Question 1

The predetermined overhead rate is usually calculated at the

Accepted Answer

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

Question 2

Figure 5 - 6 In the Mains Company, the following Job cards were totaled at the end of the month:
Job 243 $5,750
Job 244 $4,980
Job 245 $3,675
Job 246 $4,250
Job 247 $5,100
Job 248 $3,800
Jobs 243 and 244 were in Finished Goods Inventory at the beginning of the month.Jobs 245 and 246 were in Work-in-process at the beginning of the month.Jobs 247 and 248 were started during the month.At the end of the month, Jobs 243 and 247 were sent to customers; jobs 245, 247, and 248 were completed and sent to finished goods.
-
Refer to Figure 5-6.What is the cost of goods sold for the month?

Accepted Answer

A)  $10,730 
B)  $10,850 
C)  $12,575 
D)  none of these 
A)  $10,730 
B)  $10,850 
C)  $12,575 
D)  none of these

Question 3

Figure 5-9 Alpha Company manufactures customized motors on a job-order basis.Job 492 is an order for 100 units.It requires the following:
Direct materials $3,000
Direct labor ($10/hr) 1,000
Overhead (150% DL$) 1,500
After inspection, 2 units required rework which required 8 additional direct labor hours and $60 of materials.
-
Refer to Figure 5-9.If the spoilage was considered normal, what is the cost of job 492?

Accepted Answer

A)  $5,640 
B)  $5,760 
C)  $5,500 
D)  $3,000 
A)  $5,640 
B)  $5,760 
C)  $5,500 
D)  $3,000

Question 4

When normal costing is used, actual overhead costs are

Accepted Answer

A)  recorded in the work-in-process account. 
B)  recorded in the overhead control account. 
C)  recorded in the finished goods account. 
D)  not recorded. 
A)  recorded in the work-in-process account. 
B)  recorded in the overhead control account. 
C)  recorded in the finished goods account. 
D)  not recorded.

Question 5

Wolf Company had the following selected account balances at the end of 2011:
   Required:

Accepted Answer

The answer of Wolf Company had the following selected account...

Question 6

Manufacturing overhead consists of all

Accepted Answer

A)  costs other than direct materials. 
B)  manufacturing costs other than direct materials. 
C)  costs other than direct materials and direct labor. 
D)  manufacturing costs other than direct materials and direct labor. 
A)  costs other than direct materials. 
B)  manufacturing costs other than direct materials. 
C)  costs other than direct materials and direct labor. 
D)  manufacturing costs other than direct materials and direct labor.

Question 7

Which cost accounting process would be most appropriate for accumulating costs of identical, standardized units?

Accepted Answer

A)  job-order costing 
B)  process costing 
C)  normal costing 
D)  standard costing 
A)  job-order costing 
B)  process costing 
C)  normal costing 
D)  standard costing

Question 8

Figure 5-7 The following information is available pertaining to the Production Division:
 
- Refer to Figure 5-7.What is the overhead rate for the Finishing Department based on machine hours?

Accepted Answer

A)  $9.00 
B)  $3.00 
C)  $2.25 
D)  $1.00 
A)  $9.00 
B)  $3.00 
C)  $2.25 
D)  $1.00

Question 9

_______________ is the absolute maximum production activity of a manufacturing firm.

Accepted Answer

A)  Expected activity level 
B)  Normal activity level 
C)  Theoretical activity level 
D)  Practical activity level 
A)  Expected activity level 
B)  Normal activity level 
C)  Theoretical activity level 
D)  Practical activity level

Question 10

Under normal costing, which of the following statements is true regarding factory overhead?

Accepted Answer

A)  The balance in factory overhead at the end of the accounting period is closed. 
B)  Different overhead rates are used for different quantities of predicted activity. 
C)  The balance in factory overhead at the end of the accounting period is kept open. 
D)  The immaterial balance in factory overhead at the end of the accounting period is allocated to the cost of goods sold and inventory accounts. 
A)  The balance in factory overhead at the end of the accounting period is closed. 
B)  Different overhead rates are used for different quantities of predicted activity. 
C)  The balance in factory overhead at the end of the accounting period is kept open. 
D)  The immaterial balance in factory overhead at the end of the accounting period is allocated to the cost of goods sold and inventory accounts.

Question 11

Which of the following firms would make extensive use of service costing?

Accepted Answer

A)  auto manufacturer 
B)  furniture manufacturer 
C)  auto dealer 
D)  CPA firm 
A)  auto manufacturer 
B)  furniture manufacturer 
C)  auto dealer 
D)  CPA firm

Question 12

Figure 5 - 8 Griswold Corporation is a job order costing company that uses activity-based costing to apply overhead to jobs.The following overhead activities were budgeted for the year.
  The following information about the jobs was given for September.
  By September 30, Jobs 102 and 103 were completed and sold.The remaining jobs were still in process.
-
Refer to Figure 5-8.What is the cost of goods manufactured?

Accepted Answer

A)  $ 144,400 
B)  $ 215,670 
C)  $ 178,340 
D)  $ 249,610 
A)  $ 144,400 
B)  $ 215,670 
C)  $ 178,340 
D)  $ 249,610

Question 13

Figure 5-5 Wright Corporation had the following information available for December 2011:
  Factory overhead rate is 150 percent of direct labor costs.
Job cost sheets had the following balances:
  Jobs Z3 and Z4 were not completed at the end of December.
-
Refer to Figure 5-5.What is the balance in Work-in-Process for Wright at the end of December?

