in-Process Inventory } & 142,000 & \
\hline \text { Accounts Payable } & & 142,000 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Raw Materials Inventory } & 142,000 & \
\hline \text { Cash } & & 20,000 \
\hline \text { Accounts Payable } & & 122,000 \
\hline
\end{array}$$ 
A)  $$\begin{array} { | c | r | r | } 
\hline \text { Accounts Payable } & 122,000 & \
\hline \text { Cash } & 20,000 & \
\hline \text { Raw Materials Inventory } & & 142,000 \
\hline
\end{array}$$ 
B)  $$\begin{array} { | c | r | r | } 
\hline \text { Finished Goods Inventory } & 142,000 & \
\hline \text { Accounts Payable } & & 142,000 \
\hline
\end{array}$$ 
C)  $$\begin{array} { | c | r | r | } 
\hline \text { Work-in-Process Inventory } & 142,000 & \
\hline \text { Accounts Payable } & & 142,000 \
\hline
\end{array}$$ 
D)  $$\begin{array} { | l | r | r | } 
\hline \text { Raw Materials Inventory } & 142,000 & \
\hline \text { Cash } & & 20,000 \
\hline \text { Accounts Payable } & & 122,000 \
\hline
\end{array}$$

Question 4

Bacon Financial Advisors provides accounting and finance assistance to customers in the retail business.Bacon has four professionals on staff and an office with six clerical staff.Total compensation,including benefits,for the professional staff runs about $574,000 per year,and normal billable hours are 8,300 hours per year.The professional staff keep detailed time sheets organized by client number.The total office and administrative costs for the year are $754,000.What is the direct labor rate for the professional staff? (Round your answer to the nearest cent.)

Accepted Answer

A)  $90.84 per hour 
B)  $21.69 per hour 
C)  $69.16 per hour 
D)  $160.00 per hour 
A)  $90.84 per hour 
B)  $21.69 per hour 
C)  $69.16 per hour 
D)  $160.00 per hour

Question 5

Gill Manufacturing uses a predetermined overhead allocation rate based on a percentage of direct labor cost.At the beginning of the year,Gill estimated total manufacturing overhead costs at $1,050,000 and total direct labor costs at $820,000.In June,Gill completed Job 511.The details of Job 511 are shown below.(Round to 2 decimal places.) $$\begin{array} { | l | r | } 
\hline \text { Direct materials cost } & \$ 26,500 \
\hline \text { Direct labor cost } & \$ 10,000 \
\hline \text { Direct labor hours } & 300 \text { hours } \
\hline \text { Units of product produced } & 200 \text { units } \
\hline
\end{array}$$
 How much was the total job cost of Job 511? (Round any percentages to two decimal places and your final answer to the nearest dollar.)

Accepted Answer

A)  $36,884 
B)  $49,300 
C)  $70,420 
D)  $36,756 
A)  $36,884 
B)  $49,300 
C)  $70,420 
D)  $36,756

Question 6

Melinda,Inc.estimates manufacturing overhead costs for the coming year at $225,000,which will be allocated based on direct labor hours.Melinda estimates 9,000 direct labor hours for the coming year.In January,Job A33 was completed,which required 8 direct labor hours and 34 machine hours.Provide the journal entry to allocate manufacturing overhead to the job.

Accepted Answer

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

Question 7

When raw materials are requisitioned for a job,the Raw Materials Inventory account is debited.

Accepted Answer

A) True 
 B)False

Question 8

Neptune Fabrication Plant has provided you with the following information:   The company bases its manufacturing overhead allocation on direct labor hours.What was the unadjusted ending balance in the Manufacturing Overhead account?

Accepted Answer

A)  $19,767 credit balance 
B)  $19,767 debit balance 
C)  $11,600 credit balance 
D)  $11,600 debit balance 
A)  $19,767 credit balance 
B)  $19,767 debit balance 
C)  $11,600 credit balance 
D)  $11,600 debit balance

Question 9

Accounting firms,building contractors,and healthcare providers use process costing.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

Manufacturing overhead is over

When direct materials are received on the production floor,they are recorded on the job cost record.

At the end of the year,Beta,Inc.has an unadjusted debit balance in the Manufacturing Overhead account of $3,990.The adjusting journal entry needed to adjust the balance to zero will include a ________.

Uniq Works purchased raw materials amounting to $122,000 on account and $20,000 for cash.The materials will be used to manufacture upholstery for furniture manufacturers on a contract basis.Which of the following journal entries correctly records this transaction?

When raw materials are requisitioned for a job,the Raw Materials Inventory account is debited.

Neptune Fabrication Plant has provided you with the following information: The company bases its manufacturing overhead allocation on direct labor hours.What was the unadjusted ending balance in the Manufacturing Overhead account?

Accounting firms,building contractors,and healthcare providers use process costing.

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

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 direct materials are received on the production floor,they are recorded on the job cost record.

At the end of the year,Beta,Inc.has an unadjusted debit balance in the Manufacturing Overhead account of $3,990.The adjusting journal entry needed to adjust the balance to zero will include a ________.

Uniq Works purchased raw materials amounting to $122,000 on account and $20,000 for cash.The materials will be used to manufacture upholstery for furniture manufacturers on a contract basis.Which of the following journal entries correctly records this transaction?

When raw materials are requisitioned for a job,the Raw Materials Inventory account is debited.

Neptune Fabrication Plant has provided you with the following information: The company bases its manufacturing overhead allocation on direct labor hours.What was the unadjusted ending balance in the Manufacturing Overhead account?

Accounting firms,building contractors,and healthcare providers use process costing.

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

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