Question 1

Describe how materials flow through a job order cost accounting system and identify the key documents in the system.

Accepted Answer

When materials are received from supplie

Question 2

Bean Company uses a job order cost system and last period incurred $70,000 of overhead and $100,000 of direct labor.Bean estimates that its overhead next period will be $65,000.The company also expects to incur $100,000 of direct labor.If Bean bases its overhead applied on direct labor cost, what should be the overhead allocation rate for the next period?

Accepted Answer

$65,000/$1

Question 3

A company charged the following amounts of overhead to jobs during the current year: $12,000 to jobs still in process, $42,000 to jobs completed but not sold, and $66,000 to jobs finished and sold.At year-end, the company's Factory Overhead account has a credit balance of $9,000, which is not a material amount.What entry (if any)should the company make at year-end related to this overhead balance?

Accepted Answer

@#IMG-DLM&_TB6311_00

Question 4

Key Manufacturing Co.applies factory overhead to production on the basis of direct labor costs.Assume that at the beginning of the current year the company estimated that direct material costs would be $178,800, direct labor costs would be $154,000, and factory overhead costs would be $231,000.
A.If the $28,000 cost of Key's goods in process inventory included $5,200 of direct labor cost, what amount of direct materials cost was included?
B.If $8,100 of the company's $34,300 finished goods inventory was direct materials cost, determine the direct labor cost and factory overhead cost of the finished goods inventory.

Accepted Answer

@#IMG-DLM&_TB6311_00

Question 5

The Goods in Process Inventory Account for XYZ Inc.follows:   If the overhead is applied at the rate of 80% of direct labor cost, what is the amount of Cost of Goods Manufactured?

Accepted Answer

A) $19,800 
B) $56,825 
C) $61,775 
D) $51,365 
E) $37,025 
A) $19,800 
B) $56,825 
C) $61,775 
D) $51,365 
E) $37,025

Question 6

During last period, a company's overhead rate was 150% of direct labor cost.This caused factory overhead to be $10,000 overapplied.Use the following incomplete accounts to determine the cost of goods manufactured:

Accepted Answer

A) $130,000 
B) $170,000 
C) $ 40,000 
D) $ 60,000 
E) $ 90,000 
A) $130,000 
B) $170,000 
C) $ 40,000 
D) $ 60,000 
E) $ 90,000

Question 7

A manufacturing company uses a job order cost accounting system.Overhead is applied using pounds of direct materials used as an allocation base.Total costs for a particular job were $5,720.Of this amount $2,600 was direct labor and $1,040 was direct material.The company pays $26 per hour of direct labor and $2 per pound of direct materials.What is this company's overhead rate?

Accepted Answer

A) $2 per pound of direct material used. 
B) $1,040 per pound of direct material used. 
C) $520 per pound of direct material used. 
D) $4 per pound of direct material used. 
E) $2,080 per pound of direct material used. 
A) $2 per pound of direct material used. 
B) $1,040 per pound of direct material used. 
C) $520 per pound of direct material used. 
D) $4 per pound of direct material used. 
E) $2,080 per pound of direct material used.

Question 8

When time ticket information is entered into the accounting system, the journal entry is a debit to Factory Payroll and a credit to Goods in Process Inventory.

Accepted Answer

A) True 
 B)False

Question 9

A ______________________ accounting system records manufacturing activities using a periodic inventory system.A ____________________ accounting system records manufacturing activities using a perpetual inventory system.

Accepted Answer

The answer of A ______________________ accounting system records manufacturing activities...

Question 10

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

Accepted Answer

@#IMG-DLM&_TB6311_00_TB6311_00_TB6311_00

Question 11

When factory payroll costs are recorded in a job cost accounting system:

Accepted Answer

A) Factory Payroll is debited and Goods in Process is credited. 
B) Goods in Process Inventory and Factory Overhead are debited and Factory Payroll is credited. 
C) Cost of Goods Manufactured is debited and Direct Labor is credited. 
D) Direct Labor and Indirect Labor are debited and Factory Payroll is credited. 
E) Goods in Process is debited and factory payroll is credited. 
A) Factory Payroll is debited and Goods in Process is credited. 
B) Goods in Process Inventory and Factory Overhead are debited and Factory Payroll is credited. 
C) Cost of Goods Manufactured is debited and Direct Labor is credited. 
D) Direct Labor and Indirect Labor are debited and Factory Payroll is credited. 
E) Goods in Process is debited and factory payroll is credited.

Question 12

The raw materials section of a job cost sheet shows the materials costs assigned to a job, but the direct labor section shows only the total hours of labor exerted by employees on the job.

Accepted Answer

A) True 
 B)False

Question 13

A company's manufacturing accounting system applies overhead based on direct labor cost.The company's manufacturing costs for the current year were: direct labor, $57,600; direct materials, $76,800; and factory overhead, $9,600.Calculate the company's overhead allocation rate.

Accepted Answer

$9,600/$57

Question 14

The predetermined overhead allocation rate based on direct labor cost is the ratio of estimated overhead cost for the period to estimated direct labor cost for the period.

Accepted Answer

A) True 
 B)False

Describe how materials flow through a job order cost accounting system and identify the key documents in the system.

The Goods in Process Inventory Account for XYZ Inc.follows: If the overhead is applied at the rate of 80% of direct labor cost, what is the amount of Cost of Goods Manufactured?

During last period, a company's overhead rate was 150% of direct labor cost.This caused factory overhead to be $10,000 overapplied.Use the following incomplete accounts to determine the cost of goods manufactured:

When time ticket information is entered into the accounting system, the journal entry is a debit to Factory Payroll and a credit to Goods in Process Inventory.

A __ accounting system records manufacturing activities using a periodic inventory system.A accounting system records manufacturing activities using a perpetual inventory system.

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

When factory payroll costs are recorded in a job cost accounting system:

The raw materials section of a job cost sheet shows the materials costs assigned to a job, but the direct labor section shows only the total hours of labor exerted by employees on the job.

A company's manufacturing accounting system applies overhead based on direct labor cost.The company's manufacturing costs for the current year were: direct labor, $57,600; direct materials, $76,800; and factory overhead, $9,600.Calculate the company's overhead allocation rate.

The predetermined overhead allocation rate based on direct labor cost is the ratio of estimated overhead cost for the period to estimated direct labor cost for the period.

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

Exam 2: Job Order Costing and Analysis

Describe how materials flow through a job order cost accounting system and identify the key documents in the system.

The Goods in Process Inventory Account for XYZ Inc.follows: If the overhead is applied at the rate of 80% of direct labor cost, what is the amount of Cost of Goods Manufactured?

During last period, a company's overhead rate was 150% of direct labor cost.This caused factory overhead to be $10,000 overapplied.Use the following incomplete accounts to determine the cost of goods manufactured:

When time ticket information is entered into the accounting system, the journal entry is a debit to Factory Payroll and a credit to Goods in Process Inventory.

A ______________________ accounting system records manufacturing activities using a periodic inventory system.A ____________________ accounting system records manufacturing activities using a perpetual inventory system.

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

When factory payroll costs are recorded in a job cost accounting system:

The raw materials section of a job cost sheet shows the materials costs assigned to a job, but the direct labor section shows only the total hours of labor exerted by employees on the job.

A company's manufacturing accounting system applies overhead based on direct labor cost.The company's manufacturing costs for the current year were: direct labor, $57,600; direct materials, $76,800; and factory overhead, $9,600.Calculate the company's overhead allocation rate.

The predetermined overhead allocation rate based on direct labor cost is the ratio of estimated overhead cost for the period to estimated direct labor cost for the period.

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

A __ accounting system records manufacturing activities using a periodic inventory system.A accounting system records manufacturing activities using a perpetual inventory system.