Question 1

A job order costing system would be appropriate for a manufacturer of automobile tires.

Accepted Answer

A) True 
 B)False

Question 2

The production activities for a customized product represent a(n):

Accepted Answer

A)  Operation. 
B)  Job. 
C)  Unit. 
D)  Pool. 
E)  Process. 
A)  Operation. 
B)  Job. 
C)  Unit. 
D)  Pool. 
E)  Process.

Question 3

A company's ending inventory of finished goods has a cost of $45,000 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 cost, what is the cost of the direct materials used to produce these units?

Accepted Answer

The answer of A company's ending inventory of finished goods...

Question 4

Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor. Minstrel uses a predetermined overhead rate of 150% of direct labor cost. The journal entry to record the factory payroll is:

Accepted Answer

A)  Debit Work in Process Inventory $150,000; debit Factory Overhead $40,000; credit Factory Wages Payable $190,000. 
B)  Debit Work in Process Inventory $150,000; credit Cash $150,000. 
C)  Debit Work in Process Inventory $110,000; debit Factory Overhead $40,000; credit Factory Wages Payable $150,000. 
D)  Debit Work in Process Inventory $150,000; credit Factory Overhead $40,000; credit Factory Wages Payable $110,000. 
E)  Debit Work in Process Inventory $110,000; credit Factory Overhead $40,000; credit Factory Wages Payable $150,000. 
A)  Debit Work in Process Inventory $150,000; debit Factory Overhead $40,000; credit Factory Wages Payable $190,000. 
B)  Debit Work in Process Inventory $150,000; credit Cash $150,000. 
C)  Debit Work in Process Inventory $110,000; debit Factory Overhead $40,000; credit Factory Wages Payable $150,000. 
D)  Debit Work in Process Inventory $150,000; credit Factory Overhead $40,000; credit Factory Wages Payable $110,000. 
E)  Debit Work in Process Inventory $110,000; credit Factory Overhead $40,000; credit Factory Wages Payable $150,000.

Question 5

A source document that an employee uses to report how much time was spent working on a job or on overhead activities and that is used to determine the amount of direct labor to charge to the job or to determine the amount of indirect labor to charge to factory overhead is called a:

Accepted Answer

A)  Payroll Register. 
B)  Factory payroll record. 
C)  General Ledger. 
D)  Time ticket. 
E)  Factory Overhead Ledger. 
A)  Payroll Register. 
B)  Factory payroll record. 
C)  General Ledger. 
D)  Time ticket. 
E)  Factory Overhead Ledger.

Question 6

Minstrel Manufacturing uses a job order costing system. During one month Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor. Minstrel uses a predetermined overhead rate of 150% of direct labor cost. The journal entry to record the application of factory overhead to production is:

Accepted Answer

A)  Debit Work in Process Inventory $225,000; credit Factory Overhead $225,000. 
B)  Debit Work in Process Inventory $165,000; credit Factory Overhead $165,000. 
C)  Debit Factory Payroll $150,000; credit Work in Process Inventory $150,000. 
D)  Debit Factory Overhead $165,000; credit Work in Process Inventory $165,000. 
E)  Debit Work in Process Inventory $165,000; credit Factory Payroll $165,000. 
A)  Debit Work in Process Inventory $225,000; credit Factory Overhead $225,000. 
B)  Debit Work in Process Inventory $165,000; credit Factory Overhead $165,000. 
C)  Debit Factory Payroll $150,000; credit Work in Process Inventory $150,000. 
D)  Debit Factory Overhead $165,000; credit Work in Process Inventory $165,000. 
E)  Debit Work in Process Inventory $165,000; credit Factory Payroll $165,000.

Question 7

CWN Company uses a job order costing system and last period incurred $80,000 of actual overhead and $100,000 of direct labor. CWN estimates that its overhead next period will be $75,000. It also expects to incur $100,000 of direct labor cost. If CWN bases applied overhead on direct labor cost, its predetermined overhead 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 8

If actual overhead incurred during a period exceeds applied overhead, the difference will be a debit balance in the Factory Overhead account at the end of the period.

Accepted Answer

A) True 
 B)False

Question 9

Job order costing is used to determine the cost of producing each job or job lot.

