Question 1

The direct labor and overhead costs of providing services to clients are accumulated in

Accepted Answer

A)   finished services expense
B)   work in process
C)   administrative salaries expense
D)   overheadE) A) and D)
F) C) and D)

Question 2

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                     25,000     Factory Overhead                                     25,000
B)   Factory Overhead                   23,000     Work in Process                                       23,000
C)   Work in Process                     23,000     Factory Overhead                                     23,000
D)   Factory Overhead                   25,000     Accounts Payable                                     25,000E) None of the above
F) A) and D)

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Aspen Technologies has the following budget data:  If factory overhead is to be applied based on direct labor hours, the predetermined overhead rate is

Accepted Answer

A)   $7.50
B)   $13.20
C)   $2.20
D)   $16.50E) A) and D)
F) B) and C)

Question 5

Define and discuss the two main types of cost accounting systems for manufacturing operations. What are their similarities and differences?

Accepted Answer

The two main types of cost accounting sy...

Question 6

Job cost sheets can provide information to managers on unit cost trends, the cost impact of continuous improvement in the manufacturing process, the cost impact of materials changes, and the cost impact of direct materials price or direct labor rate changes over time.

Accepted Answer

A) True 
 B)False

Question 7

The materials requisition is used to

Accepted Answer

A)   release materials from the storeroom to the factory
B)   release finished goods to the shipping department
C)   record the acquisition of materials from a vendor
D)   record and electronically transmit materials data in place of a receiving reportE) A) and B)
F) C) and D)

Question 8

Cavy Company estimates that total factory overhead costs will be $660,000 for the year. Direct labor hours are estimated to be 100,000. 
Determine:
(a) the predetermined factory overhead rate
(b) the amount of factory overhead applied to Job 345 if the amount of direct labor hours is 560 and Job 777 if the amount of direct labor hours is 800
(c) prepare the journal entry to apply factory overhead for April according to the predetermined overhead rate

Accepted Answer

(a) $660,000 / 100,000 = $6.60...

Question 9

During August, the receipts and distributions of Material No. B4G9 are as follows:  
(a) Determine the cost of each of the three issues under a perpetual system, using the first-in, first-out method. 
(b) Present the journal entry to record the issuance of the materials for the month, assuming that the cost of issuances is determined by the first-in, first-out method.

Accepted Answer

The answer of During August, the receipts and distributions of...

Question 10

Selected accounts with some amounts omitted are as follows   If the balance of Work in Process on August 31 is $220,000, what was the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs?

Accepted Answer

A)   $135,000
B)   $10,000
C)   $120,000
D)   $70,000E) B) and C)
F) A) and D)

Question 11

Sanders Inc. has applied $567,988 of overhead to jobs in the cost ledger.  Actual overhead at the end of the year is $575,000.  The adjustment for over- or underapplied overhead is

Accepted Answer

A)   $7,012 overapplied, increase Cost of Goods Sold
B)   $7,012 underapplied, increase Cost of Goods Sold
C)   $7,012 overapplied, decrease Cost of Goods Sold
D)   $7,012 underapplied, decrease Cost of Goods SoldE) A) and B)
F) B) and C)

Question 12

If factory overhead applied exceeds the actual costs, overhead is said to be underapplied.

Accepted Answer

A) True 
 B)False

Question 13

A summary of the materials requisitions completed during a period serves as the basis for transferring the cost of the materials from the controlling account in the general ledger to the controlling accounts for

Accepted Answer

A)   work in Process and Cost of Goods Sold
B)   work in Process and Factory Overhead
C)   finished Goods and Cost of Goods Sold
D)   work in Process and Finished GoodsE) All of the above
F) None of the above

Question 14

Materials purchased on account during the month totaled $190,000. Materials requisitioned and placed in production totaled $165,000. The journal entry to record the material purchase on account is

Accepted Answer

A)   Materials                                165,000      Accounts Payable                                   165,000
B)   Materials                                190,000      Accounts Payable                                   190,000
C)   Materials                                190,000      Cash                                                       190,000
D)   Accounts Payable                   190,000      Materials                                                190,000E) A) and D)
F) B) and C)

Question 15

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 were 4,780. If the actual factory overhead totaled $141,800, determine the over- or underapplied amount for the month.

Accepted Answer

$1,250,000 / 40,000 = $31.25
...

Question 16

On November 14, the Milling Department accepted Job 111407A for 1,000 pounds of cereal mix.  
Overhead is applied at $5.75 per pound completed. The recipe produced 1,025 pounds of cereal mix. 
(a) Record the journal entry to transfer raw materials to Job 111407A. 
(b) Record the journal entry for direct labor incurred for Job 111407A. 
(c) Record the journal entry to apply manufacturing overhead to Job 111407A. 
(d) Record the journal entry to transfer Job 111407A to Finished Goods on November 14.

