Question 1

The journal entry to record the completion of a contract in a job costing system for a service firm is:

Accepted Answer

A) a. 
B) B. 
C) C. 
D) D. 
A) a. 
B) B. 
C) C. 
D) D. C

Question 2

Which of the following accounts is debited when direct labor is recorded?

Accepted Answer

A) Work-in-Process. 
B) Salaries and wages expense. 
C) Salaries and wages payable. 
D) Manufacturing overheaD.The Work-in-Process account is debited when direct labor is recordeD. 
A) Work-in-Process. 
B) Salaries and wages expense. 
C) Salaries and wages payable. 
D) Manufacturing overheaD.The Work-in-Process account is debited when direct labor is recordeD. A

Question 3

Manufacturing overhead applied on the basis of direct labor-hours was $120,000,while actual manufacturing overhead incurred was $124,000 for the month of April.Which of the following is always true given the statement above?

Accepted Answer

A) Overhead was overapplied by $4,000. 
B) Overhead was underapplied by $4,000. 
C) Actual direct labor-hours exceeded budgeted direct labor-hours. 
D) Actual direct labor-hours were less than budgeted direct labor-hours. 
A) Overhead was overapplied by $4,000. 
B) Overhead was underapplied by $4,000. 
C) Actual direct labor-hours exceeded budgeted direct labor-hours. 
D) Actual direct labor-hours were less than budgeted direct labor-hours. B

Question 4

The journal entry to record the completion of a job in a job order cost system is:

Accepted Answer

A) a. 
B) B. 
C) C. 
D) D. 
A) a. 
B) B. 
C) C. 
D) D.

Question 5

If a company multiplies its actual overhead rate by the actual activity level of its allocation base,it is using:

Accepted Answer

A) standard costing. 
B) normal costing. 
C) actual costing. 
D) budget costing. 
A) standard costing. 
B) normal costing. 
C) actual costing. 
D) budget costing.

Question 6

In computing its predetermined overhead rate,Marple Company inadvertently left its indirect labor costs out of the computation.This oversight will cause:

Accepted Answer

A) Manufacturing Overhead to be overapplied. 
B) the Cost of Goods Manufactured to be understated. 
C) the debits to the Manufacturing Overhead account to be understated. 
D) the ending balance in Work-in-Process to be overstateD.Not including indirect labor in the Manufacturing Overhead total will result in a lower predetermined overhead rate.When indirect labor is debited to Manufacturing (actual)it will not be relieved (credit). 
A) Manufacturing Overhead to be overapplied. 
B) the Cost of Goods Manufactured to be understated. 
C) the debits to the Manufacturing Overhead account to be understated. 
D) the ending balance in Work-in-Process to be overstateD.Not including indirect labor in the Manufacturing Overhead total will result in a lower predetermined overhead rate.When indirect labor is debited to Manufacturing (actual)it will not be relieved (credit).

Question 7

Indirect material and indirect labor are two examples of manufacturing overhead costs.Indirect material and labor are included in overhead because they are considered to be insignificant in cost (material)and not directly related to the job (labor).

Accepted Answer

A) True 
 B)False

Question 8

Which of the following statements is (are)true regarding the application of manufacturing overhead? (A)Manufacturing overhead is only recorded on the job cost sheets when (a)financial statements are prepared or a job is completed.(B)Overapplied overhead occurs when the actual overhead costs incurred during a period are greater than the overhead costs applied during the period.

Accepted Answer

A) Only A is true. 
B) Only B is true. 
C) Both A and B are true. 
D) Neither A nor B is true. 
A) Only A is true. 
B) Only B is true. 
C) Both A and B are true. 
D) Neither A nor B is true.

Question 9

Which of the following accounts is used to accumulate the actual manufacturing overhead costs incurred during a period?

Accepted Answer

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

Question 10

Underapplied overhead occurs when the balance in the Manufacturing Overhead Control account is:

Accepted Answer

A) greater than the balance in the Applied Manufacturing Overhead account. 
B) equal to the balance in the Applied Manufacturing Overhead account. 
C) less than the balance in the Applied Manufacturing Overhead account. 
D) less than the balance in the Finished Goods Inventory account. 
A) greater than the balance in the Applied Manufacturing Overhead account. 
B) equal to the balance in the Applied Manufacturing Overhead account. 
C) less than the balance in the Applied Manufacturing Overhead account. 
D) less than the balance in the Finished Goods Inventory account.

Question 11

Which of the following approaches allocates overhead by multiplying an actual overhead rate × actual activity?

