Question 1

Morion Hat Manufacturing made the following charge purchases on February 4 of the current year.Felt $5,687;Ribbon $1,234;Straw $6,723;Dye (for the straw)$39;Thread $47;Various plastic fruits,flowers,etc.$179;and Glue $28.Assume that all items purchased were requisitioned for production during the year.Complete one journal entry for all purchases and one summary journal entry dated February 20 for the requisitioning of those materials into production.
Also,explain the internal controls applied to safeguard raw materials.

Accepted Answer

Note: Only the dye,glue,and thread are c...

Question 2

The entry to record the application of overhead to jobs consists of

Accepted Answer

A)   a debit to Manufacturing Overhead Applied and a credit to Manufacturing Overhead.
B)   a debit to Manufacturing Overhead and a credit to Manufacturing Overhead Applied.
C)   a debit to Work in Process Inventory and a credit to Manufacturing Overhead Applied.
D)   a debit to Manufacturing Overhead Applied and a credit to Work in Process Inventory.E) A) and B)
F) C) and D)

Question 3

The manufacturing overhead recorded in the Work in Process Inventory account is often the same as the actual overhead incurred.

Accepted Answer

A) True 
 B)False

Question 4

When perpetual inventories are maintained in a job order cost system,as each job is completed its cost is transferred from Work in Process Inventory to Finished Goods Inventory.

Accepted Answer

A) True 
 B)False

Question 5

Wilson Enterprises applies overhead based on direct labor cost.The company estimates that their overhead for the year will be $240,000,and direct labor cost to be $300,000.Actual direct labor cost for Martinez Manufacturing was $280,000.The journal entry to record manufacturing overhead would include a:

Accepted Answer

A)   Debit to Work in Process Inventory for $240,000.
B)   Credit to Manufacturing Overhead Applied for $350,000.
C)   Credit to Work in Process Inventory for $224,000.
D)   Credit to Manufacturing Overhead Applied for $224,000.E) A) and C)
F) A) and B)

Question 6

In a perpetual inventory system,each inventory account is supported by a(n)____________________ ledger.

Accepted Answer

The answer of In a perpetual inventory system,each inventory account...

Question 7

A job order cost sheet summarizes

Accepted Answer

A)   the direct labor,direct materials used,and actual overhead costs incurred on a specific job.
B)   the direct labor,direct materials used,and applied overhead association with a specific job.
C)   the estimated costs that will be required to complete a specific job.
D)   the direct labor and direct materials used only.E) A) and B)
F) None of the above

Question 8

The ______ is a record of all manufacturing costs charged to a specific job.

Accepted Answer

A)   Cost of Goods Sold
B)   Standard Costs Card
C)   Work in Process Inventory
D)   Job Order Cost SheetE) A) and B)
F) A) and C)

Question 9

There may not be a raw materials inventory account when a just-in-time inventory system is used.

Accepted Answer

A) True 
 B)False

Question 10

List the four manufacturing operations and define each.For the second operation,Production,summarize the flow of costs through a job order cost accounting system.

Accepted Answer

The four manufacturing operations are:
P...

Question 11

A raw material subsidiary ledger

Accepted Answer

A)   contains a raw materials card for each item of direct materials only.
B)   contains a raw materials card for each item of indirect materials only.
C)   contains a raw materials card for each item of direct materials and indirect materials.
D)   contains a raw material card for each supplier of raw materials.E) All of the above
F) None of the above

Question 12

The overhead application rate for the current year is 1.5 times direct labor cost.($367,500/$245,000)
2.

Accepted Answer

The answer of The overhead application rate for the current...

Question 13

Job Z2 requires $1,200 of material,$100 of which is indirect material.If manufacturing overhead is applied at a rate of 150 % of direct labor cost and labor hours charged to Job Z2 were 200 hours at $12 an hour,the total cost of Job Z2 would be:

Accepted Answer

A)   $3,600.
B)   $4,800.
C)   $7,200.
D)   $7,100.E) None of the above
F) B) and D)

Question 14

When perpetual inventories are maintained in a job order cost system,the balance of the Work in Process Inventory account represents

Accepted Answer

A)   the actual costs incurred for labor,materials,and overhead on all jobs that were started but are not yet complete.
B)   the actual costs for the labor and materials used in uncompleted jobs and estimate of the overhead associated with these jobs.
C)   only the actual costs for the labor and materials used in uncompleted jobs.
D)   only the actual costs for the labor and materials used in completed jobs.E) A) and B)
F) A) and C)

Question 15

Job order cost sheets constitute a subsidiary ledger that supports

Accepted Answer

A)   the Work in Process Inventory account.
B)   the Finished Goods Inventory account.
C)   the Raw Materials Inventory account.
D)   the Cost of Goods Manufactured account.E) A) and C)
F) A) and D)

Question 16

Perpetual inventory records are maintained through the use of subsidiary ledger cards or their automated equivalents.

