Question 1

The amount of direct labor cost in the May 30 Work in Process inventory was:

Accepted Answer

A) $4,200 
B) $5,250 
C) $4,950 
D) $9,450 
A) $4,200 
B) $5,250 
C) $4,950 
D) $9,450 B

Question 2

In the Schedule of Cost of Goods Sold, Unadjusted cost of goods sold = Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory.

Accepted Answer

A) True 
 B)False  True

Question 3

The manufacturing overhead is:

Accepted Answer

A) $26,000 Underapplied 
B) $4,000 Underapplied 
C) $4,000 Overapplied 
D) $26,000 Overapplied 
A) $26,000 Underapplied 
B) $4,000 Underapplied 
C) $4,000 Overapplied 
D) $26,000 Overapplied C

Question 4

How much is the ending balance in the Raw Materials inventory account?

Accepted Answer

A) $97,000 
B) $585,000 
C) $47,000 
D) $50,000 
A) $97,000 
B) $585,000 
C) $47,000 
D) $50,000

Question 5

The direct materials cost in the May 1 Work in Process inventory account totaled:

Accepted Answer

A) $9,900 
B) $5,400 
C) $9,000 
D) $4,500 
A) $9,900 
B) $5,400 
C) $9,000 
D) $4,500

Question 6

Precision Corporation used a predetermined overhead rate last year of $3 per direct labor-hour, based on an estimate of 24,000 direct labor-hours to be worked during the year.Actual costs and activity during the year were:   The overapplied or underapplied manufacturing overhead for the year was:

Accepted Answer

A) $3,000 underapplied 
B) $3,000 overapplied 
C) $12,000 underapplied 
D) $12,000 overapplied 
A) $3,000 underapplied 
B) $3,000 overapplied 
C) $12,000 underapplied 
D) $12,000 overapplied

Question 7

Compute the amount of raw materials used during November if $30,000 of raw materials were purchased during the month and if the inventories were as follows:

Accepted Answer

A) $31,500 
B) $29,500 
C) $27,000 
D) $33,000 
A) $31,500 
B) $29,500 
C) $27,000 
D) $33,000

Question 8

During May, Sharpton Corporation recorded the following:      Required:
Prepare T-accounts for Raw Materials, Work in Process, Finished Goods, and Manufacturing Overhead, and Cost of Goods Sold.Record the beginning balances and each of the transactions listed above.Finally, determine the ending balances.

Accepted Answer

The answer of During May, Sharpton Corporation recorded the following:...

Question 9

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

Accepted Answer

A) $13,500 
B) $36,700 
C) $500 
D) $13,000 
A) $13,500 
B) $36,700 
C) $500 
D) $13,000

Question 10

How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold?

Accepted Answer

A) $123,000 
B) $171,000 
C) $136,000 
D) $117,000 
A) $123,000 
B) $171,000 
C) $136,000 
D) $117,000

Question 11

Borchardt 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) $235,000 
B) $178,000 
C) $173,000 
D) $169,000 
A) $235,000 
B) $178,000 
C) $173,000 
D) $169,000

Question 12

Which of the following statements is true? I.	Overhead can be applied slowly as a job is worked on. II.	Overhead can be applied when the job is completed. III.	Overhead should be applied to any job not completed at year-end in order to properly value the work in process inventory.

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 13

Chipata Corporation applies manufacturing overhead to jobs on the basis of machine-hours.Chipata estimated 25,000 machine-hours and $10,000 of manufacturing overhead cost for the year.During the year, Chipata incurred 26,200 machine-hours and $11,300 of manufacturing overhead.What was Chipata's underapplied or overapplied overhead for the year?

Accepted Answer

A) $480 overapplied 
B) $820 underapplied 
C) $1,300 overapplied 
D) $1,300 underapplied 
A) $480 overapplied 
B) $820 underapplied 
C) $1,300 overapplied 
D) $1,300 underapplied

Question 14

Pine Publishing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs.At the beginning of the year the Corporation estimated its total manufacturing overhead cost at $500,000 and its direct labor-hours at 125,000 hours.The actual overhead cost incurred during the year was $450,000 and the actual direct labor-hours incurred on jobs during the year was 115,000 hours.The manufacturing overhead for the year would be:

Accepted Answer

A) $10,000 underapplied. 
B) $10,000 overapplied. 
C) $50,000 underapplied. 
D) $50,000 overapplied. 
A) $10,000 underapplied. 
B) $10,000 overapplied. 
C) $50,000 underapplied. 
D) $50,000 overapplied.