Accepted Answer

A) True 
 B)False

Question 10

A time ticket is a source document that an employee uses to report how much indirect labor was performed for a job.

Accepted Answer

A) True 
 B)False

Question 11

Drop Anchor takes special orders to manufacture sail boats for high-end customers. Prepare journal entries to record the transactions below and prepare job cost sheets for September.

a. Purchased raw materials on credit, $145,000.

b. Materials requisitions: Job 240, $48,000; Job 241, $36,000; Job 242, $42,000; indirect materials were $12,000.

c. Time tickets used to charge labor to jobs: Job 240, $40,000; Job 241, $30,000; Job 242, $35,000, indirect labor is $25,000.

d. The company incurred the following additional overhead costs: depreciation of factory building, $70,000; depreciation of factory equipment, $60,000; expired factory insurance, $10,000; utilities and maintenance cost of $20,000 were paid in cash.

e. Applied overhead to all three jobs. The predetermined overhead rate is 190% of direct labor cost.

f. Transferred jobs 240 and 242 to Finished Goods Inventory.

g. Sold job 240 for $300,000 for cash.

h. Closed the under- or over-applied overhead account balance.

Accepted Answer

@#IMG-DLM& Overhead = $12,000 + 25,000 +

Question 12

Luna Manufacturing Company has the following job cost sheets on file. They represent jobs that have been worked on during September of the current year. This table summarizes information provided on each sheet:
   (a) What is the cost of the Work in Process inventory on September 30?
(b) What is the cost of the finished goods inventory on September 30?
(c) What is the cost of goods sold for the month of September?

Accepted Answer

(a) Cost of the Work in proces

Question 13

A manufacturing company applies overhead using direct labor cost. The company's Work in Process Inventory account has a $15,000 debit balance after all posting is completed, and the cost sheet of the one job still in process shows direct material costs of $6,600 and direct labor costs of $3,000. What is the company's predetermined overhead rate?

Accepted Answer

($15,000 -

Question 14

Minstrel Manufacturing uses a job order costing system. During one month, Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor. Minstrel uses a predetermined overhead application rate of 150% of direct labor cost. If Minstrel incurred total overhead costs of $167,800 during the month, compute the amount of under- or overapplied overhead:

Accepted Answer

A)  $2,800 overapplied. 
B)  $17,800 underapplied. 
C)  $2,800 underapplied. 
D)  $17,800 overapplied. 
E)  $57,200 overapplied. 
A)  $2,800 overapplied. 
B)  $17,800 underapplied. 
C)  $2,800 underapplied. 
D)  $17,800 overapplied. 
E)  $57,200 overapplied.

Question 15

The Work in Process Inventory account for DG Manufacturing follows. Compute the cost of jobs completed and transferred to Finished Goods Inventory.

The cost of jobs transferred to finished goods is:

Accepted Answer

A)  $97,000. 
B)  $105,900. 
C)  $88,100. 
D)  $95,200. 
E)  $92,500. 
A)  $97,000. 
B)  $105,900. 
C)  $88,100. 
D)  $95,200. 
E)  $92,500.

Question 16

Job order costing would be used for all of the following except:

Accepted Answer

A)  Construction of a custom home. 
B)  Production of running shoes. 
C)  Production of a Pixar movie. 
D)  Production of wedding invitations. 
E)  Conducting an audit. 
A)  Construction of a custom home. 
B)  Production of running shoes. 
C)  Production of a Pixar movie. 
D)  Production of wedding invitations. 
E)  Conducting an audit.

Question 17

The total manufacturing costs on job cost sheets for unfinished jobs equals the total amount in the Work in Process Inventory account in the general ledger.

Accepted Answer

A) True 
 B)False

Question 18

The Work in Process Inventory account of a manufacturing company has a $3,200 debit balance. The company applies overhead using direct labor cost. The cost sheet of the only job still in process shows direct material cost of $1,400 and direct labor cost of $800. Therefore, the amount of applied overhead is:

Accepted Answer

A)  $1,800. 
B)  $2,200. 
C)  $1,000. 
D)  $800. 
E)  $2,400. 
A)  $1,800. 
B)  $2,200. 
C)  $1,000. 
D)  $800. 
E)  $2,400.

