Question 1

The journal entry to record the incurrence of the actual Manufacturing Overhead costs would include a:

Accepted Answer

A) credit to Manufacturing Overhead of $60,000 
B) credit to Work in Process of $62,000 
C) debit to Work in Process of $62,000 
D) debit to Manufacturing Overhead of $60,000 
A) credit to Manufacturing Overhead of $60,000 
B) credit to Work in Process of $62,000 
C) debit to Work in Process of $62,000 
D) debit to Manufacturing Overhead of $60,000

Question 2

Piekos Corporation incurred $90,000 of actual Manufacturing Overhead costs during June.During the same period, the Manufacturing Overhead applied to Work in Process was $92,000.The journal entry to record the application of Manufacturing Overhead to Work in Process would include a:

Accepted Answer

A) debit to Manufacturing Overhead of $92,000 
B) debit to Work in Process of $90,000 
C) credit to Manufacturing Overhead of $92,000 
D) credit to Work in Process of $90,000 
A) debit to Manufacturing Overhead of $92,000 
B) debit to Work in Process of $90,000 
C) credit to Manufacturing Overhead of $92,000 
D) credit to Work in Process of $90,000

Question 3

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 4

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

Question 5

If a company uses a predetermined overhead rate, actual manufacturing overhead costs of a period will be recorded in the Manufacturing Overhead account and will be recorded on the job cost sheets.

Accepted Answer

A) True 
 B)False

Question 6

Molzahn 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) $165,000 Overapplied 
B) $94,000 Underapplied 
C) $165,000 Underapplied 
D) $94,000 Overapplied 
A) $165,000 Overapplied 
B) $94,000 Underapplied 
C) $165,000 Underapplied 
D) $94,000 Overapplied

Question 7

Gallon Corporation had $24,000 of raw materials on hand on April 1.During the month, the Corporation purchased an additional $52,000 of raw materials.During April, $62,000 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 $2,000.The debits to the Work in Process account as a consequence of the raw materials transactions in April total:

Accepted Answer

A) $60,000 
B) $62,000 
C) $0 
D) $52,000 
A) $60,000 
B) $62,000 
C) $0 
D) $52,000

Question 8

Kahanaoi 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 journal entry to record raw materials used in production?
b.What is the ending balance in Raw Materials?
c.What is the journal entry to record the direct and indirect labor costs incurred during the year?
d.What is the total amount of manufacturing overhead applied to production during the year?
e.What is the total manufacturing cost added to Work in Process during the year?
f.What is the journal entry to record the transfer of completed goods from Work in Process to Finished Goods?
g.What is the ending balance in Work in Process?
h.Is manufacturing overhead overapplied or underapplied for the year? By how much?
i.What is the cost of goods available for sale during the year?
j.What is the journal entry to record the unadjusted cost of goods sold?
k.What is the adjusted cost of goods sold for the year?
l.What is the gross margin for the year?
m.What is the net operating income for the year?

Accepted Answer

a.The journal entry to record the raw ma

Question 9

During June, Buttrey Corporation incurred $67,000 of direct labor costs and $7,000 of indirect labor costs.The journal entry to record the accrual of these wages would include a:

Accepted Answer

A) debit to Work in Process of $67,000 
B) credit to Work in Process of $74,000 
C) debit to Work in Process of $74,000 
D) credit to Work in Process of $67,000 
A) debit to Work in Process of $67,000 
B) credit to Work in Process of $74,000 
C) debit to Work in Process of $74,000 
D) credit to Work in Process of $67,000

Question 10

The following accounts are from last year's books at Sharp Manufacturing:           Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs.What is the amount of cost of goods manufactured for the year?

Accepted Answer

A) $252,000 
B) $454,000 
C) $510,000 
D) $460,000 
A) $252,000 
B) $454,000 
C) $510,000 
D) $460,000

Question 11

How much is the total manufacturing cost for the month on the Schedule of Cost of Goods Manufactured?

Accepted Answer

A) $159,000 
B) $229,000 
C) $172,000 
D) $176,000 
A) $159,000 
B) $229,000 
C) $172,000 
D) $176,000

Question 12

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 13

Refer to the T-account below:   Entry (5)could represent which of the following?

