Question 1

Which of the following is NOT on a time ticket?

Accepted Answer

A) employee's name 
B) employee's wage rate 
C) hours worked on each job 
D) cost of materials 
A) employee's name 
B) employee's wage rate 
C) hours worked on each job 
D) cost of materials

Question 2

Match each item with the correct statement below.
-Estimated overhead for a single department divided by the estimated activity level for that same department

Accepted Answer

A) Predetermined overhead rate 
B) Plantwide overhead rate 
C) Departmental overhead rate 
D) Overhead variance 
E) Overapplied overhead
F)Underapplied overhead
G)Applied overhead
H)Normal cost of goods sold 
A) Predetermined overhead rate 
B) Plantwide overhead rate 
C) Departmental overhead rate 
D) Overhead variance 
E) Overapplied overhead
F)Underapplied overhead
G)Applied overhead
H)Normal cost of goods sold

Question 3

Triple M Corporation manufactures module homes. Assume that Triple M uses a job costing system. During June of the current year, the following transactions occurred:
Triple M purchased $4,500 of lumber on account.
Triple M used $3,750 of lumber in production and incurred 50 hours of direct labour hours at $15 per hour.
Depreciation of $1,500 was recorded on equipment used to build houses.
A house that was completed last period at a cost of $150,000 was sold for $180,000 in cash.
-Refer to the Figure.What journal entry should be used to record the requisition of lumber for Triple M?

Accepted Answer

A) debit to work in process of $4,500 
B) debit to materials inventory of $3,750 
C) credit to finished goods of $3,750 
D) debit to work in process of $3,750 
A) debit to work in process of $4,500 
B) debit to materials inventory of $3,750 
C) credit to finished goods of $3,750 
D) debit to work in process of $3,750

Question 4

HiTech Housing uses job-order costing. At the end of the month, the following data were gathered:
HiTech Housing's selling price is cost plus 50% for each of its houses.
 $\begin{array}{lrrr}
\text { Job \# } & \text { Total Cost } & \text { Complete? } & \text { Sold? } \
529 & \$ 409 & \text { no } & \text { no } \
530 & \$ 513 & \text { yes } & \text { no }\
531 & \$ 115 & \text { no } & \text { no } \
532 & \$ 790 & \text { yes } & \text { yes } \
533 & \$ 650 & \text { yes } & \text { no } \
534 & \$ 540 & \text { no } & \text { no } \
535 & \$ 90 & \text { no } & \text { no } \
536 & \$ 970 & \text { yes } & \text { yes } \
537 & \$ 179 & \text { no } & \text { no } \
538 & \$ 400 & \text { no } & \text { no }
\end{array}$
-Refer to the Figure.What is the cost of goods sold for the month?

Accepted Answer

A) $1,163 
B) $1,733 
C) $1,760 
D) $2,640 
A) $1,163 
B) $1,733 
C) $1,760 
D) $2,640

Question 5

Which of the following is a production cost in an automobile manufacturing company?

Accepted Answer

A) salary of the Chief Executive Officer 
B) secretary of the controller's wages 
C) variable manufacturing overhead 
D) fixed selling costs 
A) salary of the Chief Executive Officer 
B) secretary of the controller's wages 
C) variable manufacturing overhead 
D) fixed selling costs

Question 6

A job costing $5,000 is completed.What journal entry is used to record this transaction?

Accepted Answer

A) Finished Goods 5,000Cost of Goods Sold 5,000 
B) Cost of Goods Sold 5,000Finished Goods 5,000 
C) Work in Process 5,000Finished Goods 5,000 
D) Finished Goods 5,000Work in Process 5,000 
A) Finished Goods 5,000Cost of Goods Sold 5,000 
B) Cost of Goods Sold 5,000Finished Goods 5,000 
C) Work in Process 5,000Finished Goods 5,000 
D) Finished Goods 5,000Work in Process 5,000

Question 7

Elegant Furnishings designs and builds upscale dining room tables for individual customers.On June 1,two jobs were in process: Braun with a beginning balance of $21,700; and Prince with a beginning balance of $8,790.Overhead costs are applied by using a rate of 70% of direct labour costs.Both jobs are unfinished at the end of June.Data on July costs for both jobs are as follows: Which of the following is the total of the work-in-process account at June 30?
$\begin{array}{lrr}&\text { Braun }& \text { Prince }\
\text { Direct Materials } & \$ 6,100 & \$ 10,200 \
\text { Direct Labour Cost } & 2,700 & 11,000
\end{array}$

Accepted Answer

A) $28,000 
B) $37,590 
C) $58,490 
D) $70,080 
A) $28,000 
B) $37,590 
C) $58,490 
D) $70,080

Question 8

Which of the following costs is included in labour cost flows?

