Question 1

Which account can sometimes be skipped when a good is produced for a particular customer?

Accepted Answer

A)  raw materials 
B)  work-in-process 
C)  finished goods 
D)  cost of goods sold 
E)  accounts can never be skipped 
A)  raw materials 
B)  work-in-process 
C)  finished goods 
D)  cost of goods sold 
E)  accounts can never be skipped C

Question 2

Match each item with the correct statement below.
-A single overhead rate calculated using all estimated overhead for a factory divided by the estimated activity level across the entire factory

Accepted Answer

A) predetermined overhead rate 
B) plantwide overhead rate 
C) departmental overhead rate 
D) overhead variance 
E) overapplied overhead
F)underapplied overhead
G)applied overhead
H)normal cost of goods sold 
A) predetermined overhead rate 
B) plantwide overhead rate 
C) departmental overhead rate 
D) overhead variance 
E) overapplied overhead
F)underapplied overhead
G)applied overhead
H)normal cost of goods sold B

Question 3

Bronzit Company estimated the following at the beginning of the year:  
   
Bronzit uses departmental overhead rates.In the assembly department, direct labor hours are used to apply overhead.Machine hours are used to apply overhead in the testing department.
Actual data for the month of May is as follows:
 
  If Bronzit uses a plant wide overhead rate based on direct labor hours, instead of departmental rates, what is the predetermined overhead rate rounded to the nearest cent?

Accepted Answer

A)  $5 per direct labor hour 
B)  $8.65 per direct labor hour 
C)  $4.19 per direct labor hour 
D)  $4.50 per direct labor hour 
E)  $0.33 per direct labor hour 
A)  $5 per direct labor hour 
B)  $8.65 per direct labor hour 
C)  $4.19 per direct labor hour 
D)  $4.50 per direct labor hour 
E)  $0.33 per direct labor hour C

Question 4

Which method of measuring costs associated with production is more widely used in practice?

Accepted Answer

A)  normal costing 
B)  actual costing 
C)  both are used equally. 
D)  neither one is used. 
E)  cannot be determined. 
A)  normal costing 
B)  actual costing 
C)  both are used equally. 
D)  neither one is used. 
E)  cannot be determined.

Question 5

A normal job-order costing system is a system that uses:

Accepted Answer

A)  actual costs for direct materials and estimated costs for direct labor and overhead. 
B)  estimated costs for direct materials, direct labor, and overhead. 
C)  actual costs for direct materials and direct labor and estimated costs for overhead. 
D)  actual costs for direct materials and overhead, estimated costs for direct labor. 
A)  actual costs for direct materials and estimated costs for direct labor and overhead. 
B)  estimated costs for direct materials, direct labor, and overhead. 
C)  actual costs for direct materials and direct labor and estimated costs for overhead. 
D)  actual costs for direct materials and overhead, estimated costs for direct labor.

Question 6

Actual overhead costs are accumulated in the overhead control account.

Accepted Answer

A) True 
 B)False

Question 7

Jack's Water Slides makes custom water slides for hotels.On October 1, there were three jobs in process: Jobs 812, 813, and 814.Two more jobs were started during October: Jobs 815 and 816.By October 31, Jobs 812, 814, and 816 were finished.The following data has been collected:  
  
-Overhead is applied at the rate of 110% of direct labor cost.Jobs are sold at cost plus 50%.Selling and administrative expenses for October totaled $3,000.By October 31, Jobs 812 and 816 are sold, but the customer who ordered Job 814 decided he did not want the slide, so it is still in the warehouse. 
 
What is the selling price of Job 816?

Accepted Answer

A)  $4,000 
B)  $2,000 
C)  $1,800 
D)  $2,970 
E)  $0, it is not completed yet. 
A)  $4,000 
B)  $2,000 
C)  $1,800 
D)  $2,970 
E)  $0, it is not completed yet.

