Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

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 3

The accounts of Melissa Manufacturing showed the following balances at the beginning of December:
 
The following transactions took place during the month:
December 2: Issued direct materials $23,000 and indirect materials $6,000 to production.
December 15: Incurred $6,000 and $4,000 toward factory's direct labor cost and indirect labor cost,respectively.
What should be the balance in the Work-in-Process Inventory following these transactions?

Accepted Answer

A) $105,000 
B) $82,000 
C) $59,000 
D) $80,000 
A) $105,000 
B) $82,000 
C) $59,000 
D) $80,000

Question 4

During the year,a company incurred $500,000 of manufacturing overhead costs and allocated $510,000 of manufacturing overhead costs.At the year-end,the adjustment entry needed to adjust the Manufacturing Overhead account balance to zero will include a debit to Cost of Goods Sold.

Accepted Answer

A) True 
 B)False

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. )
 
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

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.

Accepted Answer

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Explanati

Question 7

Define a process costing system and list two types of businesses that would use a process costing system.

Accepted Answer

A process costing system is an accountin

Question 8

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 9

On January 1,Alistair Manufacturing had a beginning balance in Work-in-Process Inventory of $160,000 and a beginning balance in Finished Goods Inventory of $24,000.During the year,Alistair incurred manufacturing costs of $202,000.
During the year,the following transactions occurred:
Job C-62 was completed for a total cost of $141,000 and was sold for $157,000.
Job C-63 was completed for a total cost of $183,000 and was sold for $210,000.
Job C-64 was completed for a total cost $81,000 but was not sold as of year-end.
The Manufacturing Overhead account had an unadjusted credit balance of $24,000 and was adjusted to zero at year-end.
What was the amount of gross profit reported by Alistair at the end of the year?

Accepted Answer

A) $43,000 
B) $67,000 
C) $16,000 
D) $27,000 
A) $43,000 
B) $67,000 
C) $16,000 
D) $27,000

Question 10

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) 
  
B) 
  
C) 
  
D) 
  
A) 
  
B) 
  
C) 
  
D)

Question 11

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 12

Which of the following will be debited to the Manufacturing Overhead account of a watch manufacturer?

Accepted Answer

A) office telephone costs 
B) salaries paid to accountants 
C) factory electricity costs 
D) cost of printing brochures 
A) office telephone costs 
B) salaries paid to accountants 
C) factory electricity costs 
D) cost of printing brochures

Question 13

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 14

A job order costing system is used by companies that manufacture batches of unique products or provide specialized services.

Accepted Answer

A) True 
 B)False

Question 15

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

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

The predetermined overhead allocation rate is calculated by dividing ________.

Accepted Answer

A) the total estimated overhead costs by total number of days in a year 
B) the estimated amount of cost driver by actual total overhead costs 
C) the actual overhead costs by actual amount of the cost driver or allocation base 
D) the estimated overhead costs by total estimated quantity of the overhead allocation base 
A) the total estimated overhead costs by total number of days in a year 
B) the estimated amount of cost driver by actual total overhead costs 
C) the actual overhead costs by actual amount of the cost driver or allocation base 
D) the estimated overhead costs by total estimated quantity of the overhead allocation base

Question 18

When goods are transferred from the Finished Goods Inventory account to the Cost of Goods Sold account,the product costs move from the balance sheet to the income statement.

Accepted Answer

A) True 
 B)False

Question 19

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 20

At the beginning of the year,Springfield Manufacturing had the following account balances:

The following additional details are provided for the year:
 
After recording all these transactions and adjusting for the over/underallocated overhead,the ending balance in the Cost of Goods Sold account is a ________.

Accepted Answer

A) debit of $430,700 
B) debit of $454,700 
C) credit of $454,700 
D) debit of $442,700 
A) debit of $430,700 
B) debit of $454,700 
C) credit of $454,700 
D) debit of $442,700

Exam 19: Job Order Costing

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

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?

During the year,a company incurred $500,000 of manufacturing overhead costs and allocated $510,000 of manufacturing overhead costs.At the year-end,the adjustment entry needed to adjust the Manufacturing Overhead account balance to zero will include a debit to Cost of Goods Sold.

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.

Define a process costing system and list two types of businesses that would use a process costing system.

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?

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?

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

Which of the following will be debited to the Manufacturing Overhead account of a watch manufacturer?

A job order costing system is used by companies that manufacture batches of unique products or provide specialized services.

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

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

The predetermined overhead allocation rate is calculated by dividing ________.

When goods are transferred from the Finished Goods Inventory account to the Cost of Goods Sold account,the product costs move from the balance sheet to the income statement.

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 ________.

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