Question 1

In a job-order costing system,direct labor cost is ordinarily debited to:

Accepted Answer

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

Question 2

Entin Corporation reported the following data for the month of January:  
-The adjusted cost of goods sold that appears on the income statement for January is:

Accepted Answer

A) $197,000 
B) $200,000 
C) $201,000 
D) $199,000 
A) $197,000 
B) $200,000 
C) $201,000 
D) $199,000

Question 3

The following data have been recorded for recently completed Job 674 on its job cost sheet.Direct materials cost was $2,039.A total of 32 direct labor-hours and 175 machine-hours were worked on the job.The direct labor wage rate is $14 per labor-hour.The company applies manufacturing overhead on the basis of machine-hours.The predetermined overhead rate is $15 per machine-hour.The total cost for the job on its job cost sheet would be:

Accepted Answer

A) $2,967 
B) $2,487 
C) $2,068 
D) $5,112 
A) $2,967 
B) $2,487 
C) $2,068 
D) $5,112

Question 4

Job 434 was recently completed.The following data have been recorded on its job cost sheet:   The company applies manufacturing overhead on the basis of machine-hours.The predetermined overhead rate is $12 per machine-hour.
Required:
Compute the unit product cost that would appear on the job cost sheet for this job.

Accepted Answer

The answer of Job 434 was recently completed.The following data...

Question 5

The following journal entry would be made to apply overhead cost to jobs in a job-order costing system:

Accepted Answer

A) True 
 B)False

Question 6

Botton Inc.has provided the following data for the month of March.There were no beginning inventories;consequently,the direct materials,direct labor,and manufacturing overhead applied listed below are all for the current month.   Manufacturing overhead for the month was underapplied by $7,000.

The company allocates any underapplied or overapplied manufacturing overhead among work in process,finished goods,and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts.
The cost of goods sold for March after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to:

Accepted Answer

A) $163,490 
B) $177,490 
C) $165,030 
D) $175,950 
A) $163,490 
B) $177,490 
C) $165,030 
D) $175,950

Question 7

Echenko Corporation uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate. During the year the company's Finished Goods inventory account was debited for $380,000 and credited for $335,500. The ending balance in the Finished Goods inventory account was $62,300. At the end of the year, manufacturing overhead was overapplied by $2,900.
-The balance in the Finished Goods inventory account at the beginning of the year was:

Accepted Answer

A) $2,900 
B) $62,300 
C) $44,500 
D) $17,800 
A) $2,900 
B) $62,300 
C) $44,500 
D) $17,800

Question 8

Simoneaux Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year.At the beginning of the most recently completed year,the company estimated the machine-hours for the upcoming year at 22,000 machine-hours.The estimated variable manufacturing overhead was $8.65 per machine-hour and the estimated total fixed manufacturing overhead was $609,400.The predetermined overhead rate for the recently completed year was closest to:

Accepted Answer

A) $36.35 per machine-hour 
B) $27.70 per machine-hour 
C) $33.32 per machine-hour 
D) $8.65 per machine-hour 
A) $36.35 per machine-hour 
B) $27.70 per machine-hour 
C) $33.32 per machine-hour 
D) $8.65 per machine-hour

Question 9

Denherder Inc. has provided the following data for the month of November. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.   Manufacturing overhead for the month was underapplied by $5,000.
The company allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts.

-The finished goods inventory at the end of November after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to:

Accepted Answer

A) $50,840 
B) $50,848 
C) $52,632 
D) $52,640 
A) $50,840 
B) $50,848 
C) $52,632 
D) $52,640

Question 10

On April 1, Stelter Corporation had $34,000 of raw materials on hand. During the month, the company purchased an additional $60,000 of raw materials. During April, $70,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $7,000. Prepare journal entries to record these events. Use these journal entries to answer the following questions:
-The credits to the Work in Process account as a consequence of the raw materials transactions in April total:

Accepted Answer

A) $70,000 
B) $63,000 
C) $0 
D) $60,000 
A) $70,000 
B) $63,000 
C) $0 
D) $60,000

Question 11

In May,Hervey Inc.incurred $60,000 of direct labor costs and $3,000 of indirect labor costs.The journal entry to record the accrual of these wages would include a:

Accepted Answer

A) credit to Manufacturing Overhead of $3,000 
B) debit to Work in Process of $63,000 
C) credit to Work in Process of $63,000 
D) debit to Manufacturing Overhead of $3,000 
A) credit to Manufacturing Overhead of $3,000 
B) debit to Work in Process of $63,000 
C) credit to Work in Process of $63,000 
D) debit to Manufacturing Overhead of $3,000

Question 12

McWhite Inc. has provided the following data for the month of October. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.  Manufacturing overhead for the month was underapplied by $6,000.
The company allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts.

