Question 1

A job cost sheet shows information about each of the following items except:

Accepted Answer

A)  The direct labor costs assigned to the job. 
B)  The name of the customer. 
C)  The costs incurred by the marketing department in selling the job. 
D)  The overhead costs assigned to the job. 
E)  The direct materials costs assigned to the job. 
A)  The direct labor costs assigned to the job. 
B)  The name of the customer. 
C)  The costs incurred by the marketing department in selling the job. 
D)  The overhead costs assigned to the job. 
E)  The direct materials costs assigned to the job.

Question 2

A type of production that yields customized products or services for each customer is called:

Accepted Answer

A)  Customer orientation production. 
B)  Job order production. 
C)  Just-in-time production. 
D)  Job lot production. 
E)  Process production. 
A)  Customer orientation production. 
B)  Job order production. 
C)  Just-in-time production. 
D)  Job lot production. 
E)  Process production.

Question 3

In a job order cost accounting system, any immaterial underapplied overhead at the end of the period can be charged entirely to Cost of Goods Sold.

Accepted Answer

A) True 
 B)False

Question 4

If overhead applied is less than actual overhead incurred, it is:

Accepted Answer

A)  Fully applied. 
B)  Underapplied. 
C)  Overapplied. 
D)  Expected. 
E)  Normal. 
A)  Fully applied. 
B)  Underapplied. 
C)  Overapplied. 
D)  Expected. 
E)  Normal.

Question 5

Overapplied or underapplied overhead should be removed from the Factory Overhead account at the end of each accounting period.

Accepted Answer

A) True 
 B)False

Question 6

When factory payroll is assigned to specific jobs, ______________________ is debited.

Accepted Answer

Goods in P

Question 7

Predetermined overhead rates are necessary because cost accountants use periodic inventory systems.

Accepted Answer

A) True 
 B)False

Question 8

At the current year-end, Hardly Company found that its overhead was underapplied by $2,500, and this amount was not deemed to be a material amount. Based on this information, Hardly should

Accepted Answer

A)  Close the $2,500 to Cost of Goods Sold. 
B)  Close the $2,500 to Finished Goods Inventory. 
C)  Do nothing about the $2,500, since it is not material, and it is likely that overhead will be overapplied by the same amount next year. 
D)  Carry the $2,500 to the income statement as "Other Expense". 
E)  Carry the $2,500 to the next period. 
A)  Close the $2,500 to Cost of Goods Sold. 
B)  Close the $2,500 to Finished Goods Inventory. 
C)  Do nothing about the $2,500, since it is not material, and it is likely that overhead will be overapplied by the same amount next year. 
D)  Carry the $2,500 to the income statement as "Other Expense". 
E)  Carry the $2,500 to the next period.

Question 9

Time tickets for factory employees during the month of August are summarized as follows:   Make the necessary journal entries to record factory payroll.

Accepted Answer

The answer of Time tickets for factory employees during the...

Question 10

Bard Manufacturing uses a job order cost accounting system. During one month Bard purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Bard incurred a factory payroll of $150,000, paid in cash, of which $40,000 is classified as indirect labor. Bard uses a predetermined overhead application rate of 150% of direct labor cost. The journal entry to record the purchase of materials is:

Accepted Answer

A)  Debit Raw Materials Inventory $198,000; credit Accounts Payable $198,000. 
B)  Debit Goods in Process Inventory $198,000; credit Accounts Payable $198,000. 
C)  Debit Raw Materials Inventory $198,000; credit Goods in Process Inventory $198,000. 
D)  Debit Goods in Process Inventory $195,000; credit Raw Materials Inventory $195,000. 
E)  Debit Raw Materials Inventory $198,000; credit Finished Goods Inventory $198,000. 
A)  Debit Raw Materials Inventory $198,000; credit Accounts Payable $198,000. 
B)  Debit Goods in Process Inventory $198,000; credit Accounts Payable $198,000. 
C)  Debit Raw Materials Inventory $198,000; credit Goods in Process Inventory $198,000. 
D)  Debit Goods in Process Inventory $195,000; credit Raw Materials Inventory $195,000. 
E)  Debit Raw Materials Inventory $198,000; credit Finished Goods Inventory $198,000.

Question 11

Bard Manufacturing uses a job order cost accounting system. During one month Bard purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Bard incurred a factory payroll of $150,000, paid in cash, of which $40,000 is classified as indirect labor. Bard uses a predetermined overhead application rate of 150% of direct labor cost. If Bard incurred total overhead costs of $167,800 during the month, compute the amount of under- or overapplied overhead:

Accepted Answer

A)  $2,800 overapplied. 
B)  $17,800 underapplied. 
C)  $2,800 underapplied. 
D)  $17,800 overapplied. 
E)  $57,200 overapplieD.$167,800 - ($110,000 x 1.5) = $2,800 
A)  $2,800 overapplied. 
B)  $17,800 underapplied. 
C)  $2,800 underapplied. 
D)  $17,800 overapplied. 
E)  $57,200 overapplieD.$167,800 - ($110,000 x 1.5) = $2,800

Question 12

A system of accounting for production operations that uses a periodic inventory system is called a:

Accepted Answer

A)  Manufacturing accounting system. 
B)  Production accounting system. 
C)  General accounting system. 
D)  Cost accounting system. 
E)  Finished goods accounting system. 
A)  Manufacturing accounting system. 
B)  Production accounting system. 
C)  General accounting system. 
D)  Cost accounting system. 
E)  Finished goods accounting system.

