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Exam 3: Job Costing

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Question 41

Multiple Choice

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The journal entry to issue $630 of direct materials and $150 of indirect materials involves a debit to

A) the Manufacturing Overhead account for $780.
B) the Work-in-Process Inventory account for $780.
C) the Work-in-Process Inventory account for $630 and a credit to the Manufacturing Overhead account for $150.
D) the Work-in-Process Inventory account for $630 and a debit to the Manufacturing Overhead account for $150.

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Question 42

Multiple Choice

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Quick Step Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead. The following information is available for the most recent year: If Quick Step Company uses direct labor cost as the allocation base, what would the predetermined manufacturing overhead rate be?

A) 70%
B) 75%
C) 91%
D) 85%

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Question 43

Multiple Choice

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The goal of EPR (Extended Producer Responsibility) laws is to:

To record the costs of indirect labor, which of the following accounts would be debited?

London Ceramics makes custom ceramic tiles. During March, the company started and finished Job #266. Job #266 consists of 2800 tiles; each tile sells for $13.00. The company's records show the following direct materials were requisitioned for Job #266. Basic terra cotta tiles: 2800 units at $9.00 per unit Specialty paint: 7 quarts at $12.00 per quart High gloss glaze: 14 quarts at $16.00 per quart Labor time records show the following employees worked on Job #266: Alice Cooper: 24 hours at $31 per hour Matthew Kline: 24 hours at $17 per hour Sierra Ceramics allocates manufacturing overhead at a rate of $30 per direct labor hour. What is the gross profit per tile on Job #266?

The cost of direct labor used in production is recorded as a

Here is some basic data for Honey Dukes Corporation: The entry to record the cost of goods completed would be a

The assignment of direct and indirect materials to a cost object reduces the

To record direct labor costs incurred, which of the following accounts would be debited?

Beta Company uses a predetermined overhead rate based on direct labor hours to allocate manufacturing overhead to jobs. The company estimated that it would incur $600,400 of manufacturing overhead during the year and that 150,100 direct labor hours would be worked. During the year, the company actually incurred manufacturing overhead costs of $582,200 and 135,400 direct labor hours were worked. By how much was manufacturing overhead overallocated or underallocated for the year? (Round intermediary calculations to the nearest cent and the final answer to the nearest dollar.)

Before the year began, Venus Manufacturing estimated that manufacturing overhead for the year would be $175,900 and that 25,900 direct labor hours would be worked. Actual results for the year included the following: If the company allocates manufacturing overhead based on direct labor hours, the manufacturing overhead for the year would have been (Round intermediary calculations to the nearest cent.)

When job costing is used at a service firm, the bill to the client shows

Service firms follow the same approach for indirect costs as manufacturing companies because they develop a predetermined indirect cost allocation rate.

The job cost record summarizes which of the following sets of information for each job?

To record depreciation on factory equipment, the needed journal entry would include a

A ________ is a document manufacturing production personnel use to request that the itemized materials be sent from the showroom into the factory.

Stars and Stripes Corporation uses job costing. The following is selected financial data from the company for the most recent year. Compute: a)Beginning raw materials inventory b)Beginning work in process inventory c)Beginning finished goods inventory d)Actual manufacturing overhead costs incurred during the year

The predetermined indirect cost allocation rate is computed as

Process costing would be most likely used by a

The following account balances at the beginning of January were selected from the general ledger of Fresh Bagel Manufacturing Company: Additional data: 1) Actual manufacturing overhead for January amounted to $66,100. 2) Total direct labor cost for January was $64,000. 3) The predetermined manufacturing overhead rate is based on direct labor cost. The budget for the year called for $248,000 of direct labor cost and $322,400 of manufacturing overhead costs. 4) The only job unfinished on January 31 was Job No. 151, for which total direct labor charges were $5600 (1600 direct labor hours) and total direct material charges were $14,400. 5) Cost of direct materials placed in production during January totaled $124,000. There were no indirect material requisitions during January. 6) January 31 balance in raw materials inventory was $35,400. 7) Finished goods inventory balance on January 31 was $35,200. What is the work in process inventory balance on January 31?