Question 1

The cost of completed units is always debited to Work-in-Process and credited to Finished Goods.

Accepted Answer

A) True 
 B)False

Question 2

Diamond Design Company makes custom chairs for individual customers.On September 1, there was one job in process, Job 243, with a cost of $2,000.Jobs 244, 245, and 246 were started during the month of September.Data on costs added during the month are as follows:  
  Overhead is applied to production at the rate of 60% of direct labor cost.Job 245 was completed on September 14 and the client was billed at cost plus 40%.All other jobs remained in process.
 
If selling and administrative expenses for the month of September equaled $ 1,000, what is operating income for the month of September?

Accepted Answer

A)  $14,00 
B)  $3,152 
C)  $5,345 
D)  $2,000 
A)  $14,00 
B)  $3,152 
C)  $5,345 
D)  $2,000

Question 3

Match each item with the correct statement below. Answers may be used more than once.
-This form asks for the type, quantity, and unit price of direct materials.

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 4

At the beginning of the year, Wilson Company estimated the following: 
  Wilson used normal costing and applies overhead on the basis of direct labor hours.For the month of September, direct labor hours equaled 9,350 and actual overhead equaled $46,750.
Calculate the overhead applied to production in September.

Accepted Answer

A)  $56,100 
B)  $30,000 
C)  $46,750 
D)  $5 per direct labor hour 
E)  None of these. 
A)  $56,100 
B)  $30,000 
C)  $46,750 
D)  $5 per direct labor hour 
E)  None of these.

Question 5

Which of the following schedules is prepared to maintain accuracy in computing product costs?

Accepted Answer

A)  The schedule of the cost of goods manufactured 
B)  The schedule of the finished goods 
C)  The schedule of the goods under production 
D)  The schedule of overhead 
E)  None of the schedules listed here. 
A)  The schedule of the cost of goods manufactured 
B)  The schedule of the finished goods 
C)  The schedule of the goods under production 
D)  The schedule of overhead 
E)  None of the schedules listed here.

Question 6

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:

Bronzit decides to continue using departmental overhead rates.What are the predetermined rates for the Assembly and Testing departments respectively? (Note: Round to two decimal places.)

Accepted Answer

A)  Assembly: $5.25 per direct labor hour; Testing: $7.33 per machine hour 
B)  Assembly: $4.65 per direct labor hour; Testing: $1.39 per machine hour 
C)  Assembly: $2.23 per direct labor hour; Testing: $6.15 per direct labor hour 
D)  Assembly: $5.12 per machine hour; Testing: $7.22 per machine hour 
E)  None of these. 
A)  Assembly: $5.25 per direct labor hour; Testing: $7.33 per machine hour 
B)  Assembly: $4.65 per direct labor hour; Testing: $1.39 per machine hour 
C)  Assembly: $2.23 per direct labor hour; Testing: $6.15 per direct labor hour 
D)  Assembly: $5.12 per machine hour; Testing: $7.22 per machine hour 
E)  None of these.

Question 7

Mitchell's Softball Gloves Company estimated the following at the beginning of the year: 
  Mitchell 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 August is as follows:
 
  Using departmental overhead rates, which of the following is correct?

Accepted Answer

A)  Applied overhead for the assembly department is $54,000. 
B)  Applied overhead for the testing department is $4,860. 
C)  Applied overhead for both departments combined is $63,720. 
D)  Overhead for the assembly department is underapplied. 
E)  None of these are correct. 
A)  Applied overhead for the assembly department is $54,000. 
B)  Applied overhead for the testing department is $4,860. 
C)  Applied overhead for both departments combined is $63,720. 
D)  Overhead for the assembly department is underapplied. 
E)  None of these are correct.

Question 8

Which of the following is only filled by direct laborers?

Accepted Answer

A)  A time ticket 
B)  A materials requisition form 
C)  An activity card 
D)  A sales receipt 
E)  A cost slip 
A)  A time ticket 
B)  A materials requisition form 
C)  An activity card 
D)  A sales receipt 
E)  A cost slip

Question 9

Which of the following is not a characteristic of job-order costing?

Accepted Answer

A)  Wide variety of distinct products. 
B)  Unit cost is computed by dividing process costs of the period by the units produced in the period. 
C)  Unit cost is computed by dividing total job costs by units produced on that job. 
D)  Costs accumulated by job. 
E)  Typically, the cost of one job is different from that of another job. 
A)  Wide variety of distinct products. 
B)  Unit cost is computed by dividing process costs of the period by the units produced in the period. 
C)  Unit cost is computed by dividing total job costs by units produced on that job. 
D)  Costs accumulated by job. 
E)  Typically, the cost of one job is different from that of another job.

Question 10

Overhead costs are assigned to Finished Goods using a predetermined rate.

Accepted Answer

A) True 
 B)False

Question 11

When a job is completed but not sold, the accounts affected are

Accepted Answer

A)  Raw Materials and Work-in-Process. 
B)  Work-in-Process and Finished Goods. 
C)  Work-in-Process and Cost of Goods Sold. 
D)  Finished Goods and Cost of Goods Sold. 
E)  Finished Goods and Overhead Control. 
A)  Raw Materials and Work-in-Process. 
B)  Work-in-Process and Finished Goods. 
C)  Work-in-Process and Cost of Goods Sold. 
D)  Finished Goods and Cost of Goods Sold. 
E)  Finished Goods and Overhead Control.

Question 12

Which of the following accounts will increase when purchasing raw materials on account? ​

Accepted Answer

A)  Revenues and Accounts Receivables 
B)  Cash and Miscellaneous Expenses 
C)  Liabilities and Revenues 
D)  Assets and Liabilities 
E)  Assets and expenses 
A)  Revenues and Accounts Receivables 
B)  Cash and Miscellaneous Expenses 
C)  Liabilities and Revenues 
D)  Assets and Liabilities 
E)  Assets and expenses

Question 13

In an actual cost system, it is difficult to determine the _____ per unit.

Accepted Answer

A)  direct labor cost 
B)  overhead cost 
C)  cost of direct material consumed 
D)  All of these are correct. 
E)  None of these are correct. 
A)  direct labor cost 
B)  overhead cost 
C)  cost of direct material consumed 
D)  All of these are correct. 
E)  None of these are correct.

Question 14

Which of the following mathematical equations is used to calculate a predetermined overhead rate?

Accepted Answer

A)  Predetermined Overhead Rate = Estimated Annual Manufacturing Cost / Estimated Quarterly Activity Level 
B)  Predetermined Overhead Rate = Actual Annual Cost of Goods Sold / Estimated Semi-annual Labor Hours 
C)  Predetermined Overhead Rate = Estimated Annual Overhead / Actual Annual Activity Level 
D)  Predetermined Overhead Rate = Actual Annual Overhead / Actual Annual Activity Level 
E)  Predetermined Overhead Rate = Estimated Annual Overhead / Estimated Annual Activity Level 
A)  Predetermined Overhead Rate = Estimated Annual Manufacturing Cost / Estimated Quarterly Activity Level 
B)  Predetermined Overhead Rate = Actual Annual Cost of Goods Sold / Estimated Semi-annual Labor Hours 
C)  Predetermined Overhead Rate = Estimated Annual Overhead / Actual Annual Activity Level 
D)  Predetermined Overhead Rate = Actual Annual Overhead / Actual Annual Activity Level 
E)  Predetermined Overhead Rate = Estimated Annual Overhead / Estimated Annual Activity Level

Question 15

Walter Company uses a job-order costing system to account for product costs.The following information pertains to the current year:  
 
  Plantwide overhead rate is $18 per direct labor hour
 
-
 
What is the total amount credited to Materials Inventory for Walter in the current year?

Accepted Answer

A)  $480,000 
B)  $170,000 
C)  $140,000 
D)  $110,000 
A)  $480,000 
B)  $170,000 
C)  $140,000 
D)  $110,000

Question 16

When finished goods are sold, the _____ account is debited.

Accepted Answer

A)  Work in Process 
B)  Overhead Control 
C)  Accounts Payable 
D)  Cost of Goods Sold 
E)  Sales Revenue 
A)  Work in Process 
B)  Overhead Control 
C)  Accounts Payable 
D)  Cost of Goods Sold 
E)  Sales Revenue

Question 17

________________________ are directly responsible for creating the products or services sold to customers.

Accepted Answer

Producing

Question 18

Ring Company designs and builds jewelry.During June it had applied overhead of $120,000.Overhead is applied at the rate of 75% of direct labor cost.Direct labor wages average $20 per hour. How many direct labor hours did Ring Company have for the month of June?

Accepted Answer

A)  12,000 
B)  6,000 
C)  10,000 
D)  8,000 
E)  9,000 
A)  12,000 
B)  6,000 
C)  10,000 
D)  8,000 
E)  9,000

Question 19

A _______ is one distinct unit or set of units.

Accepted Answer

The answer of A _______ is one distinct unit or...

Question 20

Which of the following statements describes a characteristic of overhead costs?

Accepted Answer

A)  Overhead costs are distorted due to uneven production from period to period. 
B)  Overhead costs have a direct relationship with units produced like direct materials. 
C)  High production in a month leads to high unit overhead costs. 
D)  All of these are correct. 
E)  None of these are correct. 
A)  Overhead costs are distorted due to uneven production from period to period. 
B)  Overhead costs have a direct relationship with units produced like direct materials. 
C)  High production in a month leads to high unit overhead costs. 
D)  All of these are correct. 
E)  None of these are correct.

The cost of completed units is always debited to Work-in-Process and credited to Finished Goods.

Match each item with the correct statement below. Answers may be used more than once. -This form asks for the type, quantity, and unit price of direct materials.

Which of the following schedules is prepared to maintain accuracy in computing product costs?

Which of the following is only filled by direct laborers?

Which of the following is not a characteristic of job-order costing?

Overhead costs are assigned to Finished Goods using a predetermined rate.

When a job is completed but not sold, the accounts affected are

Which of the following accounts will increase when purchasing raw materials on account?

In an actual cost system, it is difficult to determine the _____ per unit.

Which of the following mathematical equations is used to calculate a predetermined overhead rate?

Walter Company uses a job-order costing system to account for product costs.The following information pertains to the current year: Plantwide overhead rate is $18 per direct labor hour - What is the total amount credited to Materials Inventory for Walter in the current year?

When finished goods are sold, the _____ account is debited.

________________________ are directly responsible for creating the products or services sold to customers.

Ring Company designs and builds jewelry.During June it had applied overhead of $120,000.Overhead is applied at the rate of 75% of direct labor cost.Direct labor wages average $20 per hour. How many direct labor hours did Ring Company have for the month of June?

A _______ is one distinct unit or set of units.

Which of the following statements describes a characteristic of overhead costs?

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

The cost of completed units is always debited to Work-in-Process and credited to Finished Goods.

Match each item with the correct statement below. Answers may be used more than once. -This form asks for the type, quantity, and unit price of direct materials.

Which of the following schedules is prepared to maintain accuracy in computing product costs?

Which of the following is only filled by direct laborers?

Which of the following is not a characteristic of job-order costing?

Overhead costs are assigned to Finished Goods using a predetermined rate.

When a job is completed but not sold, the accounts affected are

Which of the following accounts will increase when purchasing raw materials on account? ​

In an actual cost system, it is difficult to determine the _____ per unit.

Which of the following mathematical equations is used to calculate a predetermined overhead rate?

Walter Company uses a job-order costing system to account for product costs.The following information pertains to the current year: Plantwide overhead rate is $18 per direct labor hour - What is the total amount credited to Materials Inventory for Walter in the current year?

When finished goods are sold, the _____ account is debited.

________________________ are directly responsible for creating the products or services sold to customers.

Ring Company designs and builds jewelry.During June it had applied overhead of $120,000.Overhead is applied at the rate of 75% of direct labor cost.Direct labor wages average $20 per hour. How many direct labor hours did Ring Company have for the month of June?

A _______ is one distinct unit or set of units.

Which of the following statements describes a characteristic of overhead costs?

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 accounts will increase when purchasing raw materials on account?