Question 1

The amount of time spent by an employee in the factory is usually recorded on

Accepted Answer

A)  time tickets 
B)  job order cost sheets 
C)  employees' earnings records 
D)  the statement of owner's equity 
A)  time tickets 
B)  job order cost sheets 
C)  employees' earnings records 
D)  the statement of owner's equity

Question 2

Use the budget data shown below for Sharp Company to answer the questions that follow:
 $$\begin{array} { l r } 
\text { Estimated direct labor hours } & 12,000 \
\text { Estimated direct labor dollars } & \$ 90,000 \
\text { Estimated factory overhead costs } & \$ 179,000 \
\text { Actual direct labor hours } & 11,500 \
\text { Actual direct labor dollars } & \$ 92,000 \
\text { Actual factory overhead costs } & \$ 180,000
\end{array}$$
-A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 30,000. Actual manufacturing overhead costs incurred were $377,200, and actual direct labor hours were 36,000. What is the predetermined overhead rate per direct labor hour?

Accepted Answer

A)  $12.00 
B)  $10.00 
C)  $12.57 
D)  $10.48 
A)  $12.00 
B)  $10.00 
C)  $12.57 
D)  $10.48

Question 3

Which of the following represents the factory overhead applied to a product?

Accepted Answer

A)  predetermined factory overhead rate times estimated activity base 
B)  actual factory overhead rate times estimated activity base 
C)  predetermined factory overhead rate times actual activity base 
D)  actual factory overhead rate times actual activity base 
A)  predetermined factory overhead rate times estimated activity base 
B)  actual factory overhead rate times estimated activity base 
C)  predetermined factory overhead rate times actual activity base 
D)  actual factory overhead rate times actual activity base

Question 4

A process cost accounting system provides product costs for each of the departments or processes within the factory.

Accepted Answer

A) True 
 B)False

Question 5

At the end of July, the first month of the current fiscal year, the factory overhead account had a debit balance. Which of the following describes the nature of this balance and how it would be reported on the interim balance sheet?

Accepted Answer

A)  overapplied, deferred credit 
B)  underapplied, deferred debit 
C)  underapplied, deferred credit 
D)  overapplied, deferred debit 
A)  overapplied, deferred credit 
B)  underapplied, deferred debit 
C)  underapplied, deferred credit 
D)  overapplied, deferred debit

Question 6

Cavy Company completed 26,000 units during the year at a cost of $2,139,800. The beginning finished goods inventory was 5,000 units valued at $405,000. Assuming a FIFO cost flow, determine the cost of goods sold for 20,000 units.

Accepted Answer

$405,000 +

Question 7

Use the budget data shown below for Sharp Company to answer the questions that follow:
 $$\begin{array} { l r } 
\text { Estimated direct labor hours } & 12,000 \
\text { Estimated direct labor dollars } & \$ 90,000 \
\text { Estimated factory overhead costs } & \$ 179,000 \
\text { Actual direct labor hours } & 11,500 \
\text { Actual direct labor dollars } & \$ 92,000 \
\text { Actual factory overhead costs } & \$ 180,000
\end{array}$$
-A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 30,000. Actual manufacturing overhead costs incurred were $377,200, and actual direct labor hours were 36,000. The entry to apply the factory overhead costs for the year would include a

Accepted Answer

A)  debit to Factory Overhead for $360,000 
B)  credit to Factory Overhead for $432,000 
C)  debit to Factory Overhead for $377,200 
D)  credit to Factory Overhead for $360,000 
A)  debit to Factory Overhead for $360,000 
B)  credit to Factory Overhead for $432,000 
C)  debit to Factory Overhead for $377,200 
D)  credit to Factory Overhead for $360,000

Question 8

A process cost accounting system provides for a separate record of the cost of each particular quantity of product that passes through the factory.

Accepted Answer

A) True 
 B)False

Question 9

Each account in the work in process subsidiary ledger in a job order costing system is called a job cost sheet.

Accepted Answer

A) True 
 B)False

Question 10

The direct labor and overhead costs of providing services to clients are accumulated in a work in process account.

Accepted Answer

A) True 
 B)False

Question 11

The entry to record the flow of direct labor costs into production in a job order cost accounting system is to

Accepted Answer

A)  debit Factory Overhead, credit Work in Process 
B)  debit Finished Goods, credit Wages Payable 
C)  debit Work in Process, credit Wages Payable 
D)  debit Factory Overhead, credit Wages Payable 
A)  debit Factory Overhead, credit Work in Process 
B)  debit Finished Goods, credit Wages Payable 
C)  debit Work in Process, credit Wages Payable 
D)  debit Factory Overhead, credit Wages Payable

Question 12

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

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 13

Match each of the following phrases with the term (a-e) that it most closely describes it. Each term will be used only once.
-The process by which factory overhead is assigned to a cost object

Accepted Answer

A) Job cost sheets 
B) Materials requisitions 
C) Receiving report 
D) Time tickets 
E) Cost allocation 
A) Job cost sheets 
B) Materials requisitions 
C) Receiving report 
D) Time tickets 
E) Cost allocation

Question 14

Selected accounts with amounts omitted are as follows:​   ​​   If the balance of Work in Process on August 31 is $220,000, what was the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs?

