Question 1

On the balance sheet for a manufacturing business, the cost of direct materials, direct labor, and factory overhead, which have entered into the manufacturing process but are associated with products that have not been finished, is reported as direct materials inventory.

Accepted Answer

A) True 
 B)False

Question 2

The details concerning the costs incurred on each job order are accumulated in a work in process account and supported by a

Accepted Answer

A)   stock ledger
B)   materials ledger
C)   cost ledger
D)   creditors ledgerE) B) and C)
F) A) and B)

Question 3

The balance of Material Q on May 1 and the receipts and issuances during May are as follows:  Determine the cost of each of the issuances under a perpetual system, using the FIFO method.

Accepted Answer

May 17 issue: 8 × $3...

Question 4

Job order cost accounting systems may be used for planning and controlling a service business.

Accepted Answer

A) True 
 B)False

Question 5

The recording of the jobs completed would include a debit to

Accepted Answer

A)   Factory Overhead
B)   Finished Goods
C)   Work in Process
D)   Cost of Goods SoldE) C) and D)
F) A) and B)

Question 6

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 factory overhead costs incurred were $377,200, and actual direct labor hours were 36,000. What is the amount of over applied or under applied manufacturing overhead at the end of the year?

Accepted Answer

A)   $6,000 over applied
B)   $6,000 under applied
C)   $54,800 over applied
D)   $54,800 under appliedE) A) and B)
F) All of the above

Question 7

The debit to factory overhead for the cost of indirect materials is obtained from the summary of the materials requisitions.

Accepted Answer

A) True 
 B)False

Question 8

Reynolds Manufacturers Inc. has estimated total factory overhead costs of $95,000 and expected direct labor hours of 9,500 for the current fiscal year. If job number 117 incurred 2,300 direct labor hours, Work in Process will be debited and Factory Overhead will be credited for

Accepted Answer

A)   $21,850
B)   $2,300
C)   $95,000
D)   $23,000E) A) and C)
F) A) and B)

Question 9

A process cost accounting system is best used by manufacturers of like units of product that are not distinguishable from each other during a continuous production process.

Accepted Answer

A) True 
 B)False

Question 10

A process cost accounting system provides product costs for each of the departments or processes within the factory.

Accepted Answer

A) True 
 B)False

Question 11

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 ending balance of Work in Process for Adams Company at the end of the first quarter?

Accepted Answer

A)   $0
B)   $456
C)   $3,208
D)   $2,752E) B) and D)
F) A) and B)

Question 12

Job cost sheets can provide information to managers for all except

Accepted Answer

A)   the cost impact of materials changes
B)   the cost impact of continuous improvement in the manufacturing process
C)   the cost impact of materials price or direct labor rate changes over time
D)   utilities, managerial salaries, and depreciation of computers in the corporate officeE) A) and D)
F) A) and C)

Question 13

The Thomlin Company forecasts that total overhead for the current year will be $15,000,000 with 300,000 total machine hours. Year to date, the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours. If the Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time year to date) , the overhead is

Accepted Answer

A)   $1,000,000 over applied
B)   $1,000,000 under applied
C)   $500,000 over applied
D)   $500,000 under appliedE) All of the above
F) A) and D)

Question 14

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) A) and C)
F) None of the above

Question 15

Which 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) C) and D)
F) B) and C)

Question 16

Selected accounts with some amounts omitted are as follows  If the balance of Work in Process at 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) B) and C)
F) C) and D)

Question 17

The recording of 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) A) and B)
F) B) and C)

Question 18

Match each of the following phrases with the term a-g)  that it most closely describes.
-a subsidiary ledger that maintains a separate account for each type of material

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) None of the above
I) B) and F)

Question 19

Aspen Technologies has the following budget data:   Estimated direct labor hours 15,000 Estimated direct labor dollars $90,000 Estimated factory overhead costs $198,000\begin{array}{lr}	ext { Estimated direct labor hours } & 15,000 \	ext { Estimated direct labor dollars } & \$ 90,000 \	ext { Estimated factory overhead costs } & \$ 198,000\end{array} Estimated direct labor hours  Estimated direct labor dollars  Estimated factory overhead costs ​15,000$90,000$198,000​  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)   $16.50 E) B) and C)
F) A) and C)

Question 20

The controlling account for the cost ledger is

Accepted Answer

A)   Finished Goods
B)   Materials
C)   Work in Process
D)   Cost of Goods SoldE) A) and D)
F) B) and C)

Exam 17: Job Order Costing

The balance of Material Q on May 1 and the receipts and issuances during May are as follows: Determine the cost of each of the issuances under a perpetual system, using the FIFO method.