Accepted Answer

A)  $85,000 
B)  $87,500 
C)  $56,250 
D)  $53,750 
A)  $85,000 
B)  $87,500 
C)  $56,250 
D)  $53,750

Question 14

For a manufacturer, the three inventory accounts on the balance sheet are

Accepted Answer

A)  Materials, Finished Goods, and Cost of Goods Sold. 
B)  Materials, Overhead, and Cost of Goods Sold. 
C)  Materials, Direct Labor, and Overhead. 
D)  Materials, Work-in-Process, and Finished Goods. 
A)  Materials, Finished Goods, and Cost of Goods Sold. 
B)  Materials, Overhead, and Cost of Goods Sold. 
C)  Materials, Direct Labor, and Overhead. 
D)  Materials, Work-in-Process, and Finished Goods.

Question 15

Figure 5-7 The following information is available pertaining to the Production Division:
 
- Refer to Figure 5-7.Using the plantwide overhead rate based on direct labor hours what is the cost of Job 4X5?

Accepted Answer

A)  $1,250 
B)  $2,000 
C)  $8,750 
D)  $31,250 
A)  $1,250 
B)  $2,000 
C)  $8,750 
D)  $31,250

Question 16

Intangibility refers to the

Accepted Answer

A)  nonphysical nature of services as opposed to products. 
B)  fact that production and consumption are inseparable for services. 
C)  greater chances for variation in the performance of services than in the production of products. 
D)  fact that services cannot be inventoried but must be consumed when performed. 
A)  nonphysical nature of services as opposed to products. 
B)  fact that production and consumption are inseparable for services. 
C)  greater chances for variation in the performance of services than in the production of products. 
D)  fact that services cannot be inventoried but must be consumed when performed.

Question 17

What are the source documents used in a job-order costing system? How do the source documents relate to the job cost sheet? How do these documents inform work in process?

Accepted Answer

The materials requisition form and job t

Question 18

Figure 5 - 1 The King Corporation manufactures custom-made furniture.The following data pertains to Job X4A:
  Factory overhead rate is $22.50 per machine hour.Job X4A consists of 500 units.
-
Refer to Figure 5-1.One-half of Job X4A was sold for $10,000.What is the cost per unit for Job X4A?

Accepted Answer

A)  $18 
B)  $31.50 
C)  $27 
D)  $40.50 
A)  $18 
B)  $31.50 
C)  $27 
D)  $40.50

Question 19

Figure 5 - 2 The Kraig Corporation manufactures custom-made purses.The following data pertains to Job XY5:
  Factory overhead is applied using a plant-wide rate based on direct labor hours.Factory overhead was budgeted at $60,000 for the year and the direct labor hours were estimated to be 15,000.Job XY5 consists of 50 units.
-
Refer to Figure 5-2.What is overhead cost assigned to Job XY5?

Accepted Answer

A)  $200 
B)  $400 
C)  $750 
D)  $1,500 
A)  $200 
B)  $400 
C)  $750 
D)  $1,500

Question 20

A source document

Accepted Answer

A)  is only an external document. 
B)  provides transaction data that can be recorded in a database. 
C)  is only used to record a transaction between an organization and an outside vendor. 
D)  is only an internal document. 
A)  is only an external document. 
B)  provides transaction data that can be recorded in a database. 
C)  is only used to record a transaction between an organization and an outside vendor. 
D)  is only an internal document.

The predetermined overhead rate is usually calculated at the

When normal costing is used, actual overhead costs are

Wolf Company had the following selected account balances at the end of 2011: Required:

Manufacturing overhead consists of all

Which cost accounting process would be most appropriate for accumulating costs of identical, standardized units?

Figure 5-7 The following information is available pertaining to the Production Division: - Refer to Figure 5-7.What is the overhead rate for the Finishing Department based on machine hours?

_______________ is the absolute maximum production activity of a manufacturing firm.

Under normal costing, which of the following statements is true regarding factory overhead?

Which of the following firms would make extensive use of service costing?

For a manufacturer, the three inventory accounts on the balance sheet are

Figure 5-7 The following information is available pertaining to the Production Division: - Refer to Figure 5-7.Using the plantwide overhead rate based on direct labor hours what is the cost of Job 4X5?

Intangibility refers to the

What are the source documents used in a job-order costing system? How do the source documents relate to the job cost sheet? How do these documents inform work in process?

Figure 5 - 1 The King Corporation manufactures custom-made furniture.The following data pertains to Job X4A: Factory overhead rate is $22.50 per machine hour.Job X4A consists of 500 units. - Refer to Figure 5-1.One-half of Job X4A was sold for $10,000.What is the cost per unit for Job X4A?

A source document

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

Exam 5: Product and Service Costing: Job-Order System

The predetermined overhead rate is usually calculated at the

When normal costing is used, actual overhead costs are

Wolf Company had the following selected account balances at the end of 2011: Required:

Manufacturing overhead consists of all

Which cost accounting process would be most appropriate for accumulating costs of identical, standardized units?

Figure 5-7 The following information is available pertaining to the Production Division: - Refer to Figure 5-7.What is the overhead rate for the Finishing Department based on machine hours?

_______________ is the absolute maximum production activity of a manufacturing firm.

Under normal costing, which of the following statements is true regarding factory overhead?

Which of the following firms would make extensive use of service costing?

For a manufacturer, the three inventory accounts on the balance sheet are

Figure 5-7 The following information is available pertaining to the Production Division: - Refer to Figure 5-7.Using the plantwide overhead rate based on direct labor hours what is the cost of Job 4X5?

Intangibility refers to the

What are the source documents used in a job-order costing system? How do the source documents relate to the job cost sheet? How do these documents inform work in process?

Figure 5 - 1 The King Corporation manufactures custom-made furniture.The following data pertains to Job X4A: Factory overhead rate is $22.50 per machine hour.Job X4A consists of 500 units. - Refer to Figure 5-1.One-half of Job X4A was sold for $10,000.What is the cost per unit for Job X4A?

A source document

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters