Deck 5: Job-Order Costing

Question 1

What are the characteristics of process costing?

A) wide variety of distinct products
B) costs accumulated by job
C) unit costs computed by dividing total job costs by number of units produced for that job
D) homogeneous products

Answer 1

D

Question 2

Which of the following is a characteristic of normal costing?

A) Actual overhead costs are not assigned directly to jobs.
B) Predetermined rates are not used to assign overhead.
C) Applied overhead is not calculated on a job-specific basis.
D) Plant-wide and departmental rates cannot be used to assign overhead.

Answer 2

A

Question 3

Which of the following statements about overhead costs is correct?

A) Overhead costs are not incurred uniformly throughout the year.
B) Overhead costs have a definite,identifiable relationship with units produced.
C) Low production in one month would give rise to low unit overhead costs.
D) High production in one month would give rise to high unit overhead costs.

Answer 3

A

Question 4

Which of the following is a characteristic of actual overhead using normal costing?

A) It is recorded to the overhead control account at the beginning of the period.
B) It is reconciled at the end of a period with applied overhead.
C) It is separated into many smaller accounts,such as indirect labour and supplies.
D) It is estimated easily at the beginning of the period.

Question 5

From an operational perspective,which is not a decision that unit costs are used to make?

A) hiring a new CEO
B) evaluating performance on an ongoing basis
C) establishing a price for a product or service
D) determining the long-term feasibility of a business strategy

Question 6

How do process costing firms accumulate costs?

A) by job or process
B) by unit or department
C) by process or unit
D) by process or department

Question 7

Which of the following is a production cost in an automobile manufacturing company?

A) salary of the Chief Executive Officer
B) secretary of the controller's wages
C) variable manufacturing overhead
D) fixed selling costs

Question 8

Which of the following types of businesses is most likely to use a process-costing system?

A) print shop
B) doctor's office
C) home building
D) petroleum

Question 9

Which of the following methods of measuring costs associated with production is more widely used in practice?

A) normal costing
B) actual costing
C) authentic costing
D) ordinary costing

Question 10

How are unit costs calculated?

A) by dividing total cost associated with the units produced by the unit cost
B) by adding all variable costs per unit associated with the units produced
C) by dividing total fixed costs by the number of units produced
D) by dividing total cost associated with the units produced by the number of units produced

Question 11

Which of the following costs are easy to trace to individual jobs?

A) direct materials and overhead
B) direct materials and direct labour
C) direct labour and overhead
D) overhead and indirect labour

Question 12

What are the components of manufacturing overhead?

A) all costs other than direct materials
B) all manufacturing costs other than direct materials
C) all costs other than direct materials and direct labour
D) all manufacturing costs other than direct materials and direct labour

Question 13

What costs are used in a normal job-order costing system?

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

Question 14

What formula is used to calculate the predetermined overhead rate?

A) estimated annual overhead / estimated annual activity level
B) actual annual overhead / estimated annual activity level
C) estimated annual overhead / actual annual activity level
D) actual annual overhead / actual annual activity level

Question 15

In normal costing,how are direct materials,direct labour,and overhead costs assigned?

A) Actual direct materials,actual direct labour,and actual overhead costs are assigned to products.
B) Actual direct materials cost is assigned to products,but direct labour and overhead costs are assigned using predetermined rates.
C) Actual direct labour cost is assigned to products,but direct material and overhead costs are assigned using predetermined rates.
D) Actual direct material and direct labour costs are assigned to products,but overhead costs are assigned using predetermined rates.

Question 16

Which of the following costs poses the most problems when using an actual cost system?

A) direct materials
B) overhead
C) direct labour
D) direct materials and direct labour

Question 17

Which of the following types of businesses is most likely to use a job order costing system?

A) food
B) cement
C) lawyer
D) chemicals

Question 18

Which of the following is a characteristic of job-order costing?

A) Products produced are identical in nature
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 sold on that job.
D) The cost of one job is typically different from that of another job.

Question 19

When using normal costing,which costs never enter the work-in-process account?

A) applied overhead
B) actual overhead
C) direct materials
D) direct labour

Question 20

What is characteristic of job-order costing?

