Deck 2: Job Order Costing

Question 1

Specialty Wood Products company had the following manufacturing labor related transactions last month:


-What is the journal entry to record the incurrence of these wages?

A)

B)

C)

D)

Answer 1

Question 2

Specialty Wood Products company had the following manufacturing labor related transactions last month:


-What is the journal entry to record the assignment of these wages?

A)

B)

C)

D)

Answer 2

Question 3

Which of the following entries would be made to record the use of $10,000 of direct materials and $5,000 of indirect materials by Jake's Custom Furniture?

A)

B)

C)

D)

Answer 3

Question 4

Which of the following entries would be made to assign $10,000 of manufacturing labor to jobs, 70% of which was direct labor and 30% of which was indirect labor?

A)

B)

C)

D)

Question 5

Which of the following entries would be made to record the purchase of $20,000 of raw materials on account for Jake's Custom Furniture?

A)

B)

C)

D)

Question 6

Company uses a job costing system and had the following data available for 2009.
The journal entry to record the total materials placed into production would include which of the following?

A) Debit to work in process for $41,000
B) Debit to work in process for $43,000
C) Credit to manufacturing overhead for $2,000
D) Debit to manufacturing overhead for $41,000

Question 7

Potts Company uses a job costing system and had the following data available for 2009.


- The journal entry to record the actual manufacturing overhead costs incurred would include which of the following?

A) Credit to work in process $95,000
B) Credit to manufacturing overhead $93,750
C) Debit to manufacturing overhead $95,000
D) Debit to work in process for $93,750

Question 8

Potts Company uses a job costing system and had the following data available for 2009.


-The journal entry to record the allocation of manufacturing overhead costs incurred would include which of the following?

A) Debit to work in process inventory for $95,000
B) Debit to work in process inventory for $93,750
C) Credit to manufacturing overhead for $95,000
D) Debit to manufacturing overhead for $93,750

Question 9

Potts Company uses a job costing system and had the following data available for 2009.


-What is the balance in work in process inventory at December 31, 2009?

A) $15,000
B) $17,000
C) $16,500
D) $15,500

Question 10

Davie Company used estimated direct labor hours of 180,000 and estimated manufacturing overhead costs of $990,000 in establishing its 2009 predetermined manufacturing overhead rate. Actual results showed:
What was the number of direct labor hours worked during 2009?

A) 180,000
B) 186,000
C) 192,000
D) 175,000

Question 11

Buncombe Company presents the following cost data for 2009:


- What were the total actual manufacturing overhead costs for Buncombe Company in 2009?

A) $227,000
B) $275,500
C) $223,000
D) $197,000

Question 12

Buncombe Company presents the following cost data for 2009:


-What is the predetermined manufacturing overhead rate for 2009?

A) 84% of direct labor cost
B) $1.25 per direct labor hour
C) 70% of direct labor cost
D) 80% of direct labor cost

Question 13

Buncombe Company presents the following cost data for 2009:


- Manufacturing overhead allocated for 2009 is:

A) $450,450.
B) $210,000.
C) $220,500.
D) $252,000.

Question 14

On January 1, 2009, Jackson Company's work in process inventory account had a balance of $65,000. During 2009, materials requisitioned for use in production amounted to $70,000, of which $66,000 represented direct materials. Factory wages for the period were $209,000, of which $186,400 were for direct labor. Manufacturing overhead is allocated on the basis of 60% of direct labor cost. Actual overhead was $116,440. Jobs costing $353,240 were completed during 2009. The December 31, 2009, balance in work in process inventory is:

A) $ 80,000.
B) $ 72,800.
C) $107,200.
D) $ 76,000.

Question 15

Forsyth Company uses estimated direct labor hours of 150,000 and estimated manufacturing overhead costs of $337,500 in establishing its 2010 predetermined manufacturing overhead rate. Actual results showed:
The number of direct labor hours worked during the period was:

A) 154,000.
B) 152,800.
C) 150,000.
D) 146,000.

Question 16

How is the predetermined manufacturing overhead rate used to allocate manufacturing overhead calculated?

A) By dividing the total estimated manufacturing overhead costs by the total estimated quantity of allocation base
B) By dividing the total estimated quantity of allocation base by the total estimated manufacturing overhead costs
C) By multiplying the total estimated manufacturing overhead costs by the total estimated quantity of allocation base
D) By dividing the total estimated manufacturing overhead costs by the total actual quantity of the allocation base

Question 17

McDuffy Furniture Company constructs custom furniture. Job cost records during the second and third quarters of 2009 are shown below.
What would the entry be to record the sale of Job 111 on August 25, at a sales price of $305,420?

A)

B)

C)

D)

Question 18

McDuffy Furniture Company constructs custom furniture. Job cost records during the second and third quarters of 2009 are shown below.
What is the work in process on June 30^th?

