Question 1

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) A) and B)
F) A) and C)

Question 2

If the underapplied factory overhead amount is immaterial, it is transferred to Cost of Goods Sold at the end of the fiscal year.

Accepted Answer

A) True 
 B)False

Question 3

The following budget data are available for Sharp Company:  If factory overhead is to be applied based on direct labor dollars, the predetermined overhead rate is

Accepted Answer

A)  199%
B)  196%
C)  $14.92
D)  $15.65E) A) and C)
F) None of the above

Question 4

Which of the following are the two main types of cost accounting systems for manufacturing operations?

Accepted Answer

A)  process cost and general accounting systems
B)  job order cost and process cost systems
C)  job order and general accounting systems
D)  process cost and replacement cost systemsE) A) and D)
F) A) and C)

Question 5

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 were 54,300. The actual factory overhead for the year was $1,375,000. Determine the over- or underapplied amount for the year.

Accepted Answer

A)  $17,500 overapplied
B)  $17,500 underapplied
C)  $118,250 overapplied
D)  $118,250 underappliedE) All of the above
F) None of the above

Question 6

Which of the following types of inventories does a manufacturing business report on the balance sheet?

Accepted Answer

A)  finished goods inventory and work in process inventory only
B)  direct materials inventory and work in process inventory only
C)  direct materials inventory, work in process inventory, and finished goods inventory
D)  direct materials inventory and finished goods inventory onlyE) A) and B)
F) B) and D)

Question 7

Match each of the following costs with the appropriate classification (a-e).​
-Salary of the director of internal auditing
A)Product cost - direct materials
B)Product cost - direct labor
C)Product cost - factory overhead
D)Period cost - selling expense
E)Period cost - administrative expense

Accepted Answer

The answer of Match each of the following costs with...

Question 8

For which of the following businesses would the process cost system be appropriate?

Accepted Answer

A)  custom cabinet maker
B)  landscaper
C)  paper mill
D)  catering firmE) B) and C)
F) A) and C)

Question 9

Match each of the following costs with the appropriate classification (a-e).​
-Cotton for a textile manufacturer of blue jeans
A)Product cost - direct materials
B)Product cost - direct labor
C)Product cost - factory overhead
D)Period cost - selling expense
E)Period cost - administrative expense

Accepted Answer

The answer of Match each of the following costs with...

Question 10

Journalizing the entry to record jobs shipped and customers billed would include a credit to

Accepted Answer

A)  Accounts Payable
B)  Cash
C)  Finished Goods
D)  Cost of Goods SoldE) A) and B)
F) B) and C)

Question 11

Match each of the following costs with the appropriate classification (a-e).​
-Insurance on factory building
A)Product cost - direct materials
B)Product cost - direct labor
C)Product cost - factory overhead
D)Period cost - selling expense
E)Period cost - administrative expense

Accepted Answer

The answer of Match each of the following costs with...

Question 12

Sanders Inc. has applied $567,988 of overhead to jobs. 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) None of the above
F) All of the above

Question 13

Journalizing the entry to record the indirect labor costs incurred for general factory use would include a debit to

Accepted Answer

A)  Factory Overhead
B)  Wages Payable
C)  Wages Expense
D)  Cost of Goods SoldE) All of the above
F) None of the above

Question 14

Nonmanufacturing costs are generally classified into two categories: selling and administrative.

Accepted Answer

A) True 
 B)False

Question 15

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 balance of Sales for Adams Company at the end of the first quarter?

Accepted Answer

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

Question 16

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) All of the above

Question 17

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 (indirect labor). In addition, factory overhead charged to production was $32,000. The journal entry to record the direct labor costs is

Accepted Answer

The answer of During the period, labor costs incurred on...

Question 18

Journalizing the entry to record the application of factory overhead costs to jobs would include a credit to

Accepted Answer

A)  Factory Overhead
B)  Wages Payable
C)  Work in Process
D)  Cost of Goods SoldE) None of the above
F) C) and D)

Question 19

Selected accounts with some amounts omitted are as follows:   If the balance of Work in Process on October 31 is $21,000, what was the amount of factory overhead applied in October?

Accepted Answer

A)  $63,300
B)  $21,300
C)  $42,300
D)  $11,300E) All of the above
F) A) and C)

Question 20

Cranston Company estimates the following overhead costs for the coming year:  Cranston is also budgeting $600,000 in direct labor costs and 15,000 machine hours for the coming year. 
a. Compute the predetermined overhead rate using direct labor costs as the allocation base.
b. Compute the predetermined overhead rate using machine hours as the allocation base.

Accepted Answer

a. $360,000 ÷ $600,000 = 60% o...

Exam 16: Job Order Costing

Match each of the following costs with the appropriate classification (a-e). -Cotton for a textile manufacturer of blue jeans A)Product cost - direct materials B)Product cost - direct labor C)Product cost - factory overhead D)Period cost - selling expense E)Period cost - administrative expense

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 (indirect labor). In addition, factory overhead charged to production was $32,000. The journal entry to record the direct labor costs is

Correct Answer
verified

Journalizing the entry to record the application of factory overhead costs to jobs would include a credit to

Correct Answer
verified

Which of the following types of inventories does a manufacturing business report on the balance sheet?