A) It is used in firms that produce homogeneous products.
B) The total cost of each job is accumulated on the time card.
C) The document for accumulating manufacturing costs is the cost sheet.
D) Costs are collected by department.

Question 21

$$\begin{array} { l r r r } & \text { Assembly Department } & \text { Testing Department } & \text { Total } \\\text { Overhead } & \$ 570,000 & \$ 130,000 & \$ 700,000 \\\text { Direct Labour Hours } & 142,500 & 32,500 & 175,000 \\\text { Machine Hours } & 32,000 & 65,000 & 97,000\end{array}$$ Blackfoot uses departmental overhead rates.In the assembly department,direct labour hours are used to apply overhead.Machine hours are used to apply overhead in the testing department.Actual data for August are as follows: $$\begin{array} { l r r r } & \text { Assembly Department } & \text { Testing Department } & \text { Total } \\\text { Overhead } & \$ 42,000 & \$ 12,000 & \$ 54,000 \\\text { Direct Labour Hours } & 13,500 & 2,430 & 15,930 \\\text { Machine Hours } & 4,020 & 11,000 & 15,020\end{array}$$

-Refer to the Figure.Suppose that instead of departmental rates,Blackfoot uses a plantwide overhead rate that is based on direct labour hours.What is the predetermined overhead rate rounded to the nearest cent?

A) $0.52 per direct labour hour
B) $2.57 per direct labour hour
C) $4.00 per direct labour hour
D) $5.00 per direct labour hour

Question 22

$$\begin{array} { l r r r } & \text { Assembly Department } & \text { Testing Department } & \text { Total } \\\text { Overhead } & \$ 570,000 & \$ 130,000 & \$ 700,000 \\\text { Direct Labour Hours } & 142,500 & 32,500 & 175,000 \\\text { Machine Hours } & 32,000 & 65,000 & 97,000\end{array}$$ Blackfoot uses departmental overhead rates.In the assembly department,direct labour hours are used to apply overhead.Machine hours are used to apply overhead in the testing department.Actual data for August are as follows: $$\begin{array} { l r r r } & \text { Assembly Department } & \text { Testing Department } & \text { Total } \\\text { Overhead } & \$ 42,000 & \$ 12,000 & \$ 54,000 \\\text { Direct Labour Hours } & 13,500 & 2,430 & 15,930 \\\text { Machine Hours } & 4,020 & 11,000 & 15,020\end{array}$$

-Refer to the Figure.Suppose Blackfoot decides to continue using departmental overhead rates.What are the predetermined rates for the assembly and testing departments,respectively?

A) assembly: $4 per direct labour hour; testing: $2 per machine hour
B) assembly: $2 per direct labour hour; testing: $4 per machine hour
C) assembly: $4 per direct labour hour; testing: $4 per direct labour hour
D) assembly: $7.22 per machine hour; testing: $7.22 per machine hour

Question 23

The BeautyWorks Corporation manufactures custom-made purses.The following data pertains to Job AAA: $\begin{array}{ll}\text { Direct materials placed into production } & \$ 4,000 \\\text { Direct labour hours worked } & 60 \text { hours } \\\text { Direct labour rate per hour } & \$ 15 \\\text { Machine hours worked } & 100 \text { hours }\end{array}$ Factory overhead is applied using a plantwide rate that is based on direct labour hours.Factory overhead was budgeted at $120,000 for the year,and the direct labour hours were estimated to be 30,000.Job AAA consists of 50 units.What is the overhead cost assigned to Job AAA?

A) $240
B) $400
C) $750
D) $1,500

Question 24

Refer to the Figure.Suppose the actual overhead for January is $51,000.What is the overhead variance?

A) $800 overapplied
B) $800 underapplied
C) $3,000 overapplied
D) $3,000 underapplied

Question 25

Refer to the Figure.What is the predetermined overhead rate?

A) $4 per machine hour
B) $6 per direct labour hour
C) $40,200
D) $44,000

Question 26

Which of the following statements about a job-order costing is correct?

A) Many different jobs are listed on a job-order cost sheet.
B) Direct labour is allocated to jobs along with overhead.
C) Work in process consists of all completed work.
D) Time tickets are used to post the cost of direct labour to individual jobs.