Question 19

Portside Watercraft uses a job order costing system. During one month Portside purchased $153,000 of raw materials on credit; issued materials to production of $164,000, of which $24,000 were indirect. Portside incurred a factory payroll cost of $95,000, of which $25,000 was indirect labor. Portside uses a predetermined overhead rate of 170% of direct labor cost. The journal entry to record the application of factory overhead to production is:

Accepted Answer

A)  Debit Work in Process Inventory $55,800; credit Factory Overhead $55,800. 
B)  Debit Work in Process Inventory $161,500; credit Factory Overhead $161,500. 
C)  Debit Work in Process Inventory $119,000; credit Factory Overhead $119,000. 
D)  Debit Factory Overhead $119,000; credit Work in Process Inventory $119,000. 
E)  Debit Work in Process Inventory $95,000; credit Factory Payroll $95,000. 
A)  Debit Work in Process Inventory $55,800; credit Factory Overhead $55,800. 
B)  Debit Work in Process Inventory $161,500; credit Factory Overhead $161,500. 
C)  Debit Work in Process Inventory $119,000; credit Factory Overhead $119,000. 
D)  Debit Factory Overhead $119,000; credit Work in Process Inventory $119,000. 
E)  Debit Work in Process Inventory $95,000; credit Factory Payroll $95,000.

Question 20

A materials requisition is a source document used for recording materials received.

Accepted Answer

A) True 
 B)False

A job order costing system would be appropriate for a manufacturer of automobile tires.

The production activities for a customized product represent a(n):

A company's ending inventory of finished goods has a cost of $45,000 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 cost, what is the cost of the direct materials used to produce these units?

A source document that an employee uses to report how much time was spent working on a job or on overhead activities and that is used to determine the amount of direct labor to charge to the job or to determine the amount of indirect labor to charge to factory overhead is called a:

If actual overhead incurred during a period exceeds applied overhead, the difference will be a debit balance in the Factory Overhead account at the end of the period.

Job order costing is used to determine the cost of producing each job or job lot.

A time ticket is a source document that an employee uses to report how much indirect labor was performed for a job.

The Work in Process Inventory account for DG Manufacturing follows. Compute the cost of jobs completed and transferred to Finished Goods Inventory. The cost of jobs transferred to finished goods is:

Job order costing would be used for all of the following except:

The total manufacturing costs on job cost sheets for unfinished jobs equals the total amount in the Work in Process Inventory account in the general ledger.

A materials requisition is a source document used for recording materials received.

Managerial Accounting Concepts and Principles

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Analysis

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting Cash Flows

Analysis of Financial Statements

Time Value of Money

Lean Principles and Accounting

Accounting for Business Transactions

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Exam 2: Job Order Costing and Analysis

A job order costing system would be appropriate for a manufacturer of automobile tires.

The production activities for a customized product represent a(n):

A company's ending inventory of finished goods has a cost of $45,000 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 cost, what is the cost of the direct materials used to produce these units?

A source document that an employee uses to report how much time was spent working on a job or on overhead activities and that is used to determine the amount of direct labor to charge to the job or to determine the amount of indirect labor to charge to factory overhead is called a:

If actual overhead incurred during a period exceeds applied overhead, the difference will be a debit balance in the Factory Overhead account at the end of the period.

Job order costing is used to determine the cost of producing each job or job lot.

A time ticket is a source document that an employee uses to report how much indirect labor was performed for a job.

The Work in Process Inventory account for DG Manufacturing follows. Compute the cost of jobs completed and transferred to Finished Goods Inventory. The cost of jobs transferred to finished goods is:

Job order costing would be used for all of the following except:

The total manufacturing costs on job cost sheets for unfinished jobs equals the total amount in the Work in Process Inventory account in the general ledger.

A materials requisition is a source document used for recording materials received.

Managerial Accounting Concepts and Principles

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Analysis

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Reporting Cash Flows

Analysis of Financial Statements

Time Value of Money

Lean Principles and Accounting

Accounting for Business Transactions

Filters