Question 1

Indirect labor is recorded by debiting the _________________________ account.

Accepted Answer

Manufactur

Question 2

Job order cost accounting is appropriate

Accepted Answer

A)  when there are continuous operations on standard types of products. 
B)  when a company produces more than one product in batches rather than on a continuous basis. 
C)  only for goods produced on special order. 
D)  for all manufacturing companies. 
A)  when there are continuous operations on standard types of products. 
B)  when a company produces more than one product in batches rather than on a continuous basis. 
C)  only for goods produced on special order. 
D)  for all manufacturing companies.

Question 3

At the end of the fiscal year, any overapplied or underapplied overhead is

Accepted Answer

A)  transferred to the Cost of Goods Sold account in an adjustment. 
B)  shown on the balance sheet as either a deferred charge or a deferred credit. 
C)  allocated to Cost of Goods Sold, Finished Goods Inventory, and Work in Process Inventory. 
D)  transferred to the Cost of Goods Manufactured account in an adjustment. 
A)  transferred to the Cost of Goods Sold account in an adjustment. 
B)  shown on the balance sheet as either a deferred charge or a deferred credit. 
C)  allocated to Cost of Goods Sold, Finished Goods Inventory, and Work in Process Inventory. 
D)  transferred to the Cost of Goods Manufactured account in an adjustment.

Question 4

When perpetual inventories are maintained in a job order cost system, the balance of the Work in Process Inventory account represents

Accepted Answer

A)  the actual costs incurred for labor, materials, and overhead on all jobs that were started but are not yet complete. 
B)  the actual costs for the labor and materials used in uncompleted jobs and estimate of the overhead associated with these jobs. 
C)  only the actual costs for the labor and materials used in uncompleted jobs. 
D)  only the actual costs for the labor and materials used in completed jobs. 
A)  the actual costs incurred for labor, materials, and overhead on all jobs that were started but are not yet complete. 
B)  the actual costs for the labor and materials used in uncompleted jobs and estimate of the overhead associated with these jobs. 
C)  only the actual costs for the labor and materials used in uncompleted jobs. 
D)  only the actual costs for the labor and materials used in completed jobs.

Question 5

The monthly total of the Overhead Applied section of all job order cost sheets should agree with the balance in the control account Manufacturing Overhead.

Accepted Answer

A) True 
 B)False

Question 6

A firm purchased 25 units of materials with a unit price of $2.00 on May 5. On May 15, the firm purchased 25 units with a unit price of $2.10. If the firm uses the LIFO method of inventory pricing, the total cost of 30 units issued on May 20 would be

Accepted Answer

A)  $62.50. 
B)  $60.00. 
C)  $63.00. 
D)  $60.50. (25 x 2.10) + (5 x 2) = 62.50. 
A)  $62.50. 
B)  $60.00. 
C)  $63.00. 
D)  $60.50. (25 x 2.10) + (5 x 2) = 62.50.

Question 7

Job order cost sheets constitute a subsidiary ledger that supports

Accepted Answer

A)  the Work in Process Inventory account. 
B)  the Finished Goods Inventory account. 
C)  the Raw Materials Inventory account. 
D)  the Cost of Goods Manufactured account. 
A)  the Work in Process Inventory account. 
B)  the Finished Goods Inventory account. 
C)  the Raw Materials Inventory account. 
D)  the Cost of Goods Manufactured account.

Question 8

A job order cost sheet summarizes

Accepted Answer

A)  the direct labor, direct materials used, and actual overhead costs incurred on a specific job. 
B)  the direct labor, direct materials used, and applied overhead association with a specific job. 
C)  the estimated costs that will be required to complete a specific job. 
D)  the direct labor and direct materials used only. 
A)  the direct labor, direct materials used, and actual overhead costs incurred on a specific job. 
B)  the direct labor, direct materials used, and applied overhead association with a specific job. 
C)  the estimated costs that will be required to complete a specific job. 
D)  the direct labor and direct materials used only.

Question 9

When indirect materials are requisitioned from the materials storeroom and placed in production, an entry is made crediting Raw Materials Inventory and debiting

Accepted Answer

A)  Work in Process Inventory. 
B)  Cost of Goods Manufactured. 
C)  Manufacturing Overhead Applied. 
D)  Manufacturing Overhead. 
A)  Work in Process Inventory. 
B)  Cost of Goods Manufactured. 
C)  Manufacturing Overhead Applied. 
D)  Manufacturing Overhead.

Question 10

Based on the information given:
1. Determine the overhead rate for Adams Manufacturing;
2. Prepare the journal entry to apply manufacturing overhead to manufacturing process for the month of October;
3. Determine the balance in the Work in Process account at the end of October.
1. The overhead application rate for the current year is 0.8 times direct labor cost. (352,000/440,000)

Accepted Answer

@#IMG-DLM& 3. The balance in t

Question 11

Workers who perform direct labor prepare a series of ____________________ to account for all time spent in the plant.

Accepted Answer

The answer of Workers who perform direct labor prepare a...

Question 12

Manufacturing overhead includes all of the following except

Accepted Answer

A)  indirect labor. 
B)  direct labor. 
C)  utilities. 
D)  payroll taxes on factory labor. 
A)  indirect labor. 
B)  direct labor. 
C)  utilities. 
D)  payroll taxes on factory labor.

Question 13

A raw material subsidiary ledger

Accepted Answer

A)  contains a raw materials card for each item of direct materials only. 
B)  contains a raw materials card for each item of indirect materials only. 
C)  contains a raw materials card for each item of direct materials and indirect materials. 
D)  contains a raw material card for each supplier of raw materials. 
A)  contains a raw materials card for each item of direct materials only. 
B)  contains a raw materials card for each item of indirect materials only. 
C)  contains a raw materials card for each item of direct materials and indirect materials. 
D)  contains a raw material card for each supplier of raw materials.

