Question 1

When materials are used as indirect materials, their cost is debited to the Factory Overhead account.

Accepted Answer

A) True 
 B)False

Question 2

When actual overhead cost exceeds the overhead applied, overhead is said to be underapplied.

Accepted Answer

A) True 
 B)False

Question 3

Only product costs are recorded on job cost sheets.

Accepted Answer

A) True 
 B)False

Question 4

If overhead applied is less than actual overhead incurred, it is:

Accepted Answer

A)  Fully applied. 
B)  Underapplied. 
C)  Overapplied. 
D)  Expected. 
E)  Normal. 
A)  Fully applied. 
B)  Underapplied. 
C)  Overapplied. 
D)  Expected. 
E)  Normal.

Question 5

A company's predetermined overhead rate is applied at 150% of direct materials cost. How much overhead would be allocated to Job No. 325 if the total direct materials costs was $40,000?

Accepted Answer

$40,000 *

Question 6

Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $2,500 of direct materials and used $4,000 of direct labor. The job was not finished by the end of the month, but needed an additional $3,000 of direct materials and additional direct labor of $6,500 to finish the job in October. The company applies overhead at the end of each month at a rate of 200% of the direct labor cost incurred. What is the total cost of the job when it is completed in October?

Accepted Answer

A)  $16,000 
B)  $22,500 
C)  $37,000 
D)  $26,500 
E)  $32,000 
A)  $16,000 
B)  $22,500 
C)  $37,000 
D)  $26,500 
E)  $32,000

Question 7

Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $2,500 of direct materials and used $4,000 of direct labor. The job was not finished by the end of the month, but needed an additional $3,000 of direct materials and additional direct labor of $6,500 to finish the job in October. The company applies overhead at the end of each month at a rate of 200% of the direct labor cost incurred. What is the balance in the Work in Process account at the end of September relative to Job A3B?

Accepted Answer

A)  $5,500 
B)  $11,500 
C)  $6,500 
D)  $9,500 
E)  $14,500 
A)  $5,500 
B)  $11,500 
C)  $6,500 
D)  $9,500 
E)  $14,500

Question 8

A company's file of job cost sheets for jobs that are completed but not yet sold equals the balance in the Work in Process Inventory account.

Accepted Answer

A) True 
 B)False

Question 9

The ending inventory of finished goods has a total cost of $9,000 and consists of 600 units. If the overhead applied to these goods is $3,000, and the overhead rate is 75% of direct labor, how much direct materials cost was incurred in producing these units?

Accepted Answer

A)  $3,750. 
B)  $2,000. 
C)  $4,000. 
D)  $6,000. 
E)  $9,000. 
A)  $3,750. 
B)  $2,000. 
C)  $4,000. 
D)  $6,000. 
E)  $9,000.

Question 10

Since a predetermined overhead rate is established before a period begins, this rate is revised many times during the period to compensate for inaccurate estimates previously made.

Accepted Answer

A) True 
 B)False

Question 11

Oddley Corp. uses a job order costing system. The following is selected information pertaining to costs applied to jobs during the year:
   Oddley Corp.'s predetermined overhead rate is 60% of direct labor cost. At the end of the year, the company's records show that $189,000 of factory overhead has been incurred.
(a) Determine the amount of overapplied or underapplied overhead.
(b) Prepare the necessary journal entry to close the Factory Overhead account assuming that any remaining balance is not material.

Accepted Answer

@#IMG-DLM& $65,000 +

Question 12

Omega Contractors manufactures each house to customer specifications. It most likely would use:

Accepted Answer

A)  Process costing. 
B)  A periodic inventory system. 
C)  Unique costing. 
D)  Job order costing. 
E)  Activity-based costing. 
A)  Process costing. 
B)  A periodic inventory system. 
C)  Unique costing. 
D)  Job order costing. 
E)  Activity-based costing.

Question 13

Immaterial amounts of overapplied overhead should be ________ to the ________ account when closed.

