Question 1

Materials requisitions and time tickets are cost accounting source documents.

Accepted Answer

A) True 
 B)False

Question 2

What is a cost accounting system? What are the two basic types of cost accounting systems?

Accepted Answer

A cost accounting system is an accountin

Question 3

Describe the purpose of a job cost sheet and explain what information is found on the job cost sheet.

Accepted Answer

A job cost sheet is a separate record th

Question 4

Using the following accounts and an overhead rate of 80% of direct labor cost, determine the amount of applied overhead.

Accepted Answer

A) $135,000 
B) $75,000 
C) $60,000 
D) $101,000 
E) $17,000 
A) $135,000 
B) $75,000 
C) $60,000 
D) $101,000 
E) $17,000

Question 5

How does job order cost accounting affect the company Astor and Black?

Accepted Answer

Astor and Black sell custom-made men's s

Question 6

During last period, a company's direct labor cost was double the cost of its direct material used.In addition, factory overhead was $5,000 underapplied.Use the following incomplete accounts to determine the cost of direct labor:

Accepted Answer

A) $15,000 
B) $88,000 
C) $45,000 
D) $70,000 
E) $30,000 
A) $15,000 
B) $88,000 
C) $45,000 
D) $70,000 
E) $30,000

Question 7

The Goods in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $4,400 debit balance after all posting is completed.The cost sheet of the one job still in process shows direct material cost of $2,000 and direct labor cost of $800.Therefore, the company's overhead application rate is:

Accepted Answer

A) 40% 
B) 50% 
C) 80% 
D) 200% 
E) 220% 
A) 40% 
B) 50% 
C) 80% 
D) 200% 
E) 220%

Question 8

The Goods in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $7,750 debit balance after all posting is completed.The cost sheet of the one job still in process shows direct material cost of $6,000 and direct labor cost of $1,000.Therefore, the company's overhead application rate is:

Accepted Answer

A) 10.7% 
B) 75.0% 
C) 133.0% 
D) 90.3% 
E) 111.0% 
A) 10.7% 
B) 75.0% 
C) 133.0% 
D) 90.3% 
E) 111.0%

Question 9

Describe the flow of labor costs in a job order costing system and identify the documents used in the system.

Accepted Answer

The flow of labor costs in a job order c

Question 10

Overapplied overhead is the amount by which overhead applied to jobs using the predetermined overhead allocation rate exceeds the overhead incurred during a period.

Accepted Answer

A) True 
 B)False

Question 11

A company's ending inventory of finished goods has a cost of $35,000 and consists of 750 units.If the overhead applicable to these goods is $8,400, and overhead is applied at the rate of 60% of direct labor, what is the cost of the direct materials used to produce these units?

Accepted Answer

@#IMG-DLM&_TB6311_00

Question 12

Medlar Corp.maintains a Web-based general ledger.Overhead is applied on the basis of direct labor costs.Its bookkeeper accidentally deleted most of the entries that had been recorded for January.A printout of the general ledger (in T-account form)showed the following:
       A review of the prior year's financial statements, the current year's budget, and January's source documents produced the following information:
(1)Accounts Payable are used for raw material purchases only.January purchases were $49,000.
(2)Factory overhead costs for January were $17,000 none of which is indirect materials.
(3)The January 1 balance for finished goods inventory was $10,000.
(4)There was a single job in process at January 31 with a cost of $2,000 for direct materials and $1,500 for direct labor.
(5)Total cost of goods manufactured for January was $90,000.
(6)All direct laborers earn the same rate ($13/hour).During January, 2,500 direct labor hours were worked.
(7)The predetermined overhead allocation rate is based on direct labor costs.Budgeted (expected)overhead for the year is $195,000 and budgeted (expected)direct labor is $390,000.
Write in the missing amounts (a)through (o)in the T-accounts above.

Accepted Answer

@#IMG-DLM&_TB6311_00_TB6311_00

Question 13

A manufacturing company that uses a cost accounting system normally has only two inventory accounts: Finished Goods Inventory and Goods in Process Inventory.

Accepted Answer

A) True 
 B)False

Question 14

Under a job order cost accounting system, individual jobs are always charged with actual overhead costs when they are transferred to finished goods.

Accepted Answer

A) True 
 B)False

Question 15

Large aircraft manufacturers such as McDonnell Douglas normally use:

Accepted Answer

A) Job order costing. 
B) Process costing. 
C) Mixed costing. 
D) Full costing. 
E) Simple costing. 
A) Job order costing. 
B) Process costing. 
C) Mixed costing. 
D) Full costing. 
E) Simple costing.

Question 16

M.A.E.charged the following amounts of overhead to jobs during the year: $20,000 to jobs still in process; $60,000 to jobs completed but not sold; and $120,000 to jobs finished and sold.At year-end, M.A.E.Company's Factory Overhead account has a credit balance of $5,000, which is not a material amount.What entry should M.A.E.make at year-end?

