Question 1

Selected accounts with a credit amount omitted are as follows:​   ​   What was the balance of Work in Process as of April 30?

Accepted Answer

A)  $8,100 
B)  $35,000 
C)  $29,900 
D)  $22,900 
A)  $8,100 
B)  $35,000 
C)  $29,900 
D)  $22,900

Question 2

The process cost system is appropriate where few products are manufactured and each product is made to customers' specifications.

Accepted Answer

A) True 
 B)False

Question 3

Job cost sheets can provide information to managers on unit cost trends, the cost impact of continuous improvement in the manufacturing process, the cost impact of materials changes, and the cost impact of direct materials price or direct labor rate changes over time.

Accepted Answer

A) True 
 B)False

Question 4

The cost of production of completed and transferred goods during the period amounted to $540,000, and the finished products shipped to customers had production costs of $375,000. The entry to record the transfer of costs from finished goods to cost of goods sold is

Accepted Answer

The answer of The cost of production of completed and...

Question 5

Flagler Company allocates overhead based on machine hours. It estimated overhead costs for the year to be $420,000. Estimated machine hours were 50,000. Actual hours and costs for the year were 46,000 machine hours and $380,000 of overhead.​
(a)Calculate the predetermined factory overhead rate for the year.
(b)What is the amount of applied overhead for the year?
(c)What is the amount of under- or overapplied overhead for the year? Indicate whether it is over- or underapplied.

Accepted Answer

The answer of Flagler Company allocates overhead based on machine...

Question 6

Using the job order cost system, service organizations are able to bill customers on a weekly or monthly basis, even when the job has not been completed.

Accepted Answer

A) True 
 B)False

Question 7

Materials are transferred from the storeroom to the factory in response to materials requisitions.

Accepted Answer

A) True 
 B)False

Question 8

Use the information below for Adams Company to answer the questions that follow.
​
Adams Company is a manufacturing company that has worked on several production jobs during the first quarter of the year. Below is a list of all the jobs for the quarter:
​
​
   Jobs 356, 357, 358, and 359 were completed. Jobs 356 and 357 were sold at a profit of $500 on each job.
-What is the ending balance of Work in Process for Adams Company at the end of the first quarter?

Accepted Answer

A)  $0 
B)  $456 
C)  $3,208 
D)  $2,752 
A)  $0 
B)  $456 
C)  $3,208 
D)  $2,752

Question 9

The cost of production of completed and transferred goods during the period amounted to $540,000, and the finished products shipped to customers had total production costs of $375,000. The entry to record the transfer of costs from work in process to finished goods is

Accepted Answer

The answer of The cost of production of completed and...

Question 10

Depreciation expense on factory equipment is part of factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 11

Perpetual inventory controlling accounts and subsidiary ledgers are maintained for materials, work in process, and finished goods in job order costing systems.

Accepted Answer

A) True 
 B)False

Question 12

Sanders Inc. has applied $567,988 of overhead to jobs in the cost ledger. Actual overhead at the end of the year is $575,000. The adjustment for over- or underapplied overhead is

Accepted Answer

A)  $7,012 overapplied, increase Cost of Goods Sold 
B)  $7,012 underapplied, increase Cost of Goods Sold 
C)  $7,012 overapplied, decrease Cost of Goods Sold 
D)  $7,012 underapplied, decrease Cost of Goods Sold 
A)  $7,012 overapplied, increase Cost of Goods Sold 
B)  $7,012 underapplied, increase Cost of Goods Sold 
C)  $7,012 overapplied, decrease Cost of Goods Sold 
D)  $7,012 underapplied, decrease Cost of Goods Sold

Question 13

Match the costs that follow to the type of product cost (a-c) or designate as not a product cost (d).
-Machine operator

Accepted Answer

A) Direct labor 
B) Direct materials 
C) Factory overhead 
D) Not a product cost 
A) Direct labor 
B) Direct materials 
C) Factory overhead 
D) Not a product cost

Question 14

In a factory with several processing departments, a single factory overhead rate may not provide accurate product costs and effective cost control.