Correct Answer
verified
May 17 issue: 8 × $3...
View Answer

The debit to factory overhead for the cost of indirect materials is obtained from the summary of the materials requisitions.

Correct Answer
verified

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

Correct Answer
verified

Match each of the following phrases with the term a-g) that it most closely describes. -a subsidiary ledger that maintains a separate account for each type of material

Correct Answer
verified

The recording of the jobs completed would include a debit to

Correct Answer
verified

Reynolds Manufacturers Inc. has estimated total factory overhead costs of $95,000 and expected direct labor hours of 9,500 for the current fiscal year. If job number 117 incurred 2,300 direct labor hours, Work in Process will be debited and Factory Overhead will be credited for

Correct Answer
verified

Correct Answer
verified

The controlling account for the cost ledger is

Correct Answer
verified

A process cost accounting system provides product costs for each of the departments or processes within the factory.

Correct Answer
verified

Job order cost accounting systems may be used for planning and controlling a service business.

Correct Answer
verified

The recording of the application of factory overhead costs to jobs would include a credit to

Correct Answer
verified

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

Correct Answer
verified

A process cost accounting system is best used by manufacturers of like units of product that are not distinguishable from each other during a continuous production process.

Correct Answer
verified

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

Correct Answer
verified

Job cost sheets can provide information to managers for all except

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

On the balance sheet for a manufacturing business, the cost of direct materials, direct labor, and factory overhead, which have entered into the manufacturing process but are associated with products that have not been finished, is reported as direct materials inventory.

Correct Answer
verified

The details concerning the costs incurred on each job order are accumulated in a work in process account and supported by a

Correct Answer
verified

Correct Answer
verified

Exam 17: Job Order Costing

The balance of Material Q on May 1 and the receipts and issuances during May are as follows: Determine the cost of each of the issuances under a perpetual system, using the FIFO method.

Correct AnswerverifiedMay 17 issue: 8 × $3...View AnswerShow Answer

The debit to factory overhead for the cost of indirect materials is obtained from the summary of the materials requisitions.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Match each of the following phrases with the term a-g) that it most closely describes. -a subsidiary ledger that maintains a separate account for each type of material

Correct AnswerverifiedShow Answer

The recording of the jobs completed would include a debit to

Correct AnswerverifiedShow Answer

Reynolds Manufacturers Inc. has estimated total factory overhead costs of $95,000 and expected direct labor hours of 9,500 for the current fiscal year. If job number 117 incurred 2,300 direct labor hours, Work in Process will be debited and Factory Overhead will be credited for

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The controlling account for the cost ledger is

Correct AnswerverifiedShow Answer

A process cost accounting system provides product costs for each of the departments or processes within the factory.

Correct AnswerverifiedShow Answer

Job order cost accounting systems may be used for planning and controlling a service business.

Correct AnswerverifiedShow Answer

The recording of the application of factory overhead costs to jobs would include a credit to

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A process cost accounting system is best used by manufacturers of like units of product that are not distinguishable from each other during a continuous production process.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Job cost sheets can provide information to managers for all except

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

On the balance sheet for a manufacturing business, the cost of direct materials, direct labor, and factory overhead, which have entered into the manufacturing process but are associated with products that have not been finished, is reported as direct materials inventory.

Correct AnswerverifiedShow Answer

The details concerning the costs incurred on each job order are accumulated in a work in process account and supported by a

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified
May 17 issue: 8 × $3...
View Answer

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