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Jackson Company had the following information for the year: Jackson Company had the following information for the year: Jackson Company used a predetermined overhead rate using estimated overhead of $320,000 and 8,000 estimated direct labor hours. Assume the only inventory balance is an ending Finished Goods balance of $19,000. How much overhead was applied during the year? A) $245,000 B) $343,000 C) $360,000 D) $320,000 Jackson Company used a predetermined overhead rate using estimated overhead of $320,000 and 8,000 estimated direct labor hours. Assume the only inventory balance is an ending Finished Goods balance of $19,000. How much overhead was applied during the year?


A) $245,000
B) $343,000
C) $360,000
D) $320,000

E) None of the above
F) C) and D)

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C

A job cost sheet will record the direct materials and direct labor used by the job but not the manufacturing overhead applied

A) True
B) False

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McGown Corp. has the following information: McGown Corp. has the following information: Additional information for the year is as follows: Compute the unadjusted cost of goods sold. A) $133,000 B) $242,000 C) $252,000 D) $255,000 Additional information for the year is as follows: McGown Corp. has the following information: Additional information for the year is as follows: Compute the unadjusted cost of goods sold. A) $133,000 B) $242,000 C) $252,000 D) $255,000 Compute the unadjusted cost of goods sold.


A) $133,000
B) $242,000
C) $252,000
D) $255,000

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

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In recording the purchase of materials that are not traced to any specific job, which of the following is correct?


A) Raw Materials Inventory would be debited.
B) Work in Process Inventory would be debited.
C) Manufacturing Overhead would be debited.
D) Manufacturing Overhead would be crediteD.
When indirect materials are purchased, the cost is recorded with a debit to raw materials inventory regardless of whether the materials are considered direct or indirect.

E) A) and B)
F) All of the above

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Which of the following types of firms would most likely use job order costing?


A) Happy-Oh Cereal Company
B) Huey, Lewey & Dewie, Attorneys
C) SoooSweet Beverage
D) C-5 Cement Company

E) None of the above
F) A) and B)

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Sawyer Company had the following information for the year: Sawyer Company had the following information for the year: Sawyer Company used a predetermined overhead rate using estimated overhead of $320,000 and 8,000 estimated direct labor hours. Assume the only inventory balance is an ending Finished Goods Inventory balance of $9,000. What was adjusted cost of goods sold? A) $715,000 B) $708,000 C) $706,000 D) $699,000 Sawyer Company used a predetermined overhead rate using estimated overhead of $320,000 and 8,000 estimated direct labor hours. Assume the only inventory balance is an ending Finished Goods Inventory balance of $9,000. What was adjusted cost of goods sold?


A) $715,000
B) $708,000
C) $706,000
D) $699,000

E) A) and D)
F) A) and C)

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Manufacturing overhead was estimated to be $500,000 for the year along with 20,000 direct labor hours. Actual manufacturing overhead was $450,000, and actual direct labor hours were 19,000. The amount of manufacturing overhead applied to production would be:


A) $500,000.
B) $450,000.
C) $427,500.
D) $475,000.

E) All of the above
F) C) and D)

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The Cost of Goods Manufactured Report includes all of the following except:


A) direct materials used.
B) direct labor.
C) actual manufacturing overhead.
D) applied manufacturing overheaD.
The Cost of Goods Manufactured report includes applied (not actual) manufacturing overheaD.

E) All of the above
F) B) and D)

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Manufacturing overhead was estimated to be $250,000 for the year along with 20,000 direct labor hours. Actual manufacturing overhead was $225,000, and actual direct labor hours were 19,000. Which of the following would be correct?


A) Overhead is underapplied by $25,000.
B) Overhead is underapplied by $12,500.
C) Overhead is overapplied by $12,500.
D) Overhead is overapplied by $25,000.