Accepted Answer

A) True 
 B)False

Question 15

Job cost sheets can provide information to managers for all of the following except

Accepted Answer

A)  the cost impact of materials changes 
B)  the cost impact of continuous improvement in the manufacturing process 
C)  the cost impact of materials price or direct labor rate changes over time 
D)  utilities, managerial salaries, and depreciation of computers in the corporate office 
A)  the cost impact of materials changes 
B)  the cost impact of continuous improvement in the manufacturing process 
C)  the cost impact of materials price or direct labor rate changes over time 
D)  utilities, managerial salaries, and depreciation of computers in the corporate office

Question 16

Direct labor cost is an example of a period cost.

Accepted Answer

A) True 
 B)False

Question 17

The document that serves as the basis for recording direct labor on a job cost sheet is the time ticket.

Accepted Answer

A) True 
 B)False

Question 18

The current year's advertising costs are normally considered period costs.

Accepted Answer

A) True 
 B)False

Question 19

During April, Cavy Company incurred factory overhead as follows:​ $$\begin{array} { l r } 
\text { Indirect materials } & \$ 11,000 \
\text { Factory supervision labor } & 4,000 \
\text { Utilities } & 500 \
\text { Depreciation (factory) } & 700 \
\text { Small tools } & 300 \
\text { Equipment rental } & 750
\end{array}$$ Record the entry for factory overhead incurred during April.

Accepted Answer

The answer of During April, Cavy Company incurred factory overhead...

Question 20

During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 for general factory use. Factory overhead applied to production was $23,000. The entry to record the factory overhead applied to production is

Accepted Answer

The answer of During the period, labor costs incurred on...

Exam 19: Job Order Costing

Selected accounts with a credit amount omitted are as follows:​ ​ What was the balance of Work in Process as of April 30?

The process cost system is appropriate where few products are manufactured and each product is made to customers' specifications.

Job cost sheets can provide information to managers on unit cost trends, the cost impact of continuous improvement in the manufacturing process, the cost impact of materials changes, and the cost impact of direct materials price or direct labor rate changes over time.

The cost of production of completed and transferred goods during the period amounted to $540,000, and the finished products shipped to customers had production costs of $375,000. The entry to record the transfer of costs from finished goods to cost of goods sold is

Using the job order cost system, service organizations are able to bill customers on a weekly or monthly basis, even when the job has not been completed.

Materials are transferred from the storeroom to the factory in response to materials requisitions.

The cost of production of completed and transferred goods during the period amounted to $540,000, and the finished products shipped to customers had total production costs of $375,000. The entry to record the transfer of costs from work in process to finished goods is

Depreciation expense on factory equipment is part of factory overhead cost.

Perpetual inventory controlling accounts and subsidiary ledgers are maintained for materials, work in process, and finished goods in job order costing systems.

Sanders Inc. has applied $567,988 of overhead to jobs in the cost ledger. Actual overhead at the end of the year is $575,000. The adjustment for over- or underapplied overhead is

Match the costs that follow to the type of product cost (a-c) or designate as not a product cost (d). -Machine operator

In a factory with several processing departments, a single factory overhead rate may not provide accurate product costs and effective cost control.

Job cost sheets can provide information to managers for all of the following except

Direct labor cost is an example of a period cost.

The document that serves as the basis for recording direct labor on a job cost sheet is the time ticket.

The current year's advertising costs are normally considered period costs.

During April, Cavy Company incurred factory overhead as follows:​ Indirect materials \ 11,000 Factory supervision labor 4,000 Utilities 500 Depreciation (factory) 700 Small tools 300 Equipment rental 750 Record the entry for factory overhead incurred during April.

During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 for general factory use. Factory overhead applied to production was $23,000. The entry to record the factory overhead applied to production is

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, Stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Process Cost Systems

Cost-Volume-Profit Analysis

Evaluating Variances From Standard Costs

Decentralized Operations

Differential Analysis, Product Pricing, and Activity-Based Costing

Capital Investment Analysis

Filters

Selected accounts with a credit amount omitted are as follows: What was the balance of Work in Process as of April 30?

During April, Cavy Company incurred factory overhead as follows: Indirect materials \ 11,000 Factory supervision labor 4,000 Utilities 500 Depreciation (factory) 700 Small tools 300 Equipment rental 750 Record the entry for factory overhead incurred during April.