Deck 2: Job-Order Costing for Manufacturing and Service Companies

Question 1

Sales commissions are considered a product cost.

Answer 1

False

Question 2

A company that builds custom homes would likely use a process costing system.

Answer 2

False

Question 3

All costs other than direct materials, direct labor, indirect materials, and indirect labor are classified as period costs.

Answer 3

False

Question 4

When overhead is applied to jobs, Manufacturing Overhead is debited and Work in Process is credited.

Question 5

Insurance on factory equipment is a part of manufacturing overhead.

Question 6

Rent of the office building for the sales staff is a period cost.

Question 7

In a job-order costing system, Work in Process is debited and Finished Goods is credited when a job is sold.

Question 8

Period costs are identified with accounting periods rather than with goods produced.

Question 9

Process costing systems are generally used by companies that produce large quantities of identical items.

Question 10

In a job-order costing system, the Finished Goods account includes the cost of all jobs completed and sold during an accounting period.

Question 11

Raw Materials Inventory, Work in Process Inventory, and Cost of Goods Sold will appear on a company's balance sheet.

Question 12

In a job-order costing system, the Cost of Goods Sold account consists of costs transferred out of the Finished Goods account.

Question 13

A company that designs advertising campaigns for other companies would likely use job-order costing.

Question 14

Cost of Goods Manufactured appears on the balance sheet.

Question 15

A job cost sheet is a form used to accumulate costs of a particular job in a job-order costing system.

Question 16

Direct labor costs are traced to each job.

Question 17

The wages of a factory machine maintenance worker are classified as direct labor.

Question 18

Overhead is related ideally to production using an allocation base.

Question 19

Indirect labor is added directly to the Work in Process account in a job-order costing system.

Question 20

In a job-order costing system, the Cost of Goods Manufactured account is increased and the Finished Goods account is decreased when a job is completed.

Question 21

If the amount of overapplied overhead is not material, the amount should be closed to Cost of Goods Sold.

Question 22

If overhead is underapplied, closing it to Cost of Goods Sold will increase income.

Question 23

Which of the following is an example of a manufacturing overhead cost?

A)Wages paid to security personnel at the corporate office building
B)The cost of electricity used to run the oven in which Domino's bakes it pizzas
C)Cost of shipping product to customers
D)The salary of the president of the company

Question 24

Which of the following is not a period cost?

A)Advertising costs
B)Accounting staff salaries
C)Direct materials
D)Depreciation of accounting office equipment

Question 25

Westerhouse manufactures refrigerators.Which of the following items is most likely considered an indirect material cost for Westerhouse?

A)Supplies used by the factory janitor
B)Gasoline costs for trucks used to deliver products to customers
C)Glass shelves for the refrigerators
D)Refrigerator motors

Question 26

One goal of just-in-time systems is to minimize inventory levels.

Question 27

Product costs

A)are also called period costs.
B)are considered an asset until the finished goods are sold.
C)become an expense in the period the costs are incurred.
D)All of these answer choices are correct.

Question 28

Because H&R Block provides no materials when it completes a tax return for a client, it does not assign overhead costs to each tax return client.

Question 29

The use of computer-controlled manufacturing systems has had a significant effect on the composition of product costs.

Question 30

Which of the following costs is part of manufacturing overhead?

A)Indirect labor
B)Direct labor
C)Salaries for the accounting personnel
D)Wages for the janitorial staff for the sales offices

Question 31

Which of the following is a period cost?

A)Rent on a factory machine
B)Maintenance on production equipment
C)Indirect labor
D)Janitorial costs for the corporate office

Question 32

Which of the following is a manufacturing cost?

A)Indirect materials
B)Advertising expense
C)Depreciation of the office equipment used by the sales staff
D)Salary of clerical workers

Question 33

Underapplied overhead occurs when actual overhead is greater than the amount of overhead applied to jobs.

Question 34

Increases in overhead costs should be driven by increases in the overhead allocation base.

Question 35

If the amount of over- or under-applied overhead is material, the amount should be closed to Work in Process.

Question 36

Which of the following is not a reason for companies to know the cost of their products?

A)The company must set appropriate prices for the products.
B)The salary of the company president is based on the cost of the product.
C)The cost of the product is used in the calculation of profit when the product is sold.
D)The management of the company needs to assess the reasonableness of the costs incurred in purchasing or manufacturing the products.

Question 37

Which of the following is a manufacturing cost?

A)Cost of supplies used by sales personnel
B)Indirect factory labor
C)Product advertising costs
D)Administrative expenses

Question 38

Which of the following costs is not part of manufacturing overhead?

A)Electricity for the factory
B)Depreciation of factory equipment
C)Salaries for the production supervisors
D)Health insurance for sales staff

Question 39

Which of the following accounts does not appear on the balance sheet?

A)Raw Materials Inventory
B)Finished Goods Inventory
C)Work in Process Inventory
D)Cost of Goods Manufactured

Question 40

Job-order costing is often used by service companies, such as lawyers who need to determine the cost of lawsuit or consultants who need to determine the cost of an engagement.

Question 41

Tranham, Inc.uses a job-order costing system.It reported the following amounts for March: $\begin{array}{lrlr}\text { Work in process, March 1 } & \$ 38,000 & \text { Finished goods, March 1 } & \$ 14,000 \\\text { Work in process, March 31 } & 35,000 & \text { Finished goods, March 31 } & 17,500 \\\text { Cost of goods manufactured } & 169,000 & \text { Raw materials, March 1 } & 12,300 \\\text { Direct labor used } & 64,000 & \text { Raw materials, March 31 } & 12,000 \\\text { Selling costs incurred } & 32,000 & \text { Direct materials used } & 63,000\end{array}$ How much of the above amounts will Tranham report on its balance sheet at the end of March?

A)$64,500
B)$233,500
C)$192,500
D)$169,000

Question 42

The balance in the Finished Goods Inventory account on July 31, 2017, was $41,000 and the June 30, 2017, balance in the Finished Goods Inventory account was $34,000.Cost of goods sold is $200,000 and direct materials used in production total $86,000.How much is cost of goods manufactured?

A)$286,000
B)$193,000
C)$207,000
D)Not enough information is provided.

Question 43

Palm Works Inc.has a beginning balance in the Work in Process Inventory account of $20,000.Current manufacturing costs for the period are $325,000.The ending balance in the Work in Process Inventory account is $23,000.How much is cost of goods manufactured?

A)$322,000
B)$328,000
C)$348,000
D)Not enough information is provided

Question 44

The manufacturing operations of Saltic Enterprises had the following balances for the month of March: $\begin{array}{lrr}&\text { March 1,2017 }&\text { March 31,2017 }\\\text { Raw Materials } & \$ 11,000 & \$ 14,000 \\\text { Work in Process } & 8,000 & 10,000 \\\text { Finished Goods } & 25,000 & 28,000\end{array}$ If Saltic calculated cost of goods to be $249,000 in March, how much did it transfer out of Work in Process as completed goods?

A)$277,000
B)$246,000
C)$251,000
D)$252,000

Question 45

DistaBricks manufactures custom brick and applies job-order costing.The following information relates to the fiscal year ending December 31, 2017. $\begin{array}{lr}\text { Beginning balance in Raw Materials Inventory } & \$ 13,600 \\\text { Purchases of raw material } & 211,000 \\\text { Ending balance in Raw Materials Inventory } & 15,100 \\\text { Beginning balance in Work in Process } & 18,700 \\\text { Ending balance in Work in Process } & 16,500 \\\text { Direct labor cost } & 78,600 \\\text { Manufacturing overhead applied } & 47,900 \\\text { Actual manufacturing overhead } & 44,800 \\\text { Beginning balance in Finished Goods } & 26,200 \\\text { Ending balance in Finished Goods } & 24,500 \\\text { Sales } & 421,000 \\\text { Selling expenses } & 115,400 \\\text { General and administrative expenses } & 75,900\end{array}$ How much is cost of goods sold prior to closing under or overapplied overhead?

A)$339,900
B)$338,200
C)$336,000
D)None of these answer choices are correct

Question 46

DistaBricks manufactures custom brick and applies job-order costing.The following information relates to the fiscal year ending December 31, 2017. $\begin{array}{lr}\text { Beginning balance in Raw Materials Inventory } & \$ 13,600 \\\text { Purchases of raw material } & 21,, 000 \\\text { Ending balance in Raw Materials Inventory } & 15,100 \\\text { Beginning balance in Work in Process } & 18,700 \\\text { Ending balance in Work in Process } & 16,500 \\\text { Direct labor cost } & 78,600 \\\text { Manufacturing overhead applied } & 47,900 \\\text { Actual manufacturing overhead } & 44,800 \\\text { Beginning balance in Finished Goods } & 26,200 \\\text { Ending balance in Finished Goods } & 24,500 \\\text { Sales } & 421,000 \\\text { Selling expenses } & 115,400 \\\text { General and administrative expenses } & 75,900\end{array}$ How much is the cost of goods manufactured?

A)$336,000
B)$338,200
C)$335,100
D)None of these answer choices are correct

Question 47

Which of the following lists presents the accounts in the order in which product costs flow?

A)Cost of Goods Sold, Work in Process Inventory, Raw Materials Inventory, Finished Goods Inventory
B)Work in Process Inventory, Finished Goods Inventory, Cost of Goods Sold, Raw Materials Inventory
C)Raw Materials Inventory, Finished Goods Inventory, Work in Process Inventory, Cost of Goods Sold
D)Raw Materials Inventory, Work in Process Inventory, Finished Goods Inventory, Cost of Goods Sold

Question 48

Tranham, Inc.uses a job-order costing system.It reported the following amounts for March $\begin{array}{lrlr}\text { Work in process, March 1 } & \$ 38,000 & \text { Finished goods, March 1 } & \$ 14,000 \\\text { Work in process, March 31 } & 35,000 & \text { Finished goods, March 31 } & 17,500 \\\text { Cost of goods manufactured } & 169,000 & \text { Raw materials, March 1 } & 12,300 \\\text { Direct labor used } & 64,000 & \text { Raw materials, March 31 } & 12,000 \\\text { Selling costs incurred } & 32,000 & \text { Direct materials used } & 63,000\end{array}$ How much will Tranham report as cost of goods sold for the month of March?

A)$169,000
B)$172,000
C)$183,000
D)$165,500

Question 49

Work in Process Inventory includes the cost of

A)goods which are only partially completed.
B)all goods sold during the period.
C)all materials purchased during the last period.
D)all goods which are completed and ready to sell.

Question 50

Blue Dynamics manufactures custom water fountains and employs job-order costing system.Beginning raw materials on October 1 totaled $15,600.During October, Blue Dynamic's transactions and accounts included the following: $\begin{array}{lll}\text {Raw materials acquired for cash }&\$7,500\\\text {Raw materials received on account }&88,900\\\text { Direct materials requisitioned and transferred to production }&91,200\\\text { Cost of goods manufactured}&187,900\\\end{array}$ How much is the balance of Raw Materials on October 31?

A)$20,800
B)$96,400
C)$5,200
D)$9,800

Question 51

If the balance in the Finished Goods Inventory account is increased by $34,000 during the period and the cost of goods manufactured was $321,000, how much is cost of goods sold?

A)$287,000
B)$321,000
C)$355,000
D)Not enough information is provided

Question 52

Sanitize Systems had current production costs of $211,000 for March.Inventories were as follows: $\begin{array}{llr} & \text { Beginning } & \text { Ending } \\\text { Raw material } & \$ 13,000 & \$ 9,000 \\\text { Work in Process } & \$ 14,000 & \$ 15,000 \\\text { Finished Goods } & \$ 18,000 & \$ 16,000\end{array}$ How much is the cost of goods manufactured?

