Question 1

During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 for general factory use. Factory overhead applied to production was $23,000. The entry to record the factory overhead applied to production is

Accepted Answer

A)   Work in Process Factory Overhead 25,00025,000
B)   Factory Overhead Work in Process 23,00023,000
C)   Work in Process Factory Overhead 23,00023,000
D)   Factory Overhead Accounts Payable 25,00025,000E) B) and C)
F) C) and D)

Question 2

A summary of the time tickets for August follows:  Present the journal entries to record a) the labor cost incurred and b) the application of factory overhead to production for August. The factory overhead rate is 70% of direct labor cost.

Accepted Answer

a) Work in Process 39,200
Fact...

Question 3

The basis for recording direct and indirect labor costs incurred is a summary of the period's

Accepted Answer

A)   job order cost sheets
B)   time tickets
C)   employees' earnings records
D)   clock cardsE) B) and D)
F) B) and C)

Question 4

Costs that are incurred in generating revenues during the period, but are not involved in the manufacturing process are referred to as

Accepted Answer

A)   period costs
B)   conversion costs
C)   factory overhead costs
D)   product costsE) None of the above
F) B) and C)

Question 5

Match each of the following phrases with the term a-g)  that it most closely describes.
-typically used by companies that make custom products

Accepted Answer

A)  job order cost system
B)  process cost system
C)  activity-based costing
D)  under applied overhead
E)  over applied overheadF) finished goods ledgerG) materials ledgerH) B) and D)
I) B) and F)

Question 6

Perpetual inventory controlling accounts and subsidiary ledgers are maintained for materials, work in process, and finished goods in job order costing systems.

Accepted Answer

A) True 
 B)False

Question 7

Match each of the following phrases with the term a-g)  that it most closely describes.
-the stock ledger

Accepted Answer

A)  job order cost system
B)  process cost system
C)  activity-based costing
D)  under applied overhead
E)  over applied overheadF) finished goods ledgerG) materials ledgerH) A) and C)
I) B) and D)

Question 8

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 30,000. Actual manufacturing overhead costs incurred were $377,200, and actual direct labor hours were 36,000. What is the predetermined overhead rate per direct labor hour?

Accepted Answer

A)   $12.00
B)   $10.00
C)   $12.57
D)   $10.48E) A) and B)
F) All of the above

Question 9

At the end of July, the first month of the current fiscal year, the factory overhead account had a debit balance. Which of the following describes the nature of this balance and how it would be reported on the interim balance sheet?

Accepted Answer

A)   Over applied, deferred credit
B)   Under applied, deferred debit
C)   Under applied, deferred credit
D)   Over applied, deferred debitE) C) and D)
F) A) and D)

Question 10

Factory overhead is applied to production using a predetermined overhead rate.

Accepted Answer

A) True 
 B)False

Question 11

Job order cost accounting systems may be used to evaluate a company's efficiency.

Accepted Answer

A) True 
 B)False

Question 12

The Winston Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 50,000 hours. The total machine hours for the year was 54,300. The actual factory overhead for the year was $1,348,800.
a) Determine the total factory overhead amount applied.
b) Calculate the over- or under applied amount for the year.
c) Prepare the journal entry to close Factory Overhead into Cost of Goods Sold.

Accepted Answer

a) $1,250,000/50,000 = $25
54,...

Question 13

Selected accounts with a credit amount omitted are as follows  ​  ​ What was the balance of Work in Process as of April 30?

Accepted Answer

A)   $8,100
B)   $35,000
C)   $29,900
D)   $22,900E) All of the above
F) C) and D)

Question 14

All of the following are true regarding product costs except

Accepted Answer

A)   product costs are found on the balance sheet until they are sold
B)   product costs consist of direct labor, direct materials, and factory overhead
C)   product costs can be found in three accounts on the balance sheet
D)   product costs include sales and administrative expensesE) All of the above
F) A) and B)

Question 15

Match the costs that follow to the type of product cost a-c)  or designate as not a product cost d) .
-factory depreciation

Accepted Answer

A)  direct labor
B)  direct materials
C)  factory overhead
D)  not a product costE) A) and B)
F) A) and C)

Question 16

The Cavy Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 40,000 hours. The machine hours for the month of April for all of the jobs was 4,780. If the actual factory overhead totaled $141,800, determine the over- or under applied amount for the month.

Accepted Answer

A)   $7,575 under applied
B)   $35,220 under applied
C)   $7,575 over applied
D)   $35,220 over appliedE) None of the above
F) A) and B)

Question 17

Adams Company is a manufacturing company that has worked on several production jobs during the first quarter of the year. Below is a list of all the jobs for the quarter:  Jobs 356, 357, 358, and 359 were completed. Jobs 356 and 357 were sold at a profit of $500 on each job.
-What is the gross profit for Adams Company at the end of the first quarter?

Accepted Answer

A)   $1,685
B)   $2,685
C)   $1,000
D)   $685E) A) and B)
F) None of the above

Question 18

Selected accounts with amounts omitted are as follows  If the balance of Work in Process at August 31 is $220,000, what was the amount debited to Work in Process for direct materials in August?

Accepted Answer

A)   $390,000
B)   $170,000
C)   $525,000
D)   $580,000E) B) and D)
F) B) and C)

Question 19

Which of the following is a period cost?

