Question 1

Which accounts are affected when a job is completed and remains in inventory?

Accepted Answer

A) raw materials and work in process 
B) work in process and finished goods 
C) raw materials and cost of goods sold 
D) finished goods and cost of goods sold 
A) raw materials and work in process 
B) work in process and finished goods 
C) raw materials and cost of goods sold 
D) finished goods and cost of goods sold

Question 2

Refer to Baldwin,Inc.
 A. Prepare the journal entries for requisitioning all materials used during the month.
B. Prepare the journal entries for direct labour for the month. Assume the workers have not been paid yet.

Accepted Answer

The answer of Refer to Baldwin,Inc.
 A. Prepare the journal...

Question 3

Match each item with the correct statement below.
-A single overhead rate calculated using all estimated overhead for a factory divided by the estimated activity level across the entire factory

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 4

What account is credited when goods are sold?

Accepted Answer

A) finished goods 
B) cost of goods sold 
C) accounts payable 
D) cash 
A) finished goods 
B) cost of goods sold 
C) accounts payable 
D) cash

Question 5

The Solidwood Corporation manufactures custom-made furniture. The following data pertains to Job X4A:
Factory overhead rate is $22.50 per machine hour.
 $\begin{array}{ll}
\text { Direct materials placed into production } & \$ 9,000 \
\text { Direct labour hours worked } & 300 \text { hours } \
\text { Direct labour rate per hour } & \$ 15 \
\text { Machine hours worked } & 100 \text { hours }
\end{array}$
-Refer to the Figure.Suppose one-half of Job X4A was sold for $10,000.What would be the total amount of costs assigned to Job X4A?

Accepted Answer

A) $9,000 
B) $13,500 
C) $15,750 
D) $20,250 
A) $9,000 
B) $13,500 
C) $15,750 
D) $20,250

Question 6

Actual overhead costs are accumulated in the overhead control account.

Accepted Answer

A) True 
 B)False

Question 7

A primary characteristic of job-order costing is that the cost of each job is unique and must be tracked individually.

Accepted Answer

A) True 
 B)False

Question 8

At the beginning of the year, Rovetti, Inc. estimated that in the coming year overhead would be $600,000 and direct labour hours would be 200,000. At the end of the year, it had actual overhead of $656,000 and 225,050 direct labour hours.
-Refer to the Figure.What is the overhead variance for Rovetti?

Accepted Answer

A) $56,000 overapplied 
B) $56,000 underapplied 
C) $19,150 overapplied 
D) $19,150 underapplied 
A) $56,000 overapplied 
B) $56,000 underapplied 
C) $19,150 overapplied 
D) $19,150 underapplied

Question 9

What rarely occurs regarding the overhead variance?

Accepted Answer

A) actual overhead equals applied overhead 
B) overhead is underapplied 
C) overhead is overapplied 
D) overhead is immaterial 
A) actual overhead equals applied overhead 
B) overhead is underapplied 
C) overhead is overapplied 
D) overhead is immaterial

Question 10

Which of the following costs is NOT included on a job-order cost sheet?

Accepted Answer

A) direct material costs 
B) applied factory overhead costs 
C) direct labour costs 
D) actual factory overhead costs 
A) direct material costs 
B) applied factory overhead costs 
C) direct labour costs 
D) actual factory overhead costs

Question 11

What account is debited when goods are sold?

Accepted Answer

A) cost of goods sold 
B) finished goods 
C) work in process 
D) accounts payable 
A) cost of goods sold 
B) finished goods 
C) work in process 
D) accounts payable

Question 12

Answers may be used more than once.
-Form that may be used to maintain proper control over a firm's inventory of direct materials

Accepted Answer

A) Job-order cost sheet 
B) Time ticket 
C) Materials requisition form 
A) Job-order cost sheet 
B) Time ticket 
C) Materials requisition form

Question 13

Match each item with the correct statement below.
-A costing system in which costs are collected and assigned to units of production for each individual job

Accepted Answer

A) Actual cost system 
B) Job-order cost system 
C) Normal cost system 
D) Process-costing system 
A) Actual cost system 
B) Job-order cost system 
C) Normal cost system 
D) Process-costing system

Question 14

Green Oak Farm Equipment is a job-order costing manufacturer that uses a plantwide overhead rate that is based on direct labour hours.Estimations for the year include $420,000 in overhead and 30,000 direct labour hours.Green Oak worked on five jobs in March.Data are as follows:
By March 31,Jobs 89 and 91 were completed and sold.The rest of the jobs remained in process.
 $\begin{array}{lrrrrrr}&\text { Job } 89 & \text { Job } 90 & \text { Job } 91 & \text { Job } 92& \text { Job } 93\
\text { Balance, } 3 / 1 & \$ 23,110 & \$ 18,240 & \$ 9,510 & \$  0 & \$ 0\
\text { Direct Materials } & 13,000 & 17,210 & 22,900 & 15,240 & 8,210 \
\text { Direct Labour cost } & 8,075 & 11,500 & 16,250 & 9,750 & 4,860 \
\text { Direct Labour Hours } & 1,615 & 2,300 & 3,250 & 1,950 & 972
\end{array}$ A. Calculate the plantwide overhead rate.
B. Calculate the work in process on March 31 .
C. Calculate the cost of goods sold for March.
D. Assume Green Oak marks up cost by $40 \%$. What is the selling price of Jobs 89 and 91 ?