Accepted Answer

credited,

Question 14

Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor. Minstrel uses a predetermined overhead rate of 150% of direct labor cost. The journal entry to record the issuance of materials to production is:

Accepted Answer

A)  Debit Raw Materials Inventory $195,000; credit Accounts Payable $195,000. 
B)  Debit Work in Process Inventory $195,000; credit Raw Materials Inventory $195,000. 
C)  Debit Raw Materials Inventory $195,000; credit Work in Process Inventory $195,000. 
D)  Debit Work in Process Inventory $165,000; debit Factory Overhead $30,000; credit Raw Materials Inventory $195,000. 
E)  Debit Finished Goods Inventory $195,000; credit Raw Materials Inventory $195,000. 
A)  Debit Raw Materials Inventory $195,000; credit Accounts Payable $195,000. 
B)  Debit Work in Process Inventory $195,000; credit Raw Materials Inventory $195,000. 
C)  Debit Raw Materials Inventory $195,000; credit Work in Process Inventory $195,000. 
D)  Debit Work in Process Inventory $165,000; debit Factory Overhead $30,000; credit Raw Materials Inventory $195,000. 
E)  Debit Finished Goods Inventory $195,000; credit Raw Materials Inventory $195,000.

Question 15

Oxford Company uses a job order costing system. In the last month, the system accumulated labor time tickets total $24,600 for direct labor and $4,300 for indirect labor. How are these costs recorded?

Accepted Answer

A)  Debit Payroll Expense $28,900; credit Cash $28,900. 
B)  Debit Payroll Expense $24,600; debit Factory Overhead $4,300; credit Factory Wages Payable $28,900. 
C)  Debit Work in Process Inventory $24,600; Debit Factory Overhead $4,300; Credit Factory Wages Payable $28,900. 
D)  Debit Work in Process Inventory $24,600; credit Factory Wages Payable $28,900. 
E)  Debit Work in Process Inventory $28,900; credit Factory Wages Payable $28,900. 
A)  Debit Payroll Expense $28,900; credit Cash $28,900. 
B)  Debit Payroll Expense $24,600; debit Factory Overhead $4,300; credit Factory Wages Payable $28,900. 
C)  Debit Work in Process Inventory $24,600; Debit Factory Overhead $4,300; Credit Factory Wages Payable $28,900. 
D)  Debit Work in Process Inventory $24,600; credit Factory Wages Payable $28,900. 
E)  Debit Work in Process Inventory $28,900; credit Factory Wages Payable $28,900.

Question 16

Lowden Company has an overhead application rate of 160% and allocates overhead based on direct material cost. During the current period, direct labor cost is $50,000 and direct materials used cost $80,000. Determine the amount of overhead Lowden Company should record in the current period.

Accepted Answer

A)  $31,250. 
B)  $50,000. 
C)  $80,000. 
D)  $128,000. 
E)  $208,000. 
A)  $31,250. 
B)  $50,000. 
C)  $80,000. 
D)  $128,000. 
E)  $208,000.

Question 17

Dallas Company uses a job order costing system. The company's executives estimated that direct labor would be $2,000,000 (200,000 hours at $10/hour) and that factory overhead would be $1,500,000 for the current period. At the end of the period, the records show that there had been 180,000 hours of direct labor and $1,200,000 of actual overhead costs. Using direct labor hours as a base, what was the predetermined overhead rate?

Accepted Answer

A)  $6.00 per direct labor hour. 
B)  $7.50 per direct labor hour. 
C)  $6.67 per direct labor hour. 
D)  $8.33 per direct labor hour. 
E)  $7.08 per direct labor hour. 
A)  $6.00 per direct labor hour. 
B)  $7.50 per direct labor hour. 
C)  $6.67 per direct labor hour. 
D)  $8.33 per direct labor hour. 
E)  $7.08 per direct labor hour.

Question 18

The following data relates to the Mass Company's first operating period. Calculate the total cost of goods sold for each product.
Overhead rate

Accepted Answer

@#IMG-DLM& * Overhead applied:
A: $12.00 * 60% = $

Question 19

The schedule of cost of goods manufactured for a job costing system includes total actual factory overhead.

Accepted Answer

A) True 
 B)False

Question 20

Describe the purpose of a job cost sheet, and explain what information is found on the job cost sheet.

