Question 1

The following partially completed T-accounts are for Stanford Corporation:
                
-The indirect labor cost is:

Accepted Answer

A)  $8,000 
B)  $15,000 
C)  $18,000 
D)  $37,000 
A)  $8,000 
B)  $15,000 
C)  $18,000 
D)  $37,000

Question 2

Hardigree Corporation uses a job-order costing system. The following data relate to the just completed month's operations.
   Where appropriate, post the above transactions to the Work in Process and Manufacturing Overhead T-accounts below.
    
-The manufacturing overhead was:

Accepted Answer

A)  $23,000 Overapplied 
B)  $23,000 Underapplied 
C)  $19,000 Overapplied 
D)  $19,000 Underapplied 
A)  $23,000 Overapplied 
B)  $23,000 Underapplied 
C)  $19,000 Overapplied 
D)  $19,000 Underapplied

Question 3

Tatar Corporation is a manufacturer that uses job-order costing.The company has supplied the following data for the just completed year:
  Results of operations:
  How much is the ending balance in the Raw Materials inventory account?

Accepted Answer

A)  $37,000 
B)  $120,000 
C)  $83,000 
D)  $517,000 
A)  $37,000 
B)  $120,000 
C)  $83,000 
D)  $517,000

Question 4

Kapanga Manufacturing Corporation uses a job-order costing system and started the month of October with a zero balance in its work in process and finished goods inventory accounts. During October, Kapanga worked on three jobs and incurred the following direct costs on those jobs:
   Kapanga applies manufacturing overhead at a rate of 150% of direct labor cost. During October, Kapanga completed Jobs B18 and B19 and sold Job B19.
-How much is Kapanga's work in process inventory balance at the end of October?

Accepted Answer

A)  $23,000 
B)  $30,500 
C)  $32,000 
D)  $43,000 
A)  $23,000 
B)  $30,500 
C)  $32,000 
D)  $43,000

Question 5

Cienfuegos Corporation has provided the following data concerning last month's operations.     The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold.How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold?

Accepted Answer

A)  $157,000 
B)  $154,000 
C)  $161,000 
D)  $197,000 
A)  $157,000 
B)  $154,000 
C)  $161,000 
D)  $197,000

Question 6

Verrett Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year:
  
-The journal entry to record the transfer of completed goods from Work in Process to Finished Goods is:

Accepted Answer

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

Question 7

Leak Enterprises LLC recorded the following transactions for the just completed month. The company had no beginning inventories.
(1) Raw materials purchased for cash, $96,000
(2) Direct materials requisitioned for use in production, $69,000
(3) Indirect materials requisitioned for use in production, $22,000
(4) Direct labor wages incurred and paid, $129,000
(5) Indirect labor wages incurred and paid, $16,000
(6) Additional manufacturing overhead costs incurred and paid, $121,000
(7) Manufacturing overhead costs applied to jobs, $163,000
(8) All of the jobs in process were completed.
(9) All of the completed jobs were shipped to customers.
(10) Any underapplied or overapplied overhead for the period was closed out to Cost of Goods Sold.
Enter the transactions in the T-accounts below and then answer the following questions.
            
-The adjusted cost of goods sold for the month is:

Accepted Answer

A)  $335,000 
B)  $361,000 
C)  $357,000 
D)  $365,000 
A)  $335,000 
B)  $361,000 
C)  $357,000 
D)  $365,000

Question 8

Tevebaugh Corporation is a manufacturer that uses job-order costing. The company closes out any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The company has supplied the following data for the just completed year:
   Results of operations:
  
-The net operating income is:

Accepted Answer

A)  $892,750 
B)  $765,750 
C)  $546,750 
D)  $1,111,750 
A)  $892,750 
B)  $765,750 
C)  $546,750 
D)  $1,111,750

Question 9

Blasi Corporation is a manufacturer that uses job-order costing.The company closes out any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year.The company has supplied the following data for the just completed year:
   Results of operations:
   Required:
a.What is the total manufacturing cost added to Work in Process during the year?
b.What is the cost of goods available for sale during the year?
c.What is the net operating income for the year?

Accepted Answer

a.The total manufacturing cost added to

Question 10

Held Inc. has provided the following data for the month of June. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.
   Manufacturing overhead for the month was overapplied by $1,000.
The company allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts.
-The cost of goods sold for June after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to:

Accepted Answer

A)  $301,410 
B)  $299,790 
C)  $299,600 
D)  $301,600 
A)  $301,410 
B)  $299,790 
C)  $299,600 
D)  $301,600

Question 11

Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $239,700 and 4,700 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $242,000 and actual direct labor-hours were 4,600.
-The predetermined overhead rate for the year was closest to:

Accepted Answer

A)  $52.61 
B)  $49.91 
C)  $51.00 
D)  $51.49 
A)  $52.61 
B)  $49.91 
C)  $51.00 
D)  $51.49

Question 12

Ellithorpe Corporation has provided the following data concerning last month's operations.
   Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
Required:
Determine the adjusted cost of goods sold for the month.

Accepted Answer

The answer of Ellithorpe Corporation has provided the following data...

