Question 1

In the Excel, or spreadsheet, approach to recording financial transactions, if manufacturing overhead is underapplied by X dollars, the Manufacturing Overhead account is closed out by deducting X dollars in the Manufacturing Overhead column and deducting X dollars in the Retained Earnings column.

Accepted Answer

A) True 
 B)False  True

Question 2

In the Excel, or spreadsheet, approach to recording financial transactions, factory utility costs paid in cash are recorded as a decrease in the Cash column and as an increase in the Manufacturing Overhead column.

Accepted Answer

A) True 
 B)False  True

Question 3

In the Excel, or spreadsheet, approach to recording financial transactions, direct labor paid in cash is recorded as a decrease in the Cash column and as an increase in the Work in Process column.

Accepted Answer

A) True 
 B)False  True

Question 4

Amunrud Corporation uses a job-order costing system to assign manufacturing costs to jobs.At the end of the month it closes out any overapplied or underapplied manufacturing overhead to Cost of Goods Sold.Its balance sheet on January 1 appears below:  Summaries of the transactions completed during January appear below:  Required:
Completely fill in the spreadsheet below.Because the page is too narrow to accommodate all of the columns, the spreadsheet has been divided into two parts that should be side by side.

Accepted Answer

The answer of Amunrud Corporation uses a job-order costing system...

Question 5

In the Excel, or spreadsheet, approach to recording financial transactions, raw material purchases on account are recorded as increases in the Raw Materials inventory column and decreases in the Accounts Payable column.

Accepted Answer

A) True 
 B)False

Question 6

In the Excel, or spreadsheet, approach to recording financial transactions, expired insurance coverage on factory equipment is recorded as a decrease in the Prepaid Insurance column and as a decrease in the Retained Earnings column.

Accepted Answer

A) True 
 B)False

Question 7

In the Excel, or spreadsheet, approach to recording financial transactions, cash paid to creditors is recorded as a decrease in the Cash column and as a decrease in the Retained Earnings column.

Accepted Answer

A) True 
 B)False

Question 8

Venzke Corporation uses a job-order costing system to assign manufacturing costs to jobs.At the end of the month it closes out any overapplied or underapplied manufacturing overhead to Cost of Goods Sold.Its balance sheet on January 1 appears below:  Summaries of the transactions completed during January appear below: 
 Required:
a.Completely fill in the spreadsheet below.Because the page is too narrow to accommodate all of the columns, the spreadsheet has been divided into two parts that should be side by side.   b.Prepare a Balance Sheet for the company for January 31.

Accepted Answer

The answer of Venzke Corporation uses a job-order costing system...

Question 9

Gilkison Corporation uses a job-order costing system to assign manufacturing costs to jobs.At the end of the month it closes out any overapplied or underapplied manufacturing overhead to Cost of Goods Sold.Its balance sheet on October 1 appears below:  Summaries of the transactions completed during October appear below:  Required:
a.Completely fill in the spreadsheet below.Because the page is too narrow to accommodate all of the columns, the spreadsheet has been divided into two parts that should be side by side.   b.Prepare a Schedule of Cost of Goods Sold for the company for October.
c.Prepare an Income Statement for the company for October.

Accepted Answer

The answer of Gilkison Corporation uses a job-order costing system...

Question 10

In the Excel, or spreadsheet, approach to recording financial transactions, manufacturing overhead applied is recorded as an increase in the Work in Process column and as a decrease in the Manufacturing Overhead column.

Accepted Answer

A) True 
 B)False

Question 11

Plocek Corporation uses a job-order costing system to assign manufacturing costs to jobs.At the end of the month it closes out any overapplied or underapplied manufacturing overhead to Cost of Goods Sold.Its balance sheet on July 1 appears below:  Summaries of the transactions completed during July appear below:  Required:
a.Completely fill in the spreadsheet below.Because the page is too narrow to accommodate all of the columns, the spreadsheet has been divided into two parts that should be side by side.   b.Prepare a Balance Sheet for the company for July 31.
c.Prepare a Schedule of Cost of Goods Manufactured for the company for July.
d.Prepare a Schedule of Cost of Goods Sold for the company for July.
e.Prepare an Income Statement for the company for July.

Accepted Answer

The answer of Plocek Corporation uses a job-order costing system...

Question 12

Huberty Corporation uses a job-order costing system to assign manufacturing costs to jobs.At the end of the month it closes out any overapplied or underapplied manufacturing overhead to Cost of Goods Sold.Its balance sheet on April 1 appears below:  Summaries of the transactions completed during April appear below:  Required:
a.Completely fill in the spreadsheet below.Because the page is too narrow to accommodate all of the columns, the spreadsheet has been divided into two parts that should be side by side.   b.Prepare a Balance Sheet for the company for April 30.

Accepted Answer

The answer of Huberty Corporation uses a job-order costing system...