A)$213,000
B)$212,000
C)$210,000
D)Not enough information is provided

Question 53

Hard Walks Inc.designs and builds custom sidewalks and employs a job-order costing system.During June, the company's transactions and accounts included the following: $\begin{array}{lr}\text { Raw materials purchased } & \$ 282,000 \\\text { Direct materials used in production } & 290,000 \\\text { Raw materials inventory, beginning } & 11,400 \\\text { Corporate administrative costs } & 22,500 \\\text { Selling expenses } & 16,500 \\\text { Sales } & 389,000 \\\text { Total manufacturing overhead applied } & 45,300 \\\text { Total manufacturing overhead incurred } & 49,100 \\\text { Finished goods, beginning } & 21,400 \\\text { Work in process inventory, beginning } & 31,800 \\\text { Work in process inventory, ending } & 28,700 \\\text { Direct labor cost incurred } & 42,300 \\\text { Finished goods, ending } & 23,500\end{array}$ How much is cost of goods manufactured for June?

A)$348,900
B)$377,600
C)$380,700
D)$384,500

Question 54

Which of the following is not a cost that is included in the ending balances of the Work in Process Inventory account in a job-order cost system?

A)Cost of Goods Sold
B)Costs of tires attached to wagons by a toy manufacturer
C)Factory-related costs
D)Cost of wages earned by assembly workers

Question 55

DynaSpa manufactures solar spa heaters and employs a job-order costing system.Beginning raw materials totaled $4,200 and beginning work in process totaled $6,700.Ending work in process totaled $7,700.During October, DynaSpa's transactions and accounts included the following: $\begin{array}{lr}\text { Raw materials acquired } & \$ 91,000 \\\text { Manufacturing overhead applied } & 34,000 \\\text { Direct materials requisitioned and transferred to production } & 65,400 \\\text { Cost of qoods manufactured } & 331,000\end{array}$ How much is the amount of the current manufacturing costs?

A)$332,000
B)$99,400
C)$430,400
D)Not enough information is provided

Question 56

Ink Technology's Work in Process Inventory account has a beginning balance of $50,000 and an ending balance of $40,000.Direct materials used are $70,000 and direct labor incurred totals $35,000.Cost of goods sold totals $135,000.Manufacturing overhead applied is $20,000.How much is cost of goods manufactured?

A)$145,000
B)$115,000
C)$125,000
D)$135,000

Question 57

Watson Specialties bought $100,000 of raw materials during June, incurred $90,000 in direct labor cost, and applied $130,000 in manufacturing overhead.Inventories for June were as follows: $\begin{array}{lll}& \text { Beginning } & \text { Ending } \\\text { Raw material } & \$ 22,000 & \$ 24,000 \\\text { Work in Process } & \$ 23,000 & \$ 19,000 \\\text { Finished Goods } & \$ 32,000 & \$ 31,000\end{array}$ How much is cost of goods sold for June?

A)$323,000
B)$322,000
C)$324,000
D)$325,000

Question 58

DistaBricks manufactures custom brick and applies job-order costing.The following information relates to the fiscal year ending December 31, 2017. $\begin{array}{lr}\text { Beginning balance in Raw Materials Inventory } & \$ 13,600 \\\text { Purchases of raw material } & 211,000 \\\text { Ending balance in Raw Materials Inventory } & 15,100 \\\text { Beginning balance in Work in Process } & 18,700 \\\text { Ending balance in Work in Process } & 16,500 \\\text { Direct labor cost } & 78,600 \\\text { Manufacturing overhead applied } & 47,900 \\\text { Actual manufacturing overhead } & 44,800 \\\text { Beginning balance in Finished Goods } & 26,200 \\\text { Ending balance in Finished Goods } & 24,500 \\\text { Sales } & 421,000 \\\text { Selling expenses } & 115,400 \\\text { General and administrative expenses } & 75,900\end{array}$ How much is the cost of direct materials transferred into production?

A)$224,600
B)$212,500
C)$209,500
D)$211,000

Question 59

On December 31, 2017, Barnett Tools has a balance in the Work in Process Inventory account of $62,000.On January 1, 2017, the balance in Work in Process Inventory was $55,000.Current manufacturing costs for the year are $292,000, and cost of goods sold is $284,000.How much is cost of goods manufactured?

