Question 1

The cost categories that appear on a job cost sheet include selling expense, manufacturing expense, and administrative expense.

Accepted Answer

A) True 
 B)False

Question 2

A good description of "cost of goods manufactured" is the recorded cost of the:

Accepted Answer

A) units completed during the period. 
B) units started and completed during the period. 
C) work done on all units during the period. 
D) work done this period on units completed this period. 
A) units completed during the period. 
B) units started and completed during the period. 
C) work done on all units during the period. 
D) work done this period on units completed this period.

Question 3

A single plant-wide overhead rate generally provides more accurate product costs than multiple departmental overhead rates.

Accepted Answer

A) True 
 B)False

Question 4

Dreckman Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold at the end of the month.In August the company completed job M27K that consisted of 17, 000 units of one of the company's standard products.No other jobs were in process during the month.The total manufacturing cost for job M27K according to its job cost sheet was $1, 118, 600.During the month, the actual manufacturing overhead cost incurred was $265, 880 and the manufacturing overhead applied was $272, 000.And during the month, 1, 000 completed units from job M27K were sold.No other products were sold during the month. The unadjusted cost of goods sold (in other words, the cost of goods sold BEFORE adjustment for any underapplied or overapplied overhead)for August is closest to:

Accepted Answer

A) $65, 440 
B) $1, 043, 800 
C) $1, 118, 600 
D) $65, 800 
A) $65, 440 
B) $1, 043, 800 
C) $1, 118, 600 
D) $65, 800

Question 5

Departmental overhead rates are generally preferred to plant-wide overhead rates when:

Accepted Answer

A) the activities of the various departments in the plant are not homogeneous. 
B) the activities of the various departments in the plant are homogeneous. 
C) most of the overhead costs are fixed. 
D) all departments in the plant are heavily automated. 
A) the activities of the various departments in the plant are not homogeneous. 
B) the activities of the various departments in the plant are homogeneous. 
C) most of the overhead costs are fixed. 
D) all departments in the plant are heavily automated.

Question 6

Baker Corporation applies manufacturing overhead on the basis of direct labor-hours.At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $210, 600 and 6, 000 estimated direct labor-hours.Actual manufacturing overhead for the year amounted to $209, 000 and actual direct labor-hours were 5, 980. The predetermined overhead rate for the year was closest to:

Accepted Answer

A) $34.95 
B) $34.83 
C) $34.98 
D) $35.10 
A) $34.95 
B) $34.83 
C) $34.98 
D) $35.10

Question 7

Parker Corporation uses a job-order costing system and applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor-hours.Last year manufacturing overhead and direct labor-hours were estimated at $50, 000 and 20, 000 hours, respectively, for the year.In June, Job #461 was completed.Materials costs on the job totaled $4, 000 and labor costs totaled $1, 500 at $5 per hour.At the end of the year, it was determined that the company worked 24, 000 direct labor-hours for the year and incurred $54, 000 in actual manufacturing overhead costs.
Required:
a.Job #461 contained 100 units.Determine the unit product cost that would appear on the job cost sheet.
b.Determine the underapplied or overapplied overhead for the year.

Accepted Answer

@#IMG-DLM& *Actual direct labor-hours =

Question 8

Tramell Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month.The company has provided the following data for June:     The unadjusted cost of goods sold (in other words, cost of goods sold before adjusting for any underapplied or overapplied overhead)for June is closest to:

Accepted Answer

A) $125, 000 
B) $130, 000 
C) $126, 000 
D) $135, 000 
A) $125, 000 
B) $130, 000 
C) $126, 000 
D) $135, 000

Question 9

If a company uses predetermined overhead rates, actual manufacturing overhead costs of a period will be recorded in the Manufacturing Overhead Incurred account, but they will not be recorded on the job cost sheets for the period.

Accepted Answer

A) True 
 B)False

Question 10

Use of a single, plantwide overhead rate is generally appropriate only for very large manufacturing companies.

Accepted Answer

A) True 
 B)False

Question 11

Messana Corporation reported the following data for the month of August:   The cost of goods sold that is adjusted for underapplied or overapplied overhead and that appears on the income statement for August is:

Accepted Answer

A) $229, 000 
B) $211, 000 
C) $209, 000 
D) $247, 000 
A) $229, 000 
B) $211, 000 
C) $209, 000 
D) $247, 000

Question 12

Catala Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed out to cost of goods sold at the end of the month.The company has provided the following data for March:     The cost of goods sold that appears on the income statement for March and that has been adjusted for any underapplied or overapplied overhead is closest to:

Accepted Answer

A) $133, 000 
B) $127, 000 
C) $117, 000 
D) $141, 000 
A) $133, 000 
B) $127, 000 
C) $117, 000 
D) $141, 000

Question 13

Caber Corporation applies manufacturing overhead on the basis of machine-hours.At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $60, 600.Actual manufacturing overhead for the year amounted to $59, 000 and actual machine-hours were 5, 900.The company's predetermined overhead rate for the year was $10.10 per machine-hour. The overhead for the year was:

Accepted Answer

A) $1, 010 underapplied 
B) $590 overapplied 
C) $590 underapplied 
D) $1, 010 overapplied 
A) $1, 010 underapplied 
B) $590 overapplied 
C) $590 underapplied 
D) $1, 010 overapplied

Question 14

Farber Corporation uses a job-order costing system.The information below is from the financial records of the company for last year:   Applied overhead was 30% of total manufacturing costs.The Work in Process inventory at January 1 was 75% of the Work in Process inventory at December 31. Total cost of direct material used by Farber Corporation was:

Accepted Answer

A) $750, 000 
B) $812, 500 
C) $850, 000 
D) $1, 150, 000 
A) $750, 000 
B) $812, 500 
C) $850, 000 
D) $1, 150, 000

Question 15

Farber Corporation uses a job-order costing system.The information below is from the financial records of the company for last year:   Applied overhead was 30% of total manufacturing costs.The Work in Process inventory at January 1 was 75% of the Work in Process inventory at December 31. The Work in Process inventory at December 31 was:

Accepted Answer

A) $300, 000 
B) $225, 000 
C) $100, 000 
D) $75, 000 
A) $300, 000 
B) $225, 000 
C) $100, 000 
D) $75, 000

Question 16

Tondre Inc.has provided the following data for the month of July:   The cost of goods sold that is adjusted for underapplied or overapplied overhead and that appears on the income statement for July is:

Accepted Answer

A) $201, 000 
B) $198, 000 
C) $219, 000 
D) $210, 000 
A) $201, 000 
B) $198, 000 
C) $219, 000 
D) $210, 000

Question 17

Bartholemew Inc.uses a job-order costing system in which any underapplied or overapplied overhead is closed to cost of goods sold at the end of the month.In February the company completed job G43C that consisted of 19, 000 units of one of the company's standard products.No other jobs were in process during the month.The job cost sheet for job G43C shows that the job's total cost was $1, 126, 700.During the month, 14, 000 completed units from job G43C were sold.No other products were sold during the month.
Required:
Determine the unadjusted cost of goods sold (in other words, the cost of goods sold BEFORE adjustment for any underapplied or overapplied overhead)for February.Show your work!

Accepted Answer

The answer of Bartholemew Inc.uses a job-order costing system in...

Question 18

Acton Corporation, which applies manufacturing overhead on the basis of machine-hours, has provided the following data for its most recent year of operations.   The estimates of the manufacturing overhead and of machine-hours were made at the beginning of the year for the purpose of computing the company's predetermined overhead rate for the year. The overhead for the year was:

Accepted Answer

A) $732 underapplied 
B) $1, 348 underapplied 
C) $732 overapplied 
D) $1, 348 overapplied 
A) $732 underapplied 
B) $1, 348 underapplied 
C) $732 overapplied 
D) $1, 348 overapplied

Question 19

Baker Corporation applies manufacturing overhead on the basis of direct labor-hours.At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $210, 600 and 6, 000 estimated direct labor-hours.Actual manufacturing overhead for the year amounted to $209, 000 and actual direct labor-hours were 5, 980. The overhead for the year was:

Accepted Answer

A) $702 underapplied 
B) $898 underapplied 
C) $702 overapplied 
D) $898 overapplied 
A) $702 underapplied 
B) $898 underapplied 
C) $702 overapplied 
D) $898 overapplied

Question 20

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

Accepted Answer

A) bill of materials 
B) production order 
C) materials purchase order 
D) materials requisition form 
A) bill of materials 
B) production order 
C) materials purchase order 
D) materials requisition form

The cost categories that appear on a job cost sheet include selling expense, manufacturing expense, and administrative expense.

A good description of "cost of goods manufactured" is the recorded cost of the:

A single plant-wide overhead rate generally provides more accurate product costs than multiple departmental overhead rates.

Departmental overhead rates are generally preferred to plant-wide overhead rates when:

If a company uses predetermined overhead rates, actual manufacturing overhead costs of a period will be recorded in the Manufacturing Overhead Incurred account, but they will not be recorded on the job cost sheets for the period.

Use of a single, plantwide overhead rate is generally appropriate only for very large manufacturing companies.

Messana Corporation reported the following data for the month of August: The cost of goods sold that is adjusted for underapplied or overapplied overhead and that appears on the income statement for August is:

Tondre Inc.has provided the following data for the month of July: The cost of goods sold that is adjusted for underapplied or overapplied overhead and that appears on the income statement for July is:

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

Managerial Accounting and Cost Concepts

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Activity-Based-Costing: a Tool to Aid Decision Making

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

Profit Planning

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Pricing Products and Services

Profitability Analysis

Least Squares Regression Computations

Activity-Based Absorption Costing

the Predetermined Overhead Rate and Capacity

Super-Variable Costing

Abc Action Analysis

the Concept of Present Value

Income Taxes and the Net Present Value Method

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Transfer Pricing

Service Department Charges

Filters

Exam 3: Job-Order Costing

The cost categories that appear on a job cost sheet include selling expense, manufacturing expense, and administrative expense.

A good description of "cost of goods manufactured" is the recorded cost of the:

A single plant-wide overhead rate generally provides more accurate product costs than multiple departmental overhead rates.

Departmental overhead rates are generally preferred to plant-wide overhead rates when:

If a company uses predetermined overhead rates, actual manufacturing overhead costs of a period will be recorded in the Manufacturing Overhead Incurred account, but they will not be recorded on the job cost sheets for the period.

Use of a single, plantwide overhead rate is generally appropriate only for very large manufacturing companies.

Messana Corporation reported the following data for the month of August: The cost of goods sold that is adjusted for underapplied or overapplied overhead and that appears on the income statement for August is:

Tondre Inc.has provided the following data for the month of July: The cost of goods sold that is adjusted for underapplied or overapplied overhead and that appears on the income statement for July is:

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

Managerial Accounting and Cost Concepts

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Activity-Based-Costing: a Tool to Aid Decision Making

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

Profit Planning

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Pricing Products and Services

Profitability Analysis

Least Squares Regression Computations

Activity-Based Absorption Costing

the Predetermined Overhead Rate and Capacity

Super-Variable Costing

Abc Action Analysis

the Concept of Present Value

Income Taxes and the Net Present Value Method

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Transfer Pricing

Service Department Charges

Filters