Deck 4: Accounting Entries for a Job Costing System

Question 1

The following information is available for the current year for Sven's Brokerage Services: Sales
£661,000
Beginning work in progress
7,000
Ending work in progress
6,000
Direct labour
100,000
Direct materials
30,000
Overhead
150,000
Selling expenses
80,000
Administrative expenses
120,000
What is Sven's income before taxes for the year?

A) £180,000
B) £182,000
C) £380,000
D) £382,000

Answer 1

A

Question 2

Assume the following data for Graham Services, an architecture firm, for February: Beginning materials inventory
£ 20,000
Beginning work-in-progress inventory
40,000
Ending work-in-progress inventory
50,000
Ending materials inventory
10,000
Actual overhead costs
100,000
Direct materials used
60,000
Direct labour
200,000
What is the cost of services sold for February?

A) £370,000
B) £350,000
C) £360,000
D) £330,000

Answer 2

B

Question 3

Assume the following information: Direct materials used
£ 90,000
Direct labour
130,000
Factory overhead
150,000
Beginning work-in-progress inventory
15,000
Beginning finished goods inventory
20,000
Ending work-in-progress inventory
42,000
Selling and administrative expenses
37,500
What was the cost of goods manufactured during the year?

A) £370,000
B) £365,000
C) £343,000
D) £333,000

Answer 3

C

Question 4

Factory depreciation would be recorded using which of the following entries?

A) Overhead Control XX
Accounts Payable XX
B) Overhead Control XX
Accumulated Depreciation XX
C) Depreciation Expense XX
Accumulated Depreciation XX
D) Accumulated Depreciation XX
Overhead Control XX

Question 5

A debit to the Materials (Stores ledger account) indicates

A) materials were purchased.
B) materials were requisitioned.
C) materials were put into production.
D) materials were ordered.

Question 6

A journal entry debiting Work in Progress would normally NOT be accompanied by a credit to

A) Materials.
B) Finished Goods.
C) Overhead Control.
D) Wages Payable.

Question 7

As goods are sold, the cost of the goods is transferred from

A) Finished Goods to Cost of Goods Sold.
B) Work in Process to Cost of Goods Sold.
C) Overhead to Finished Goods.
D) Work in Process to Finished Goods.

Question 8

In a job-order system, recording the use of indirect materials would include a debit to

A) Overhead Control.
B) Work in Progress.
C) Finished Goods.
D) Raw Materials.

Question 9

On April 9, 2011, Job XX4 was completed. The job cost sheet showed a total of £4,000 in direct materials and £6,000 in direct labour at a rate of £20 per direct labour hour. Factory overhead is applied at £30 per direct labour hour. The debit to Finished Goods Inventory to record the completion of Job XX4 is

A) £13,000.
B) £9,000.
C) £4,000.
D) £19,000.

Question 10

Which entry is recorded when materials are moved from storeroom to production?

A) Work in Process XX
Raw Materials XX
B) Raw Materials XX
Work in Process XX
C) Overhead Control XX
Raw Materials XX
D) Materials Expense XX
Raw Materials XX

Question 11

An entry to record the sale of goods would be

A) Cost of Goods Sold XX
Finished Goods XX
B) Finished Goods XX
Cost of Goods Sold XX
C) Cost of Goods Sold XX
Work in Progress XX
D) Work in Progress XX
Cost of Goods Sold XX

Question 12

Assume the following data for Gross, Inc., for February: Beginning finished goods inventory
£ 60,000
Beginning work-in-prgress inventory
40,000
Ending work-in-progress inventory
80,000
Ending finished goods inventory
50,000
Actual factory overhead costs
200,000
Direct materials used
160,000
Direct labour
100,000
What is the cost of goods manufactured for February?

A) £470,000
B) £420,000
C) £460,000
D) £430,000

Question 13

The entry to record total manufacturing overhead applied would be

A) Overhead Control XX
Work in Progress XX
B) Finished Goods Inventory XX
Work in Progress XX
C) Work in Progress XX
Overhead Control XX
D) Overhead Control XX
Accounts Payable XX

Question 14

____ is the recognition and recording of costs.

A) Cost accumulation
B) Cost measurement
C) Cost assignment
D) Job order costing

Question 15

Assume the following information for Knight Ltd. for the year ended December 31, 2011: Sales
£2,250
Cost of goods manufactured for the year
1,350
Beginning finished goods inventory
450
Ending finished goods inventory
495
Selling and administrative expenses
300
What is the cost of goods sold for the year ended December 31, 2011?

A) £1,305
B) £1,605
C) £1,350
D) £1,650