Question 27

Refer to the Figure.What is the predetermined overhead rate?

A) $2.63 per direct labour hour
B) $3.00 per direct labour hour
C) $3.42 per direct labour hour
D) $4.00 per direct labour hour

Question 28

Peterson Company has applied overhead of $75,000 and actual overhead of $87,600 for the month of October.It applies overhead on the basis of direct labour hours,which equalled 15,000 in October.Overhead for the year was estimated to be $925,000.What are the direct labour hours estimated for the year?

A) 150,000
B) 170,000
C) 175,200
D) 185,000

Question 29

$$\begin{array} { l r r r } & \text { Assembly Department } & \text { Testing Department } & \text { Total } \\\text { Overhead } & \$ 570,000 & \$ 130,000 & \$ 700,000 \\\text { Direct Labour Hours } & 142,500 & 32,500 & 175,000 \\\text { Machine Hours } & 32,000 & 65,000 & 97,000\end{array}$$ Blackfoot uses departmental overhead rates.In the assembly department,direct labour hours are used to apply overhead.Machine hours are used to apply overhead in the testing department.Actual data for August are as follows: $$\begin{array} { l r r r } & \text { Assembly Department } & \text { Testing Department } & \text { Total } \\\text { Overhead } & \$ 42,000 & \$ 12,000 & \$ 54,000 \\\text { Direct Labour Hours } & 13,500 & 2,430 & 15,930 \\\text { Machine Hours } & 4,020 & 11,000 & 15,020\end{array}$$

-Refer to the Figure.Suppose Blackfoot decides to continue using departmental overhead rates and a job spends 4 hours in assembly and 3 hours in testing.What is the amount of overhead charged to the job?

A) $20.00
B) $22.00
C) $28.00
D) $50.54

Question 30

What rarely occurs regarding the overhead variance?

A) actual overhead equals applied overhead
B) overhead is underapplied
C) overhead is overapplied
D) overhead is immaterial

Question 31

What document lists the total cost for a single product?

A) job-order cost sheet
B) materials requisition form
C) time ticket
D) purchase order

Question 32

Refer to the Figure.What is the overhead applied for January?

A) $26,800
B) $40,200
C) $44,000
D) $48,000

Question 33

Avonlea Construction builds custom houses for individual buyers.On April 1,it had one job started with a beginning work-in-process balance of $76,000.During April,the job was finished and sold.Direct labour for the job in April was $75,000,and direct materials used were $67,000.Overhead is computed at a rate of 65% of direct labour.All sales have a markup of 40%.What was the selling price of the house?

A) $82,862.50
B) $236,750.00
C) $262,087.50
D) $373,450.00

Question 34

$$\begin{array} { l r r r } & \text { Assembly Department } & \text { Testing Department } & \text { Total } \\\text { Overhead } & \$ 570,000 & \$ 130,000 & \$ 700,000 \\\text { Direct Labour Hours } & 142,500 & 32,500 & 175,000 \\\text { Machine Hours } & 32,000 & 65,000 & 97,000\end{array}$$ Blackfoot uses departmental overhead rates.In the assembly department,direct labour hours are used to apply overhead.Machine hours are used to apply overhead in the testing department.Actual data for August are as follows: $$\begin{array} { l r r r } & \text { Assembly Department } & \text { Testing Department } & \text { Total } \\\text { Overhead } & \$ 42,000 & \$ 12,000 & \$ 54,000 \\\text { Direct Labour Hours } & 13,500 & 2,430 & 15,930 \\\text { Machine Hours } & 4,020 & 11,000 & 15,020\end{array}$$

-Refer to the Figure.Which of the following best represents the departmental overhead rates?

A) Applied overhead for the testing department is $4,860.
B) Applied overhead for the assembly department is $54,000.
C) Applied overhead for both departments combined is $63,720.
D) Overhead for the assembly department is underapplied.

Question 35

At the beginning of the year,Healthworks Company estimated the following for the coming year: $\begin{array}{lr}\text { Overhead } & \$ 420,000 \\\text { Direct labour hours } & 70,000\end{array}$ Healthworks used normal costing and applies overhead on the basis of direct labour hours.For the month of May,direct labour hours equalled 10,300 and actual overhead equalled $56,750. What is the overhead applied to production in May?