A)$292,000
B)$299,000
C)$277,000
D)$285,000

Question 60

Cost of goods manufactured

A)is the amount transferred from Work in Process Inventory to Finished Goods Inventory during the period.
B)is equal to the beginning Work in Process Inventory plus the current period's manufacturing costs plus the ending Work in Process Inventory.
C)is always equal to cost of goods sold.
D)is transferred to Raw Material Inventory account.

Question 61

In April, Walston Enterprises had the following results: $$\begin{array} { l r } \text { Beginning Finished Goods Inventory } & \$ 17,400 \\\text { Ending Finished Goods Inventory } & \$ 25,400 \\\text { Sales } & \$ 965,000 \\\text { Gross Margin } & \$ 450,000\end{array}$$ How much is Cost of Goods sold for April?

A)$458,000
B)$515,000
C)$507,000
D)$423,000

Question 62

During the month of August, Ross MotorCo applied overhead to jobs using an overhead rate of $0.80 per dollar of direct labor.Direct labor in August was $138,000.Estimated overhead in August was $112,800.Actual overhead was composed of the following items: $$\begin{array} { l r } \text { Indirect materials } & \$ 16,400 \\\text { Indirect labor } & 24,900 \\\text { Utilities } & 24,500 \\\text { Depreciation } & 38,700 \\\text { Repair expense } & 13,500 \\\text { Total } & \$ 118,000 \\\hline\end{array}$$ How much will Ross MotorCo record as a debit to Manufacturing Overhead during the year?

A)$112,800
B)$118,000
C)$110,400
D)More information is needed to answer

Question 63

Load King Manufacturing transferred $265,000 of costs from the Work in Process Inventory account to the Finished Goods Inventory account during the month.The company's inventory balances follow: $$\begin{array} { l l l } & \text { Beginning } & \text { Ending } \\\text { Work in Process } & \$ 22,000 & \$ 25,400 \\\text { Finished Goods } & \$ 31,500 & \$ 29,200\end{array}$$ How much is cost of goods sold for the month?

A)$262,700
B)$261,600
C)$267,300
D)Not enough information is provided

Question 64

Which of the following statements about job-order costing is not true?

A)Materials are traced to jobs using materials requisition forms.
B)Indirect labor is traced to jobs using time tickets.
C)Manufacturing overhead cannot be traced directly to jobs, so it is assigned using an overhead allocation rate.
D)Manufacturing overhead costs are applied to jobs by crediting the Manufacturing Overhead account and debiting it to Work in Process Inventory.

Question 65

Which of the following companies will most likely use a process costing system?

A)A company that produces recycle bins
B)A company that designs and bakes wedding cakes
C)An ambulance service
D)An attorney that handles divorce cases

Question 66

Cost of goods manufactured equals $44,000 for 2017.Finished goods inventory is $2,500 at the beginning of the year and $5,500 at the end of the year.Total manufacturing overhead applied is $4,500.Beginning and ending work in process for 2017 are $6,000 and $5,000 respectively.How much is cost of goods sold for the year?

A)$41,000
B)$47,000
C)$43,000
D)More information is needed.

Question 67

When work is completed on a job, costs for the completed job are found in which of the following accounts?

A)Cost of Goods Manufactured
B)Work in Process Inventory
C)Finished Goods Inventory
D)Cost of Goods Sold

Question 68

During the month of August, Ross MotorCo applied overhead to jobs using an overhead rate of $0.80 per dollar of direct labor.Direct labor incurred in August was $138,000.Estimated overhead in August was $112,800.Actual overhead was composed of the following items: $$\begin{array} { l r } \text { Indirect materials } & \$ 16,400 \\\text { Indirect labor } & 24,900 \\\text { Utilities } & 24,500 \\\text { Depreciation } & 38,700 \\\text { Repair expense } & 13,500 \\\text { Total } & \$ 118,000 \\\hline\end{array}$$ How much will be recorded as a debit to Work in Process for overhead during the year for Ross MotorCo?

A)$112,800
B)$118,000
C)$110,400
D)More information is needed to answer

Question 69

Occi-Predictions manufactures weather forecasting circuits for meteorologists and uses a job-order costing system.During June, Occi-Predictions accounts included the following balances and transactions: $\begin{array}{lrlr}\text { Raw Materials Inventory, beginning } & \$ 700 & \text { Direct materials purchased } & \$ 45,000 \\\text { Raw Materials Inventory, ending } & 4,850 & \text { Direct labor cost incurred } & 16,400 \\\text { Manufacturing overhead cost applied } & 9,500 & \text { Administrative expenses } & 13,000 \\\text { Marketing expenses } & 11,000 & \text { Work in Process Inventory, beginning } & 7,800 \\\text { Sales } & 98,000 & \text { Work in Process Inventory, ending } & 6,600\end{array}$ How much is the cost of direct materials issued to production during June?

A)$45,000
B)$45,700
C)$49,150
D)$40,850

Question 70

Occi-Predictions manufactures weather forecasting circuits for meteorologists machines and uses a job-order costing system.During June, Occi-Predictions accounts included the following balances and transactions: $\begin{array}{lrlr}\text { Raw Materials Inventory, beginning } & \$ 700 & \text { Direct materials purchased } & \$ 45,000 \\\text { Raw Materials Inventory, ending } & 4,850 & \text { Direct labor cost incurred } & 16,400 \\\text { Manufacturing overhead cost applied } & 9,500 & \text { Administrative expenses } & 13,000 \\\text { Marketing expenses } & 11,000 & \text { Work in Process Inventory, beginning } & 7,800 \\\text { Sales } & 98,000 & \text { Work in Process Inventory, ending } & 6,600\end{array}$ How much is cost of goods manufactured?

A)$67,950
B)$58,540
C)$72,100
D)$66,750

Question 71

The following information has been collected from Harper Tools' accounting records for the month of April: $\begin{array}{lr}\text { Direct materials added to Work in Process Inventory } & \$ 160,000 \\\text { Indirect materials added to Manufacturing Overhead } & 40,000 \\\text { Direct labor added to Work in Process Inventory } & 150,000 \\\text { Indirect labor added to Manufacturing Overhead } & 65,000\\\text { Manufacturing overhead added to Work in Process Inventory }&100,000\\\text { Depreciation Expense added to Manufacturing Overhead } & 50,000 \\\text { Cost of Goods Sold } & 340,000 \\\text { Cost of Goods Manufactured } & 380,000\end{array}$ What is the amount of the current manufacturing costs?

A)$410,000
B)$565,000
C)$500,000
D)$550,000

Question 72

Dax Productions produces commercials for companies wishing to advertise on television.It uses job-order costing.Dax utilized annual estimates of overhead and machine hours in determining its overhead rate of $1.50 per machine hour.Data from the month of June is as follows: $$\begin{array} { l r } \text { Factory rent } & \$ 20,400 \\\text { Direct labor } & \$ 56,000 \\\text { Factory depreciation } & \$ 15,000 \\\text { Administrative salaries } & \$ 42,000 \\\text { Indirect materials used in production } & \$ 16,000 \\\text { Direct materials used in production } & \$ 11,500 \\\text { Actual machine hours } & 33,000 \\\text { Estimated machine hours } & 31,800\end{array}$$ How much are total manufacturing costs added to Work in Process during the period?

A)$118,900
B)$114,000
C)$117,000
D)None of these answer choices are correct.

Question 73

Reason Apparel applied overhead totaling $140,000 during March.Inventories were as follows: $\begin{array} { l c c } & \text { Beginning } & \text { Ending } \\\text { Raw material } & \$ 15,000 & \$ 21,000 \\\text { Work in Process } & \$ 24,000 & \$ 26,000 \\\text { Finished Goods } & \$ 11,000 & \$ 15,000\end{array}$ How much is cost of goods manufactured?