Accepted Answer

A) direct labour cost 
B) indirect labour cost 
C) administration cost 
D) direct materials cost 
A) direct labour cost 
B) indirect labour cost 
C) administration cost 
D) direct materials cost

Question 9

Peterson Company has applied overhead of $75,000 and actual overhead of $87,600 for the month of October.It applies overhead on the basis of direct labour hours,which equalled 15,000 in October.Overhead for the year was estimated to be $925,000.What are the direct labour hours estimated for the year?

Accepted Answer

A) 150,000 
B) 170,000 
C) 175,200 
D) 185,000 
A) 150,000 
B) 170,000 
C) 175,200 
D) 185,000

Question 10

In job-order costing,the journal entry for a completed job costing $7,000 but NOT sold is:
 $\begin{array} { | l | l | l | } 
\hline 
\text { Finished Goods } & 7,000 \
\text { Work in Process }&& 7,000 \
\hline
\end{array}$

Accepted Answer

A) True 
 B)False

Question 11

Triple M Corporation manufactures module homes. Assume that Triple M uses a job costing system. During June of the current year, the following transactions occurred:
Triple M purchased $4,500 of lumber on account.
Triple M used $3,750 of lumber in production and incurred 50 hours of direct labour hours at $15 per hour.
Depreciation of $1,500 was recorded on equipment used to build houses.
A house that was completed last period at a cost of $150,000 was sold for $180,000 in cash.
-Refer to the Figure.Which of the following should be included in the journal entry to record labour for Triple M?

Accepted Answer

A) debit to finished goods of $750 
B) debit to wages payable of $750 
C) credit to finished goods of $750 
D) debit to work in process of $750 
A) debit to finished goods of $750 
B) debit to wages payable of $750 
C) credit to finished goods of $750 
D) debit to work in process of $750

Question 12

The use of normal costing means that actual overhead costs are NOT assigned directly to jobs.

Accepted Answer

A) True 
 B)False

Question 13

Steel Incorporated uses a job-order costing system and a predetermined overhead rate based on machine hours.
At the beginning of the year,the company estimated manufacturing overhead for the year would be $240,000 and machine hours would be 8,000.
The following information pertains to November of the current year:
December production activity:
 $\begin{array}{lrrrr} 
& \text { Job 10 } & \text { Job 11 } & \text { Job 12 } & \text { Total } \
\text { Work in Process, Nov. } 1 & \$ 16,000 & \$ 26,000 & \$ 38,000 & \$ 80,000
\end{array}$ Actual manufacturing overhead cost incurred in November was $61,000.
Required:
 $$\begin{array} { l r r r r } 
\text { Materials requisitioned } & \$ 4,000 & \$ 4,800 & \$ 7,200 & \$ 16,000 \
\text { Direct labour cost } & \$ 2,400 & \$ 3,600 & \$ 4,000 & \$ 10,000 \
\text { Machine hours } & 400 & 700 & 900 & 2,000 \
\text { Labour hours } & 120 & 180 & 200 & 500
\end{array}$$ A. Compute the predetermined overhead application rate.
B. Determine the total cost associated with each job.
C. If Jobs 10 and 12 were completed, prepare the journal entry to move the cost.
D. If Job 10 was delivered to customers that paid $\$ 50,000$ cash, prepare the journal entries.
E. What is the gross profit for Job 10 ?
F. What is the cost assigned to ending work in process?
G. Assuming no beginning finished goods, what is the cost assigned to ending finished
 goods?
H. How much was overhead overapplied or underapplied?

Accepted Answer

The answer of Steel Incorporated uses a job-order costing system...

Question 14

The cost of completed units is always debited to work in process and credited to finished goods.

Accepted Answer

A) True 
 B)False

Question 15

When is the predetermined overhead rate usually calculated?

Accepted Answer

A) at the end of each month 
B) at the beginning of each month 
C) at the beginning of the year 
D) at the end of the year 
A) at the end of each month 
B) at the beginning of each month 
C) at the beginning of the year 
D) at the end of the year

Question 16

Bob's Powerwasher Company makes custom powerwashers for individual customers. On April 1, one job was in process, Job 900, which had a cost of $45,650. Jobs 901, 902, and 903 were started during the month of July. Data on costs added during the month are as follows:
Overhead is applied to production at the rate of 85% of direct labour cost. Job 903 was completed on April 26, and the client was billed at cost plus 45%. All other jobs remained in process.
 $\begin{array}{lllll}&\text { Job } 900&\text { Job } 901&\text { Job } 902&\text { Job } 903\
\text { Direct Materials } & \$ 12,500 & \$ 6,740 & \$ 2,520 & \$ 7,870 \
\text { Direct Labour } & \$ 5,880 & \$ 10,280 & \$ 3,760 & \$ 11,360
\end{array}$
-Refer to the Figure.Suppose selling and administrative expenses for the month of July equal $6,000.What is operating income for the month of July?