Accepted Answer

A)  $10,000 
B)  $70,000 
C)  $120,000 
D)  $135,000 
A)  $10,000 
B)  $70,000 
C)  $120,000 
D)  $135,000

Question 15

Match each of the following phrases with the term (a-g) that it most closely describes.
-Applied overhead is more than actual overhead incurred

Accepted Answer

A) Job order cost system 
B) Process cost system 
C) Activity-based costing 
D) Underapplied overhead 
E) Overapplied overhead
F)Finished goods ledger
G)Materials ledger 
A) Job order cost system 
B) Process cost system 
C) Activity-based costing 
D) Underapplied overhead 
E) Overapplied overhead
F)Finished goods ledger
G)Materials ledger

Question 16

Jase Company allocates overhead based on a predetermined overhead rate of $9.00 per direct labor hour. Job J904 required 8 tons of direct material at a cost of $600 per ton and took employees who earn $21 per hour a total of 80 hours to complete. What is the total cost of Job J904?

Accepted Answer

The answer of Jase Company allocates overhead based on a...

Question 17

Costs that are incurred in generating revenues during the period, but are not involved in the manufacturing process, are referred to as

Accepted Answer

A)  period costs 
B)  conversion costs 
C)  factory overhead costs 
D)  product costs 
A)  period costs 
B)  conversion costs 
C)  factory overhead costs 
D)  product costs

Question 18

Cavy Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 40,000 hours. The machine hours for the month of April for all of the jobs were 4,780. If the actual factory overhead totaled $141,800, determine the over- or underapplied amount for the month.

Accepted Answer

A)  $7,575 underapplied 
B)  $35,220 underapplied 
C)  $7,575 overapplied 
D)  $35,220 overapplied 
A)  $7,575 underapplied 
B)  $35,220 underapplied 
C)  $7,575 overapplied 
D)  $35,220 overapplied

Question 19

A service organization will not use the job order costing method because it has no direct materials.

Accepted Answer

A) True 
 B)False

Question 20

Discuss the use of job order costing for professional services businesses. What are the similarities and differences between service and manufacturing business job order costing?

Accepted Answer

Professional service providers-attorneys

Exam 19: Job Order Costing

The amount of time spent by an employee in the factory is usually recorded on

Which of the following represents the factory overhead applied to a product?

A process cost accounting system provides product costs for each of the departments or processes within the factory.

At the end of July, the first month of the current fiscal year, the factory overhead account had a debit balance. Which of the following describes the nature of this balance and how it would be reported on the interim balance sheet?

Cavy Company completed 26,000 units during the year at a cost of $2,139,800. The beginning finished goods inventory was 5,000 units valued at $405,000. Assuming a FIFO cost flow, determine the cost of goods sold for 20,000 units.

A process cost accounting system provides for a separate record of the cost of each particular quantity of product that passes through the factory.

Each account in the work in process subsidiary ledger in a job order costing system is called a job cost sheet.

The direct labor and overhead costs of providing services to clients are accumulated in a work in process account.

The entry to record the flow of direct labor costs into production in a job order cost accounting system is to

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

Match each of the following phrases with the term (a-e) that it most closely describes it. Each term will be used only once. -The process by which factory overhead is assigned to a cost object

Selected accounts with amounts omitted are as follows:​ ​​ If the balance of Work in Process on August 31 is $220,000, what was the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs?

Match each of the following phrases with the term (a-g) that it most closely describes. -Applied overhead is more than actual overhead incurred

Jase Company allocates overhead based on a predetermined overhead rate of $9.00 per direct labor hour. Job J904 required 8 tons of direct material at a cost of $600 per ton and took employees who earn $21 per hour a total of 80 hours to complete. What is the total cost of Job J904?

Costs that are incurred in generating revenues during the period, but are not involved in the manufacturing process, are referred to as

A service organization will not use the job order costing method because it has no direct materials.

Discuss the use of job order costing for professional services businesses. What are the similarities and differences between service and manufacturing business job order costing?

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 amounts omitted are as follows: If the balance of Work in Process on August 31 is $220,000, what was the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs?