Question 1

The journal entry needed to record the receipt of a factory utility bill would include a

Accepted Answer

A) debit to manufacturing overhead. 
B) credit to manufacturing overhead. 
C) debit to accounts payable. 
D) debit to utilities payable.

Question 2

If manufacturing overhead has been overallocated during the period, then

Accepted Answer

A) the jobs produced during the period have been undercosted. 
B) the jobs produced during the period have been overcosted. 
C) the jobs produced during the period have been costed correctly. 
D) none of the above.

Question 3

At Plastastic, Inc., the beginning balance of the work in process inventory account in April of the most recent year was $19,000. Direct materials used during April totaled $130,000. Total manufacturing labor incurred in April was $180,000, 75% of this amount represented direct labor. The predetermined manufacturing overhead rate is 130% of direct labor cost. Actual manufacturing overhead costs for April amounted to $160,000.
In April, two jobs were completed with total costs of $110,000 and $95,000, respectively. In April, the two jobs were sold on account for $187,000 and $124,000, respectively.
a)Compute the balance in work in process inventory on April 30.
b)Record the journal entry for direct materials used in April.
c)Record the journal entry to record labor costs for April.
d)Record the journal entry for allocated manufacturing overhead for April.
e)Record the entry to move the completed jobs into finished goods inventory in April.
f)Record the entry to sell the two completed jobs on account in April.

Accepted Answer

The answer of At Plastastic, Inc., the beginning balance of...

Question 4

Stars and Stripes Corporation uses job costing. The following is selected financial data from the company for the most recent year.
  Compute:
a)Beginning raw materials inventory
b)Beginning work in process inventory
c)Beginning finished goods inventory
d)Actual manufacturing overhead costs incurred during the year

Accepted Answer

The answer of Stars and Stripes Corporation uses job costing....

Question 5

The work in process account is debited for the cost of direct labor in a job cost system.

Accepted Answer

A) True 
 B)False

Question 6

Manufacturers follow four steps to implement a manufacturing overhead allocation system. The last step is to allocate some manufacturing overhead to each individual job.

Accepted Answer

A) True 
 B)False

Question 7

Manufacturers follow four steps to implement a manufacturing overhead allocation system. What is the first step?

Accepted Answer

A) Select an allocation base and estimate the total amount that will be used during the year. 
B) Allocate some manufacturing overhead to each individual job. 
C) Calculate a predetermined manufacturing overhead rate. 
D) Estimate total manufacturing overhead costs for the coming year.

Question 8

Here are selected data for Sunny Sky Corporation:  What is the ending work in process inventory balance?

Accepted Answer

A) $161,500 
B) $170,250 
C) $211,200 
D) $229,950

Question 9

A ________ is a document which is prepared by manufacturing personnel to request materials for the production process.

Accepted Answer

A) cost ticket 
B) job cost record 
C) materials requisition 
D) manufacturing ticket

Question 10

Solid Oak Bureau uses job costing. Solid Oak Bureau Company has two departments, Trimming and Finishing. Manufacturing overhead is allocated based on direct labor cost in the Trimming Department and direct labor hours in the Finishing Department. The following additional information is available:  Actual data for completed Job No. 650 is as follows:
 If Job No. 650 consists of 500 units of product, the average unit cost of this job is closest to

Accepted Answer

A) $452.04. 
B) $414.46. 
C) $157.04. 
D) $295.00.

Question 11

A food and beverage company like Coca-Cola would most likely use job costing.

Accepted Answer

A) True 
 B)False

Question 12

The journal entry to issue $600 of direct materials and $40 of indirect materials involves a debit to

Accepted Answer

A) manufacturing overhead for $640. 
B) work in process inventory for $640. 
C) work in process inventory for $600 and a credit to manufacturing overhead for $40. 
D) work in process inventory for $600 and a debit to manufacturing overhead for $40.