A) $30,000
B) $46,750
C) $51,600
D) $61,800

Question 36

Refer to the Figure.What is the overhead variance for Rovetti?

A) $56,000 overapplied
B) $56,000 underapplied
C) $19,150 overapplied
D) $19,150 underapplied

Question 37

What form requires the job number and the type,quantity,and unit price of direct materials issued?

A) time ticket
B) materials requisition form
C) job-order cost sheet
D) labour summary sheet

Question 38

When is the predetermined overhead rate usually calculated?

A) at the end of each month
B) at the beginning of each month
C) at the beginning of the year
D) at the end of the year

Question 39

Whitney Company uses a predetermined rate to apply overhead.At the beginning of the year,Whitney estimated its overhead costs at $280,000,direct labour hours at 40,000,and machine hours at 10,000.Actual overhead costs incurred were $289,000,actual direct labour hours were 41,000,and actual machine hours were 11,000. Suppose the predetermined overhead rate is based on machine hours.What would be the total amount credited to the factory overhead account for the year for Whitney?

A) $240,000
B) $246,000
C) $249,280
D) $308,000

Question 40

Which of the following total costs is included in the unit cost of a job?

A) the total costs of materials purchased
B) the total costs of labour worked on the in the factory
C) the total costs of actual overhead
D) the total costs of applied overhead

Question 41

Ending work in process for Hands On Carpentry was $64,000 for January.Direct labour and direct materials for the month had a combined total of $39,000.Direct labour was twice as much as direct materials.The overhead rate is 70% of direct labour.No jobs were finished during the month.What was the beginning work in process?

A) $0
B) $4,250
C) $6,800
D) $15,250

Question 42

Big Red Truck Company designs and builds fire trucks.During June,it had applied overhead of $125,000.Overhead is applied at the rate of 80% of direct labour cost.Direct labour wages average $10 per hour. How many direct labour hours did Big Red Truck Company have for the month of June?

A) 4,500
B) 10,500
C) 12,500
D) 156,250

Question 43

Which of the following costs is NOT included on a job-order cost sheet?

A) direct material costs
B) applied factory overhead costs
C) direct labour costs
D) actual factory overhead costs

Question 44

Which of the following is a characteristic of the job-order cost sheet?

A) It contains information about special orders only.
B) It is subsidiary to the cost of goods sold account.
C) It is the primary document for accumulating all costs related to a particular job.
D) It contains only the materials information pertinent to a job.

Question 45

Which of the following is NOT on a time ticket?

A) employee's name
B) employee's wage rate
C) hours worked on each job
D) cost of materials

Question 46

In what order do cost elements flow through accounts until they are recognized as an expense?

A) work in process,cost of goods sold,finished goods
B) finished goods,work in process,cost of goods sold
C) finished goods,cost of goods sold,work in process
D) work in process,finished goods,cost of goods sold

Question 47

Which of the following costs is included in labour cost flows?

A) direct labour cost
B) indirect labour cost
C) administration cost
D) direct materials cost

Question 48

Which accounts are affected when a job is completed and remains in inventory?

A) raw materials and work in process
B) work in process and finished goods
C) raw materials and cost of goods sold
D) finished goods and cost of goods sold

Question 49

Which of the following costs are NOT associated with selling and general administrative activities?

A) period costs
B) nonmanufacturing costs
C) manufacturing costs
D) direct material costs

Question 50

Zinger Corporation had the following information available for March of the current year: $\begin{array}{lr}\text { Work in process, March } 1 & \$ 20,000 \\\text { Materials placed into production, March } & 27,500 \\\text { Direct labour, March } & 37,500\end{array}$ The factory overhead rate is 150% of direct labour costs.Job cost sheets had the following balances: $$\begin{array} { r r } \text { Job Z1 } & \$ 32,500 \\\text { Job Z2 } & 55,000 \\\text { Job Z3 } & 35,000 \\\text { Job Z4 } & 18,750\end{array}$$ Jobs Z3 and Z4 were not completed at the end of March.What is the balance in work in process for Zinger at the end of March?

A) $53,750
B) $56,250
C) $85,000
D) $87,500

Question 51

On March 1,Job 492 had a beginning balance of $500.During March,direct materials of $700 and direct labour of $400 were added to the job.Overhead is applied to production at a rate of 60% of direct labour.There are ten units in Job 492. What is the unit cost?

A) $134
B) $184
C) $1,100
D) $1,840

Question 52

Which of the following is characteristic of costing?

A) Actual overhead costs always enter the work-in-process account.
B) The cost of a job includes direct materials,direct labour,and applied overhead.
C) When a job is complete,it must leave cost of goods sold and be entered into finished goods or work-in-process.
D) Direct materials are not included in the job cost.

Question 53

Which of the following statements is characteristic of overhead?

A) The adjusted cost of goods sold is equal to the normal cost of goods manufactured plus or minus the overhead variance.
B) If the overhead variance shows underapplied overhead,then that amount would be subtracted from normal cost of goods sold.
C) Variances in overhead are expected every other month.
D) If the overhead variance shows overapplied overhead,then that amount would be subtracted from normal cost of goods sold.

Question 54

Which of the following items may be listed on a materials requisition form to maintain proper control over a firm's inventory of direct materials?

A) cost of supplies
B) cost of lubricants for production machinery
C) the date and a signature
D) the date and the cost of the form

Question 55

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

A) raw materials
B) work in process
C) finished goods
D) cost of goods sold

Question 56

Which of the following source documents would NOT be used to help decide the cost of a job?

A) a material requisition form
B) a time ticket for direct labour
C) a time ticket for indirect labour
D) a cost of goods sold sheet

Question 57

Shakers Manufacturing has the following information listed before reconciling the overhead variance. $\begin{array}{lr}\text { Estimated Overhead } & \$ 760,000 \\\text { Applied Overhead } & 756,000 \\\text { Actual Overhead } & 740,000 \\\text { Cost of Goods Sold } & 935,000\end{array}$ Assume that any overhead variance is immaterial.Which of the following is the adjusted cost of goods sold after adjusting for the overhead variance?

A) $915,000
B) $919,000
C) $939,000
D) $951,000

Question 58

Which of the following can serve as a subsidiary for the finished goods inventory?

A) completed job-order cost sheets
B) incomplete job-order cost sheets
C) work-in-process inventory
D) raw material inventory

Question 59

For which of the following are time tickets filled out?

A) indirect labourers
B) direct labourers
C) managers
D) supervisors

Question 60

Elegant Furnishings designs and builds upscale dining room tables for individual customers.On June 1,two jobs were in process: Braun with a beginning balance of $21,700; and Prince with a beginning balance of $8,790.Overhead costs are applied by using a rate of 70% of direct labour costs.Both jobs are unfinished at the end of June.Data on July costs for both jobs are as follows: $\begin{array}{lrr} & \text { Braun } & \text { Prince } \\\text { Direct Materials } & \$ 6,100 & \$ 10,200 \\\text { Direct Labour Cost } & 2,700 & 11,000\end{array}$ Which of the following is the total of the work-in-process account at June 30?

A) $28,000
B) $37,590
C) $58,490
D) $70,080

Question 61

$\begin{array}{lrrrr}& \text { Job } 900 & \text { Job 901 } & \text { Job 902 } & \text { Job 903 } \\\text { Direct Materials } & \$ 12,500 & \$ 6,740 & \$ 2,520 & \$ 7,870 \\\text { Direct Labour }& \$ 5,880 & \$ 10,280 & \$ 3,760 & \$ 11,360\end{array}$

-Refer to Bob's Powerwasher Company.What is the balance in the work-in-process account on April 30?

A) $87,498
B) $88,340
C) $104,262
D) $106,570

Question 62

$\begin{array}{lrrr}\text { Job \# } & \text { Total Cost } & \text { Complete? } & \text { Sold? } \\529 & \$ 409 & \text { no } & \text { no } \\530 & \$ 513 & \text { yes } & \text { no } \\531 & \$ 115 & \text { no } & \text { no }\\532 & \$ 790 & \text { yes } & \text { yes } \\533 & \$ 650 & \text { yes } & \text { no } \\534 & \$ 540 & \text { no } & \text { no } \\535 & \$ 90 & \text { no } & \text { no } \\536 & \$ 970 & \text { yes } & \text { yes } \\537 & \$ 179 & \text { no } & \text { no } \\538 & \$ 400 & \text { no } & \text { no }\end{array}$ +1427:1459

-Refer to the Figure.What is the cost of goods sold for the month?

A) $1,163
B) $1,733
C) $1,760
D) $2,640

Question 63

$\begin{array}{ll}\text { Direct Materials }&\$50,000\\\text { Direct Labour Costs }\\\text { Dept. A } & 60,000 \\\text { Dept. B } & 12,000\\\text { Machine hours used }\\\text { Dept. A } & 200 \\\text { Dept. B } & 2,400\\\text { Units Produced }&20,000\end{array}$

-Refer to the Figure.What is the cost per unit?

A) $5.60
B) $5.73
C) $11.95
D) $13.00

Question 64

At the beginning of the year,Shoeman Corporation estimates its overhead for the year will be $150,000.Suppose the actual overhead for the year is $160,000 and the applied overhead for the year is $145,000.Assume that the overhead variance is immaterial.What journal entry is needed to reconcile the overhead variance?

A) Cost of Goods Sold 15,000
Overhead Control 15,000
B) Overhead Control 15,000
Cost of Goods Sold 15,000
C) Cost of Goods Sold 5,000
Overhead Control 5,000
D) Overhead Control 5,000
Cost of Goods Sold 5,000

Question 65

$\begin{array}{ll}\text { Direct Materials }&\$50,000\\\text { Direct Labour Costs }\\\text { Dept. A } & 60,000 \\\text { Dept. B } & 12,000\\\text { Machine hours used }\\\text { Dept. A } & 200 \\\text { Dept. B } & 2,400\\\text { Units Produced }&20,000\end{array}$

-Refer to the Figure .What is the total cost of Job 3?

A) $112,000
B) $134,600
C) $145,800
D) $229,000

Question 66

$\begin{array}{lrrr}\text { Job \# } & \text { Total Cost } & \text { Complete? } & \text { Sold? } \\529 & \$ 409 & \text { no } & \text { no } \\530 & \$ 513 & \text { yes } & \text { no } \\531 & \$ 115 & \text { no } & \text { no }\\532 & \$ 790 & \text { yes } & \text { yes } \\533 & \$ 650 & \text { yes } & \text { no } \\534 & \$ 540 & \text { no } & \text { no } \\535 & \$ 90 & \text { no } & \text { no } \\536 & \$ 970 & \text { yes } & \text { yes } \\537 & \$ 179 & \text { no } & \text { no } \\538 & \$ 400 & \text { no } & \text { no }\end{array}$ +1427:1459

-Refer to the Figure.What is the total in the work-in-process account?

A) $1,163
B) $1,733
C) $1,760
D) $2,923

Question 67

$\begin{array}{lrrrrr} & \text { Job } 812 & \text { Job 813 } & \text { Job 814 } & \text { Job 815 } & \text { Job 816 } \\9 / 1 \text { Balance } & \$ 615 & \$ 830 & \$ 945 & \ldots & \ldots \\\text { Direct Materials } & 750 & 235 & 1,280 & \$ 200 & \$ 915 \\\text { Direct Labour } & 420 & 115 & 560 & 320 & 875\end{array}$

-Refer to the Figure.What is the ending balance in work in process as of September 30?

A) $1,392
B) $1,700
C) $1,961
D) $2,222

Question 68

Michelle's has the following transactions for the month of October:
1.Purchased materials on account for $111,482.2.Materials requisitioned for $82,383.3.Direct labour of $51,000 was incurred (but not yet paid).4.Actual overhead for the month was $33,000.It has not been paid yet (charge to various payables).5.Overhead is applied to production at the rate of 70% of direct labour.6.Jobs totalling $56,000 were transferred from work in process to finished goods.7.Jobs costing $41,000 were sold.Balances at the beginning of the month were: $\begin{array}{lr}\text { Materials } & \$ 17,890 \\\text { Work in process } & 0 \\\text { Finished goods } & 8,321\end{array}$

-Refer to the Figure.What is the ending balance in work in process?

