Question 1

The left side of the Manufacturing Overhead account is used to accumulate:

Accepted Answer

A) actual manufacturing overhead costs incurred throughout the accounting period. 
B) overhead applied to Work-in-Process Inventory. 
C) underapplied overhead. 
D) predetermined overheaD. 
E) overapplied overhead. 
A) actual manufacturing overhead costs incurred throughout the accounting period. 
B) overhead applied to Work-in-Process Inventory. 
C) underapplied overhead. 
D) predetermined overheaD. 
E) overapplied overhead.

Question 2

At the Nassau Advertising Agency,partner and staff compensation cost is a key driver of agency overhead.In light of this fact,which of the following is the correct expression to determine the amount of overhead applied to a particular client job?

Accepted Answer

A) (Budgeted overhead / budgeted compensation) *  budgeted compensation cost on the job. 
B) (Budgeted overhead  / budgeted compensation) * actual compensation cost on the joB. 
C) (Budgeted compensation  /  budgeted overhead) *  budgeted compensation cost on the job. 
D) (Budgeted compensation  /  budgeted overhead) * actual compensation cost on the job. 
E) None of these,because service providers do not apply overhead to jobs. 
A) (Budgeted overhead / budgeted compensation) *  budgeted compensation cost on the job. 
B) (Budgeted overhead  / budgeted compensation) * actual compensation cost on the joB. 
C) (Budgeted compensation  /  budgeted overhead) *  budgeted compensation cost on the job. 
D) (Budgeted compensation  /  budgeted overhead) * actual compensation cost on the job. 
E) None of these,because service providers do not apply overhead to jobs.

Question 3

Electricity costs that were incurred by a company's production processes should be debited to Utilities Expense.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following statements about material requisitions is false?

Accepted Answer

A) Material requisitions are often computerized. 
B) Material requisitions are a common example of source documents. 
C) Material requisitions contain information that is useful to the cost accounting department. 
D) Material requisitions authorize the transfer of materials from the production floor to the raw materials warehouse. 
E) Material requisitions are routinely linked to a bill of materials that lists all of the materials needed to complete a job. 
A) Material requisitions are often computerized. 
B) Material requisitions are a common example of source documents. 
C) Material requisitions contain information that is useful to the cost accounting department. 
D) Material requisitions authorize the transfer of materials from the production floor to the raw materials warehouse. 
E) Material requisitions are routinely linked to a bill of materials that lists all of the materials needed to complete a job.

Question 5

Othello Manufacturing incurred $106,000 of direct labor and $11,000 of indirect labor.The proper journal entry to record these events would include a debit to Work in Process for:

Accepted Answer

A) $0 because Work in Process should be credited. 
B) $0 because Work in Process is not affected. 
C) $11,000. 
D) $106,000. 
E) $117,000. 
A) $0 because Work in Process should be credited. 
B) $0 because Work in Process is not affected. 
C) $11,000. 
D) $106,000. 
E) $117,000.

Question 6

Huxtable charges manufacturing overhead to products by using a predetermined application rate,computed on the basis of machine hours.The following data pertain to the current year:
Budgeted manufacturing overhead: $480,000
Actual manufacturing overhead: $440,000
Budgeted machine hours: 20,000
Actual machine hours: 16,000
Overhead applied to production totaled:

Accepted Answer

A) $352,000. 
B) $384,000. 
C) $550,000. 
D) $600,000. 
E) some other amount. 
A) $352,000. 
B) $384,000. 
C) $550,000. 
D) $600,000. 
E) some other amount.

Question 7

Job no.C12 was completed in November at a cost of $28,500,subdivided as follows: direct material,$13,500;direct labor,$6,000;and manufacturing overhead,$9,000.The journal entry to record the completion of the job is:

Accepted Answer

A) 
  
B) 
  
C) 
  
D) 
  
E) 
  
A) 
  
B) 
  
C) 
  
D) 
  
E)

Question 8

Howard Manufacturing's overhead at year-end was underapplied by $5,800,a small amount given the firm's size.The year-end journal entry to record this amount would include:

Accepted Answer

A) a debit to Cost of Goods Sold. 
B) a debit to Manufacturing Overhead. 
C) a debit to Work-in-Process Inventory. 
D) a credit to Cost of Goods SolD. 
E) a credit to Work-in-Process Inventory. 
A) a debit to Cost of Goods Sold. 
B) a debit to Manufacturing Overhead. 
C) a debit to Work-in-Process Inventory. 
D) a credit to Cost of Goods SolD. 
E) a credit to Work-in-Process Inventory.