Accepted Answer

A) $6,998.70 
B) $12,998.70 
C) $28,886.00 
D) $41,884.70 
A) $6,998.70 
B) $12,998.70 
C) $28,886.00 
D) $41,884.70

Question 17

If the overhead variance is immaterial,it is allocated among the ending balances of work in process,finished goods,and cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following total costs is included in the unit cost of a job?

Accepted Answer

A) the total costs of materials purchased 
B) the total costs of labour worked on the in the factory 
C) the total costs of actual overhead 
D) the total costs of applied overhead 
A) the total costs of materials purchased 
B) the total costs of labour worked on the in the factory 
C) the total costs of actual overhead 
D) the total costs of applied overhead

Question 19

Avonlea Construction builds custom houses for individual buyers.On April 1,it had one job started with a beginning work-in-process balance of $76,000.During April,the job was finished and sold.Direct labour for the job in April was $75,000,and direct materials used were $67,000.Overhead is computed at a rate of 65% of direct labour.All sales have a markup of 40%.What was the selling price of the house?

Accepted Answer

A) $82,862.50 
B) $236,750.00 
C) $262,087.50 
D) $373,450.00 
A) $82,862.50 
B) $236,750.00 
C) $262,087.50 
D) $373,450.00

Question 20

Valley Water Slides makes custom water slides for hotels. On September 1, three jobs were in process: Jobs 812, 813, and 814. Two more jobs, Jobs 815 and 816, were started during September. By September 30, Jobs 812, 814, and 816 were finished. The following data were collected:
Overhead is applied at the rate of 120% of direct labour cost. Jobs are sold at cost plus 60%. Selling and administrative expenses for September totalled $2,950. By September 30, Jobs 812 were 816 are sold, but the customer who ordered Job 814 cancelled the order so the slide is still in the warehouse. $\begin{array}{lrrrrr} 
& \text { Job 812 } & \text { Job 813 } & \text { Job 814 } & \text { Job 815 } & \text { Job 816 } \
9 / 1 \mathrm{Bal} \text { ance } & \$ 615 & \$ 830 & \$ 945 & \ldots & \ldots\
\text { Direct Materials } & 750 & 235 & 1,280 & \$ 200 & \$ 915 \
\text { Direct Labour } & 420 & 115 & 560 & 320 & 875
\end{array}$
-Refer to the Figure.What is the selling price of Job 816?

Accepted Answer

A) $2,840 
B) $2,864 
C) $3,408 
D) $4,544 
A) $2,840 
B) $2,864 
C) $3,408 
D) $4,544

Which of the following is NOT on a time ticket?

Match each item with the correct statement below. -Estimated overhead for a single department divided by the estimated activity level for that same department

Which of the following is a production cost in an automobile manufacturing company?

A job costing $5,000 is completed.What journal entry is used to record this transaction?

Which of the following costs is included in labour cost flows?

In job-order costing,the journal entry for a completed job costing $7,000 but NOT sold is: Finished Goods 7,000 Work in Process 7,000

The use of normal costing means that actual overhead costs are NOT assigned directly to jobs.

The cost of completed units is always debited to work in process and credited to finished goods.

When is the predetermined overhead rate usually calculated?

If the overhead variance is immaterial,it is allocated among the ending balances of work in process,finished goods,and cost of goods sold.

Which of the following total costs is included in the unit cost of a job?

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behaviour

Costvolumeprofit Analysis: a Managerial Planning Tool

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Budgeting, production, cash, and Master Budget

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Filters

Exam 5: Job-Order Costing

Which of the following is NOT on a time ticket?

Match each item with the correct statement below. -Estimated overhead for a single department divided by the estimated activity level for that same department

Which of the following is a production cost in an automobile manufacturing company?

A job costing $5,000 is completed.What journal entry is used to record this transaction?

Which of the following costs is included in labour cost flows?

In job-order costing,the journal entry for a completed job costing $7,000 but NOT sold is: Finished Goods 7,000 Work in Process 7,000

The use of normal costing means that actual overhead costs are NOT assigned directly to jobs.

The cost of completed units is always debited to work in process and credited to finished goods.

When is the predetermined overhead rate usually calculated?

If the overhead variance is immaterial,it is allocated among the ending balances of work in process,finished goods,and cost of goods sold.

Which of the following total costs is included in the unit cost of a job?

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behaviour

Costvolumeprofit Analysis: a Managerial Planning Tool

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Budgeting, production, cash, and Master Budget

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Filters