Accepted Answer

A job cost sheet is a separate record th

When materials are used as indirect materials, their cost is debited to the Factory Overhead account.

When actual overhead cost exceeds the overhead applied, overhead is said to be underapplied.

Only product costs are recorded on job cost sheets.

If overhead applied is less than actual overhead incurred, it is:

A company's predetermined overhead rate is applied at 150% of direct materials cost. How much overhead would be allocated to Job No. 325 if the total direct materials costs was $40,000?

A company's file of job cost sheets for jobs that are completed but not yet sold equals the balance in the Work in Process Inventory account.

The ending inventory of finished goods has a total cost of $9,000 and consists of 600 units. If the overhead applied to these goods is $3,000, and the overhead rate is 75% of direct labor, how much direct materials cost was incurred in producing these units?

Since a predetermined overhead rate is established before a period begins, this rate is revised many times during the period to compensate for inaccurate estimates previously made.

Omega Contractors manufactures each house to customer specifications. It most likely would use:

Immaterial amounts of overapplied overhead should be to the account when closed.

Oxford Company uses a job order costing system. In the last month, the system accumulated labor time tickets total $24,600 for direct labor and $4,300 for indirect labor. How are these costs recorded?

Lowden Company has an overhead application rate of 160% and allocates overhead based on direct material cost. During the current period, direct labor cost is $50,000 and direct materials used cost $80,000. Determine the amount of overhead Lowden Company should record in the current period.

The following data relates to the Mass Company's first operating period. Calculate the total cost of goods sold for each product. Overhead rate

The schedule of cost of goods manufactured for a job costing system includes total actual factory overhead.

Describe the purpose of a job cost sheet, and explain what information is found on the job cost sheet.

Managerial Accounting Concepts and Principles

Process Costing and Analysis

Activity Based Costing and Analysis

Cost Behavior Cost-Volume-Profit Analysis

Variable Costing and Analysis

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting Cash Flows

Analysis of Financial Statements

Time Value of Money

Analyzing for Business Transactions

Partnership Accounting

Filters

Exam 2: Job Order Costing and Analysis

When materials are used as indirect materials, their cost is debited to the Factory Overhead account.

When actual overhead cost exceeds the overhead applied, overhead is said to be underapplied.

Only product costs are recorded on job cost sheets.

If overhead applied is less than actual overhead incurred, it is:

A company's predetermined overhead rate is applied at 150% of direct materials cost. How much overhead would be allocated to Job No. 325 if the total direct materials costs was $40,000?

A company's file of job cost sheets for jobs that are completed but not yet sold equals the balance in the Work in Process Inventory account.

The ending inventory of finished goods has a total cost of $9,000 and consists of 600 units. If the overhead applied to these goods is $3,000, and the overhead rate is 75% of direct labor, how much direct materials cost was incurred in producing these units?

Since a predetermined overhead rate is established before a period begins, this rate is revised many times during the period to compensate for inaccurate estimates previously made.

Omega Contractors manufactures each house to customer specifications. It most likely would use:

Immaterial amounts of overapplied overhead should be ________ to the ________ account when closed.

Oxford Company uses a job order costing system. In the last month, the system accumulated labor time tickets total $24,600 for direct labor and $4,300 for indirect labor. How are these costs recorded?

Lowden Company has an overhead application rate of 160% and allocates overhead based on direct material cost. During the current period, direct labor cost is $50,000 and direct materials used cost $80,000. Determine the amount of overhead Lowden Company should record in the current period.

The following data relates to the Mass Company's first operating period. Calculate the total cost of goods sold for each product. Overhead rate

The schedule of cost of goods manufactured for a job costing system includes total actual factory overhead.

Describe the purpose of a job cost sheet, and explain what information is found on the job cost sheet.

Managerial Accounting Concepts and Principles

Process Costing and Analysis

Activity Based Costing and Analysis

Cost Behavior Cost-Volume-Profit Analysis

Variable Costing and Analysis

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting Cash Flows

Analysis of Financial Statements

Time Value of Money

Analyzing for Business Transactions

Partnership Accounting

Filters

Immaterial amounts of overapplied overhead should be to the account when closed.