Accepted Answer

A) Actual costing. 
B) Normal costing. 
C) Regression costing. 
D) Standard costing. 
A) Actual costing. 
B) Normal costing. 
C) Regression costing. 
D) Standard costing.

Question 12

The Update Company does not maintain backup documents for its computer files.In June,some of the current data were lost,and you have been asked to help reconstruct the data.The following beginning balances on June 1 are known:   Reviewing old documents and interviewing selected employees have generated the following additional information: The production superintendent's job cost sheets indicated that materials of $2,600 were included in the June 30 Work-in-Process Inventory.Also,300 direct labor-hours had been paid at $6.00 per hour for the jobs in process on June 30.The Accounts Payable account is only for direct material purchases.The clerk remembers clearly that the balance in the Accounts Payable on June 30 was $8,000.An analysis of canceled checks indicated payments of $40,000 were made to suppliers during June.Payroll records indicate that 5,200 direct labor-hours were recorded for June.It was verified that there were no variations in pay rates among employees during June.Records at the warehouse indicate that the Finished Goods Inventory totaled $16,000 on June 30.Another record kept manually indicates that the Cost of Goods Sold in June totaled $84,000.The predetermined overhead rate was based on an estimated 60,000 direct labor-hours for the year and an estimated $180,000 in manufacturing overhead costs.What is the Cost of Goods Manufactured for June?

Accepted Answer

A) $89,000. 
B) $84,000. 
C) $94,000. 
D) $99,000. 
A) $89,000. 
B) $84,000. 
C) $94,000. 
D) $99,000.

Question 13

Which of the following approaches allocates overhead by multiplying a predetermined overhead rate × actual activity?

Accepted Answer

A) Actual costing. 
B) Normal costing. 
C) Regression costing. 
D) Standard costing. 
A) Actual costing. 
B) Normal costing. 
C) Regression costing. 
D) Standard costing.

Question 14

One of the primary differences between job costing for service and manufacturing companies is service firms generally:

Accepted Answer

A) use fewer direct materials. 
B) have less direct labor. 
C) do not use predetermined overhead rates. 
D) have no Work-in-Process Inventory. 
A) use fewer direct materials. 
B) have less direct labor. 
C) do not use predetermined overhead rates. 
D) have no Work-in-Process Inventory.

Question 15

Which of the following approaches allocates overhead by multiplying a predetermined rate × standard activity?

Accepted Answer

A) Actual costing. 
B) Normal costing. 
C) Regression costing. 
D) Standard costing. 
A) Actual costing. 
B) Normal costing. 
C) Regression costing. 
D) Standard costing.

Question 16

Job cost sheets are used in accounting systems as a subsidiary ledger for the Work-in-Process account.Job cost sheets contain the details of the unfinished work;and constitute the subsidiary ledger for Work-in-Process,Finished Goods,and Cost of Goods Sold.

Accepted Answer

A) True 
 B)False

Question 17

The journal entry to write-off a significant underapplied overhead balance at the end of an accounting period is:

Accepted Answer

A) a. 
B) B. 
C) C. 
D) D.Significant underapplied (and overapplied)overhead balances should be allocated to the three accounts that have overheaD. 
A) a. 
B) B. 
C) C. 
D) D.Significant underapplied (and overapplied)overhead balances should be allocated to the three accounts that have overheaD.

Question 18

Under Pick Co.'s job order costing system,manufacturing overhead is applied to Work-in-Process using a predetermined annual overhead rate.During January,Pick's transactions included the following:   Pick had neither beginning nor ending inventory in Work-in-Process Inventory.What was the cost of jobs completed in January? (CPA adapted)

Accepted Answer

A) $302,000. 
B) $310,000. 
C) $322,000. 
D) $330,000. 
A) $302,000. 
B) $310,000. 
C) $322,000. 
D) $330,000.

Question 19

Normal costing uses the actual allocation base activity to apply manufacturing overhead costs to jobs during the period.Normal costing uses the actual allocation base activity to apply manufacturing overhead costs to jobs during the period.

Accepted Answer

A) True 
 B)False

Question 20

What document is used to determine the actual amount of direct labor to record on a job cost sheet?

Accepted Answer

A) Time ticket. 
B) Payroll register. 
C) Production order. 
D) Wages payable account. 
A) Time ticket. 
B) Payroll register. 
C) Production order. 
D) Wages payable account.

The journal entry to record the completion of a contract in a job costing system for a service firm is:

Which of the following accounts is debited when direct labor is recorded?

Manufacturing overhead applied on the basis of direct labor-hours was $120,000,while actual manufacturing overhead incurred was $124,000 for the month of April.Which of the following is always true given the statement above?

