Question 1

In a job-order costing system,the use of direct materials previously purchased usually is recorded as a debit to:

Accepted Answer

A)  Work in Process inventory. 
B)  Finished Goods inventory. 
C)  Manufacturing Overhead. 
D)  Raw Materials inventory. 
A)  Work in Process inventory. 
B)  Finished Goods inventory. 
C)  Manufacturing Overhead. 
D)  Raw Materials inventory.

Question 2

Arthur Manufacturing Company produces a single product.The controller has asked your help in preparing a schedule of cost of goods manufactured for the month just ended.The following information is available:
1)Eleven thousand units were sold at $22 per unit.
2)Thirteen thousand units requiring one unit each of raw materials were produced.
3)Raw materials inventory at the beginning of the month was 1,100 units at $4 each.
4)During the month,two purchases of raw materials were made:

Accepted Answer

@#IMG-DLM& 
5)The company uses the first-in,first-

Question 3

Dowan Company uses a predetermined overhead rate based on direct labour hours to apply manufacturing overhead to jobs.Last year Dowan Company incurred $156,600 in actual manufacturing overhead cost.The Manufacturing Overhead account showed that overhead was underapplied by $12,600 for the year.If the predetermined overhead rate is $6.00 per direct labour hour,how many hours did the company work during the year?

Accepted Answer

A)  24,000 hours. 
B)  25,000 hours. 
C)  26,000 hours. 
D)  28,200 hours. 
A)  24,000 hours. 
B)  25,000 hours. 
C)  26,000 hours. 
D)  28,200 hours.

Question 4

Carver Test Systems manufactures automated testing equipment.The company uses a job-order costing system and applies overhead on the basis of machine-hours.At the beginning of the year,estimated manufacturing overhead was $1,960,000 and the estimated machine-hours was 98,000.Data regarding several jobs at Carver are presented below.

Accepted Answer

@#IMG-DLM& 
By the end of the first month (January

Question 5

The entry to record the application of overhead is:

Accepted Answer

A)  1. 
B)  3. 
C)  5. 
D)  6. 
A)  1. 
B)  3. 
C)  5. 
D)  6.

Question 6

The Cost of Goods Sold for September (before disposition of any underapplied or overapplied overhead)is?

Accepted Answer

A)  $1,950. 
B)  $2,100. 
C)  $3,700. 
D)  $5,925. 
A)  $1,950. 
B)  $2,100. 
C)  $3,700. 
D)  $5,925.

Question 7

Job-order costing would be more likely to be used than process costing in situations where many different products or services are produced each period to customer specifications.

Accepted Answer

A) True 
 B)False

Question 8

What was the amount of direct materials issued to manufacturing during 2014?

Accepted Answer

From the credits to

Question 9

Worrell Corporation has a job-order costing system.The following debits (credits)appeared in the Work in Process account for the month of March:   Worrell applies overhead at a predetermined rate of 90% of direct labour cost.Job No.232,the only job still in process at the end of March,has been charged with manufacturing overhead of $2,250.What was the amount of direct materials charged to Job No.232?

Accepted Answer

A)  $2,250. 
B)  $2,500. 
C)  $4,250. 
D)  $9,000. 
A)  $2,250. 
B)  $2,500. 
C)  $4,250. 
D)  $9,000.

Question 10

Nonmanufacturing costs are expensed as incurred,rather than going into the Work in Process account.

Accepted Answer

A) True 
 B)False

Question 11

The costing approach that meets the requirements of financial accounting and tax reporting requirements is:

Accepted Answer

A)  variable costing. 
B)  absorption costing. 
C)  throughput costing. 
D)  standard costing 
A)  variable costing. 
B)  absorption costing. 
C)  throughput costing. 
D)  standard costing

Question 12

If the amount of underapplied or overapplied overhead is considered material at the end of a period,the preferred approach to dispose of such balances is to allocate the amounts proportionally to Cost of Goods Sold for the period and ending Work in Process and Finished Goods inventories.

Accepted Answer

A) True 
 B)False

Question 13

Dotsero Technology,Inc. ,has a job-order costing system.The company uses predetermined overhead rates in applying manufacturing overhead cost to individual jobs.The predetermined overhead rate in Department A is based on machine-hours,and the rate in Department B is based on direct materials cost.At the beginning of the most recent year,the company's management made the following estimates for the year:B.
b.Compute the total overhead cost applied to Job 243.
c.Compute the amount of underapplied or overapplied overhead in each department at the end of the current year.

Accepted Answer

@#IMG-DLM& 
Job 243 entered into production on Apr

Question 14

The actual direct labour hours worked during November totalled:

Accepted Answer

A)  2,800. 
B)  3,300. 
C)  3,500. 
D)  3,600. 
A)  2,800. 
B)  3,300. 
C)  3,500. 
D)  3,600.

Question 15

What was the Cost of Goods Sold in 2014?

Accepted Answer

$5,000 + $

Question 16

The ending Work in Process inventory is:

Accepted Answer

A)  $4,325. 
B)  $5,150. 
C)  $5,350. 
D)  $7,575. 
A)  $4,325. 
B)  $5,150. 
C)  $5,350. 
D)  $7,575.