Question 8

When a job costing $5,000 is completed, the following journal entry is made:

Accepted Answer

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

Question 9

Which of the following statements is true of the sequential method of allocation?​

Accepted Answer

A)  ​The sequential method is considered more accurate than the direct method. 
B)  ​The sequential method recognizes all interactions among the support departments. 
C)  ​In the sequential method, once a support department's costs are allocated, it receives a subsequent allocation from another support department. 
D)  ​In the sequential method, no cost from one support department is given to another support department. 
E)  ​The sequential method assigns support department costs only to the producing departments. 
A)  ​The sequential method is considered more accurate than the direct method. 
B)  ​The sequential method recognizes all interactions among the support departments. 
C)  ​In the sequential method, once a support department's costs are allocated, it receives a subsequent allocation from another support department. 
D)  ​In the sequential method, no cost from one support department is given to another support department. 
E)  ​The sequential method assigns support department costs only to the producing departments.

Question 10

The overhead variance is least likely to be

Accepted Answer

A)  zero (actual overhead equals applied overhead). 
B)  underapplied. 
C)  overapplied. 
D)  immaterial. 
E)  underapplied and material. 
A)  zero (actual overhead equals applied overhead). 
B)  underapplied. 
C)  overapplied. 
D)  immaterial. 
E)  underapplied and material.

Question 11

Wealth Company has the following transactions for the month of November:  
Balances at the beginning of the month were:

-  What is the ending balance of Finished Goods?

Accepted Answer

A)  $23,321 
B)  $28,000 
C)  $64,321 
D)  $0 
E)  $10,040 
A)  $23,321 
B)  $28,000 
C)  $64,321 
D)  $0 
E)  $10,040

Question 12

Manufacturing overhead

Accepted Answer

A)  consists of all costs other than direct materials. 
B)  consists of all manufacturing costs other than direct materials. 
C)  consists of all costs other than direct materials and direct labor. 
D)  consists of all manufacturing costs other than direct materials and direct labor. 
A)  consists of all costs other than direct materials. 
B)  consists of all manufacturing costs other than direct materials. 
C)  consists of all costs other than direct materials and direct labor. 
D)  consists of all manufacturing costs other than direct materials and direct labor.

Question 13

Freshy Milk Company produces dairy equipment.Most of its jobs have a number of units per job.The company has two different departments through which all jobs pass.Overhead is applied using a plant wide rate of $15 per direct labor hour.Direct labor wages average $6 an hour.Data for Job #3 for the year is: 
 
- 
Compute the cost per unit.(Note: Round the unit cost to two decimal places.)

Accepted Answer

A)  $7.06 
B)  $3.50 
C)  $6.32 
D)  $10.05 
E)  None of these. 
A)  $7.06 
B)  $3.50 
C)  $6.32 
D)  $10.05 
E)  None of these.

Question 14

The _____ method of allocation of support department cost recognizes that interactions among support departments occur.​

Accepted Answer

A)  ​normal 
B)  ​sequential 
C)  ​direct 
D)  ​reversal 
E)  ​causal 
A)  ​normal 
B)  ​sequential 
C)  ​direct 
D)  ​reversal 
E)  ​causal

Question 15

Match the following cost flows with the proper event in a job-costing firm:
-schedule of costs of goods sold is prepared

Accepted Answer

A) completion of job 
B) end of each accounting period 
C) materials are moved from storage into production 
D) product is sold 
E) end of year 
A) completion of job 
B) end of each accounting period 
C) materials are moved from storage into production 
D) product is sold 
E) end of year

Question 16

Match each item with the correct statement below. Answers may be used more than once.
-This form is filled out by each employee every day.

Accepted Answer

A) Job-order cost sheet 
B) Time ticket 
C) Materials requisition form 
A) Job-order cost sheet 
B) Time ticket 
C) Materials requisition form

Question 17

In job-order costing, the journal entry for $7,200 raw materials requisitioned for use in production is:
​
​
   ​

Accepted Answer

A) True 
 B)False

Question 18

Warwick Company has the following transactions for the month of September:  
  Balances at the beginning of the month were:
 
  What is the journal entry to record applied overhead for the month?

Accepted Answer

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

Question 19

Megan Company uses job-order costing.At the end of the month, the following data was gathered: ​Megan's selling price is cost plus 40% for each of its products.
  ​
What is Cost of Goods Sold for the month?

Accepted Answer

A)  $1,700 
B)  $1,200 
C)  $1,300 
D)  $1,430 
E)  $2,220 
A)  $1,700 
B)  $1,200 
C)  $1,300 
D)  $1,430 
E)  $2,220

Question 20

When units are sold, their total cost is debited to _______________ and credited to ____________.