A) $110,383
B) $113,083
C) $166,383
D) $169,083

Question 69

$\begin{array}{lrrr}\text { Job \# } & \text { Total Cost } & \text { Complete? } & \text { Sold? } \\529 & \$ 409 & \text { no } & \text { no } \\530 & \$ 513 & \text { yes } & \text { no } \\531 & \$ 115 & \text { no } & \text { no }\\532 & \$ 790 & \text { yes } & \text { yes } \\533 & \$ 650 & \text { yes } & \text { no } \\534 & \$ 540 & \text { no } & \text { no } \\535 & \$ 90 & \text { no } & \text { no } \\536 & \$ 970 & \text { yes } & \text { yes } \\537 & \$ 179 & \text { no } & \text { no } \\538 & \$ 400 & \text { no } & \text { no }\end{array}$ +1427:1459

-Refer to the Figure.What is the selling price of Job 536?

A) $790
B) $970
C) $1,185
D) $1,455

Question 70

$\begin{array}{lrrr}\text { Job \# } & \text { Total Cost } & \text { Complete? } & \text { Sold? } \\529 & \$ 409 & \text { no } & \text { no } \\530 & \$ 513 & \text { yes } & \text { no } \\531 & \$ 115 & \text { no } & \text { no }\\532 & \$ 790 & \text { yes } & \text { yes } \\533 & \$ 650 & \text { yes } & \text { no } \\534 & \$ 540 & \text { no } & \text { no } \\535 & \$ 90 & \text { no } & \text { no } \\536 & \$ 970 & \text { yes } & \text { yes } \\537 & \$ 179 & \text { no } & \text { no } \\538 & \$ 400 & \text { no } & \text { no }\end{array}$ +1427:1459

-Refer to the Figure.What is the total in finished goods?

A) $1,163
B) $1,733
C) $1,760
D) $2,923

Question 71

$\begin{array}{lrrrr}& \text { Job } 900 & \text { Job 901 } & \text { Job 902 } & \text { Job 903 } \\\text { Direct Materials } & \$ 12,500 & \$ 6,740 & \$ 2,520 & \$ 7,870 \\\text { Direct Labour }& \$ 5,880 & \$ 10,280 & \$ 3,760 & \$ 11,360\end{array}$

-Refer to the Figure.Suppose selling and administrative expenses for the month of July equal $6,000.What is operating income for the month of July?

A) $6,998.70
B) $12,998.70
C) $28,886.00
D) $41,884.70

Question 72

Michelle's has the following transactions for the month of October:
1.Purchased materials on account for $111,482.2.Materials requisitioned for $82,383.3.Direct labour of $51,000 was incurred (but not yet paid).4.Actual overhead for the month was $33,000.It has not been paid yet (charge to various payables).5.Overhead is applied to production at the rate of 70% of direct labour.6.Jobs totalling $56,000 were transferred from work in process to finished goods.7.Jobs costing $41,000 were sold.Balances at the beginning of the month were: $\begin{array}{lr}\text { Materials } & \$ 17,890 \\\text { Work in process } & 0 \\\text { Finished goods } & 8,321\end{array}$

-Refer to the Figure.What is the ending balance of finished goods?

A) $0
B) $15,000
C) $23,321
D) $64,321

Question 73

$\begin{array}{lrrr}&\text { Job } 100&\text { Job } 200&\text { Job } 300\\\text { Balance } 1 / 1 & \$ 13,790 & \$ 0& \$ 0 \\\text { Direct Materials } & 16,200 & 8,500 & 30,500 \\\text { Direct Labour Cost } & 23,300 & 7,600 & 45,000 \\\text { Machine Hours } & 400 & 300 & 2,000\end{array}$

-Refer to Rally Point,Inc.What is the balance in the work-in-process account on January 31?