Accepted Answer

A)   depreciation on factory lunchroom furniture
B)   salary of telephone receptionist in the sales office
C)   salary of a security guard for the factory parking lot
D)   computer chips used by a computer manufacturerE) B) and C)
F) None of the above

Question 20

Technics Inc., a manufacturing company, utilizes job order costing. Each division establishes its own estimates regarding overhead, which are as follows:  Required:
If Division A allocates overhead on the basis of machine hours, and Division B allocates overhead as a percentage of direct labor costs, what would the predetermined overhead rate be for each division?

Accepted Answer

$128,000/16,000 = $8...

Exam 17: Job Order Costing

Correct Answer
verified
a) $1,250,000/50,000 = $25
54,...
View Answer

During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 for general factory use. Factory overhead applied to production was $23,000. The entry to record the factory overhead applied to production is

Correct Answer
verified

Job order cost accounting systems may be used to evaluate a company's efficiency.

Correct Answer
verified

Correct Answer
verified

The basis for recording direct and indirect labor costs incurred is a summary of the period's

Correct Answer
verified

A summary of the time tickets for August follows: Present the journal entries to record a) the labor cost incurred and b) the application of factory overhead to production for August. The factory overhead rate is 70% of direct labor cost.

Correct Answer
verified
a) Work in Process 39,200
Fact...
View Answer

Match each of the following phrases with the term a-g) that it most closely describes. -the stock ledger

Correct Answer
verified

Match each of the following phrases with the term a-g) that it most closely describes. -typically used by companies that make custom products

Correct Answer
verified

Correct Answer
verified

Costs that are incurred in generating revenues during the period, but are not involved in the manufacturing process are referred to as

Correct Answer
verified

Factory overhead is applied to production using a predetermined overhead rate.

Correct Answer
verified

Selected accounts with a credit amount omitted are as follows What was the balance of Work in Process as of April 30?

Correct Answer
verified

Correct Answer
verified
$128,000/16,000 = $8...
View Answer

All of the following are true regarding product costs except

Correct Answer
verified

At the end of July, the first month of the current fiscal year, the factory overhead account had a debit balance. Which of the following describes the nature of this balance and how it would be reported on the interim balance sheet?

Correct Answer
verified

Match the costs that follow to the type of product cost a-c) or designate as not a product cost d) . -factory depreciation

Correct Answer
verified

Correct Answer
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Which of the following is a period cost?

Correct Answer
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Perpetual inventory controlling accounts and subsidiary ledgers are maintained for materials, work in process, and finished goods in job order costing systems.

Correct Answer
verified

Selected accounts with amounts omitted are as follows If the balance of Work in Process at August 31 is $220,000, what was the amount debited to Work in Process for direct materials in August?

Correct Answer
verified

Exam 17: Job Order Costing

Correct Answerverifieda) $1,250,000/50,000 = $2554,...View AnswerShow Answer

During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 for general factory use. Factory overhead applied to production was $23,000. The entry to record the factory overhead applied to production is

Correct AnswerverifiedShow Answer

Job order cost accounting systems may be used to evaluate a company's efficiency.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The basis for recording direct and indirect labor costs incurred is a summary of the period's

Correct AnswerverifiedShow Answer

A summary of the time tickets for August follows: Present the journal entries to record a) the labor cost incurred and b) the application of factory overhead to production for August. The factory overhead rate is 70% of direct labor cost.

Correct Answerverifieda) Work in Process 39,200Fact...View AnswerShow Answer

Match each of the following phrases with the term a-g) that it most closely describes. -the stock ledger

Correct AnswerverifiedShow Answer

Match each of the following phrases with the term a-g) that it most closely describes. -typically used by companies that make custom products

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Costs that are incurred in generating revenues during the period, but are not involved in the manufacturing process are referred to as

Correct AnswerverifiedShow Answer

Factory overhead is applied to production using a predetermined overhead rate.

Correct AnswerverifiedShow Answer

Selected accounts with a credit amount omitted are as follows ​ ​ What was the balance of Work in Process as of April 30?

Correct AnswerverifiedShow Answer

Correct Answerverified$128,000/16,000 = $8...View AnswerShow Answer

All of the following are true regarding product costs except

Correct AnswerverifiedShow Answer

At the end of July, the first month of the current fiscal year, the factory overhead account had a debit balance. Which of the following describes the nature of this balance and how it would be reported on the interim balance sheet?

Correct AnswerverifiedShow Answer

Match the costs that follow to the type of product cost a-c) or designate as not a product cost d) . -factory depreciation

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following is a period cost?

Correct AnswerverifiedShow Answer

Perpetual inventory controlling accounts and subsidiary ledgers are maintained for materials, work in process, and finished goods in job order costing systems.

Correct AnswerverifiedShow Answer

Selected accounts with amounts omitted are as follows If the balance of Work in Process at August 31 is $220,000, what was the amount debited to Work in Process for direct materials in August?

Correct AnswerverifiedShow Answer

Correct Answer
verified
a) $1,250,000/50,000 = $25
54,...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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a) Work in Process 39,200
Fact...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Selected accounts with a credit amount omitted are as follows What was the balance of Work in Process as of April 30?

Correct Answer
verified

Correct Answer
verified
$128,000/16,000 = $8...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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