Accepted Answer

The answer of On November 14, the Milling Department accepted...

Question 17

Which of the following is not a characteristic of a job order costing system?

Accepted Answer

A)   It accumulates cost for each department within the factory.
B)   It provides a separate record for the cost of each quantity of product that passes through the factory.
C)   It is best suited for industries that manufacture custom goods.
D)   It uses only one work in process account.E) A) and C)
F) All of the above

Question 18

Which of the following represents the factory overhead applied to a product?

Accepted Answer

A)   predetermined factory overhead rate times estimated activity base
B)   actual factory overhead rate times estimated activity base
C)   predetermined factory overhead rate times actual activity base
D)   actual factory overhead rate times actual activity baseE) B) and C)
F) None of the above

Exam 2: Job Order Costing

Which of the following represents the factory overhead applied to a product?

Correct Answer
verified

Correct Answer
verified
(a) $660,000 / 100,000 = $6.60...
View Answer

If factory overhead applied exceeds the actual costs, overhead is said to be underapplied.

Correct Answer
verified

Correct Answer
verified
$1,250,000 / 40,000 = $31.25
...
View Answer

Define and discuss the two main types of cost accounting systems for manufacturing operations. What are their similarities and differences?

Correct Answer
verified
The two main types of cost accounting sy...
View Answer

Aspen Technologies has the following budget data: If factory overhead is to be applied based on direct labor hours, the predetermined overhead rate is

Correct Answer
verified

The direct labor and overhead costs of providing services to clients are accumulated in

Correct Answer
verified

A summary of the materials requisitions completed during a period serves as the basis for transferring the cost of the materials from the controlling account in the general ledger to the controlling accounts for

Correct Answer
verified

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

Correct Answer
verified

Selected accounts with some amounts omitted are as follows If the balance of Work in Process on August 31 is $220,000, what was the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs?

Correct Answer
verified

Correct Answer
verified

Sanders Inc. has applied $567,988 of overhead to jobs in the cost ledger. Actual overhead at the end of the year is $575,000. The adjustment for over- or underapplied overhead is

Correct Answer
verified

Which of the following is not a characteristic of a job order costing system?

Correct Answer
verified

The materials requisition is used to

Correct Answer
verified

Correct Answer
verified

Job cost sheets can provide information to managers on unit cost trends, the cost impact of continuous improvement in the manufacturing process, the cost impact of materials changes, and the cost impact of direct materials price or direct labor rate changes over time.

Correct Answer
verified

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

Materials purchased on account during the month totaled $190,000. Materials requisitioned and placed in production totaled $165,000. The journal entry to record the material purchase on account is

Correct Answer
verified

Exam 2: Job Order Costing

Which of the following represents the factory overhead applied to a product?

Correct AnswerverifiedShow Answer

Correct Answerverified(a) $660,000 / 100,000 = $6.60...View AnswerShow Answer

If factory overhead applied exceeds the actual costs, overhead is said to be underapplied.

Correct AnswerverifiedShow Answer

Correct Answerverified$1,250,000 / 40,000 = $31.25 ...View AnswerShow Answer

Define and discuss the two main types of cost accounting systems for manufacturing operations. What are their similarities and differences?

Correct AnswerverifiedThe two main types of cost accounting sy...View AnswerShow Answer

Aspen Technologies has the following budget data: If factory overhead is to be applied based on direct labor hours, the predetermined overhead rate is

Correct AnswerverifiedShow Answer

The direct labor and overhead costs of providing services to clients are accumulated in

Correct AnswerverifiedShow Answer

A summary of the materials requisitions completed during a period serves as the basis for transferring the cost of the materials from the controlling account in the general ledger to the controlling accounts for

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Selected accounts with some amounts omitted are as follows If the balance of Work in Process on August 31 is $220,000, what was the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Sanders Inc. has applied $567,988 of overhead to jobs in the cost ledger. Actual overhead at the end of the year is $575,000. The adjustment for over- or underapplied overhead is

Correct AnswerverifiedShow Answer

Which of the following is not a characteristic of a job order costing system?

Correct AnswerverifiedShow Answer

The materials requisition is used to

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Job cost sheets can provide information to managers on unit cost trends, the cost impact of continuous improvement in the manufacturing process, the cost impact of materials changes, and the cost impact of direct materials price or direct labor rate changes over time.

Correct AnswerverifiedShow 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

Materials purchased on account during the month totaled $190,000. Materials requisitioned and placed in production totaled $165,000. The journal entry to record the material purchase on account is

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
(a) $660,000 / 100,000 = $6.60...
View Answer

Correct Answer
verified

Correct Answer
verified
$1,250,000 / 40,000 = $31.25
...
View Answer

Correct Answer
verified
The two main types of cost accounting sy...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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