A) $0
B) $16,100
C) $23,600
D) $212,390

Question 74

$\begin{array}{lrrrr}& \text { Job } 900 & \text { Job 901 } & \text { Job 902 } & \text { Job 903 } \\\text { Direct Materials } & \$ 12,500 & \$ 6,740 & \$ 2,520 & \$ 7,870 \\\text { Direct Labour }& \$ 5,880 & \$ 10,280 & \$ 3,760 & \$ 11,360\end{array}$

-Refer to the Figure.What is the price of Job 903?

A) $27,883.50
B) $28,886.00
C) $41,884.70
D) $74,536.00

Question 75

Which of the following is NOT a manufacturing cost?

A) direct materials
B) direct labour
C) distribution costs
D) overhead

Question 76

Michelle's has the following transactions for the month of October:
1.Purchased materials on account for $111,482.2.Materials requisitioned for $82,383.3.Direct labour of $51,000 was incurred (but not yet paid).4.Actual overhead for the month was $33,000.It has not been paid yet (charge to various payables).5.Overhead is applied to production at the rate of 70% of direct labour.6.Jobs totalling $56,000 were transferred from work in process to finished goods.7.Jobs costing $41,000 were sold.Balances at the beginning of the month were: $\begin{array}{lr}\text { Materials } & \$ 17,890 \\\text { Work in process } & 0 \\\text { Finished goods } & 8,321\end{array}$

-Refer to the Figure.What is the journal entry to record applied overhead for the month?

A) Work in Process 35,700
Overhead Control 35,700
B) Various Payables 35,700
Overhead Control 35,700
C) Overhead Control 35,700
Work in Process 35,700
D) Overhead Control 35,700
Various Payables 35,700

Question 77

$\begin{array}{lrrr}&\text { Job } 100&\text { Job } 200&\text { Job } 300\\\text { Balance } 1 / 1 & \$ 13,790 & \$ 0& \$ 0 \\\text { Direct Materials } & 16,200 & 8,500 & 30,500 \\\text { Direct Labour Cost } & 23,300 & 7,600 & 45,000 \\\text { Machine Hours } & 400 & 300 & 2,000\end{array}$

-Refer to the Figure.What is the cost of goods sold for February?

A) $125,790
B) $175,700
C) $188,790
D) $307,300

Question 78

$\begin{array}{lrrr}&\text { Job } 100&\text { Job } 200&\text { Job } 300\\\text { Balance } 1 / 1 & \$ 13,790 & \$ 0& \$ 0 \\\text { Direct Materials } & 16,200 & 8,500 & 30,500 \\\text { Direct Labour Cost } & 23,300 & 7,600 & 45,000 \\\text { Machine Hours } & 400 & 300 & 2,000\end{array}$

-Refer to the Figure.What is the sales revenue for January?

A) $131,600
B) $175,700
C) $237,300
D) $264,306

Question 79

Michelle's has the following transactions for the month of October:
1.Purchased materials on account for $111,482.2.Materials requisitioned for $82,383.3.Direct labour of $51,000 was incurred (but not yet paid).4.Actual overhead for the month was $33,000.It has not been paid yet (charge to various payables).5.Overhead is applied to production at the rate of 70% of direct labour.6.Jobs totalling $56,000 were transferred from work in process to finished goods.7.Jobs costing $41,000 were sold.Balances at the beginning of the month were: $\begin{array}{lr}\text { Materials } & \$ 17,890 \\\text { Work in process } & 0 \\\text { Finished goods } & 8,321\end{array}$

-Refer to the Figure.What is the journal entry to record actual overhead for the month?

A) Overhead Control 33,000
Various Payables 33,000
B) Work in Process 33,000
Various Payables 33,000
C) Various Payables 33,000
Work in Process 33,000
D) Various Payable 33,000
Overhead Control 33,000

Question 80

$\begin{array}{lrrr}&\text { Job } 100&\text { Job } 200&\text { Job } 300\\\text { Balance } 1 / 1 & \$ 13,790 & \$ 0& \$ 0 \\\text { Direct Materials } & 16,200 & 8,500 & 30,500 \\\text { Direct Labour Cost } & 23,300 & 7,600 & 45,000 \\\text { Machine Hours } & 400 & 300 & 2,000\end{array}$

-Refer to Rally Point,Inc.What is the balance of finished goods at January 31?

A) $0
B) $39,500
C) $53,290
D) $188,790