-The finished goods inventory at the end of October after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to:

Accepted Answer

A) $60,820 
B) $58,660 
C) $58,648 
D) $60,832 
A) $60,820 
B) $58,660 
C) $58,648 
D) $60,832

Question 13

Which of the following is the correct formula to compute the predetermined overhead rate?

Accepted Answer

A) Estimated total units in the allocation base divided by estimated total manufacturing overhead costs. 
B) Estimated total manufacturing overhead costs divided by estimated total units in the allocation base. 
C) Actual total manufacturing overhead costs divided by estimated total units in the allocation base. 
D) Estimated total manufacturing overhead costs divided by actual total units in the allocation base. 
A) Estimated total units in the allocation base divided by estimated total manufacturing overhead costs. 
B) Estimated total manufacturing overhead costs divided by estimated total units in the allocation base. 
C) Actual total manufacturing overhead costs divided by estimated total units in the allocation base. 
D) Estimated total manufacturing overhead costs divided by actual total units in the allocation base.

Question 14

Underapplied manufacturing overhead increases the balance in cost of goods sold, resulting in a debit entry.  
-The balance on March 1 in the Raw Materials inventory account was:

Accepted Answer

A) $8,500 
B) $6,500 
C) $7,500 
D) $9,500 
A) $8,500 
B) $6,500 
C) $7,500 
D) $9,500

Question 15

Vanwagenen Inc. has provided the following data for the month of April:   
-The adjusted cost of goods sold that appears on the income statement for April is:

Accepted Answer

A) $197,000 
B) $195,000 
C) $200,000 
D) $199,000 
A) $197,000 
B) $195,000 
C) $200,000 
D) $199,000

Question 16

Bakker 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 $77,250 and 2,500 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $79,000 and actual direct labor-hours were 2,400.
-The predetermined overhead rate for the year was closest to:

Accepted Answer

A) $29.66 
B) $32.92 
C) $31.60 
D) $30.90 
A) $29.66 
B) $32.92 
C) $31.60 
D) $30.90

Question 17

Bakker 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 $77,250 and 2,500 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $79,000 and actual direct labor-hours were 2,400.
-The overhead for the year was:

Accepted Answer

A) $3,090 overapplied 
B) $4,840 underapplied 
C) $4,840 overapplied 
D) $3,090 underapplied 
A) $3,090 overapplied 
B) $4,840 underapplied 
C) $4,840 overapplied 
D) $3,090 underapplied

Question 18

Capalbo Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year.At the beginning of the most recently completed year,the company estimated the labor-hours for the upcoming year at 52,000 labor-hours.The estimated variable manufacturing overhead was $2.78 per labor-hour and the estimated total fixed manufacturing overhead was $1,192,360.The actual labor-hours for the year turned out to be 52,600 labor-hours.The predetermined overhead rate for the recently completed year was closest to:

Accepted Answer

A) $2.78 
B) $25.45 
C) $25.71 
D) $22.93 
A) $2.78 
B) $25.45 
C) $25.71 
D) $22.93

Question 19

Which of the following is correct with respect to closing out overapplied manufacturing overhead to Cost of Goods Sold versus closing it out to Cost of Goods Sold and Finished Goods and Work in Process inventories?

Accepted Answer

A) The balance in the Work in Process account after allocation will be higher if the overapplied manufacturing overhead is closed out by allocating it to all appropriate accounts. 
B) The balance in the Work in Process account after allocation will be the same under either method. 
C) Net operating income will be higher if all of the overapplied manufacturing overhead is closed out to Cost of Goods Sold. 
D) Cost of Goods Sold will be lower if the overapplied manufacturing overhead is closed out by allocating it to the inventory accounts as well as to Cost of Goods Sold. 
A) The balance in the Work in Process account after allocation will be higher if the overapplied manufacturing overhead is closed out by allocating it to all appropriate accounts. 
B) The balance in the Work in Process account after allocation will be the same under either method. 
C) Net operating income will be higher if all of the overapplied manufacturing overhead is closed out to Cost of Goods Sold. 
D) Cost of Goods Sold will be lower if the overapplied manufacturing overhead is closed out by allocating it to the inventory accounts as well as to Cost of Goods Sold.

