Question 1

When raw materials are used in production and are recorded in a job cost system:

Accepted Answer

A) Goods in Process is credited and Finished Goods is debited. 
B) Direct Material and Indirect Material are debited and Goods in Process is credited. 
C) Direct Material and Indirect Material are debited and Raw Materials Inventory is credited. 
D) Goods in Process is debited and Raw Materials Inventory is credited. 
E) Goods in Process and Factory Overhead are debited and Raw Materials Inventory is credited. 
A) Goods in Process is credited and Finished Goods is debited. 
B) Direct Material and Indirect Material are debited and Goods in Process is credited. 
C) Direct Material and Indirect Material are debited and Raw Materials Inventory is credited. 
D) Goods in Process is debited and Raw Materials Inventory is credited. 
E) Goods in Process and Factory Overhead are debited and Raw Materials Inventory is credited.

Question 2

Dina Corp.uses a job order cost accounting system.Four jobs were started during the current year.The following is a record of the costs incurred:
   Actual overhead costs were $55,800.The predetermined overhead allocation rate is $2.40 per direct labor hour.During the year, Jobs 1010, 1012, and 1013 were completed.Also, Jobs 1010 and 1013 were sold for $387,000.Assuming that this is Dina's first year of operations:
(A.Calculate the balance in the Goods in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold accounts.
(B.Does the Factory Overhead account balance indicate an over- or underapplication of overhead? Prepare the entry to close this out assuming the amount is not material.

Accepted Answer

@#IMG-DLM&_TB6311_00_TB6311_00_TB6311_00 Job 1010:

Question 3

A job order manufacturing system would be appropriate for a company that produces which one of the following items?

Accepted Answer

A) A landscaping design for a new hospital. 
B) Seedlings for sale in a nursery. 
C) Sacks of yard fertilizer. 
D) Packets of flower seeds. 
E) Small gardening tools, including rakes, shovels, and hoes. 
A) A landscaping design for a new hospital. 
B) Seedlings for sale in a nursery. 
C) Sacks of yard fertilizer. 
D) Packets of flower seeds. 
E) Small gardening tools, including rakes, shovels, and hoes.

Question 4

Selwyn's Service applied overhead on the basis of direct labor costs during the current year.Overhead applied was $16,500.Actual overhead incurred was $17,200.
A.Prepare a journal entry to remove this difference assuming that it is not material.
B.Instead, assume actual overhead incurred was only $24,000.Describe (without computations)the alternative procedure that Selwyn might use to record this material difference.

Accepted Answer

@#IMG-DLM&_TB6311_00_TB6311_00_TB6311_00

Question 5

A ___________________________________ is calculated by relating total estimated factory overhead to an allocation factor such as total estimated direct labor cost, and is used to allocate factory overhead to specific jobs.

Accepted Answer

predetermined overhe

Question 6

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

Accepted Answer

@#IMG-DLM&_TB6311_00_TB6311_00_TB6311_00 * Overhea

Question 7

A job cost sheet shows information about each of the following items except:

Accepted Answer

A) The direct labor costs assigned to the job. 
B) The name of the customer. 
C) The costs incurred by the marketing department in selling the job. 
D) The overhead costs assigned to the job. 
E) The direct materials costs assigned to the job. 
A) The direct labor costs assigned to the job. 
B) The name of the customer. 
C) The costs incurred by the marketing department in selling the job. 
D) The overhead costs assigned to the job. 
E) The direct materials costs assigned to the job.

Question 8

The overhead allocation rate in Frantz Company's job order cost accounting system applies overhead based on direct labor costs.The company's manufacturing costs for the current year were: direct materials, $108,000; direct labor, $144,000; and factory overhead, $18,000.At year-end, the total cost of goods in process is $36,000, which includes $12,000 of direct labor cost.What amount of direct material cost is included in the ending goods in process inventory?

Accepted Answer

@#IMG-DLM&_TB6311_00_TB6311_00

Question 9

BVD Company uses a job order cost accounting system and last period incurred $80,000 of overhead and $100,000 of direct labor.BVD estimates that its overhead next period will be $75,000.It also expects to incur $100,000 of direct labor.If BVD bases applied overhead on direct labor cost, their overhead application rate for the next period should be:

Accepted Answer

A) 75% 
B) 80% 
C) 107% 
D) 125% 
E) 133% 
A) 75% 
B) 80% 
C) 107% 
D) 125% 
E) 133%

Question 10

Overapplied overhead is the amount by which actual overhead cost exceeds the overhead applied to products during the period.

Accepted Answer

A) True 
 B)False

Question 11

If one unit of Product X used $.75 of direct materials and $6.00 of direct labor, sold for $12.00, and was assigned overhead at the rate of 20% of direct labor costs, how much gross profit was realized from this sale?

Accepted Answer

A) $12.00 
B) $6.75 
C) $.75 
D) $1.20 
E) $4.05 
A) $12.00 
B) $6.75 
C) $.75 
D) $1.20 
E) $4.05

Question 12

A perpetual record of a raw materials item that records data on the quantity and cost of units purchased, units issued for use in production, and units that remain in the raw materials inventory is called a(n):

Accepted Answer

A) Materials ledger card. 
B) Materials requisition. 
C) Purchase order. 
D) Materials voucher. 
E) Purchase ledger. 
A) Materials ledger card. 
B) Materials requisition. 
C) Purchase order. 
D) Materials voucher. 
E) Purchase ledger.

Question 13

A type of manufacturing that produces customized products or services for each customer is called:

Accepted Answer

A) Customer orientation manufacturing. 
B) Job order manufacturing. 
C) Just-in-time manufacturing. 
D) Job lot manufacturing. 
E) Process manufacturing. 
A) Customer orientation manufacturing. 
B) Job order manufacturing. 
C) Just-in-time manufacturing. 
D) Job lot manufacturing. 
E) Process manufacturing.

Question 14

A company that uses a job order cost accounting system incurred $10,000 of factory payroll during May.Present the May 31 entry assuming $8,000 is direct labor and $2,000 is indirect labor.

Accepted Answer

@#IMG-DLM&_TB6311_00

Question 15

Austin Company uses a job order cost accounting 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 the allocation base, calculate the under- or overapplied overhead for the period.

Accepted Answer

A) $150,000 overapplied. 
B) $150,000 underapplied. 
C) $300,000 underapplied. 
D) $300,000 overapplied. 
E) $200,000 underapplied. 
A) $150,000 overapplied. 
B) $150,000 underapplied. 
C) $300,000 underapplied. 
D) $300,000 overapplied. 
E) $200,000 underapplied.

Question 16

A ______________________ is a separate record maintained for each job.

Accepted Answer

The answer of A ______________________ is a separate record maintained...

Question 17

Job order manufacturing is also known as:

Accepted Answer

A) Mass production manufacturing. 
B) Process manufacturing. 
C) Unit manufacturing. 
D) Customized production. 
E) Standard costing. 
A) Mass production manufacturing. 
B) Process manufacturing. 
C) Unit manufacturing. 
D) Customized production. 
E) Standard costing.

Question 18

The ending inventory of finished goods has a total cost of $10,000 and consists of 500 units.If the overhead applied to these goods is $2,000, and the overhead rate is 50% of direct labor, how much direct materials cost was incurred in producing these units?

Accepted Answer

A) $4,000 
B) $6,000 
C) $3,000 
D) $7,000 
E) $10,000 
A) $4,000 
B) $6,000 
C) $3,000 
D) $7,000 
E) $10,000

Question 19

PRO, Inc.had the following activities during its most recent period of operations:
(a)Purchased raw materials on account for $140,000 (both direct and indirect materials are recorded in the Raw Materials Inventory account).
(b)Issued raw materials to production of $130,000 (80% direct and 20% indirect).
(c)Incurred and paid labor costs of $250,000 cash (70% direct and 30% indirect).
(d)Incurred factory utilities costs of $20,000; this amount is still payable.
(e)Applied overhead at 80% of direct labor costs.
(f)Recorded factory depreciation, $22,000.
Prepare journal entries to record the above transactions.

