Exam 4: Systems Design: Process Costing

When the predetermined overhead rate is based on direct labour-hours,the amount of overhead applied to a job is proportional to the amount of actual direct labour-hours incurred on the job.

The balance in the Finished Goods inventory account at the beginning of the year was:

If a company applies overhead to jobs on the basis of a predetermined overhead rate,a credit balance in the Manufacturing Overhead account at the end of any period means that:

The most common accounting treatment of underapplied manufacturing overhead is to transfer it to the Manufacturing Overhead control account.

The entry to dispose of the underapplied or overapplied overhead cost for the month would include:

The actual overhead cost incurred during the month was:

The following journal entry would be made to apply overhead cost to jobs in a job-order costing system

Which of the following statements is not true about the use of a normal costing system?

The amount of direct labour cost in the April 30 Work in Process inventory was:

The Work in Process inventory account of a manufacturing company shows a balance of $2,400 at the end of an accounting period.The job cost sheets of the two uncompleted jobs show charges of $400 and $200 for direct materials,and charges of $300 and $500 for direct labour.From this information,it appears that the company is using a predetermined overhead rate,as a percentage of direct labour costs,of:

If direct material costing $510 are requisitioned for use on a job,which of the following journal entries is made?

The Cost of Goods Manufactured during the year was:

The ending Work in Process account balance is?

The balance in the March 1 Raw Materials inventory was:

The total cost added to Work in Process during May was:

All costs that cannot be traced directly to a product or an activity are ignored for the purpose of costing.

The Cost of Goods Manufactured for September is:

What was the underapplied or overapplied manufacturing overhead in 2014?

The Cost of Goods Manufactured for March was:

The cost of direct materials used is?