Question 1

Refer to the T-account below:
  The ending balance of $8,000 represents which of the following?

Accepted Answer

A)  Underapplied overhead. 
B)  Manufacturing overhead that will be carried over to the next period. 
C)  Overapplied overhead. 
D)  A bookkeeping error. 
A)  Underapplied overhead. 
B)  Manufacturing overhead that will be carried over to the next period. 
C)  Overapplied overhead. 
D)  A bookkeeping error.

Question 2

Boursaw 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.
-How much is the cost of goods manufactured for the month on the Schedule of Cost of Goods Manufactured?

Accepted Answer

A)  $216,000 
B)  $160,000 
C)  $144,000 
D)  $164,000 
A)  $216,000 
B)  $160,000 
C)  $144,000 
D)  $164,000

Question 3

Matthias Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of May.Prior to the closing of the overapplied or underapplied balance to Cost of Goods Sold,the total of the debits to the Manufacturing Overhead account was $53,000 and the total of the credits to the account was $69,000.Which of the following statements is true?

Accepted Answer

A)  Manufacturing overhead applied to Work in Process for the month was $69,000. 
B)  Manufacturing overhead for the month was underapplied by $16,000. 
C)  Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $53,000. 
D)  Actual manufacturing overhead incurred during the month was $69,000. 
A)  Manufacturing overhead applied to Work in Process for the month was $69,000. 
B)  Manufacturing overhead for the month was underapplied by $16,000. 
C)  Manufacturing overhead transferred from Finished Goods to Cost of Goods Sold during the month was $53,000. 
D)  Actual manufacturing overhead incurred during the month was $69,000.

Question 4

Testor Products uses a job-order costing system with a predetermined overhead rate based on machine-hours.The company closes out any underapplied or overapplied overhead to Cost of Goods Sold.
Required:
If overhead is overapplied,what adjustment does the company make to Cost of Goods Sold? Is Cost of Goods Sold increased or decreased? Why?

Accepted Answer

If overhead is overapplied,too much over

Question 5

On November 1, Arvelo Corporation had $32,000 of raw materials on hand. During the month, the company purchased an additional $78,000 of raw materials. During November, $95,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $3,000. Prepare journal entries to record these events. Use those journal entries to answer the following questions:
-The debits to the Work in Process account as a consequence of the raw materials transactions in November total:

Accepted Answer

A)  $78,000 
B)  $95,000 
C)  $92,000 
D)  $0 
A)  $78,000 
B)  $95,000 
C)  $92,000 
D)  $0

Question 6

Which of the following statements is true?

Accepted Answer

A)  Only statement I is true. 
B)  Only statement II is true. 
C)  Both statements I and II are true. 
D)  Statements I, II, and III are all true. 
A)  Only statement I is true. 
B)  Only statement II is true. 
C)  Both statements I and II are true. 
D)  Statements I, II, and III are all true.

Question 7

Farrel Corporation is a manufacturer that uses job-order costing.The company has supplied the following data for the just completed year:
$\begin{array}{lr}
\text {Direct labor cost. }&\$574,000\\text {Manufacturing overhead: }\
\text {Indirect labor cost }&\$163,000\
\text {Other manufacturing overhead costs incurred }&\$584,000\
\end{array}$
 What is the journal entry to record the direct and indirect labor costs incurred during the year?

Accepted Answer

A)  $\begin{array}{lr}
\text {Wages Payable }&737,000\
\text {Direct Labor. }&&574,000\
\text {Manufacturing Overhead }&&163,000\
\end{array}$ 
B)  $\begin{array}{lr}
\text {Work in Process }&574,000\
\text {Manufacturing Overhead. }&163,000\
\text {Wages Payable }&&737,000\
\end{array}$ 
C)    
D)    
A)  $\begin{array}{lr}
\text {Wages Payable }&737,000\
\text {Direct Labor. }&&574,000\
\text {Manufacturing Overhead }&&163,000\
\end{array}$ 
B)  $\begin{array}{lr}
\text {Work in Process }&574,000\
\text {Manufacturing Overhead. }&163,000\
\text {Wages Payable }&&737,000\
\end{array}$ 
C)    
D)

Question 8

When closing overapplied manufacturing overhead to Cost of Goods Sold,which of the following would be true?

Accepted Answer

A)  Work in Process will decrease. 
B)  Cost of Goods Sold will increase. 
C)  Net income will decrease. 
D)  Gross margin will increase. 
A)  Work in Process will decrease. 
B)  Cost of Goods Sold will increase. 
C)  Net income will decrease. 
D)  Gross margin will increase.

Question 9

Niles Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year:
   Results of operations:
  
-The cost of goods manufactured for the year was:

Accepted Answer

A)  $190,000 
B)  $162,000 
C)  $168,000 
D)  $135,000 
A)  $190,000 
B)  $162,000 
C)  $168,000 
D)  $135,000

Question 10

When raw materials are purchased,they are recorded as an asset.