E) A) and D)
F) A) and B)

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Shellenback Inc. has provided the following information for 20x5: a. Purchased raw materials on account for $200,000. b. Issued $185,000 in raw materials to production ($12,000 were not traceable to specific jobs). c. Incurred $155,000 in direct labor costs (14,750 hours), $52,500 in supervision costs (paid in cash). d. Incurred the following additional manufacturing overhead costs: factory lease $22,000 (paid in cash); depreciation on equipment $26,000; factory utilities $13,500 (paid in cash). e. Incurred the following nonmanufacturing costs, both paid in cash: advertising $55,000; sales commissions $58,000. f. Applied manufacturing overhead to jobs in process at a rate of $9 per direct labor hour. g. Completed jobs costing a total of $457,000. h. Sold jobs for $735,000 on account. The cost of the jobs was $441,000. i. Closed the manufacturing overhead account balance. Prepare the journal entries to record these transactions.

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Which of the following would be used to record the labor cost that is traceable to a specific job?


A) Raw Materials Inventory would be debited.
B) Work in Process Inventory would be debited.
C) Manufacturing Overhead would be debited.
D) Manufacturing Overhead would be crediteD.
As direct labor costs are incurred, they are recorded with a debit to Work in Process Inventory.

E) None of the above
F) A) and B)

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Manufacturing overhead was estimated to be $250,000 for the year along with 20,000 direct labor hours. Actual manufacturing overhead was $225,000, and actual direct labor hours were 19,000. To dispose of the balance in the Manufacturing Overhead account, which of the following would be correct?


A) Cost of Goods Sold would be credited for $25,000.
B) Cost of Goods Sold would be credited for $12,500.
C) Cost of Goods Sold would be debited for $12,500.
D) Cost of Goods Sold would be debited for $25,000.

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

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B

Overhead costs are underapplied if the amount applied to Work in Process is:


A) greater than estimated overhead.
B) less than estimated overhead.
C) greater than actual overhead incurred.
D) less than actual overhead incurreD.
Overhead cost is underapplied if the amount applied is less than the actual overhead cost.

E) None of the above
F) B) and C)

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A materials requisition form is used to authorize the purchase of direct materials

A) True
B) False

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Manufacturing overhead was estimated to be $400,000 for the year along with 20,000 direct labor hours. Actual manufacturing overhead was $415,000, actual labor hours were 21,000. The predetermined manufacturing overhead rate per direct labor hour would be:


A) $20.00.
B) $0.05.
C) $20.75.
D) $19.05.

E) B) and D)
F) C) and D)

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The current manufacturing costs include ______ direct labor, ______ direct materials, and _______ manufacturing overhead.


A) actual; actual; applied
B) actual; actual; actual
C) estimated; actual; applied
D) estimated; estimated; applied

E) None of the above
F) B) and C)

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The source document that captures how much time a worker has spent on various jobs during the period is a:


A) cost driver sheet.
B) materials requisition form.
C) labor time ticket.
D) job cost sheet.

E) All of the above
F) None of the above

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When direct materials are used in production (as noted by a materials requisition form) , which of the following accounts is credited?


A) Raw Materials Inventory
B) Work in Process Inventory
C) Finished Goods Inventory
D) Cost of Goods Sold

E) A) and D)
F) B) and D)

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A

Manufacturing overhead was estimated to be $400,000 for the year along with 20,000 direct labor hours. Actual manufacturing overhead was $415,000, and actual labor hours were 21,000. To dispose of the balance in the Manufacturing Overhead account, which of the following would be correct?


A) Cost of Goods Sold would be credited for $15,000.
B) Cost of Goods Sold would be credited for $5,000.
C) Cost of Goods Sold would be debited for $5,000.
D) Cost of Goods Sold would be debited for $15,000.

E) All of the above
F) C) and D)

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When units are sold, the cost associated with the units is credited to which account?


A) Raw Materials Inventory
B) Work in Process Inventory
C) Finished Goods Inventory
D) Cost of Goods Sold

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

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