Accepted Answer

A) True 
 B)False

Question 17

Idle time is generally charged to manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 18

The following are benefits of a standard cost system except:

Accepted Answer

A)   consistently costed products.
B)   assists in identification of manufacturing inefficiencies.
C)   will result in reducing accounting workload.
D)   can be used as a basis for setting selling prices.E) A) and D)
F) All of the above

Question 19

Actual labor and manufacturing overhead costs for Smith Manufacturing were $65,000 and $123,500 respectively.The estimated costs for the year were $75,000 labor and $150,000.The over (under) applied overhead for the year was:

Accepted Answer

A)   $6,500 underapplied.
B)   $6,500 overapplied.
C)   $26,500 underapplied.
D)   $26,500 overapplied.E) A) and B)
F) A) and C)

Question 20

If the manufacturing overhead was overapplied,then the

Accepted Answer

A)   the manufacturing overhead account had more debits than credits.
B)   the manufacturing overhead account had more credits than debits.
C)   the actual overhead expenses were more than the amount going to Work in Process.
D)   the debits to Work in Process were more than the credits to Work in Process.E) None of the above
F) A) and B)

Exam 27: Job Order Cost Accounting

When perpetual inventories are maintained in a job order cost system,as each job is completed its cost is transferred from Work in Process Inventory to Finished Goods Inventory.

Correct Answer
verified

A job order cost sheet summarizes

Correct Answer
verified

A raw material subsidiary ledger

Correct Answer
verified

The manufacturing overhead recorded in the Work in Process Inventory account is often the same as the actual overhead incurred.

Correct Answer
verified

Perpetual inventory records are maintained through the use of subsidiary ledger cards or their automated equivalents.

Correct Answer
verified

The following are benefits of a standard cost system except:

Correct Answer
verified

Job order cost sheets constitute a subsidiary ledger that supports

Correct Answer
verified

The ______ is a record of all manufacturing costs charged to a specific job.

Correct Answer
verified

When perpetual inventories are maintained in a job order cost system,the balance of the Work in Process Inventory account represents

Correct Answer
verified

There may not be a raw materials inventory account when a just-in-time inventory system is used.

Correct Answer
verified

Job Z2 requires $1,200 of material,$100 of which is indirect material.If manufacturing overhead is applied at a rate of 150 % of direct labor cost and labor hours charged to Job Z2 were 200 hours at $12 an hour,the total cost of Job Z2 would be:

Correct Answer
verified

Idle time is generally charged to manufacturing overhead.

Correct Answer
verified

In a perpetual inventory system,each inventory account is supported by a(n)____________________ ledger.

Correct Answer
verified

Actual labor and manufacturing overhead costs for Smith Manufacturing were $65,000 and $123,500 respectively.The estimated costs for the year were $75,000 labor and $150,000.The over (under) applied overhead for the year was:

Correct Answer
verified

If the manufacturing overhead was overapplied,then the

Correct Answer
verified

The overhead application rate for the current year is 1.5 times direct labor cost.($367,500/$245,000) 2.

Correct Answer
verified

List the four manufacturing operations and define each.For the second operation,Production,summarize the flow of costs through a job order cost accounting system.

Correct Answer
verified
The four manufacturing operations are:
P...
View Answer

Correct Answer
verified

Correct Answer
verified
Note: Only the dye,glue,and thread are c...
View Answer

The entry to record the application of overhead to jobs consists of

Correct Answer
verified

Exam 27: Job Order Cost Accounting

When perpetual inventories are maintained in a job order cost system,as each job is completed its cost is transferred from Work in Process Inventory to Finished Goods Inventory.

Correct AnswerverifiedShow Answer

A job order cost sheet summarizes

Correct AnswerverifiedShow Answer

A raw material subsidiary ledger

Correct AnswerverifiedShow Answer

The manufacturing overhead recorded in the Work in Process Inventory account is often the same as the actual overhead incurred.

Correct AnswerverifiedShow Answer

Perpetual inventory records are maintained through the use of subsidiary ledger cards or their automated equivalents.

Correct AnswerverifiedShow Answer

The following are benefits of a standard cost system except:

Correct AnswerverifiedShow Answer

Job order cost sheets constitute a subsidiary ledger that supports

Correct AnswerverifiedShow Answer

The ______ is a record of all manufacturing costs charged to a specific job.

Correct AnswerverifiedShow Answer

When perpetual inventories are maintained in a job order cost system,the balance of the Work in Process Inventory account represents

Correct AnswerverifiedShow Answer

There may not be a raw materials inventory account when a just-in-time inventory system is used.

Correct AnswerverifiedShow Answer

Job Z2 requires $1,200 of material,$100 of which is indirect material.If manufacturing overhead is applied at a rate of 150 % of direct labor cost and labor hours charged to Job Z2 were 200 hours at $12 an hour,the total cost of Job Z2 would be:

Correct AnswerverifiedShow Answer

Idle time is generally charged to manufacturing overhead.

Correct AnswerverifiedShow Answer

In a perpetual inventory system,each inventory account is supported by a(n)____________________ ledger.

Correct AnswerverifiedShow Answer

Actual labor and manufacturing overhead costs for Smith Manufacturing were $65,000 and $123,500 respectively.The estimated costs for the year were $75,000 labor and $150,000.The over (under) applied overhead for the year was:

Correct AnswerverifiedShow Answer

If the manufacturing overhead was overapplied,then the

Correct AnswerverifiedShow Answer

The overhead application rate for the current year is 1.5 times direct labor cost.($367,500/$245,000) 2.

Correct AnswerverifiedShow Answer

List the four manufacturing operations and define each.For the second operation,Production,summarize the flow of costs through a job order cost accounting system.

Correct AnswerverifiedThe four manufacturing operations are:P...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedNote: Only the dye,glue,and thread are c...View AnswerShow Answer

The entry to record the application of overhead to jobs consists of

Correct AnswerverifiedShow Answer

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verified
The four manufacturing operations are:
P...
View Answer

Correct Answer
verified

Correct Answer
verified
Note: Only the dye,glue,and thread are c...
View Answer

Correct Answer
verified