Accepted Answer

A) True 
 B)False

Question 11

Hougham Corporation uses a job-order costing system and has provided the following partially completed T-account summary for the past year.   The cost of raw materials requisitioned for use in production during the year was:

Accepted Answer

A)  $109,000 
B)  $145,000 
C)  $103,000 
D)  $124,000 
A)  $109,000 
B)  $145,000 
C)  $103,000 
D)  $124,000

Question 12

The actual manufacturing overhead incurred at Gutekunst Corporation during March was $53,000,while the manufacturing overhead applied to Work in Process was $73,000.The Corporation's Cost of Goods Sold was $451,000 prior to closing out its Manufacturing Overhead account.The Corporation closes out its Manufacturing Overhead account to Cost of Goods Sold.Which of the following statements is true?

Accepted Answer

A)  Manufacturing overhead was overapplied by $20,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $471,000 
B)  Manufacturing overhead was underapplied by $20,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $431,000 
C)  Manufacturing overhead was overapplied by $20,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $431,000 
D)  Manufacturing overhead was underapplied by $20,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $471,000 
A)  Manufacturing overhead was overapplied by $20,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $471,000 
B)  Manufacturing overhead was underapplied by $20,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $431,000 
C)  Manufacturing overhead was overapplied by $20,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $431,000 
D)  Manufacturing overhead was underapplied by $20,000; Cost of Goods Sold after closing out the Manufacturing Overhead account is $471,000

Question 13

Falkenstein Corporation uses a job-order costing system and has provided the following partially completed T-account summary for the past year.
     Required:
What was the cost of indirect materials requisitioned for use in production during the year?

Accepted Answer

The answer of Falkenstein Corporation uses a job-order costing system...

Question 14

Tusa 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 adjusted Cost of Goods Sold for the year is:

Accepted Answer

A)  $1,518,000 
B)  $1,506,500 
C)  $1,642,000 
D)  $1,529,500 
A)  $1,518,000 
B)  $1,506,500 
C)  $1,642,000 
D)  $1,529,500

Question 15

Coatney Inc.has provided the following data for the month of October.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 $7,000.
The Corporation 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 manufacturing overhead applied during the month in those accounts.
The finished goods inventory at the end of October after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to:

Accepted Answer

A)  $35,686 
B)  $33,374 
C)  $33,410 
D)  $35,650 
A)  $35,686 
B)  $33,374 
C)  $33,410 
D)  $35,650

Question 16

The journal entry to record applying overhead during the production process is:

Accepted Answer

The answer of The journal entry to record applying overhead...

Question 17

Darrow Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs.Last year,the Corporation worked 10,000 direct labor-hours and incurred $80,000 of actual manufacturing overhead cost.If overhead was underapplied by $2,000,the predetermined overhead rate for the Corporation for the year must have been:

Accepted Answer

A)  $7.80 per direct labor-hour 
B)  $8.00 per direct labor-hour 
C)  $8.20 per direct labor-hour 
D)  $8.40 per direct labor-hour 
A)  $7.80 per direct labor-hour 
B)  $8.00 per direct labor-hour 
C)  $8.20 per direct labor-hour 
D)  $8.40 per direct labor-hour

Question 18

Chavez Corporation reported the following data for the month of July:
   Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
-The cost of goods manufactured for July is:

Accepted Answer

A)  $203,000 
B)  $215,000 
C)  $204,000 
D)  $216,000 
A)  $203,000 
B)  $215,000 
C)  $204,000 
D)  $216,000

Question 19

Braam Corporation uses direct labor-hours in its predetermined overhead rate.At the beginning of the year,the estimated direct labor-hours were 11,500 hours.At the end of the year,actual direct labor-hours for the year were 9,700 hours,the actual manufacturing overhead for the year was $143,350,and manufacturing overhead for the year was underapplied by $18,220.The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been:

Accepted Answer

A)  $164,023 
B)  $125,130 
C)  $148,350 
D)  $138,350 
A)  $164,023 
B)  $125,130 
C)  $148,350 
D)  $138,350

Question 20

Forbes Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs.At the beginning of the period,the Corporation estimated manufacturing overhead would be $18,000 and direct labor-hours would be 15,000.The actual figures were $19,500 for manufacturing overhead and 16,000 direct labor-hours.The cost records for the period will show:

Accepted Answer

A)  overapplied manufacturing overhead of $300 
B)  overapplied manufacturing overhead of $1,500 
C)  underapplied manufacturing overhead of $1,500 
D)  underapplied manufacturing overhead of $300 
A)  overapplied manufacturing overhead of $300 
B)  overapplied manufacturing overhead of $1,500 
C)  underapplied manufacturing overhead of $1,500 
D)  underapplied manufacturing overhead of $300

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

Refer to the T-account below: The ending balance of $8,000 represents which of the following?

Boursaw 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. -How much is the cost of goods manufactured for the month on the Schedule of Cost of Goods Manufactured?

Which of the following statements is true?

When closing overapplied manufacturing overhead to Cost of Goods Sold,which of the following would be true?

Niles Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Results of operations: -The cost of goods manufactured for the year was:

When raw materials are purchased,they are recorded as an asset.

Hougham Corporation uses a job-order costing system and has provided the following partially completed T-account summary for the past year. The cost of raw materials requisitioned for use in production during the year was:

Falkenstein Corporation uses a job-order costing system and has provided the following partially completed T-account summary for the past year. Required: What was the cost of indirect materials requisitioned for use in production during the year?

The journal entry to record applying overhead during the production process is:

Chavez Corporation reported the following data for the month of July: Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. -The cost of goods manufactured for July is:

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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