Question 13

Manufacturing overhead may include depreciation on the factory plant and equipment, utilities to run the plant, property taxes and insurance on the plant, and salaries of plant janitors.

Accepted Answer

A) True 
 B)False

Question 14

Ryan's Paints allocates overhead based on machine hours. Selected data for the most recent year follow.  The estimates were made as of the beginning of the year, while the actual results were for the entire year.
The amount of manufacturing overhead allocated for the year based on machine hours would have been

Accepted Answer

A) $239,500. 
B) $264,375. 
C) $235,000. 
D) $244,000.

Question 15

Manufacturing overhead is allocated on the basis of

Accepted Answer

A) machine hours. 
B) direct labor hours. 
C) direct labor costs. 
D) any of the listed choices.

Question 16

The gross profit on the sale of a job is the difference between the sales price and the total cost reported on the job cost record.

Accepted Answer

A) True 
 B)False

Question 17

The following account balances at the beginning of January were selected from the general ledger of Ocean City Manufacturing Company:  Additional data:1)Actual manufacturing overhead for January amounted to $62,000.
2)Total direct labor cost for January was $63,000.
3)The predetermined manufacturing overhead rate is based on direct labor cost. The budget for the year called for $250,000 of direct labor cost and $350,000 of manufacturing overhead costs.
4)The only job unfinished on January 31 was Job No. 151, for which total direct labor charges were $5,200 (800 direct labor hours)and total direct material charges were $14,000.
5)Cost of direct materials placed in production during January totaled $123,000. There were no indirect material requisitions during January.
6)January 31 balance in raw materials inventory was $35,000.
"7)Finished goods inventory balance on January 31 was $34,500.
What is the predetermined manufacturing overhead rate?"

Accepted Answer

A) 71% 
B) 140% 
C) 70% 
D) 99%

Question 18

Here are selected data for Tyler Corporation:  What is the balance in work in process inventory at the end of the year?

Accepted Answer

A) $30,300 
B) $27,700 
C) $49,200 
D) $23,800

Question 19

Job 450 requires $9,800 of direct materials, $6,400 of direct labor, 590 direct labor hours, and 400 machine hours. Manufacturing overhead is computed at $14 per direct labor hour used and $10 per machine hour used. The total cost of Job 450 is

Accepted Answer

A) $12,260. 
B) $28,460. 
C) $16,200. 
D) $24,460.

Question 20

Companies use job costing when their products or services vary in terms of materials needed, time required to complete the product, and/or the complexity of the production process.

Accepted Answer

A) True 
 B)False

Exam 3: Job Costing

The journal entry needed to record the receipt of a factory utility bill would include a

If manufacturing overhead has been overallocated during the period, then

The work in process account is debited for the cost of direct labor in a job cost system.

Manufacturers follow four steps to implement a manufacturing overhead allocation system. The last step is to allocate some manufacturing overhead to each individual job.

Manufacturers follow four steps to implement a manufacturing overhead allocation system. What is the first step?

Here are selected data for Sunny Sky Corporation: What is the ending work in process inventory balance?

A ________ is a document which is prepared by manufacturing personnel to request materials for the production process.

A food and beverage company like Coca-Cola would most likely use job costing.

The journal entry to issue $600 of direct materials and $40 of indirect materials involves a debit to

Manufacturing overhead may include depreciation on the factory plant and equipment, utilities to run the plant, property taxes and insurance on the plant, and salaries of plant janitors.

Manufacturing overhead is allocated on the basis of

The gross profit on the sale of a job is the difference between the sales price and the total cost reported on the job cost record.

Here are selected data for Tyler Corporation: What is the balance in work in process inventory at the end of the year?

Job 450 requires $9,800 of direct materials, $6,400 of direct labor, 590 direct labor hours, and 400 machine hours. Manufacturing overhead is computed at $14 per direct labor hour used and $10 per machine hour used. The total cost of Job 450 is

Companies use job costing when their products or services vary in terms of materials needed, time required to complete the product, and/or the complexity of the production process.