Question 9

Reynardo Company incurred $90,000 of depreciation for the year.Eighty percent relates to the firm's production facilities,and 20% relates to sales and administrative offices.If all items are handled in the proper manner,a review of the company's accounting records should reveal a:

Accepted Answer

A) debit to Depreciation Expense for $90,000. 
B) debit to Manufacturing Overhead for $90,000. 
C) debit to Manufacturing Overhead for $72,000. 
D) debit to Work-in-Process Inventory for $18,000. 
E) credit to Cash for $90,000. 
A) debit to Depreciation Expense for $90,000. 
B) debit to Manufacturing Overhead for $90,000. 
C) debit to Manufacturing Overhead for $72,000. 
D) debit to Work-in-Process Inventory for $18,000. 
E) credit to Cash for $90,000.

Question 10

Under- or overapplied manufacturing overhead at year-end is most commonly:

Accepted Answer

A) charged or credited to Work-in-Process Inventory. 
B) charged or credited to Cost of Goods Sold. 
C) charged or credited to a special loss account. 
D) prorated among Work-in-Process Inventory,Finished-Goods Inventory,and Cost of Goods SolD. 
E) ignored because there is no effect on the Cash account. 
A) charged or credited to Work-in-Process Inventory. 
B) charged or credited to Cost of Goods Sold. 
C) charged or credited to a special loss account. 
D) prorated among Work-in-Process Inventory,Finished-Goods Inventory,and Cost of Goods SolD. 
E) ignored because there is no effect on the Cash account.

Question 11

Summers Corporation recently used $75,000 of direct materials and $9,000 of indirect materials in production activities.The journal entries reflecting these transactions would include:

Accepted Answer

A) a debit to Manufacturing Overhead for $9,000. 
B) a debit to Manufacturing Overhead for $84,000. 
C) a debit to Raw-Material Inventory for $75,000. 
D) a debit to Work-in-Process Inventory for $84,000. 
E) a credit to Manufacturing Overhead for $9,000. 
A) a debit to Manufacturing Overhead for $9,000. 
B) a debit to Manufacturing Overhead for $84,000. 
C) a debit to Raw-Material Inventory for $75,000. 
D) a debit to Work-in-Process Inventory for $84,000. 
E) a credit to Manufacturing Overhead for $9,000.

Question 12

The primary difference between normalized and actual costing methods lies in the determination of a job's:

Accepted Answer

A) direct material costs. 
B) direct labor costs. 
C) manufacturing overhead costs. 
D) selling costs. 
E) administrative costs. 
A) direct material costs. 
B) direct labor costs. 
C) manufacturing overhead costs. 
D) selling costs. 
E) administrative costs.

Question 13

Which of the following manufacturers would most likely use job-order costing?

Accepted Answer

A) Chemical manufacturers. 
B) Microchip processors. 
C) Custom-furniture manufacturers. 
D) Gasoline refiners. 
E) Fertilizer manufacturers. 
A) Chemical manufacturers. 
B) Microchip processors. 
C) Custom-furniture manufacturers. 
D) Gasoline refiners. 
E) Fertilizer manufacturers.

Question 14

Fletcher,Inc.disposes of under- or overapplied overhead at year-end as an adjustment to cost of goods sold.Prior to disposal,the firm reported cost of goods sold of $590,000 in a year when manufacturing overhead was underapplied by $15,000.If sales revenue totaled $1,400,000,determine (1)Fletcher's adjusted cost of goods sold and (2)gross margin.

Accepted Answer

A) Choice A 
B) Choice B 
C) Choice C 
D) Choice D 
E) Choice E 
A) Choice A 
B) Choice B 
C) Choice C 
D) Choice D 
E) Choice E

Question 15

Which of the following entities would not likely be a user of job-costing systems?

Accepted Answer

A) Custom-furniture manufacturers. 
B) Repair shops. 
C) Hospitals. 
D) Accounting firms. 
E) None of these,because all are likely users. 
A) Custom-furniture manufacturers. 
B) Repair shops. 
C) Hospitals. 
D) Accounting firms. 
E) None of these,because all are likely users.

The left side of the Manufacturing Overhead account is used to accumulate:

At the Nassau Advertising Agency,partner and staff compensation cost is a key driver of agency overhead.In light of this fact,which of the following is the correct expression to determine the amount of overhead applied to a particular client job?

Electricity costs that were incurred by a company's production processes should be debited to Utilities Expense.

Which of the following statements about material requisitions is false?