Accepted Answer

A) Payments for raw materials. 
B) Requisitions of raw materials to be used in production. 
C) Purchases of raw materials. 
D) Overhead cost applied to Work in Process. 
A) Payments for raw materials. 
B) Requisitions of raw materials to be used in production. 
C) Purchases of raw materials. 
D) Overhead cost applied to Work in Process.

Question 14

The credits to the Raw Materials account for the month of November total:

Accepted Answer

A) $95,000 
B) $78,000 
C) $32,000 
D) $110,000 
A) $95,000 
B) $78,000 
C) $32,000 
D) $110,000

Question 15

Entry (16)in the below T-account represents the cost of goods manufactured transferred to Finished Goods from Work in Process.

Accepted Answer

A) True 
 B)False

Question 16

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 17

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 18

The total costs added to Work in Process during the year were:

Accepted Answer

A) $206,000 
B) $162,000 
C) $176,000 
D) $182,000 
A) $206,000 
B) $162,000 
C) $176,000 
D) $182,000

Question 19

If a company closes any underapplied or overapplied manufacturing overhead to the Cost of Goods Sold account, then Cost of Goods Sold will be debited if manufacturing overhead is overapplied for the period.

Accepted Answer

A) True 
 B)False

Question 20

At the beginning of December, Altro Corporation had $26,000 of raw materials on hand.During the month, the Corporation purchased an additional $76,000 of raw materials.During December, $72,000 of raw materials were requisitioned from the storeroom for use in production.The credits entered in the Raw Materials account during the month of December total:

Accepted Answer

A) $26,000 
B) $102,000 
C) $76,000 
D) $72,000 
A) $26,000 
B) $102,000 
C) $76,000 
D) $72,000

The journal entry to record the incurrence of the actual Manufacturing Overhead costs would include a:

Piekos Corporation incurred $90,000 of actual Manufacturing Overhead costs during June.During the same period, the Manufacturing Overhead applied to Work in Process was $92,000.The journal entry to record the application of Manufacturing Overhead to Work in Process would include a:

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:

If a company uses a predetermined overhead rate, actual manufacturing overhead costs of a period will be recorded in the Manufacturing Overhead account and will be recorded on the job cost sheets.

During June, Buttrey Corporation incurred $67,000 of direct labor costs and $7,000 of indirect labor costs.The journal entry to record the accrual of these wages would include a:

The following accounts are from last year's books at Sharp Manufacturing: Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs.What is the amount of cost of goods manufactured for the year?

How much is the total manufacturing cost for the month on the Schedule of Cost of Goods Manufactured?

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

Refer to the T-account below: Entry (5)could represent which of the following?

The credits to the Raw Materials account for the month of November total:

Entry (16)in the below T-account represents the cost of goods manufactured transferred to Finished Goods from Work in Process.

The net operating income is:

The indirect labor cost is:

The total costs added to Work in Process during the year were:

If a company closes any underapplied or overapplied manufacturing overhead to the Cost of Goods Sold account, then Cost of Goods Sold will be debited if manufacturing overhead is overapplied for the period.

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 journal entry to record the incurrence of the actual Manufacturing Overhead costs would include a:

Piekos Corporation incurred $90,000 of actual Manufacturing Overhead costs during June.During the same period, the Manufacturing Overhead applied to Work in Process was $92,000.The journal entry to record the application of Manufacturing Overhead to Work in Process would include a:

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:

If a company uses a predetermined overhead rate, actual manufacturing overhead costs of a period will be recorded in the Manufacturing Overhead account and will be recorded on the job cost sheets.

During June, Buttrey Corporation incurred $67,000 of direct labor costs and $7,000 of indirect labor costs.The journal entry to record the accrual of these wages would include a:

The following accounts are from last year's books at Sharp Manufacturing: Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs.What is the amount of cost of goods manufactured for the year?

How much is the total manufacturing cost for the month on the Schedule of Cost of Goods Manufactured?

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

Refer to the T-account below: Entry (5)could represent which of the following?

The credits to the Raw Materials account for the month of November total:

Entry (16)in the below T-account represents the cost of goods manufactured transferred to Finished Goods from Work in Process.

The net operating income is:

The indirect labor cost is:

The total costs added to Work in Process during the year were:

If a company closes any underapplied or overapplied manufacturing overhead to the Cost of Goods Sold account, then Cost of Goods Sold will be debited if manufacturing overhead is overapplied for the period.

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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