A)$138,000
B)$136,000
C)$140,000
D)Not enough information provided

Question 74

Title Audio manufactures industrial sound systems and employs a job-order costing system.During June, Title Audio's transactions and accounts included the following: $\begin{array}{lr}\text { Raw materials purchased } & \$ 126,000 \\\text { Direct labor cost incurred } & 34,000 \\\text { Total manufacturing overhead applied } & 42,100 \\\text { Raw Materials Inventory, beginning } & 12,500 \\\text { Raw Materials Inventory, ending } & 11,600\\\text { Finished Goods Inventory, beginning } & 10,400 \\\text { Work in Process Inventory, beginning } & 13,000 \\\text { Work in Process Inventory, ending } & 14,100 \\\text { Total manufacturing overhead incurred } & 44,300\end{array}$ How much is the cost of direct materials issued to production during June?

A)$126,900
B)$126,000
C)$125,100
D)None of these answer choices are correct

Question 75

Value Wood utilizes job-order costing.The company began the month of July with $35,000 in raw materials.During the month $300,000 of additional raw materials were purchased and $295,000 of direct materials were requisitioned from the storeroom.How much will be reported on Value Wood's balance sheet for Raw Materials at the end of July?

A)$40,000
B)$5,000
C)$30,000
D)$335,000

Question 76

Olive Productions utilizes job-order costing for textbook production.It allocates overhead at a rate of 130% of direct labor costs.The following is data regarding three jobs: $\begin{array}{llll}&\text { Work in Process }\\&\text { balance }&\text { Costs added in February }\\&\text { On Februany } 1&\text { Direct Labor }&\text { Direct Materials }\\\hline\text { Job \#64 } & \$ 600 & \$ 500 & \$ 200 \\\text { Job \#65 } & \$ 700 & \$ 300 & \$ 300 \\\text { Job \#66 } & \$ 500 & \$ 100 & \$ 250\end{array}$ Jobs #64 and #66 were completed and sold in February.How much is the balance in the Work in Process account at the end of February?

A)$990
B)$1,690
C)$1,650
D)$1,300

Question 77

Winslow Windows manufactures custom windows for high rise buildings and employs a job-order costing system.During June, Winslow's transactions and accounts included the following: $\begin{array}{lr}\text { Raw materials purchased } & \$ 106,000 \\\text { Direct labor cost incurred } & 42,000 \\\text { Total manufacturing overhead applied } & 35,800 \\\text { Raw Materials Inventory, beginning } & 13,100 \\\text { Raw Materials I nventory, ending } & 11,600\\\text { Finished Goods Inventory, beginning } & 9,000 \\\text { Work in Process Inventory, beginning } & 13,000 \\\text { Work in Process Inventory, ending } & 14,100 \\\text { Total manufacturing overhead incurred } & 34,200\\\end{array}$ How much is the cost of goods manufactured for June?

A)$185,300
B)$184,200
C)$182,600
D)$182,700

Question 78

Companies that use process costing systems

A)generally produce large quantities of identical items.
B)trace costs to specific items produced.
C)accumulate costs by completed products rather than by departments.
D)All of these answer choices are correct.

Question 79

Olive Productions utilizes job-order costing for textbook production.It allocates overhead at a rate of 130% of direct labor costs.The following is data regarding three jobs: $\begin{array}{llll}&\text { Work in Process }\\&\text { balance }&\text { Costs added in February }\\&\text { On Februany } 1&\text { Direct Labor }&\text { Direct Materials }\\\hline\text { Job \#64 } & \$ 600 & \$ 500 & \$ 200 \\\text { Job \#65 } & \$ 700 & \$ 300 & \$ 300 \\\text { Job \#66 } & \$ 500 & \$ 100 & \$ 250\end{array}$ How much are total manufacturing overhead costs applied for February?

A)$3,510
B)$900
C)$1,440
D)$1,170

Question 80

A job-order costing system is most likely to be used by a

A)soft-drink bottler.
B)breakfast cereal manufacturer.
C)paint manufacturer.
D)caterer.