Accepted Answer

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

Question 17

A company allocates overhead to production on the basis of direct labor cost.If the company's total estimated overhead is $870,000 and estimated direct labor cost is $1,160,000, determine the amount of overhead to be allocated to finished goods inventory.There is $791,000 of total direct labor cost in the jobs in the finished goods inventory.

Accepted Answer

A) $1,054,667 
B) $593,250 
C) $1,275,853 
D) $1,079,482 
E) $79,000 
A) $1,054,667 
B) $593,250 
C) $1,275,853 
D) $1,079,482 
E) $79,000

Question 18

The job order cost sheets used by Garza Company revealed the following:   Job No.125 was completed during May and Jobs No.124 and 125 were shipped to customers in May.What was the company's cost of goods sold for May and the goods in process inventory on May 31?

Accepted Answer

A) $3,200; $900 
B) $2,900; $1,200 
C) $1,200; $2,900 
D) $1,700; $1,200 
E) $4,100; $ 0 
A) $3,200; $900 
B) $2,900; $1,200 
C) $1,200; $2,900 
D) $1,700; $1,200 
E) $4,100; $ 0

Question 19

Job order costing systems normally use:

Accepted Answer

A) Periodic inventory systems. 
B) Perpetual inventory systems. 
C) Real inventory systems. 
D) General inventory systems. 
E) All of the above. 
A) Periodic inventory systems. 
B) Perpetual inventory systems. 
C) Real inventory systems. 
D) General inventory systems. 
E) All of the above.

Question 20

Using the following accounts and an overhead rate of 90% of direct labor cost, determine the amount of applied overhead.

Accepted Answer

A) $79,200 
B) $167,200 
C) $34,320 
D) $88,000 
E) $35,376 
A) $79,200 
B) $167,200 
C) $34,320 
D) $88,000 
E) $35,376

Materials requisitions and time tickets are cost accounting source documents.

What is a cost accounting system? What are the two basic types of cost accounting systems?

Describe the purpose of a job cost sheet and explain what information is found on the job cost sheet.

Using the following accounts and an overhead rate of 80% of direct labor cost, determine the amount of applied overhead.

How does job order cost accounting affect the company Astor and Black?

During last period, a company's direct labor cost was double the cost of its direct material used.In addition, factory overhead was $5,000 underapplied.Use the following incomplete accounts to determine the cost of direct labor:

Describe the flow of labor costs in a job order costing system and identify the documents used in the system.

Overapplied overhead is the amount by which overhead applied to jobs using the predetermined overhead allocation rate exceeds the overhead incurred during a period.

A company's ending inventory of finished goods has a cost of $35,000 and consists of 750 units.If the overhead applicable to these goods is $8,400, and overhead is applied at the rate of 60% of direct labor, what is the cost of the direct materials used to produce these units?

A manufacturing company that uses a cost accounting system normally has only two inventory accounts: Finished Goods Inventory and Goods in Process Inventory.

Under a job order cost accounting system, individual jobs are always charged with actual overhead costs when they are transferred to finished goods.

Large aircraft manufacturers such as McDonnell Douglas normally use:

The job order cost sheets used by Garza Company revealed the following: Job No.125 was completed during May and Jobs No.124 and 125 were shipped to customers in May.What was the company's cost of goods sold for May and the goods in process inventory on May 31?

Job order costing systems normally use:

Using the following accounts and an overhead rate of 90% of direct labor cost, determine the amount of applied overhead.

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

Materials requisitions and time tickets are cost accounting source documents.

What is a cost accounting system? What are the two basic types of cost accounting systems?

Describe the purpose of a job cost sheet and explain what information is found on the job cost sheet.

Using the following accounts and an overhead rate of 80% of direct labor cost, determine the amount of applied overhead.

How does job order cost accounting affect the company Astor and Black?

During last period, a company's direct labor cost was double the cost of its direct material used.In addition, factory overhead was $5,000 underapplied.Use the following incomplete accounts to determine the cost of direct labor:

Describe the flow of labor costs in a job order costing system and identify the documents used in the system.

Overapplied overhead is the amount by which overhead applied to jobs using the predetermined overhead allocation rate exceeds the overhead incurred during a period.

A company's ending inventory of finished goods has a cost of $35,000 and consists of 750 units.If the overhead applicable to these goods is $8,400, and overhead is applied at the rate of 60% of direct labor, what is the cost of the direct materials used to produce these units?

A manufacturing company that uses a cost accounting system normally has only two inventory accounts: Finished Goods Inventory and Goods in Process Inventory.

Under a job order cost accounting system, individual jobs are always charged with actual overhead costs when they are transferred to finished goods.

Large aircraft manufacturers such as McDonnell Douglas normally use:

The job order cost sheets used by Garza Company revealed the following: Job No.125 was completed during May and Jobs No.124 and 125 were shipped to customers in May.What was the company's cost of goods sold for May and the goods in process inventory on May 31?

Job order costing systems normally use:

Using the following accounts and an overhead rate of 90% of direct labor cost, determine the amount of applied overhead.

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