Question 20

Denherder Inc. has provided the following data for the month of November. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.   Manufacturing overhead for the month was underapplied by $5,000.
The company allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts.

-The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for November would include the following:

Accepted Answer

A) credit to Work in Process of $250 
B) debit to Work in Process of $11,200 
C) credit to Work in Process of $11,200 
D) debit to Work in Process of $250 
A) credit to Work in Process of $250 
B) debit to Work in Process of $11,200 
C) credit to Work in Process of $11,200 
D) debit to Work in Process of $250

In a job-order costing system,direct labor cost is ordinarily debited to:

Entin Corporation reported the following data for the month of January: -The adjusted cost of goods sold that appears on the income statement for January is:

The following journal entry would be made to apply overhead cost to jobs in a job-order costing system:

In May,Hervey Inc.incurred $60,000 of direct labor costs and $3,000 of indirect labor costs.The journal entry to record the accrual of these wages would include a:

Which of the following is the correct formula to compute the predetermined overhead rate?

Underapplied manufacturing overhead increases the balance in cost of goods sold, resulting in a debit entry. -The balance on March 1 in the Raw Materials inventory account was:

Vanwagenen Inc. has provided the following data for the month of April: -The adjusted cost of goods sold that appears on the income statement for April is:

Which of the following is correct with respect to closing out overapplied manufacturing overhead to Cost of Goods Sold versus closing it out to Cost of Goods Sold and Finished Goods and Work in Process inventories?

Managerial Accounting and Cost Concepts

Process Costing

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Activity-Based Costing: a Tool to Aid Decision Making

Profit Planning

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

Least-Squares Regression Computations

Appendix B: Cost of Quality

The Predetermined Overhead Rate and Capacity

Further Classification of Labor Costs

Fifo Method

Service Department Allocations

Abc Action Analysis

Using a Modified Form of Activity-Based Costing to Determine Product Costs for External Reports

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Journal Entries to Record Variances

Transfer Pricing

Service Department Charges

The Concept of Present Value

Income Taxes in Capital Budgeting Decisions

The Direct Method of Determining the Net Cash Provided by Operating Activities

Pricing Products and Services

Profitability Analysis

Filters

Exam 2: Job-Order Costing

In a job-order costing system,direct labor cost is ordinarily debited to:

Entin Corporation reported the following data for the month of January: -The adjusted cost of goods sold that appears on the income statement for January is:

The following journal entry would be made to apply overhead cost to jobs in a job-order costing system:

In May,Hervey Inc.incurred $60,000 of direct labor costs and $3,000 of indirect labor costs.The journal entry to record the accrual of these wages would include a:

Which of the following is the correct formula to compute the predetermined overhead rate?

Underapplied manufacturing overhead increases the balance in cost of goods sold, resulting in a debit entry. -The balance on March 1 in the Raw Materials inventory account was:

Vanwagenen Inc. has provided the following data for the month of April: -The adjusted cost of goods sold that appears on the income statement for April is:

Which of the following is correct with respect to closing out overapplied manufacturing overhead to Cost of Goods Sold versus closing it out to Cost of Goods Sold and Finished Goods and Work in Process inventories?

Managerial Accounting and Cost Concepts

Process Costing

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Activity-Based Costing: a Tool to Aid Decision Making

Profit Planning

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

Least-Squares Regression Computations

Appendix B: Cost of Quality

The Predetermined Overhead Rate and Capacity

Further Classification of Labor Costs

Fifo Method

Service Department Allocations

Abc Action Analysis

Using a Modified Form of Activity-Based Costing to Determine Product Costs for External Reports

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Journal Entries to Record Variances

Transfer Pricing

Service Department Charges

The Concept of Present Value

Income Taxes in Capital Budgeting Decisions

The Direct Method of Determining the Net Cash Provided by Operating Activities

Pricing Products and Services

Profitability Analysis

Filters