Question 1

Nonmanufacturing costs are generally classified into two categories: selling and administrative.

Accepted Answer

A) True 
 B)False

Question 2

The Thomlin Company forecasts that total overhead for the current year will be $15,500,000 with 250,000 total machine hours.Year to date,the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours.The predetermined overhead rate based on machine hours is

Accepted Answer

A)  $48 per machine hour 
B)  $62 per machine hour 
C)  $45 per machine hour 
D)  $50 per machine hour 
A)  $48 per machine hour 
B)  $62 per machine hour 
C)  $45 per machine hour 
D)  $50 per machine hour

Question 3

What is the ending balance of Finished Goods for Adams Company at the end of the first quarter?

Accepted Answer

A)  $456 
B)  $1,067 
C)  $1,685 
D)  $2,752 
A)  $456 
B)  $1,067 
C)  $1,685 
D)  $2,752

Question 4

Costs that are treated as assets until the product is sold are

Accepted Answer

A)  product costs 
B)  period costs 
C)  conversion costs 
D)  selling expenses 
A)  product costs 
B)  period costs 
C)  conversion costs 
D)  selling expenses

Question 5

A manufacturer may employ a job order cost system for some of its products and a process cost system for others.

Accepted Answer

A) True 
 B)False

Question 6

Generally accepted accounting principles require companies to use only one factory overhead rate for product costing.

Accepted Answer

A) True 
 B)False

Question 7

The direct labor and overhead costs of providing services to clients are accumulated in a work in process account.

Accepted Answer

A) True 
 B)False

Question 8

The following budget data are available for Sharp Company: ​
  If factory overhead is to be applied based on direct labor dollars,the predetermined overhead rate is

Accepted Answer

A)  199% 
B)  196% 
C)  $14.92 
D)  $15.65 
A)  199% 
B)  196% 
C)  $14.92 
D)  $15.65

Question 9

Match each of the following phrases with the term (a-e)that it most closely describes it.Each term will be used only once.​
-prepared when materials that have been ordered are received and inspected

Accepted Answer

A) job cost sheets 
B) materials requisitions 
C) receiving report 
D) time tickets 
E) cost allocation 
A) job cost sheets 
B) materials requisitions 
C) receiving report 
D) time tickets 
E) cost allocation

Question 10

Which of the following is not a characteristic of a job order costing system?

Accepted Answer

A)  It accumulates cost for each department within the factory. 
B)  It provides a separate record for the cost of each quantity of product that passes through the factory. 
C)  It is best suited for industries that manufacture custom goods. 
D)  It uses only one work in process account. 
A)  It accumulates cost for each department within the factory. 
B)  It provides a separate record for the cost of each quantity of product that passes through the factory. 
C)  It is best suited for industries that manufacture custom goods. 
D)  It uses only one work in process account.

Question 11

Interim financial statements for a manufacturing business would report overapplied factory overhead as a deferred item on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 12

What is the gross profit for Adams Company at the end of the first quarter?

Accepted Answer

A)  $1,685 
B)  $2,685 
C)  $1,000 
D)  $685 
A)  $1,685 
B)  $2,685 
C)  $1,000 
D)  $685

Question 13

On the balance sheet for a manufacturing business,the cost of direct materials,direct labor,and factory overhead,which have entered into the manufacturing process but are associated with products that have not been finished,are reported as direct materials inventory.

Accepted Answer

A) True 
 B)False

Question 14

The period costs of a textbook printer would include

Accepted Answer

A)  wages of a press operator 
B)  factory insurance costs 
C)  CEO salary expense 
D)  paper costs 
A)  wages of a press operator 
B)  factory insurance costs 
C)  CEO salary expense 
D)  paper costs

Question 15

Flagler Company allocates overhead based on machine hours.It estimated overhead costs for the year to be $420,000.Estimated machine hours were 50,000.Actual hours and costs for the year were 46,000 machine hours and $380,000 of overhead.
​
(a)Calculate the overhead application rate for the year.
(b)What is the amount of applied overhead for the year?
(c)What is the amount of under or overapplied overhead for the year? Indicate whether it is over or underapplied.