Question 13

In the Excel, or spreadsheet, approach to recording financial transactions, factory depreciation is recorded as a decrease in the Property, Plant, and Equipment column and as a decrease in the Retained Earnings column.

Accepted Answer

A) True 
 B)False

Question 14

Sandra Corporation uses a job-order costing system to assign manufacturing costs to jobs.At the end of the month it closes out any overapplied or underapplied manufacturing overhead to Cost of Goods Sold.Its balance sheet on January 1 appears below:  Summaries of the transactions completed during January appear below:  Required:
Completely fill in the spreadsheet below.Because the page is too narrow to accommodate all of the columns, the spreadsheet has been divided into two parts that should be side by side.

Accepted Answer

The answer of Sandra Corporation uses a job-order costing system...

Question 15

In the Excel, or spreadsheet, approach to recording financial transactions, the revenues and expenses on the income statement can be determined by summing each column.

Accepted Answer

A) True 
 B)False

Question 16

Feuerborn Corporation uses a job-order costing system to assign manufacturing costs to jobs.At the end of the month it closes out any overapplied or underapplied manufacturing overhead to Cost of Goods Sold.Its balance sheet on January 1 appears below:  Summaries of the transactions completed during January appear below:  Required:
a.Completely fill in the spreadsheet below.Because the page is too narrow to accommodate all of the columns, the spreadsheet has been divided into two parts that should be side by side.   b.Prepare a Balance Sheet for the company for January 31.
c.Prepare a Schedule of Cost of Goods Manufactured for the company for January.
d.Prepare a Schedule of Cost of Goods Sold for the company for January.
e.Prepare an Income Statement for the company for January.

Accepted Answer

The answer of Feuerborn Corporation uses a job-order costing system...

Question 17

Montuori Corporation uses a job-order costing system to assign manufacturing costs to jobs.At the end of the month it closes out any overapplied or underapplied manufacturing overhead to Cost of Goods Sold.Its balance sheet on October 1 appears below:  Summaries of the transactions completed during October appear below:  Required:
a.Completely fill in the spreadsheet below.Because the page is too narrow to accommodate all of the columns, the spreadsheet has been divided into two parts that should be side by side.   b.Prepare a Schedule of Cost of Goods Sold for the company for October.
c.Prepare an Income Statement for the company for October.

Accepted Answer

The answer of Montuori Corporation uses a job-order costing system...

Question 18

The equation "Ending balance in retained earnings = Beginning balance in retained earnings + Net operating income - Dividends" highlights the connection between the balance sheet and income statement and recognizes the fact that net operating income is essentially embedded within retained earnings on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 19

In the Excel, or spreadsheet, approach to recording financial transactions, any transactions involving sales or expenses will be recorded in the Net Income column of the balance sheet.

Accepted Answer

A) True 
 B)False

Question 20

In the Excel, or spreadsheet, approach to recording financial transactions, the cost of goods sold is recorded as a decrease in the Finished Goods column and as a decrease in the Retained Earnings column.

Accepted Answer

A) True 
 B)False

Exam 15: Job-Order Costing: Cost Flows and External Reporting

In the Excel, or spreadsheet, approach to recording financial transactions, if manufacturing overhead is underapplied by X dollars, the Manufacturing Overhead account is closed out by deducting X dollars in the Manufacturing Overhead column and deducting X dollars in the Retained Earnings column.

In the Excel, or spreadsheet, approach to recording financial transactions, factory utility costs paid in cash are recorded as a decrease in the Cash column and as an increase in the Manufacturing Overhead column.

In the Excel, or spreadsheet, approach to recording financial transactions, direct labor paid in cash is recorded as a decrease in the Cash column and as an increase in the Work in Process column.

In the Excel, or spreadsheet, approach to recording financial transactions, raw material purchases on account are recorded as increases in the Raw Materials inventory column and decreases in the Accounts Payable column.

In the Excel, or spreadsheet, approach to recording financial transactions, expired insurance coverage on factory equipment is recorded as a decrease in the Prepaid Insurance column and as a decrease in the Retained Earnings column.

In the Excel, or spreadsheet, approach to recording financial transactions, cash paid to creditors is recorded as a decrease in the Cash column and as a decrease in the Retained Earnings column.

In the Excel, or spreadsheet, approach to recording financial transactions, manufacturing overhead applied is recorded as an increase in the Work in Process column and as a decrease in the Manufacturing Overhead column.

In the Excel, or spreadsheet, approach to recording financial transactions, factory depreciation is recorded as a decrease in the Property, Plant, and Equipment column and as a decrease in the Retained Earnings column.

In the Excel, or spreadsheet, approach to recording financial transactions, the revenues and expenses on the income statement can be determined by summing each column.

In the Excel, or spreadsheet, approach to recording financial transactions, any transactions involving sales or expenses will be recorded in the Net Income column of the balance sheet.

In the Excel, or spreadsheet, approach to recording financial transactions, the cost of goods sold is recorded as a decrease in the Finished Goods column and as a decrease in the Retained Earnings column.