Question 13

If it is a material amount, overapplied or underapplied overhead should be disposed of by allocating it to:

Accepted Answer

A)  Cost of goods sold and finished goods inventory. 
B)  Finished goods inventory and goods in process inventory. 
C)  Goods in process inventory, finished goods inventory, and cost of goods sold. 
D)  Goods in process inventory. 
E)  Raw materials inventory, goods in process inventory, and finished goods inventory. 
A)  Cost of goods sold and finished goods inventory. 
B)  Finished goods inventory and goods in process inventory. 
C)  Goods in process inventory, finished goods inventory, and cost of goods sold. 
D)  Goods in process inventory. 
E)  Raw materials inventory, goods in process inventory, and finished goods inventory.

Question 14

BVD Company uses a job order cost accounting system and last period incurred $80,000 of overhead and $100,000 of direct labor. BVD estimates that its overhead next period will be $75,000. It also expects to incur $100,000 of direct labor. If BVD bases applied overhead on direct labor cost, their overhead application rate for the next period should be:

Accepted Answer

A)  75%. 
B)  80%. 
C)  107%. 
D)  125%. 
E)  133%. 
A)  75%. 
B)  80%. 
C)  107%. 
D)  125%. 
E)  133%.

Question 15

Dina Corp. uses a job order cost accounting system. Four jobs were started during the current year. The following is a record of the costs incurred:

Accepted Answer

@#IMG-DLM& Actual overhead costs were $55,800. The

Question 16

The overhead cost applied to a job during a period is recorded with a credit to Factory Overhead and a debit to:

Accepted Answer

A)  Jobs Overhead Expense. 
B)  Cost of Goods Sold. 
C)  Finished Goods Inventory. 
D)  Indirect Labor. 
E)  Goods in Process Inventory. 
A)  Jobs Overhead Expense. 
B)  Cost of Goods Sold. 
C)  Finished Goods Inventory. 
D)  Indirect Labor. 
E)  Goods in Process Inventory.

Question 17

The ending inventory of finished goods has a total cost of $9,000 and consists of 600 units. If the overhead applied to these goods is $3,000, and the overhead rate is 75% of direct labor, how much direct materials cost was incurred in producing these units?

Accepted Answer

A)  $3,750. 
B)  $2,000. 
C)  $4,000. 
D)  $6,000. 
E)  $9,000. 
A)  $3,750. 
B)  $2,000. 
C)  $4,000. 
D)  $6,000. 
E)  $9,000.

Question 18

The following information is available for the Millennium Corporation for the current year:

Accepted Answer

@#IMG-DLM& Millennium Corporation uses a predeterm

Question 19

Prepare journal entries to record the following transactions and events for April using a job order cost accounting system.
(a) Purchased raw materials on credit, $69,000.
(b) Raw materials requisitioned: $26,000 direct and $5,400 indirect.
(c) Factory payroll totaled $46,000 (paid in cash), including $9,500 indirect labor.
(d) Paid other actual overhead costs totaling $14,500 cash.
(e) Applied overhead totaling $28,200.
(f) Finished and transferred jobs totaling $77,500.
(g) Jobs costing $58,800 were sold on credit for $103,000.

Accepted Answer

The answer of Prepare journal entries to record the following...

Question 20

The Goods in Process Inventory account for AB Manufacturing follows. Compute the cost of jobs completed and transferred to Finished Goods Inventory.   The cost of units transferred to finished goods is:

Accepted Answer

A)  $97,000. 
B)  $105,900. 
C)  $88,100. 
D)  $95,200. 
E)  $92,500. 
A)  $97,000. 
B)  $105,900. 
C)  $88,100. 
D)  $95,200. 
E)  $92,500.

Exam 19: Job Order Cost Accounting

A job cost sheet shows information about each of the following items except:

A type of production that yields customized products or services for each customer is called:

In a job order cost accounting system, any immaterial underapplied overhead at the end of the period can be charged entirely to Cost of Goods Sold.

If overhead applied is less than actual overhead incurred, it is:

Overapplied or underapplied overhead should be removed from the Factory Overhead account at the end of each accounting period.

When factory payroll is assigned to specific jobs, ______________________ is debited.

Predetermined overhead rates are necessary because cost accountants use periodic inventory systems.

At the current year-end, Hardly Company found that its overhead was underapplied by $2,500, and this amount was not deemed to be a material amount. Based on this information, Hardly should

Time tickets for factory employees during the month of August are summarized as follows: Make the necessary journal entries to record factory payroll.

A system of accounting for production operations that uses a periodic inventory system is called a:

If it is a material amount, overapplied or underapplied overhead should be disposed of by allocating it to:

Dina Corp. uses a job order cost accounting system. Four jobs were started during the current year. The following is a record of the costs incurred:

The overhead cost applied to a job during a period is recorded with a credit to Factory Overhead and a debit to:

The ending inventory of finished goods has a total cost of $9,000 and consists of 600 units. If the overhead applied to these goods is $3,000, and the overhead rate is 75% of direct labor, how much direct materials cost was incurred in producing these units?

The following information is available for the Millennium Corporation for the current year:

The Goods in Process Inventory account for AB Manufacturing follows. Compute the cost of jobs completed and transferred to Finished Goods Inventory. The cost of units transferred to finished goods is:

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, Natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Process Cost Accounting

Cost Allocation and Performance Measurement

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Capital Budgeting and Managerial Decisions

Time Value of Money

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