Accepted Answer

@#IMG-DLM&_TB6311_00

Question 20

The amount by which overhead incurred during a period exceeds the overhead applied to jobs is:

Accepted Answer

A) Balanced overhead. 
B) Predetermined overhead. 
C) Actual overhead. 
D) Underapplied overhead. 
E) Overapplied overhead. 
A) Balanced overhead. 
B) Predetermined overhead. 
C) Actual overhead. 
D) Underapplied overhead. 
E) Overapplied overhead.

When raw materials are used in production and are recorded in a job cost system:

A job order manufacturing system would be appropriate for a company that produces which one of the following items?

A ___________________________________ is calculated by relating total estimated factory overhead to an allocation factor such as total estimated direct labor cost, and is used to allocate factory overhead to specific jobs.

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

A job cost sheet shows information about each of the following items except:

Overapplied overhead is the amount by which actual overhead cost exceeds the overhead applied to products during the period.

If one unit of Product X used $.75 of direct materials and $6.00 of direct labor, sold for $12.00, and was assigned overhead at the rate of 20% of direct labor costs, how much gross profit was realized from this sale?

A perpetual record of a raw materials item that records data on the quantity and cost of units purchased, units issued for use in production, and units that remain in the raw materials inventory is called a(n):

A type of manufacturing that produces customized products or services for each customer is called:

A company that uses a job order cost accounting system incurred $10,000 of factory payroll during May.Present the May 31 entry assuming $8,000 is direct labor and $2,000 is indirect labor.

A ______________________ is a separate record maintained for each job.

Job order manufacturing is also known as:

The ending inventory of finished goods has a total cost of $10,000 and consists of 500 units.If the overhead applied to these goods is $2,000, and the overhead rate is 50% of direct labor, how much direct materials cost was incurred in producing these units?

The amount by which overhead incurred during a period exceeds the overhead applied to jobs is:

Managerial Accounting Concepts and Principles

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Performance Reporting

Master Budgets and Performance Planning

Flexible Budgets and Standard Costing

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

Time Value of Money

Basic Accounting for Transactions

Accounting for Partnerships

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Exam 2: Job Order Costing and Analysis

When raw materials are used in production and are recorded in a job cost system:

A job order manufacturing system would be appropriate for a company that produces which one of the following items?

A ___________________________________ is calculated by relating total estimated factory overhead to an allocation factor such as total estimated direct labor cost, and is used to allocate factory overhead to specific jobs.

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

A job cost sheet shows information about each of the following items except:

Overapplied overhead is the amount by which actual overhead cost exceeds the overhead applied to products during the period.

If one unit of Product X used $.75 of direct materials and $6.00 of direct labor, sold for $12.00, and was assigned overhead at the rate of 20% of direct labor costs, how much gross profit was realized from this sale?

A perpetual record of a raw materials item that records data on the quantity and cost of units purchased, units issued for use in production, and units that remain in the raw materials inventory is called a(n):

A type of manufacturing that produces customized products or services for each customer is called:

A company that uses a job order cost accounting system incurred $10,000 of factory payroll during May.Present the May 31 entry assuming $8,000 is direct labor and $2,000 is indirect labor.

A ______________________ is a separate record maintained for each job.

Job order manufacturing is also known as:

The ending inventory of finished goods has a total cost of $10,000 and consists of 500 units.If the overhead applied to these goods is $2,000, and the overhead rate is 50% of direct labor, how much direct materials cost was incurred in producing these units?

The amount by which overhead incurred during a period exceeds the overhead applied to jobs is:

Managerial Accounting Concepts and Principles

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Performance Reporting

Master Budgets and Performance Planning

Flexible Budgets and Standard Costing

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

Time Value of Money

Basic Accounting for Transactions

Accounting for Partnerships

Filters