Question 13

Stockman Inc. has provided the following data for the month of November. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.
   Manufacturing overhead for the month was overapplied by $1,000.
The company allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts.
-The work in process inventory at the end of November after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to:

Accepted Answer

A)  $17,050 
B)  $17,034 
C)  $16,886 
D)  $16,870 
A)  $17,050 
B)  $17,034 
C)  $16,886 
D)  $16,870

Question 14

Shane Corporation has provided the following data concerning last month's operations.     How much is the unadjusted cost of goods sold on the Schedule of Cost of Goods Sold?

Accepted Answer

A)  $161,000 
B)  $157,000 
C)  $160,000 
D)  $193,000 
A)  $161,000 
B)  $157,000 
C)  $160,000 
D)  $193,000

Question 15

Frankin Corporation has provided the following data concerning last month's operations.     How much is the cost of goods manufactured for the month on the Schedule of Cost of Goods Manufactured?

Accepted Answer

A)  $175,000 
B)  $221,000 
C)  $155,000 
D)  $169,000 
A)  $175,000 
B)  $221,000 
C)  $155,000 
D)  $169,000

Question 16

Castagnola Inc. has provided the following data for the month of January. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.
   Manufacturing overhead for the month was overapplied by $1,000.
The company allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts.
-The finished goods inventory at the end of January after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to:

Accepted Answer

A)  $30,660 
B)  $30,664 
C)  $30,296 
D)  $30,300 
A)  $30,660 
B)  $30,664 
C)  $30,296 
D)  $30,300

Question 17

Two of the reasons why manufacturing overhead may be underapplied are:
 (1)the estimated total manufacturing overhead cost may have been too high; and (2)the estimated total amount of the allocation base may have been too low.

Accepted Answer

A) True 
 B)False

Question 18

Heathcote Corporation is a manufacturer that uses job-order costing. The company closes out any overapplied or underapplied overhead to Cost of Goods Sold at the end of the year. The company has supplied the following data for the just completed year:
   Results of operations:
  
-Manufacturing overhead is overapplied or underapplied by:

Accepted Answer

A)  $186,000 Underapplied 
B)  $5,000 Underapplied 
C)  $186,000 Overapplied 
D)  $5,000 Overapplied 
A)  $186,000 Underapplied 
B)  $5,000 Underapplied 
C)  $186,000 Overapplied 
D)  $5,000 Overapplied

Question 19

Echher Corporation uses a job-order costing system and applies overhead to jobs using a predetermined overhead rate. During the year the company's Finished Goods inventory account was debited for $218,000 and credited for $218,500. The ending balance in the Finished Goods inventory account was $13,000. At the end of the year, manufacturing overhead was overapplied by $36,700.
-If the applied manufacturing overhead was $223,900,the actual manufacturing overhead cost for the year was:

Accepted Answer

A)  $200,700 
B)  $260,600 
C)  $200,200 
D)  $187,200 
A)  $200,700 
B)  $260,600 
C)  $200,200 
D)  $187,200

Question 20

Dipaola Corporation has provided the following data concerning last month's operations.     How much is the direct materials cost for the month on the Schedule of Cost of Goods Manufactured?

Accepted Answer

A)  $38,000 
B)  $32,000 
C)  $14,000 
D)  $26,000 
A)  $38,000 
B)  $32,000 
C)  $14,000 
D)  $26,000

Exam 3: Job-Order Costing: Cost Flows and External Reporting

The following partially completed T-accounts are for Stanford Corporation: -The indirect labor cost is:

Hardigree Corporation uses a job-order costing system. The following data relate to the just completed month's operations. Where appropriate, post the above transactions to the Work in Process and Manufacturing Overhead T-accounts below. -The manufacturing overhead was:

Tatar Corporation is a manufacturer that uses job-order costing.The company has supplied the following data for the just completed year: Results of operations: How much is the ending balance in the Raw Materials inventory account?

Cienfuegos Corporation has provided the following data concerning last month's operations. The company closes out any underapplied or overapplied manufacturing overhead to cost of goods sold.How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold?

Verrett Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: -The journal entry to record the transfer of completed goods from Work in Process to Finished Goods is:

Ellithorpe Corporation has provided the following data concerning last month's operations. Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. Required: Determine the adjusted cost of goods sold for the month.

Shane Corporation has provided the following data concerning last month's operations. How much is the unadjusted cost of goods sold on the Schedule of Cost of Goods Sold?

Frankin Corporation has provided the following data concerning last month's operations. How much is the cost of goods manufactured for the month on the Schedule of Cost of Goods Manufactured?

Two of the reasons why manufacturing overhead may be underapplied are: (1)the estimated total manufacturing overhead cost may have been too high; and (2)the estimated total amount of the allocation base may have been too low.

Dipaola Corporation has provided the following data concerning last month's operations. How much is the direct materials cost for the month on the Schedule of Cost of Goods Manufactured?

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Production Costs

Process Costing

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Super-Variable Costing

Master Budgeting

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

Cost of Quality

Activity-Based Absorption Costing

The Predetermined Overhead Rate and Capacity

Job-Order Costing: a Microsoft Excel-Based Approach

Fifo Method

Service Department Allocations

Analyzing Mixed Costs

Time-Driven Activity-Based Costing: a Microsoft Excel-Based Approach

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Standard Cost Systems: a Financial Reporting Perspective Using Microsoft Excel

Transfer Pricing

Service Department Charges

Pricing Decisions

The Concept of Present Value

Income Taxes and the Present Value Method

the Direct Method of Determining the Net Cash Provided by Operating Activities

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