Question 1

Wood Sculptor Company had the following labor-related transactions at their plant last month:  What is the journal entry to record the incurrence of direct labor?

Accepted Answer

A)   
B)   
C)   
D)

Question 2

A(n) ________ is an estimated manufacturing overhead rate computed at the beginning of the year.

Accepted Answer

A)  cost allocation
B)  cost driver
C)  predetermined manufacturing overhead rate
D)  actual manufacturing overhead rate

Question 3

The entry to allocate manufacturing overhead costs to work-in-process requires a debit to Work-in Process account.

Accepted Answer

A) True 
 B)False

Question 4

Manufacturing overhead has an underallocated balance of $6,200; raw materials inventory balance is $50,000; work in process inventory is $30,000; finished goods inventory is $20,000; and cost of goods sold is $100,000. Which of these accounts would have an ending credit balance?

Accepted Answer

A)  Raw Materials Inventory account
B)  Finished Goods Inventory account
C)  Work-in-Process Inventory account
D)  None of the above

Question 5

Which of the following entries would be made to record the requisition of $12,000 of direct materials and $6900 of indirect materials?

Accepted Answer

A)   
B)   
C)   
D)

Question 6

Manufacturing overhead is overallocated if the amount

Accepted Answer

A)  estimated for the period is greater than the actual amount incurred.
B)  allocated during the period is greater than the actual amount incurred.
C)  amount estimated for the period is less than the actual amount incurred.
D)  allocated during the period is less than the actual amount incurred.

Question 7

Briefly explain the difference between job order and process costing and give examples of each.

Accepted Answer

In a job costing system, costs accumulat...

Question 8

An internal request to transfer raw materials requires personnel to complete a

Accepted Answer

A)  materials requisition document.
B)  bill of materials document.
C)  purchase order document.
D)  labor time record document.

Question 9

Under which of the following situations is Raw Materials Inventory account credited and Work-in-Process Inventory account debited?

Accepted Answer

A)  We ship goods to the customer.
B)  Material is transferred to the factory.
C)  We transfer goods to the storeroom.
D)  We purchase goods on account.

Question 10

A receiving report is typically a duplicate of the purchase order but without the prices and quantities pre-listed on the form.

Accepted Answer

A) True 
 B)False

Question 11

Job order costing might be used by a

Accepted Answer

A)  water bottling plant.
B)  balloon manufacturer.
C)  hospital.
D)  saltine cracker manufacturer.

Question 12

If manufacturing overhead has been underallocated during the period, and most of the jobs produced have been sold, then

Accepted Answer

A)  Cost of Goods Sold on the income statement should be increased.
B)  Cost of Goods Sold on the income statement should be decreased.
C)  finished goods inventory should be increased.
D)  work in process inventory should be decreased.

Question 13

The following is selected financial data from Turtle Bay Manufacturing for the most recent year.  What is the beginning raw materials inventory?

Accepted Answer

A)  $18,700
B)  $5600
C)  $26,800
D)  $51,900

Question 14

If manufacturing overhead has been overallocated during the period, then

Accepted Answer

A)  the jobs produced during the period have been undercosted.
B)  the jobs produced during the period have been overcosted.
C)  the jobs produced during the period have been costed correctly.
D)  none of the above.

Question 15

Which of these documents informs the storeroom to send specific materials to the factory floor?

Accepted Answer

A)  Receiving report
B)  Bill of materials
C)  Purchase order
D)  Materials requisition

Question 16

Job 450 requires $10,500 of direct materials, $7300 of direct labor, 630 direct labor hours, and 450 machine hours. Manufacturing overhead is computed at $24 per direct labor hour used and $13 per machine hour used. The total cost of Job 450 is

Accepted Answer

A)  $20,970.
B)  $38,770.
C)  $17,800.
D)  $32,920.

Question 17

Calico Corporation produced 2,000 units in Job 903. The following data is provided for Job 903 for the year:  What is the gross profit for Job 903 before adjustment for over- or underallocated overhead? (Round to two decimal places.)