Correct Answer
verified

Match each of the following costs with the appropriate classification (a-e). -Salary of the director of internal auditing A)Product cost - direct materials B)Product cost - direct labor C)Product cost - factory overhead D)Period cost - selling expense E)Period cost - administrative expense

Correct Answer
verified

Journalizing the entry to record the indirect labor costs incurred for general factory use would include a debit to

Correct Answer
verified

Which of the following are the two main types of cost accounting systems for manufacturing operations?

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

Nonmanufacturing costs are generally classified into two categories: selling and administrative.

Correct Answer
verified

Which of the following is a period cost?

Correct Answer
verified

The following budget data are available for Sharp Company: If factory overhead is to be applied based on direct labor dollars, the predetermined overhead rate is

Correct Answer
verified

Correct Answer
verified
a. $360,000 ÷ $600,000 = 60% o...
View Answer

If the underapplied factory overhead amount is immaterial, it is transferred to Cost of Goods Sold at the end of the fiscal year.

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

Selected accounts with some amounts omitted are as follows: If the balance of Work in Process on October 31 is $21,000, what was the amount of factory overhead applied in October?

Correct Answer
verified

Journalizing the entry to record jobs shipped and customers billed would include a credit to

Correct Answer
verified

For which of the following businesses would the process cost system be appropriate?

Correct Answer
verified

Match each of the following costs with the appropriate classification (a-e). -Insurance on factory building A)Product cost - direct materials B)Product cost - direct labor C)Product cost - factory overhead D)Period cost - selling expense E)Period cost - administrative expense

Correct Answer
verified

Correct Answer
verified

Exam 16: Job Order Costing

Match each of the following costs with the appropriate classification (a-e).​ -Cotton for a textile manufacturer of blue jeans A)Product cost - direct materials B)Product cost - direct labor C)Product cost - factory overhead D)Period cost - selling expense E)Period cost - administrative expense

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 (indirect labor). In addition, factory overhead charged to production was $32,000. The journal entry to record the direct labor costs is

Correct AnswerverifiedShow Answer

Journalizing the entry to record the application of factory overhead costs to jobs would include a credit to

Correct AnswerverifiedShow Answer

Which of the following types of inventories does a manufacturing business report on the balance sheet?

Correct AnswerverifiedShow Answer

Match each of the following costs with the appropriate classification (a-e).​ -Salary of the director of internal auditing A)Product cost - direct materials B)Product cost - direct labor C)Product cost - factory overhead D)Period cost - selling expense E)Period cost - administrative expense

Correct AnswerverifiedShow Answer

Journalizing the entry to record the indirect labor costs incurred for general factory use would include a debit to

Correct AnswerverifiedShow Answer

Which of the following are the two main types of cost accounting systems for manufacturing operations?

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

Nonmanufacturing costs are generally classified into two categories: selling and administrative.

Correct AnswerverifiedShow Answer

Which of the following is a period cost?

Correct AnswerverifiedShow Answer

The following budget data are available for Sharp Company: If factory overhead is to be applied based on direct labor dollars, the predetermined overhead rate is

Correct AnswerverifiedShow Answer

Correct Answerverifieda. $360,000 ÷ $600,000 = 60% o...View AnswerShow Answer

If the underapplied factory overhead amount is immaterial, it is transferred to Cost of Goods Sold at the end of the fiscal year.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Selected accounts with some amounts omitted are as follows: If the balance of Work in Process on October 31 is $21,000, what was the amount of factory overhead applied in October?

Correct AnswerverifiedShow Answer

Journalizing the entry to record jobs shipped and customers billed would include a credit to

Correct AnswerverifiedShow Answer

For which of the following businesses would the process cost system be appropriate?

Correct AnswerverifiedShow Answer

Match each of the following costs with the appropriate classification (a-e).​ -Insurance on factory building A)Product cost - direct materials B)Product cost - direct labor C)Product cost - factory overhead D)Period cost - selling expense E)Period cost - administrative expense

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Match each of the following costs with the appropriate classification (a-e). -Cotton for a textile manufacturer of blue jeans A)Product cost - direct materials B)Product cost - direct labor C)Product cost - factory overhead D)Period cost - selling expense E)Period cost - administrative expense

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Match each of the following costs with the appropriate classification (a-e). -Salary of the director of internal auditing A)Product cost - direct materials B)Product cost - direct labor C)Product cost - factory overhead D)Period cost - selling expense E)Period cost - administrative expense

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a. $360,000 ÷ $600,000 = 60% o...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Match each of the following costs with the appropriate classification (a-e). -Insurance on factory building A)Product cost - direct materials B)Product cost - direct labor C)Product cost - factory overhead D)Period cost - selling expense E)Period cost - administrative expense

Correct Answer
verified

Correct Answer
verified