Othello Manufacturing incurred $106,000 of direct labor and $11,000 of indirect labor.The proper journal entry to record these events would include a debit to Work in Process for:

Job no.C12 was completed in November at a cost of $28,500,subdivided as follows: direct material,$13,500;direct labor,$6,000;and manufacturing overhead,$9,000.The journal entry to record the completion of the job is:

Howard Manufacturing's overhead at year-end was underapplied by $5,800,a small amount given the firm's size.The year-end journal entry to record this amount would include:

Reynardo Company incurred $90,000 of depreciation for the year.Eighty percent relates to the firm's production facilities,and 20% relates to sales and administrative offices.If all items are handled in the proper manner,a review of the company's accounting records should reveal a:

Under- or overapplied manufacturing overhead at year-end is most commonly:

Summers Corporation recently used $75,000 of direct materials and $9,000 of indirect materials in production activities.The journal entries reflecting these transactions would include:

The primary difference between normalized and actual costing methods lies in the determination of a job's:

Which of the following manufacturers would most likely use job-order costing?

Which of the following entities would not likely be a user of job-costing systems?

The Changing Role of Managerial Accounting in a Dynamic Business Environment

Basic Cost Management Concepts and Accounting for Mass Customization Operations

Process Costing and Hybrid Product-Costing Systems

Activity-Based Costing and Management

Activity Analysis,cost Behavior,and Cost Estimation

Appendix I: The Sarbanes-Oxley Act, Internal Controls, and Management Accounting

Cost-Volume-Profit Analysis

Absorption and Variable Costing

Profit Planning and Activity-Based Budgeting

Standard Costing,Operational Performance Measures,and the Balanced Scorecard

Flexible Budgeting and the Management of Overhead and Support Activity Costs

Responsibility Accounting, Quality Control, and Environmental Cost Management

Investment Centers and Transfer Pricing

Decision Making: Relevant Costs and Benefits

Target Costing and Cost Analysis for Pricing Decisions

Capital Expenditure Decisions

Allocation of Support Activity Costs and Joint Costs

compound Interest and the Concept of Present Value

Inventory Management

Filters

Exam 3: Product Costing and Cost Accumulation in a Batch Production Environment

The left side of the Manufacturing Overhead account is used to accumulate:

At the Nassau Advertising Agency,partner and staff compensation cost is a key driver of agency overhead.In light of this fact,which of the following is the correct expression to determine the amount of overhead applied to a particular client job?

Electricity costs that were incurred by a company's production processes should be debited to Utilities Expense.

Which of the following statements about material requisitions is false?

Othello Manufacturing incurred $106,000 of direct labor and $11,000 of indirect labor.The proper journal entry to record these events would include a debit to Work in Process for:

Job no.C12 was completed in November at a cost of $28,500,subdivided as follows: direct material,$13,500;direct labor,$6,000;and manufacturing overhead,$9,000.The journal entry to record the completion of the job is:

Howard Manufacturing's overhead at year-end was underapplied by $5,800,a small amount given the firm's size.The year-end journal entry to record this amount would include:

Reynardo Company incurred $90,000 of depreciation for the year.Eighty percent relates to the firm's production facilities,and 20% relates to sales and administrative offices.If all items are handled in the proper manner,a review of the company's accounting records should reveal a:

Under- or overapplied manufacturing overhead at year-end is most commonly:

Summers Corporation recently used $75,000 of direct materials and $9,000 of indirect materials in production activities.The journal entries reflecting these transactions would include:

The primary difference between normalized and actual costing methods lies in the determination of a job's:

Which of the following manufacturers would most likely use job-order costing?

Which of the following entities would not likely be a user of job-costing systems?

The Changing Role of Managerial Accounting in a Dynamic Business Environment

Basic Cost Management Concepts and Accounting for Mass Customization Operations

Process Costing and Hybrid Product-Costing Systems

Activity-Based Costing and Management

Activity Analysis,cost Behavior,and Cost Estimation

Appendix I: The Sarbanes-Oxley Act, Internal Controls, and Management Accounting

Cost-Volume-Profit Analysis

Absorption and Variable Costing

Profit Planning and Activity-Based Budgeting

Standard Costing,Operational Performance Measures,and the Balanced Scorecard

Flexible Budgeting and the Management of Overhead and Support Activity Costs

Responsibility Accounting, Quality Control, and Environmental Cost Management

Investment Centers and Transfer Pricing

Decision Making: Relevant Costs and Benefits

Target Costing and Cost Analysis for Pricing Decisions

Capital Expenditure Decisions

Allocation of Support Activity Costs and Joint Costs

compound Interest and the Concept of Present Value

Inventory Management

Filters