The journal entry to record the completion of a job in a job order cost system is:

If a company multiplies its actual overhead rate by the actual activity level of its allocation base,it is using:

In computing its predetermined overhead rate,Marple Company inadvertently left its indirect labor costs out of the computation.This oversight will cause:

Indirect material and indirect labor are two examples of manufacturing overhead costs.Indirect material and labor are included in overhead because they are considered to be insignificant in cost (material)and not directly related to the job (labor).

Which of the following accounts is used to accumulate the actual manufacturing overhead costs incurred during a period?

Underapplied overhead occurs when the balance in the Manufacturing Overhead Control account is:

Which of the following approaches allocates overhead by multiplying an actual overhead rate × actual activity?

Which of the following approaches allocates overhead by multiplying a predetermined overhead rate × actual activity?

One of the primary differences between job costing for service and manufacturing companies is service firms generally:

Which of the following approaches allocates overhead by multiplying a predetermined rate × standard activity?

Job cost sheets are used in accounting systems as a subsidiary ledger for the Work-in-Process account.Job cost sheets contain the details of the unfinished work;and constitute the subsidiary ledger for Work-in-Process,Finished Goods,and Cost of Goods Sold.

The journal entry to write-off a significant underapplied overhead balance at the end of an accounting period is:

Normal costing uses the actual allocation base activity to apply manufacturing overhead costs to jobs during the period.Normal costing uses the actual allocation base activity to apply manufacturing overhead costs to jobs during the period.

What document is used to determine the actual amount of direct labor to record on a job cost sheet?

Cost Accounting: Information for Decision Making

Cost Concepts and Behavior

Fundamentals of Cost-Volume-Profit Analysis

Fundamentals of Cost Analysis for Decision Making

Cost Estimation

Fundamentals of Product and Service Costing

Process Costing

Activity-Based Costing

Fundamentals of Cost Management

Service Department and Joint Cost Allocation

Fundamentals of Management Control Systems

Planning and Budgeting

Business Unit Performance Measurement

Transfer Pricing

Fundamentals of Variance Analysis

Additional Topics in Variance Analysis

Performance Measurement to Support Business Strategy

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Exam 7: Job Costing

The journal entry to record the completion of a contract in a job costing system for a service firm is:

Which of the following accounts is debited when direct labor is recorded?

Manufacturing overhead applied on the basis of direct labor-hours was $120,000,while actual manufacturing overhead incurred was $124,000 for the month of April.Which of the following is always true given the statement above?

The journal entry to record the completion of a job in a job order cost system is:

If a company multiplies its actual overhead rate by the actual activity level of its allocation base,it is using:

In computing its predetermined overhead rate,Marple Company inadvertently left its indirect labor costs out of the computation.This oversight will cause:

Indirect material and indirect labor are two examples of manufacturing overhead costs.Indirect material and labor are included in overhead because they are considered to be insignificant in cost (material)and not directly related to the job (labor).

Which of the following accounts is used to accumulate the actual manufacturing overhead costs incurred during a period?

Underapplied overhead occurs when the balance in the Manufacturing Overhead Control account is:

Which of the following approaches allocates overhead by multiplying an actual overhead rate × actual activity?

Which of the following approaches allocates overhead by multiplying a predetermined overhead rate × actual activity?

One of the primary differences between job costing for service and manufacturing companies is service firms generally:

Which of the following approaches allocates overhead by multiplying a predetermined rate × standard activity?

Job cost sheets are used in accounting systems as a subsidiary ledger for the Work-in-Process account.Job cost sheets contain the details of the unfinished work;and constitute the subsidiary ledger for Work-in-Process,Finished Goods,and Cost of Goods Sold.

The journal entry to write-off a significant underapplied overhead balance at the end of an accounting period is:

Normal costing uses the actual allocation base activity to apply manufacturing overhead costs to jobs during the period.Normal costing uses the actual allocation base activity to apply manufacturing overhead costs to jobs during the period.

What document is used to determine the actual amount of direct labor to record on a job cost sheet?

Cost Accounting: Information for Decision Making

Cost Concepts and Behavior

Fundamentals of Cost-Volume-Profit Analysis

Fundamentals of Cost Analysis for Decision Making

Cost Estimation

Fundamentals of Product and Service Costing

Process Costing

Activity-Based Costing

Fundamentals of Cost Management

Service Department and Joint Cost Allocation

Fundamentals of Management Control Systems

Planning and Budgeting

Business Unit Performance Measurement

Transfer Pricing

Fundamentals of Variance Analysis

Additional Topics in Variance Analysis

Performance Measurement to Support Business Strategy

Filters