A) $50,940
B) $492,540
C) $625,940
D) $0

Question 19

Buncombe Company presents the following cost data for 2009:
What is required to close the manufacturing overhead account on December 31, 2009?

A) A credit to manufacturing overhead for $25,000
B) A debit to manufacturing overhead for $25,000
C) A debit to cost of goods sold for $25,000
D) A credit to work in process inventory for $25,000

Question 20

Daniel Company's manufacturing overhead account showed a $4,500 overallocated balance at the end of 2005. Actual overhead incurred was $95,000. Other accounts showed the following balances:


-The entry to close the manufacturing overhead account would include which of the following?

A) Credit to work in process for $4,500
B) Debit to work in process for $4,500
C) Debit to cost of goods sold for $4,500
D) Debit to manufacturing overhead for $4,500

Question 21

Daniel Company's manufacturing overhead account showed a $4,500 overallocated balance at the end of 2005. Actual overhead incurred was $95,000. Other accounts showed the following balances:


- What will be the ending balance in cost of goods sold after allocating the proper amount of the manufacturing overhead?

A) $270,500
B) $279,500
C) $266,000
D) $284,000

Question 22

Delaware Furniture Company constructs custom furniture. Job cost records during the second and third quarters of 2009 are shown below.


- What is the total cost of the July 31^st work in process inventory?

A) $466,700
B) $448,600
C) $321,700
D) $303,600

Question 23

Delaware Furniture Company constructs custom furniture. Job cost records during the second and third quarters of 2009 are shown below.


- What is the total cost of the July 31^st finished goods inventory?

A) $82,800
B) $304,240
C) $209,200
D) $227,800

Question 24

Delaware Furniture Company constructs custom furniture. Job cost records during the second and third quarters of 2009 are shown below.


- Assuming Jobs No. 110 and 112 are sold to customers in July, what is the total cost of goods sold for July?

A) $188,600
B) $304,240
C) $271,400
D) $221,440

Question 25

Cruise Company uses a job order costing system and had the following data available for 2009.


- The journal entry to record the cost of goods completed would include which of the following?

A) Debit to finished goods for $295,000
B) Debit to work in process inventory for $260,000
C) Credit to work in process for $260,000
D) Credit to finished goods for $295,000

Question 26

Cruise Company uses a job order costing system and had the following data available for 2009.


- What is the ending work in process inventory balance?

A) $151,000
B) $87,000
C) $157,750
D) $93,750

Question 27

Cruise Company uses a job order costing system and had the following data available for 2009.


-What is the ending finished goods inventory balance?

A) $35,000
B) $54,400
C) $19,000
D) $89,000

Question 28

Cruise Company uses a job order costing system and had the following data available for 2009.


- The journal entry to record the sale of all jobs for the entire year would include which of the following?

A) Debit to cost of goods sold for $295,000
B) Credit to finished goods inventory for $295,000
C) Credit to finished goods inventory for $260,000
D) Debit to finished goods inventory for $295,000

Question 29

Davidson Company's manufacturing overhead account showed a $6,200 underallocated balance on December 31, 2009. Other accounts showed the following balances on December 31, 2009:
Davidson adjusts costs of goods sold for the balance in manufacturing overhead. What is the balance in Cost of goods sold after closing out the balance in manufacturing overhead?

A) $93,800
B) $103,100
C) $106,200
D) $100,000

Question 30

Clyde Company gathered the following information for the year ended December 31, 2009:
Clyde Company uses a job order costing system.
Assume that manufacturing overhead is underallocated on December 31, 2009, by $17,000. After closing out manufacturing overhead, what would the balance be in cost of goods sold?

A) $152,000
B) $143,500
C) $160,500
D) $118,000

Question 31

Actual manufacturing overhead for 2009 amounts to $102,500, allocated manufacturing overhead for 2009 amounts to $98,700. By how much is manufacturing overhead over/underallocated?

A) $3,800 underallocated
B) $1,900 underallocated
C) $1,900 overallocated
D) $3,800 overallocated

Question 32

Potts Company uses a job order costing system and had the following data available for 2009.


- The journal entry to transfer completed goods to the finished goods inventory account would include which of the following?

A) Debit to work in process inventory for $226,750
B) Debit to finished goods inventory for $227,875
C) Debit to finished goods inventory for $226,750
D) Credit to work in process inventory for $227,875

Question 33

Potts Company uses a job order costing system and had the following data available for 2009.


-The journal entry to close manufacturing overhead would include a:

A) debit to manufacturing overhead for $1,250.
B) credit to manufacturing overhead for $1,250.
C) debit to work in process inventory for $1,250.
D) credit to cost of goods sold for $1,250.

Question 34

Potts Company uses a job order costing system and had the following data available for 2009.


- The journal entry to close manufacturing overhead would include which of the following?

A) Debit to cost of goods sold for $1,250
B) Debit to work in process inventory for $1,250
C) Debit to manufacturing overhead for $1,250
D) Credit to work in process inventory for $1,250