Accepted Answer

A)  $3,359.50
B)  $7,000
C)  $4,000
D)  $4,659.25

Question 18

A typical manufacturing overhead cost would be

Accepted Answer

A)  direct labor.
B)  depreciation on the plant.
C)  net income.
D)  direct materials.

Question 19

Custom Engines Company has the following estimated costs for the upcoming year:  The company estimates that 2500 direct labor hours will be worked in the upcoming year, while 2000 machine hours will be used during the year. The predetermined manufacturing overhead rate per machine hour is closest to

Accepted Answer

A)  $25.
B)  $98.
C)  $14.
D)  $33.

Question 20

Job 222 started on June 1 and finished on July 15. Total cost on July 1 was $12,700, and the costs added in July were $188,800. The entry for the sale at a price of $310,500 would be:

Accepted Answer

A)   
B)   
C)   
D)

Exam 3: Job Costing

Custom Engines Company has the following estimated costs for the upcoming year: The company estimates that 2500 direct labor hours will be worked in the upcoming year, while 2000 machine hours will be used during the year. The predetermined manufacturing overhead rate per machine hour is closest to

Correct AnswerverifiedShow Answer

Job order costing might be used by a

Correct AnswerverifiedShow Answer

An internal request to transfer raw materials requires personnel to complete a

Correct AnswerverifiedShow Answer

A(n) ________ is an estimated manufacturing overhead rate computed at the beginning of the year.

Correct AnswerverifiedShow Answer

A typical manufacturing overhead cost would be

Correct AnswerverifiedShow Answer

Calico Corporation produced 2,000 units in Job 903. The following data is provided for Job 903 for the year: What is the gross profit for Job 903 before adjustment for over- or underallocated overhead? (Round to two decimal places.)

Correct AnswerverifiedShow Answer

The following is selected financial data from Turtle Bay Manufacturing for the most recent year. What is the beginning raw materials inventory?

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Job 450 requires $10,500 of direct materials, $7300 of direct labor, 630 direct labor hours, and 450 machine hours. Manufacturing overhead is computed at $24 per direct labor hour used and $13 per machine hour used. The total cost of Job 450 is

Correct AnswerverifiedShow Answer

Which of these documents informs the storeroom to send specific materials to the factory floor?

Correct AnswerverifiedShow Answer

Briefly explain the difference between job order and process costing and give examples of each.

Correct AnswerverifiedIn a job costing system, costs accumulat...View AnswerShow Answer

Job 222 started on June 1 and finished on July 15. Total cost on July 1 was $12,700, and the costs added in July were $188,800. The entry for the sale at a price of $310,500 would be:

Correct AnswerverifiedShow Answer

If manufacturing overhead has been overallocated during the period, then

Correct AnswerverifiedShow Answer

Under which of the following situations is Raw Materials Inventory account credited and Work-in-Process Inventory account debited?

Correct AnswerverifiedShow Answer

Manufacturing overhead is overallocated if the amount

Correct AnswerverifiedShow Answer

Which of the following entries would be made to record the requisition of $12,000 of direct materials and $6900 of indirect materials?

Correct AnswerverifiedShow Answer

Wood Sculptor Company had the following labor-related transactions at their plant last month: What is the journal entry to record the incurrence of direct labor?

Correct AnswerverifiedShow Answer

If manufacturing overhead has been underallocated during the period, and most of the jobs produced have been sold, then

Correct AnswerverifiedShow Answer

A receiving report is typically a duplicate of the purchase order but without the prices and quantities pre-listed on the form.

Correct AnswerverifiedShow Answer

The entry to allocate manufacturing overhead costs to work-in-process requires a debit to Work-in Process account.

Correct AnswerverifiedShow Answer

Manufacturing overhead has an underallocated balance of $6,200; raw materials inventory balance is $50,000; work in process inventory is $30,000; finished goods inventory is $20,000; and cost of goods sold is $100,000. Which of these accounts would have an ending credit balance?

Correct AnswerverifiedShow Answer

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In a job costing system, costs accumulat...
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