Irene Manufacturing uses a predetermined overhead allocation rate based on direct labor cost.At the beginning of the year,the company estimated total manufacturing overhead costs at $1,020,000 and total direct labor costs at $820,000.In June,Job 711 was completed.The details of Job 711 are shown below. \[\begin{array} { | l | l | } \hline \text { Direct materials cost } & \$ 21,500 \\ \hline \text { Direct labor cost } & \$ 10,000 \\ \hline \text { Direct labor hours } & 400 \text { hours } \\ \hline \text { Units of product produced } & 200 \text { units } \\ \hline \end{array}\] How much was the cost per unit of finished product? (Round any percentages to two decimal places and your final answer to the nearest cent.)

A) $157.50 B) $197.70 C) $169.70 D) $219.70 A) $157.50 B) $197.70 C) $169.70 D) $219.70

Jupiter Manufacturing began business on January 1.During its first year of operation,Jupiter worked on five industrial jobs and reported the following information at year-end: \[\begin{array} { | l | r | r | r | r | r | } \hline & \text { Job 1 } & \text { Job 2 } & \text { Job 3 } & \text { Job 4 } & \text { Job 5 } \\ \hline \text { Direct Materials } & \$ 1,000 & \$ 7,500 & \$ 4,000 & \$ 3,500 & \$ 1700 \\ \hline \text { Direct Labor } & 12,000 & 20,000 & 13,000 & 12,000 & 700 \\ \hline \text { Allocated Mfg. Overhead } & 1,500 & 6,000 & 2,500 & 7,500 & 400 \\ \hline & & & & & \text { Not } \\ \text { Job completed: } & \text { Jun 30 } & \text { Sep 1 } & \text { Oct 15 } & \text { Nov 1 } & \text { completed } \\ \hline \text { Job sold: } & \text { Jul 10 } & \text { Sep 12 } & \text { Not sold } & \text { Not sold } & \text { N/A } \\ \hline \text { Revenues: } & \$ 25,000 & \$ 39,000 & \text { N/A } & \text { N/A } & \text { N/A } \\ \hline \end{array}\] What was the balance in Work-in-Process Inventory at year-end?

A) $2800 B) $2400 C) $2100 D) $1100 A) $2800 B) $2400 C) $2100 D) $1100

Gill Manufacturing uses a predetermined overhead allocation rate based on direct labor cost.At the beginning of the year,Gill estimated total manufacturing overhead costs at $1,030,000 and total direct labor costs at $830,000.In June,Gill completed Job 511.The details of Job 511 are shown below. \[\begin{array} { | l | l | } \hline \text { Direct materials cost } & \$ 23,500 \\ \hline \text { Direct labor cost } & \$ 13,000 \\ \hline \text { Direct labor hours } & 300 \text { hours } \\ \hline \text { Units of product produced } & 400 \text { units } \\ \hline \end{array}\] 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.)

A) $36,872 B) $52,633 C) $65,664 D) $36,996 A) $36,872 B) $52,633 C) $65,664 D) $36,996

Venus Manufacturing uses a predetermined overhead allocation rate based on direct labor cost.At the beginning of the year,it estimated the manufacturing overhead rate to be 20% of the direct labor cost.In the month of June,Venus completed Job 13C and its details are as follows: \[\begin{array} { | l | l | } \hline \text { Direct materials cost } & \$ 6360 \\ \hline \text { Direct labor cost } & \$ 20,000 \\ \hline \text { Direct labor hours } & 34 \text { hours } \\ \hline \text { Units of product produced } & 220 \\ \hline \end{array}\] What is the total cost incurred for Job 13C?

A) $27,632 B) $24,000 C) $10,360 D) $30,360 A) $27,632 B) $24,000 C) $10,360 D) $30,360

Exam 19: Job Order Costing

Irene Manufacturing uses a predetermined overhead allocation rate based on direct labor cost.At the beginning of the year,the company estimated total manufacturing overhead costs at $1,020,000 and total direct labor costs at $820,000.In June,Job 711 was completed.The details of Job 711 are shown below. Direct materials cost \ 21,500 Direct labor cost \ 10,000 Direct labor hours 400 hours Units of product produced 200 units How much was the cost per unit of finished product? (Round any percentages to two decimal places and your final answer to the nearest cent.)

(Multiple Choice)

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Question 101

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

(Multiple Choice)

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Question 102

The information from a cost accounting system allows managers to make decisions about planning and directing,but not about controlling.

(True/False)

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Question 103

The costs transferred from Work-in-Process Inventory to Finished Goods Inventory are called Cost of Goods Manufactured.

(True/False)

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Question 104

The total amount of manufacturing overhead costs incurred during the period is recorded on the credit side of the Manufacturing Overhead account.

(True/False)

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Question 105

Jupiter Manufacturing began business on January 1.During its first year of operation,Jupiter worked on five industrial jobs and reported the following information at year-end: Job 1 Job 2 Job 3 Job 4 Job 5 Direct Materials \ 1,000 \ 7,500 \ 4,000 \ 3,500 \ 1700 Direct Labor 12,000 20,000 13,000 12,000 700 Allocated Mfg. Overhead 1,500 6,000 2,500 7,500 400 Not Job completed: Jun 30 Sep 1 Oct 15 Nov 1 completed Job sold: Jul 10 Sep 12 Not sold Not sold N/A Revenues: \ 25,000 \ 39,000 N/A N/A N/A What was the balance in Work-in-Process Inventory at year-end?

(Multiple Choice)

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Question 106

Gill Manufacturing uses a predetermined overhead allocation rate based on direct labor cost.At the beginning of the year,Gill estimated total manufacturing overhead costs at $1,030,000 and total direct labor costs at $830,000.In June,Gill completed Job 511.The details of Job 511 are shown below. Direct materials cost \ 23,500 Direct labor cost \ 13,000 Direct labor hours 300 hours Units of product produced 400 units 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.)

(Multiple Choice)

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Question 107

Manufacturing overhead is allocated by debiting the Finished Goods Inventory account.

(True/False)

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Question 108

During the year,a company incurred $520,000 of manufacturing overhead costs and allocated $480,000 of manufacturing overhead costs.At year-end,the adjustment entry needed to adjust the Manufacturing Overhead account balance to zero will include a debit to Cost of Goods Sold.

(True/False)

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Question 109

The cost of goods manufactured is recorded with a debit to the Finished Goods Inventory account and a credit to the Work-in-Process Inventory account.

(True/False)

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Question 110

Costs identified as indirect labor should be charged to ________.

(Multiple Choice)

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Question 111

A major purpose of a cost accounting system is to

(Multiple Choice)

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Question 112

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

(True/False)

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Question 113

Brink Financial Advisors provides accounting and finance assistance to customers in the retail business.Brink has four professionals on staff,plus an office with six clerical staff.Total compensation,including benefits,for the professional staff runs up to $800,000 per year,and normal billable hours are about 3300 billable hours per year.The professional staff keep detailed time sheets organized by client number.The total office and administrative costs for the year are $270,000. Brink allocates office and administrative costs to clients monthly,using a predetermined overhead allocation rate based on billable hours.During July,Brink's professionals spent 42 hours on their client,Waseca Sales.Brink adds a 30% markup on its costs to calculate the amount billed to the customer.How much gross profit did Brink earn from Waseca Sales in July? (Round any intermediate calculations to two decimal places,and your final answer to the nearest whole number.)

(Multiple Choice)

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Question 114

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

(True/False)

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Question 115

Littleton Promotional Services uses a job order system for costing and billing promotional services for dance and ballet performances.Littleton has four public relations specialists and office staff.At the beginning of 2019,Littleton estimated the total cost of salaries and benefits for the public relations specialists at $680,000 and a total of 8000 billable hours for the year.The office and administrative costs were estimated at $408,000.The allocation base for office and administrative costs is billable hours.A new client is contracting with Littleton to promote a ballet tour in the United States.Littleton estimates that the job will require 38 billable hours of specialist time.If Littleton wishes to have a 20% mark up on cost on the job,what price should Littleton quote to the client?

(Multiple Choice)

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Question 116

Neptune Accounting Services expects its accountants to work for 24,000 direct labor hours per year.The company's estimated total indirect costs are $225,000.The direct labor rate is $70 per hour.The company uses direct labor hours as the allocation base for indirect costs.If Neptune performs a job requiring 30 hours of direct labor,what is the total job cost? (Round any intermediate calculations to the nearest cent,and your final answer to the nearest dollar.)

(Multiple Choice)

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Question 117

Venus Manufacturing uses a predetermined overhead allocation rate based on direct labor cost.At the beginning of the year,it estimated the manufacturing overhead rate to be 20% of the direct labor cost.In the month of June,Venus completed Job 13C and its details are as follows: Direct materials cost \ 6360 Direct labor cost \ 20,000 Direct labor hours 34 hours Units of product produced 220 What is the total cost incurred for Job 13C?

(Multiple Choice)

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Question 118

Lakeside,Inc.estimated manufacturing overhead costs for the year at $371,000,based on 181,000 estimated direct labor hours.Actual direct labor hours for the year totaled 196,000.The manufacturing overhead account contains debit entries totaling $392,000.The Manufacturing Overhead for the year was ________.(Round any intermediate calculations to two decimal places,and your final answer to the nearest dollar.)

(Multiple Choice)

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Question 119

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

(Multiple Choice)

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Question 120

Showing 101 - 120 of 191

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

The information from a cost accounting system allows managers to make decisions about planning and directing,but not about controlling.

The costs transferred from Work-in-Process Inventory to Finished Goods Inventory are called Cost of Goods Manufactured.

The total amount of manufacturing overhead costs incurred during the period is recorded on the credit side of the Manufacturing Overhead account.

Manufacturing overhead is allocated by debiting the Finished Goods Inventory account.

During the year,a company incurred $520,000 of manufacturing overhead costs and allocated $480,000 of manufacturing overhead costs.At year-end,the adjustment entry needed to adjust the Manufacturing Overhead account balance to zero will include a debit to Cost of Goods Sold.

The cost of goods manufactured is recorded with a debit to the Finished Goods Inventory account and a credit to the Work-in-Process Inventory account.

Costs identified as indirect labor should be charged to ________.

A major purpose of a cost accounting system is to

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

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?

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

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