Accepted Answer

The answer of Green Oak Farm Equipment is a job-order...

Question 15

When materials are put into production,they are taken from the raw materials account and put into the work-in-process account.

Accepted Answer

A) True 
 B)False

Question 16

Xtra Company uses a job-order costing system to account for product costs. The following information pertains to the current year:
Factory overhead rate is $18 per direct labour hour.
 $$\begin{array} { l r } 
\text { Materials placed into production } & \$ 160,000 \
\text { Indirect labour } & 40,000 \
\text { Direct labour (10,000 hours) } & 180,000 \
\text { Depreciation of factory building } & 60,000 \
\text { Other factory overhead } & 100,000 \
\text { Increase in work-in-process inventory } & 50,000
\end{array}$$
-Refer to the Figure.What is the total amount credited to materials inventory for Xtra in the current year?

Accepted Answer

A) $110,000 
B) $160,000 
C) $170,000 
D) $480,000 
A) $110,000 
B) $160,000 
C) $170,000 
D) $480,000

Question 17

A job-order cost sheet is the source document where direct labour costs are assigned to individual jobs.

Accepted Answer

A) True 
 B)False

Question 18

What are the components of manufacturing overhead?

Accepted Answer

A) all costs other than direct materials 
B) all manufacturing costs other than direct materials 
C) all costs other than direct materials and direct labour 
D) all manufacturing costs other than direct materials and direct labour 
A) all costs other than direct materials 
B) all manufacturing costs other than direct materials 
C) all costs other than direct materials and direct labour 
D) all manufacturing costs other than direct materials and direct labour

Question 19

Michelle's has the following transactions for the month of October:
1.Purchased materials on account for $111,482.
2.Materials requisitioned for $82,383.
3.Direct labour of $51,000 was incurred (but not yet paid).
4.Actual overhead for the month was $33,000. It has not been paid yet (charge to various payables).
5.Overhead is applied to production at the rate of 70% of direct labour.
6.Jobs totalling $56,000 were transferred from work in process to finished goods.
7.Jobs costing $41,000 were sold.Balances at the beginning of the month were:
 $\begin{array}{lr}
\text { Materials } & \$ 17,890 \
\text { Work in process } & 0 \
\text { Finished goods } & 8,321
\end{array}$
-Refer to the Figure.What is the journal entry to record actual overhead for the month?

Accepted Answer

A) Overhead Control 33,000Various Payables 33,000 
B) Work in Process 33,000Various Payables 33,000 
C) Various Payables 33,000Work in Process 33,000 
D) Various Payable 33,000Overhead Control 33,000 
A) Overhead Control 33,000Various Payables 33,000 
B) Work in Process 33,000Various Payables 33,000 
C) Various Payables 33,000Work in Process 33,000 
D) Various Payable 33,000Overhead Control 33,000

Question 20

The work-in-process account consists of all the job-order costs sheets for the unfinished jobs.

Accepted Answer

A) True 
 B)False

Which accounts are affected when a job is completed and remains in inventory?

Refer to Baldwin,Inc. A. Prepare the journal entries for requisitioning all materials used during the month. B. Prepare the journal entries for direct labour for the month. Assume the workers have not been paid yet.

Match each item with the correct statement below. -A single overhead rate calculated using all estimated overhead for a factory divided by the estimated activity level across the entire factory

What account is credited when goods are sold?

Actual overhead costs are accumulated in the overhead control account.

A primary characteristic of job-order costing is that the cost of each job is unique and must be tracked individually.

What rarely occurs regarding the overhead variance?

Which of the following costs is NOT included on a job-order cost sheet?

What account is debited when goods are sold?

Answers may be used more than once. -Form that may be used to maintain proper control over a firm's inventory of direct materials

Match each item with the correct statement below. -A costing system in which costs are collected and assigned to units of production for each individual job

When materials are put into production,they are taken from the raw materials account and put into the work-in-process account.

A job-order cost sheet is the source document where direct labour costs are assigned to individual jobs.

What are the components of manufacturing overhead?

The work-in-process account consists of all the job-order costs sheets for the unfinished jobs.

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 accounts are affected when a job is completed and remains in inventory?

Refer to Baldwin,Inc. A. Prepare the journal entries for requisitioning all materials used during the month. B. Prepare the journal entries for direct labour for the month. Assume the workers have not been paid yet.

Match each item with the correct statement below. -A single overhead rate calculated using all estimated overhead for a factory divided by the estimated activity level across the entire factory

What account is credited when goods are sold?

Actual overhead costs are accumulated in the overhead control account.

A primary characteristic of job-order costing is that the cost of each job is unique and must be tracked individually.

What rarely occurs regarding the overhead variance?

Which of the following costs is NOT included on a job-order cost sheet?

What account is debited when goods are sold?

Answers may be used more than once. -Form that may be used to maintain proper control over a firm's inventory of direct materials

Match each item with the correct statement below. -A costing system in which costs are collected and assigned to units of production for each individual job

When materials are put into production,they are taken from the raw materials account and put into the work-in-process account.

A job-order cost sheet is the source document where direct labour costs are assigned to individual jobs.

What are the components of manufacturing overhead?

The work-in-process account consists of all the job-order costs sheets for the unfinished jobs.

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