Question 17

Presented below is data from partially completed ledger accounts and additional information for the CumChan Manufacturing Company for the year 2014. Account balances at 01/01/14:
 
Additional Information:

1. Direct manufacturing labour wage rate was $7.50 per hour.
2. Manufacturing overhead is allocated at $10 per direct manufacturing labour hour.
3. During the year, sales revenues were $595,000, and marketing and distribution expenses were $70,000.
4. Direct labour for year $180,000.
5. Total credit entries to Raw Materials account during year $190,000.
6. Total debit entries to the Finished Goods account during year $470,000.
7. Total debit entries to Manufacturing Overhead during the year $270,000.
8. Ending Finished Goods was $10,000.
9. Administrative expenses were $50,000.

-What was Net Income in 2014?

Accepted Answer

$595,000 -

Question 18

Gilford,Inc.uses a job order costing system.Costs going through the company's work in process account during June are given below.Manufacturing overhead is applied to production using a predetermined overhead rate based on direct labour cost.

Accepted Answer

@#IMG-DLM& 
Only Job 105 was still in process at t

Question 19

What was the total amount of direct material purchases during January?

Accepted Answer

A)  $180,000. 
B)  $190,000. 
C)  $195,000. 
D)  $200,000. 
A)  $180,000. 
B)  $190,000. 
C)  $195,000. 
D)  $200,000.

Question 20

In a job-order costing system,the amount of overhead cost that has been applied to a job that remains incomplete at the end of a period is:

Accepted Answer

A)  deducted on the Income Statement as overapplied overhead. 
B)  closed to Cost of Goods Sold. 
C)  transferred to Finished Goods at the end of the period. 
D)  part of the ending balance of the Work in Process inventory account. 
A)  deducted on the Income Statement as overapplied overhead. 
B)  closed to Cost of Goods Sold. 
C)  transferred to Finished Goods at the end of the period. 
D)  part of the ending balance of the Work in Process inventory account.

In a job-order costing system,the use of direct materials previously purchased usually is recorded as a debit to:

The entry to record the application of overhead is:

The Cost of Goods Sold for September (before disposition of any underapplied or overapplied overhead)is?

Job-order costing would be more likely to be used than process costing in situations where many different products or services are produced each period to customer specifications.

What was the amount of direct materials issued to manufacturing during 2014?

Nonmanufacturing costs are expensed as incurred,rather than going into the Work in Process account.

The costing approach that meets the requirements of financial accounting and tax reporting requirements is:

If the amount of underapplied or overapplied overhead is considered material at the end of a period,the preferred approach to dispose of such balances is to allocate the amounts proportionally to Cost of Goods Sold for the period and ending Work in Process and Finished Goods inventories.

The actual direct labour hours worked during November totalled:

What was the Cost of Goods Sold in 2014?

The ending Work in Process inventory is:

Gilford,Inc.uses a job order costing system.Costs going through the company's work in process account during June are given below.Manufacturing overhead is applied to production using a predetermined overhead rate based on direct labour cost.

What was the total amount of direct material purchases during January?

In a job-order costing system,the amount of overhead cost that has been applied to a job that remains incomplete at the end of a period is:

An Introduction to Managerial Accounting and Cost Concepts

Systems Design: Job-Order Costing

Systems Design: Activity-Based Costing

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Profit Planning

Standard Costs

Flexible Budgets and Overhead Analysis

Decentralization

Relevant Costs for Decision Making

Capital Budgeting Decisions

How Well Am I Doing Statement of Cash Flows

How Well Am I Doing Financial Statement Analysis

Filters

Exam 4: Systems Design: Process Costing

In a job-order costing system,the use of direct materials previously purchased usually is recorded as a debit to:

The entry to record the application of overhead is:

The Cost of Goods Sold for September (before disposition of any underapplied or overapplied overhead)is?

Job-order costing would be more likely to be used than process costing in situations where many different products or services are produced each period to customer specifications.

What was the amount of direct materials issued to manufacturing during 2014?

Nonmanufacturing costs are expensed as incurred,rather than going into the Work in Process account.

The costing approach that meets the requirements of financial accounting and tax reporting requirements is:

If the amount of underapplied or overapplied overhead is considered material at the end of a period,the preferred approach to dispose of such balances is to allocate the amounts proportionally to Cost of Goods Sold for the period and ending Work in Process and Finished Goods inventories.

The actual direct labour hours worked during November totalled:

What was the Cost of Goods Sold in 2014?

The ending Work in Process inventory is:

Gilford,Inc.uses a job order costing system.Costs going through the company's work in process account during June are given below.Manufacturing overhead is applied to production using a predetermined overhead rate based on direct labour cost.

What was the total amount of direct material purchases during January?

In a job-order costing system,the amount of overhead cost that has been applied to a job that remains incomplete at the end of a period is:

An Introduction to Managerial Accounting and Cost Concepts

Systems Design: Job-Order Costing

Systems Design: Activity-Based Costing

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Profit Planning

Standard Costs

Flexible Budgets and Overhead Analysis

Decentralization

Relevant Costs for Decision Making

Capital Budgeting Decisions

How Well Am I Doing Statement of Cash Flows

How Well Am I Doing Financial Statement Analysis

Filters