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

Clinton Manufacturing uses a predetermined overhead allocation rate based on direct labor costs.The following are the details of production during the year: $$\begin{array} { | l | l | } 
\hline \begin{array} { l } 
\text { Total manufacturing overhead costs estimated at the beginning } \
\text { of the year }
\end{array} & \$ 150,000 \
\hline \text { Total direct labor costs estimated at the beginning of the year } & \$ 350,000 \
\hline \text { Total direct labor hours estimated at the beginning of the year } & 11,000 \text { direct labor hours } \
\hline \text { Actual manufacturing overhead costs for the year } & \$ 160,000 \
\hline \text { Actual direct labor costs for the year } & \$ 360,000 \
\hline \text { Actual direct labor hours for the year } & 12,400 \text { direct labor hours } \
\hline
\end{array}$$ Calculate the amount of manufacturing overhead costs allocated to production.(Round any percentages to two decimal places and your final answer to the nearest dollar.)

Accepted Answer

A)  $150,000 
B)  $164,571 
C)  $154,296 
D)  $160,000 
A)  $150,000 
B)  $164,571 
C)  $154,296 
D)  $160,000 C

Question 3

Baptiste Accounting Services expects its accountants to work a total of 30,000 direct labor hours per year.The company's estimated total indirect costs are $152,000.The direct labor rate is $104 per hour.The company uses direct labor hours as the allocation base for indirect costs.If Baptiste performs a job requiring 52 hours of direct labor and bills the client using a standard markup of 40% of costs,calculate the amount of the client's bill.(Round any intermediate calculations to the nearest cent,and your final answer to the nearest dollar.)

Accepted Answer

A)  $5408 
B)  $216,320 
C)  $2269 
D)  $7940 
A)  $5408 
B)  $216,320 
C)  $2269 
D)  $7940 D

Question 4

Hosanna Furnishings finished Job A40,which involved $4,000 of direct materials and $600 of direct labor.Hosanna uses a predetermined overhead allocation rate based on 40% of direct labor costs.Provide the journal entry needed to record the completion of the job.Omit explanation.

Accepted Answer

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Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

On June 30,Coral,Inc.finished Job 750 with total job costs of $4700,and transferred the costs to Finished Goods Inventory.On July 6,Coral sold goods to a customer for $5000 cash.Which of the following is the correct journal entry to record the cost of goods sold? Assume the perpetual inventory system is used.

Accepted Answer

A)  debit Finished Goods Inventory $4700 and credit Cost of Goods Sold $4700 
B)  debit Cost of Goods Sold $4700 and credit Work-in-Process Inventory $4700 
C)  debit Work-in-Process Inventory $4700 and credit Cost of Goods Sold $4700 
D)  debit Cost of Goods Sold $4700 and credit Finished Goods Inventory $4700 
A)  debit Finished Goods Inventory $4700 and credit Cost of Goods Sold $4700 
B)  debit Cost of Goods Sold $4700 and credit Work-in-Process Inventory $4700 
C)  debit Work-in-Process Inventory $4700 and credit Cost of Goods Sold $4700 
D)  debit Cost of Goods Sold $4700 and credit Finished Goods Inventory $4700

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

When goods are transferred from the Work-in-Process Inventory account to the Finished Goods Inventory account,________.

Accepted Answer

A)  total assets and total liabilities increase by the same amount 
B)  total assets of the company remain constant 
C)  total equity and total assets increase by the same amount 
D)  total liabilities increase and total equity decreases by the same amount 
A)  total assets and total liabilities increase by the same amount 
B)  total assets of the company remain constant 
C)  total equity and total assets increase by the same amount 
D)  total liabilities increase and total equity decreases by the same amount

Question 9

Specialty Wood Products,Inc.had the following manufacturing labor costs last month:
 $$\begin{array} { | l | r | } 
\hline \text { Woodworkers' wages } & \$ 100,000 \
\hline \text { Indirect laborers' wages } & 20,000 \
\hline \text { Maintenance personnel wages } & 10,000 \
\hline
\end{array}$$ Provide the journal entry to record the labor costs incurred,which will be paid at a later date.Omit explanation.

Accepted Answer

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\hlin

Question 10

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 11

Jezebel,Inc.completed Job 12 and several other jobs in the last week.The cost details of Job 12 are shown below. $$\begin{array} { | l | l | } 
\hline \text { Direct labor cost } & \$ 820 \
\hline \text { Direct materials cost } & \$ 120 \
\hline \text { Machine hours } & 6 \text { hours } \
\hline \text { Direct labor hours } & 17 \text { hours } \
\hline \text { Predetermined overhead allocation rate per machine hour } & \$ 85 \
\hline \text { Number of units of finished product } & 22 \text { units } \
\hline
\end{array}$$ What is the cost per unit of finished product produced under Job 12? (Round your answer to the nearest cent.)

Accepted Answer

A)  $42.73 
B)  $65.91 
C)  $85.29 
D)  $108.41 
A)  $42.73 
B)  $65.91 
C)  $85.29 
D)  $108.41

Question 12

Job order costing is well suited for the service industry.

Accepted Answer

A) True 
 B)False

Question 13

The records at Smith and Jones,Inc.show that Job 110 is charged with $10,000 of direct materials and $13,000 of direct labor.Smith and Jones,Inc.allocate manufacturing overhead at 80% of direct labor cost.What is the total cost of Job No.110?

Accepted Answer

A)  $31,000 
B)  $33,400 
C)  $23,000 
D)  $13,000 
A)  $31,000 
B)  $33,400 
C)  $23,000 
D)  $13,000

Question 14

Zephyros Corporation had estimated manufacturing overhead costs for the coming year to be $303,000.The total estimated direct labor hours and machine hours for the coming year are 7000 and 12,000,respectively.Manufacturing overhead costs are allocated based on direct labor hours.What is the predetermined overhead allocation rate? (Round your answer to the nearest cent.)

Accepted Answer

A)  $25.25 per machine hour 
B)  $15.95 per direct labor hour 
C)  $43.29 per direct labor hour 
D)  $1.71 per machine hour 
A)  $25.25 per machine hour 
B)  $15.95 per direct labor hour 
C)  $43.29 per direct labor hour 
D)  $1.71 per machine hour

Question 15

On June 1,Dalton Productions had beginning balances as shown in the T-accounts below.         During June,the following transaction took place:
June 2: Issued $2200 of direct materials and $700 of indirect materials to production.
What was the balance in the Manufacturing Overhead account following this transaction?

Accepted Answer

A)  $43,900 
B)  $43,200 
C)  $41,700 
D)  $41,000 
A)  $43,900 
B)  $43,200 
C)  $41,700 
D)  $41,000

Question 16

If the debit side of the Manufacturing Overhead account totals more than the credit side of the account,the manufacturing overhead is overallocated.

Accepted Answer

A) True 
 B)False

Question 17

The journal entry for adjustment of underallocated manufacturing overhead includes a ________.

Accepted Answer

A)  credit to Finished Goods Inventory 
B)  credit to Manufacturing Overhead 
C)  debit to Work-in-Process Inventory 
D)  credit to Cost of Goods Sold 
A)  credit to Finished Goods Inventory 
B)  credit to Manufacturing Overhead 
C)  debit to Work-in-Process Inventory 
D)  credit to Cost of Goods Sold

Question 18

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.Omit explanation.

Accepted Answer

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\hlin

Question 19

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. @#LAT-DLM& 2.Assi

Question 20

The entry to record the purchase of raw materials on account would include a ________.

Accepted Answer

A)  debit to the Raw Materials Inventory account 
B)  debit to the Work-in-Process Inventory account 
C)  credit to the Work-in-Process Inventory account 
D)  credit to the Raw Materials Inventory account 
A)  debit to the Raw Materials Inventory account 
B)  debit to the Work-in-Process Inventory account 
C)  credit to the Work-in-Process Inventory account 
D)  credit to the Raw Materials Inventory account

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.

Hosanna Furnishings finished Job A40,which involved $4,000 of direct materials and $600 of direct labor.Hosanna uses a predetermined overhead allocation rate based on 40% of direct labor costs.Provide the journal entry needed to record the completion of the job.Omit explanation.

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

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

When goods are transferred from the Work-in-Process Inventory account to the Finished Goods Inventory account,________.

Specialty Wood Products,Inc.had the following manufacturing labor costs last month: Woodworkers' wages \ 100,000 Indirect laborers' wages 20,000 Maintenance personnel wages 10,000 Provide the journal entry to record the labor costs incurred,which will be paid at a later date.Omit explanation.

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

Job order costing is well suited for the service industry.

The records at Smith and Jones,Inc.show that Job 110 is charged with $10,000 of direct materials and $13,000 of direct labor.Smith and Jones,Inc.allocate manufacturing overhead at 80% of direct labor cost.What is the total cost of Job No.110?

If the debit side of the Manufacturing Overhead account totals more than the credit side of the account,the manufacturing overhead is overallocated.

The journal entry for adjustment of underallocated manufacturing overhead includes a ________.

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

The entry to record the purchase of raw materials on account would include a ________.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets,natural Resources,and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

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.

Hosanna Furnishings finished Job A40,which involved $4,000 of direct materials and $600 of direct labor.Hosanna uses a predetermined overhead allocation rate based on 40% of direct labor costs.Provide the journal entry needed to record the completion of the job.Omit explanation.

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

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

When goods are transferred from the Work-in-Process Inventory account to the Finished Goods Inventory account,________.

Specialty Wood Products,Inc.had the following manufacturing labor costs last month: Woodworkers' wages \ 100,000 Indirect laborers' wages 20,000 Maintenance personnel wages 10,000 Provide the journal entry to record the labor costs incurred,which will be paid at a later date.Omit explanation.

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

Job order costing is well suited for the service industry.

The records at Smith and Jones,Inc.show that Job 110 is charged with $10,000 of direct materials and $13,000 of direct labor.Smith and Jones,Inc.allocate manufacturing overhead at 80% of direct labor cost.What is the total cost of Job No.110?

If the debit side of the Manufacturing Overhead account totals more than the credit side of the account,the manufacturing overhead is overallocated.

The journal entry for adjustment of underallocated manufacturing overhead includes a ________.

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

The entry to record the purchase of raw materials on account would include a ________.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Plant Assets,natural Resources,and Intangibles

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

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