Question 14

At the end of the year the Manufacturing Overhead account is closed into what account?

Accepted Answer

A)  Work in Process 
B)  Finished Goods 
C)  Cost of Goods Sold 
D)  Manufacturing Overhead Control 
A)  Work in Process 
B)  Finished Goods 
C)  Cost of Goods Sold 
D)  Manufacturing Overhead Control

Question 15

There is no need for a raw materials inventory account when a just-in-time inventory system is used.

Accepted Answer

A) True 
 B)False

Question 16

When a perpetual inventory system is used, the balance of the Raw Materials Inventory account at the end of an accounting period should reflect the cost of materials on hand.

Accepted Answer

A) True 
 B)False

Question 17

The total direct labor charged to all job cost sheets must agree with the direct labor debited to

Accepted Answer

A)  Time Tickets. 
B)  Wages Payable. 
C)  Work in Process Inventory. 
D)  Wages Expense. 
A)  Time Tickets. 
B)  Wages Payable. 
C)  Work in Process Inventory. 
D)  Wages Expense.

Question 18

During the year, Job EH-02 for 500 units was begun and completed. Costs entered on the job order cost sheet for this job were $15,400 for materials and $6,500 for labor. The firm applies overhead at the rate of 75 percent of direct labor costs.
1. What is the amount of overhead that should be applied to the job?
2. What is the total cost of the job?
3. What is the unit cost of the units produced?

Accepted Answer

1. $4,875;

Question 19

At the end of the month, if the total of the credits in the Manufacturing Overhead Applied account is greater than the total of the debits in the Manufacturing Overhead account, overhead has been underapplied.

Accepted Answer

A) True 
 B)False

Question 20

Based on the information given, complete the Job Order Cost Sheet for Job A1-13.

Accepted Answer

The answer of Based on the information given, complete the...

Indirect labor is recorded by debiting the _________________________ account.

Job order cost accounting is appropriate

At the end of the fiscal year, any overapplied or underapplied overhead is

When perpetual inventories are maintained in a job order cost system, the balance of the Work in Process Inventory account represents

The monthly total of the Overhead Applied section of all job order cost sheets should agree with the balance in the control account Manufacturing Overhead.

A firm purchased 25 units of materials with a unit price of $2.00 on May 5. On May 15, the firm purchased 25 units with a unit price of $2.10. If the firm uses the LIFO method of inventory pricing, the total cost of 30 units issued on May 20 would be

Job order cost sheets constitute a subsidiary ledger that supports

A job order cost sheet summarizes

When indirect materials are requisitioned from the materials storeroom and placed in production, an entry is made crediting Raw Materials Inventory and debiting

Workers who perform direct labor prepare a series of ____________________ to account for all time spent in the plant.

Manufacturing overhead includes all of the following except

A raw material subsidiary ledger

At the end of the year the Manufacturing Overhead account is closed into what account?

There is no need for a raw materials inventory account when a just-in-time inventory system is used.

When a perpetual inventory system is used, the balance of the Raw Materials Inventory account at the end of an accounting period should reflect the cost of materials on hand.

The total direct labor charged to all job cost sheets must agree with the direct labor debited to

At the end of the month, if the total of the credits in the Manufacturing Overhead Applied account is greater than the total of the debits in the Manufacturing Overhead account, overhead has been underapplied.

Based on the information given, complete the Job Order Cost Sheet for Job A1-13.

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analysis

The Statement of Cash Flows

Departmentalized Profit and Cost Centers

Accounting for Manufacturing Activities

Process Cost Accounting

Controlling Manufacturing Costs: Standard Costs

Cost-Revenue Analysis for Decision Making

Filters

Exam 27: Job Order Cost Accounting

Indirect labor is recorded by debiting the _________________________ account.

Job order cost accounting is appropriate

At the end of the fiscal year, any overapplied or underapplied overhead is

When perpetual inventories are maintained in a job order cost system, the balance of the Work in Process Inventory account represents

The monthly total of the Overhead Applied section of all job order cost sheets should agree with the balance in the control account Manufacturing Overhead.

A firm purchased 25 units of materials with a unit price of $2.00 on May 5. On May 15, the firm purchased 25 units with a unit price of $2.10. If the firm uses the LIFO method of inventory pricing, the total cost of 30 units issued on May 20 would be

Job order cost sheets constitute a subsidiary ledger that supports

A job order cost sheet summarizes

When indirect materials are requisitioned from the materials storeroom and placed in production, an entry is made crediting Raw Materials Inventory and debiting

Workers who perform direct labor prepare a series of ____________________ to account for all time spent in the plant.

Manufacturing overhead includes all of the following except

A raw material subsidiary ledger

At the end of the year the Manufacturing Overhead account is closed into what account?

There is no need for a raw materials inventory account when a just-in-time inventory system is used.

When a perpetual inventory system is used, the balance of the Raw Materials Inventory account at the end of an accounting period should reflect the cost of materials on hand.

The total direct labor charged to all job cost sheets must agree with the direct labor debited to

At the end of the month, if the total of the credits in the Manufacturing Overhead Applied account is greater than the total of the debits in the Manufacturing Overhead account, overhead has been underapplied.

Based on the information given, complete the Job Order Cost Sheet for Job A1-13.

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analysis

The Statement of Cash Flows

Departmentalized Profit and Cost Centers

Accounting for Manufacturing Activities

Process Cost Accounting

Controlling Manufacturing Costs: Standard Costs

Cost-Revenue Analysis for Decision Making

Filters