Accepted Answer

(a)$420,000 / 50,000 = $8.40 p

Question 16

The document that serves as the basis for recording direct labor on a job cost sheet is the time ticket.

Accepted Answer

A) True 
 B)False

Question 17

The balance of Material Q on May 1 and the receipts and issuances during May are as follows:
​
   Determine the cost of each of the issuances under a perpetual system,using the FIFO method.

Accepted Answer

The answer of The balance of Material Q on May...

Question 18

On November 14,the Milling Department accepted Job 111407A for 1,000 pounds of cereal mix.
​
   Overhead is applied at $5.75 per pound completed.The recipe produced 1,025 pounds of cereal mix.

Accepted Answer

(a)Nov.14 Work in Process 1,478.00 Mater

Question 19

Prepare the journal entry for materials and labor,based on the following:
​
Raw materials issued: Job No.609,$850; for general use in factory,$600
Labor time tickets: Job No.609,$1,600; $400 for supervision​

Accepted Answer

The answer of Prepare the journal entry for materials and...

Question 20

The current year's advertising costs are normally considered period costs.

Accepted Answer

A) True 
 B)False

Exam 16: Job Order Costing

Nonmanufacturing costs are generally classified into two categories: selling and administrative.

The Thomlin Company forecasts that total overhead for the current year will be $15,500,000 with 250,000 total machine hours.Year to date,the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours.The predetermined overhead rate based on machine hours is

What is the ending balance of Finished Goods for Adams Company at the end of the first quarter?

Costs that are treated as assets until the product is sold are

A manufacturer may employ a job order cost system for some of its products and a process cost system for others.

Generally accepted accounting principles require companies to use only one factory overhead rate for product costing.

The direct labor and overhead costs of providing services to clients are accumulated in a work in process account.

The following budget data are available for Sharp Company: ​ If factory overhead is to be applied based on direct labor dollars,the predetermined overhead rate is

Match each of the following phrases with the term (a-e)that it most closely describes it.Each term will be used only once.​ -prepared when materials that have been ordered are received and inspected

Which of the following is not a characteristic of a job order costing system?

Interim financial statements for a manufacturing business would report overapplied factory overhead as a deferred item on the balance sheet.

What is the gross profit for Adams Company at the end of the first quarter?

On the balance sheet for a manufacturing business,the cost of direct materials,direct labor,and factory overhead,which have entered into the manufacturing process but are associated with products that have not been finished,are reported as direct materials inventory.

The period costs of a textbook printer would include

The document that serves as the basis for recording direct labor on a job cost sheet is the time ticket.

The balance of Material Q on May 1 and the receipts and issuances during May are as follows: ​ Determine the cost of each of the issuances under a perpetual system,using the FIFO method.

On November 14,the Milling Department accepted Job 111407A for 1,000 pounds of cereal mix. ​ Overhead is applied at $5.75 per pound completed.The recipe produced 1,025 pounds of cereal mix.

Prepare the journal entry for materials and labor,based on the following: ​ Raw materials issued: Job No.609,$850; for general use in factory,$600 Labor time tickets: Job No.609,$1,600; $400 for supervision​

The current year's advertising costs are normally considered period costs.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current,installment Notes,and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Process Cost Systems

Activity-Based Costing

Cost-Volume-Profit Analysis

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

Filters

The following budget data are available for Sharp Company: If factory overhead is to be applied based on direct labor dollars,the predetermined overhead rate is

Match each of the following phrases with the term (a-e)that it most closely describes it.Each term will be used only once. -prepared when materials that have been ordered are received and inspected

The balance of Material Q on May 1 and the receipts and issuances during May are as follows: Determine the cost of each of the issuances under a perpetual system,using the FIFO method.

On November 14,the Milling Department accepted Job 111407A for 1,000 pounds of cereal mix. Overhead is applied at $5.75 per pound completed.The recipe produced 1,025 pounds of cereal mix.

Prepare the journal entry for materials and labor,based on the following: Raw materials issued: Job No.609,$850; for general use in factory,$600 Labor time tickets: Job No.609,$1,600; $400 for supervision