Question 15

The ending balance in the Work in Process account is closest to:

Accepted Answer

A) $110,000 
B) $120,000 
C) $100,000 
D) $90,000 
A) $110,000 
B) $120,000 
C) $100,000 
D) $90,000

Question 16

The applied manufacturing overhead for the year was closest to:

Accepted Answer

A) $229,586 
B) $234,600 
C) $242,006 
D) $236,854 
A) $229,586 
B) $234,600 
C) $242,006 
D) $236,854

Question 17

Fossil Manufacturing uses a predetermined overhead rate of $17.80 per direct labor-hour.This predetermined rate was based on 11,000 estimated direct-labor-hours and $195,800 of estimated total manufacturing overhead.The company incurred actual manufacturing overhead costs of $194,000 and 10,500 direct labor-hours.
Required:
a.Determine the amount of underapplied or overapplied manufacturing overhead for the period.
b.Assuming that the company closed manufacturing overhead to cost of goods sold, make the journal entry to close manufacturing overhead.
c.What is the effect of this entry on the company's gross margin?

Accepted Answer

a.Overhead over or underapplie

Question 18

The Cost of Goods Manufactured was:

Accepted Answer

A) $19,900 
B) $21,700 
C) $41,600 
D) $7,700 
A) $19,900 
B) $21,700 
C) $41,600 
D) $7,700

Question 19

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 20

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

The amount of direct labor cost in the May 30 Work in Process inventory was:

In the Schedule of Cost of Goods Sold, Unadjusted cost of goods sold = Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory.

The manufacturing overhead is:

How much is the ending balance in the Raw Materials inventory account?

The direct materials cost in the May 1 Work in Process inventory account totaled:

Precision Corporation used a predetermined overhead rate last year of $3 per direct labor-hour, based on an estimate of 24,000 direct labor-hours to be worked during the year.Actual costs and activity during the year were: The overapplied or underapplied manufacturing overhead for the year was:

Compute the amount of raw materials used during November if $30,000 of raw materials were purchased during the month and if the inventories were as follows:

During May, Sharpton Corporation recorded the following: Required: Prepare T-accounts for Raw Materials, Work in Process, Finished Goods, and Manufacturing Overhead, and Cost of Goods Sold.Record the beginning balances and each of the transactions listed above.Finally, determine the ending balances.

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

How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold?

Borchardt 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?

Which of the following statements is true? I. Overhead can be applied slowly as a job is worked on. II. Overhead can be applied when the job is completed. III. Overhead should be applied to any job not completed at year-end in order to properly value the work in process inventory.

The ending balance in the Work in Process account is closest to:

The applied manufacturing overhead for the year was closest to:

The Cost of Goods Manufactured was:

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?

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Product Costs

Activity-Based Costing

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Master Budgeting

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Flexible Budgets Standard Costs and Variance Analysis

Statement of Cash Flows

Financial Statement Analysis

Job-Order Costing: Cost Flows and External Reporting

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Flexible Budgets, Standard Costs, and Variance Analysis

Flexible Budgets, Standard Costs, and Variance Analysis

A Capital Budgeting Decisions

A Statement of Cash Flows

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

The amount of direct labor cost in the May 30 Work in Process inventory was:

In the Schedule of Cost of Goods Sold, Unadjusted cost of goods sold = Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory.

The manufacturing overhead is:

How much is the ending balance in the Raw Materials inventory account?

The direct materials cost in the May 1 Work in Process inventory account totaled:

Precision Corporation used a predetermined overhead rate last year of $3 per direct labor-hour, based on an estimate of 24,000 direct labor-hours to be worked during the year.Actual costs and activity during the year were: The overapplied or underapplied manufacturing overhead for the year was:

Compute the amount of raw materials used during November if $30,000 of raw materials were purchased during the month and if the inventories were as follows:

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

How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold?

Borchardt 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?

Which of the following statements is true? I. Overhead can be applied slowly as a job is worked on. II. Overhead can be applied when the job is completed. III. Overhead should be applied to any job not completed at year-end in order to properly value the work in process inventory.

The ending balance in the Work in Process account is closest to:

The applied manufacturing overhead for the year was closest to:

The Cost of Goods Manufactured was:

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?

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Product Costs

Activity-Based Costing

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Master Budgeting

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Flexible Budgets Standard Costs and Variance Analysis

Statement of Cash Flows

Financial Statement Analysis

Job-Order Costing: Cost Flows and External Reporting

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Flexible Budgets, Standard Costs, and Variance Analysis

Flexible Budgets, Standard Costs, and Variance Analysis

A Capital Budgeting Decisions

A Statement of Cash Flows

Filters