Accepted Answer

Cost of Go

Which account can sometimes be skipped when a good is produced for a particular customer?

Match each item with the correct statement below. -A single overhead rate calculated using all estimated overhead for a factory divided by the estimated activity level across the entire factory

Which method of measuring costs associated with production is more widely used in practice?

A normal job-order costing system is a system that uses:

Actual overhead costs are accumulated in the overhead control account.

When a job costing $5,000 is completed, the following journal entry is made:

Which of the following statements is true of the sequential method of allocation?

The overhead variance is least likely to be

Wealth Company has the following transactions for the month of November: Balances at the beginning of the month were: - What is the ending balance of Finished Goods?

Manufacturing overhead

The _____ method of allocation of support department cost recognizes that interactions among support departments occur.

Match the following cost flows with the proper event in a job-costing firm: -schedule of costs of goods sold is prepared

Match each item with the correct statement below. Answers may be used more than once. -This form is filled out by each employee every day.

In job-order costing, the journal entry for $7,200 raw materials requisitioned for use in production is:

Warwick Company has the following transactions for the month of September: Balances at the beginning of the month were: What is the journal entry to record applied overhead for the month?

Megan Company uses job-order costing.At the end of the month, the following data was gathered: Megan's selling price is cost plus 40% for each of its products. What is Cost of Goods Sold for the month?

When units are sold, their total cost is debited to ___ and credited to .

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior, Cost Forecasting, and Segmented Income Statements

Activity-Based Costing and Management

Process Costing

Cost-Volume-Profit Analysis

Tactical Decision-Making and Relevant Costing

Profit Planning and Flexible Budgets

Standard Costing and Variance Analysis

Performance Evaluation and Decentralization

Capital Investment Decisions

Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, International Issues, Enterprise Risk Management, the Managerial Accountant in Forensicfraud Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 4: Job-Order Costing and Normal Cost Overhead Application

Which account can sometimes be skipped when a good is produced for a particular customer?

Match each item with the correct statement below. -A single overhead rate calculated using all estimated overhead for a factory divided by the estimated activity level across the entire factory

Which method of measuring costs associated with production is more widely used in practice?

A normal job-order costing system is a system that uses:

Actual overhead costs are accumulated in the overhead control account.

When a job costing $5,000 is completed, the following journal entry is made:

Which of the following statements is true of the sequential method of allocation?​

The overhead variance is least likely to be

Wealth Company has the following transactions for the month of November: Balances at the beginning of the month were: - What is the ending balance of Finished Goods?

Manufacturing overhead

The _____ method of allocation of support department cost recognizes that interactions among support departments occur.​

Match the following cost flows with the proper event in a job-costing firm: -schedule of costs of goods sold is prepared

Match each item with the correct statement below. Answers may be used more than once. -This form is filled out by each employee every day.

In job-order costing, the journal entry for $7,200 raw materials requisitioned for use in production is: ​ ​ ​

Warwick Company has the following transactions for the month of September: Balances at the beginning of the month were: What is the journal entry to record applied overhead for the month?

Megan Company uses job-order costing.At the end of the month, the following data was gathered: ​Megan's selling price is cost plus 40% for each of its products. ​ What is Cost of Goods Sold for the month?

When units are sold, their total cost is debited to _______________ and credited to ____________.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Cost Behavior, Cost Forecasting, and Segmented Income Statements

Activity-Based Costing and Management

Process Costing

Cost-Volume-Profit Analysis

Tactical Decision-Making and Relevant Costing

Profit Planning and Flexible Budgets

Standard Costing and Variance Analysis

Performance Evaluation and Decentralization

Capital Investment Decisions

Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, International Issues, Enterprise Risk Management, the Managerial Accountant in Forensicfraud Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

Which of the following statements is true of the sequential method of allocation?

The _____ method of allocation of support department cost recognizes that interactions among support departments occur.

In job-order costing, the journal entry for $7,200 raw materials requisitioned for use in production is:

Megan Company uses job-order costing.At the end of the month, the following data was gathered: Megan's selling price is cost plus 40% for each of its products. What is Cost of Goods Sold for the month?

When units are sold, their total cost is debited to ___ and credited to .