Question 1

Superior Corp. applies manufacturing overhead to production at 75% of direct labor cost. During 20x5, manufacturing overhead of $150,000 was applied to production; actual manufacturing overhead was $156,000. Ending Work in Process Inventory was $22,000 and ending Finished Goods Inventory was $36,000. Work in Process Inventory increased by 10% during the year and Finished Goods Inventory increased by 20% during the year. Unadjusted Cost of Goods Sold was $575,000.
Complete the following schedule:

Accepted Answer

Use Unadjusted Cost of Goods S...

Question 2

Manufacturing overhead was estimated to be $200,000 for the year along with 20,000 direct labor hours. Actual manufacturing overhead was $215,000, and actual labor hours were 21,000. The amount of manufacturing overhead applied to production would be:

Accepted Answer

A)   $200,000.
B)   $215,000.
C)   $210,000.
D)   $225,750.E) None of the above
F) B) and D)

Question 3

Which of the following would be used to record the property taxes on a factory building?

Accepted Answer

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.Actual indirect manufacturing costs, including property taxes on a factory, are accumulated in the Manufacturing Overhead account on the debit side of the account.E) All of the above
F) B) and D)

Question 4

To eliminate underapplied overhead at the end of the year, Manufacturing Overhead would be debited and Cost of Goods Sold would be credited

Accepted Answer

A) True 
 B)False

Question 5

Curtis Inc. uses a job order costing system. Manufacturing overhead is applied on the basis of direct labor cost. Total manufacturing overhead was estimated to be $75,000 for the year; direct labor was estimated to total $150,000.  The following transactions have occurred during the year.  a. Calculate the predetermined overhead rate.
b. Calculate cost of goods manufactured.
c. Calculate the over- or underapplied overhead.
d. Calculate adjusted cost of goods sold.

Accepted Answer

The answer of Curtis Inc. uses a job order costing...

Question 6

Which of the following would be used to record the depreciation of manufacturing equipment?

Accepted Answer

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.Actual indirect manufacturing costs, including depreciation of manufacturing equipment, are accumulated in the Manufacturing Overhead account on the debit side of the account.E) A) and C)
F) A) and B)

Question 7

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. The amount debited to the Manufacturing Overhead account would be:

Accepted Answer

A)   $400,000.
B)   $415,000.
C)   $420,000.
D)   $435,750.E) A) and D)
F) B) and C)

Question 8

Manufacturing overhead was estimated to be $200,000 for the year along with 20,000 direct labor hours. Actual manufacturing overhead was $215,000, and actual labor hours were 21,000. The amount debited to the Manufacturing Overhead account would be:

Accepted Answer

A)   $200,000.
B)   $215,000.
C)   $210,000.
D)   $225,750.E) A) and C)
F) B) and D)

Question 9

Mendez Inc. had the following information for the preceding year:  Additional information for the year is as follows:  What was the beginning Work in Process Inventory balance on 1/1?

Accepted Answer

A)   $49,000
B)   $65,000
C)   $50,000
D)   $69,000E) A) and B)
F) A) and C)

Question 10

Nashville Inc. uses a job order costing system with manufacturing overhead applied to products at a rate of 200% of direct labor cost. Treating each case independently, find the missing amounts for a through l:

Accepted Answer

The answer of Nashville Inc. uses a job order costing...

Question 11

In a service firm, the cost associated with time that employees spend on training, paperwork, and supervision is considered part of manufacturing overhead

Accepted Answer

A) True 
 B)False

Question 12

When disposed of, overapplied manufacturing overhead will:

Accepted Answer

A)   increase Cost of Goods Sold.
B)   increase Finished Goods.
C)   decrease Cost of Goods Sold.
D)   decrease Finished Goods.E) C) and D)
F) B) and D)

Question 13

The cost of materials used on a specific job is first captured on which source document?

Accepted Answer

A)   Cost driver sheet
B)   Materials requisition form
C)   Labor time ticket
D)   Process cost sheetE) C) and D)
F) A) and D)

Question 14

Which of the following would be used to apply manufacturing overhead to production for the period?

Accepted Answer

A)   Credit to Raw Materials Inventory.
B)   Credit to Work in Process Inventory.
C)   Debit to Manufacturing Overhead.
D)   Credit to Manufacturing OverheaD.When manufacturing overhead is applied to production, Work in Process Inventory is debited and the Manufacturing Overhead account is crediteD.E) A) and C)
F) A) and D)

Question 15

When units are completed, the cost associated with the job is debited to which account?

Accepted Answer

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

Question 16

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. The amount credited to the Manufacturing Overhead account would be:

Accepted Answer

A)   $250,000.
B)   $225,000.
C)   $213,750.
D)   $237,500.E) None of the above
F) A) and D)

Question 17

Cadbury Company uses a job order costing system. Manufacturing overhead is applied on the basis of direct labor cost. Total manufacturing overhead was estimated to be $120,000 for the year; direct labor was estimated to total $150,000.  The following transactions have occurred during the year.  a. Calculate the predetermined overhead rate.
b. Calculate cost of goods manufactured.
c. Calculate the over- or underapplied overhead.
d. Calculate adjusted cost of goods sold.

Accepted Answer

The answer of Cadbury Company uses a job order costing...

Question 18

Christine Corp. applies manufacturing overhead to production at 80% of direct labor cost. During 20x5, manufacturing overhead of $200,000 was applied to production; actual manufacturing overhead was $189,000. Beginning Work in Process Inventory was $25,000, and beginning Finished Goods Inventory was $45,000. Work in Process Inventory decreased by 20% during the year and Finished Goods Inventory decreased by 10% during the year. Adjusted Cost of Goods Sold was $623,500 for 20x5.
Complete the following schedule:

Accepted Answer

Use Adjusted Cost of Goods Sol...

Question 19

Which of the following is incorrect regarding service firms?

Accepted Answer

A)   Each client or account is equivalent to a process in a process costing firm.
B)   The accounting system will track the time and resources spent serving a specific client or account.
C)   Managers of service firms need cost information to price their services, to budget and control costs, and to determine the profitability of different types of clients.
D)   The primary driver used to assign costs is billable hours.E) B) and D)
F) B) and C)

Question 20

When direct materials are used in production, which of the following accounts is debited?

Accepted Answer

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

Exam 2: Job-Order Costing

Which of the following would be used to apply manufacturing overhead to production for the period?

Correct Answer
verified

Nashville Inc. uses a job order costing system with manufacturing overhead applied to products at a rate of 200% of direct labor cost. Treating each case independently, find the missing amounts for a through l:

Correct Answer
verified

Manufacturing overhead was estimated to be $200,000 for the year along with 20,000 direct labor hours. Actual manufacturing overhead was $215,000, and actual labor hours were 21,000. The amount debited to the Manufacturing Overhead account would be:

Correct Answer
verified

To eliminate underapplied overhead at the end of the year, Manufacturing Overhead would be debited and Cost of Goods Sold would be credited

Correct Answer
verified

Correct Answer
verified

The cost of materials used on a specific job is first captured on which source document?

Correct Answer
verified

When disposed of, overapplied manufacturing overhead will:

Correct Answer
verified

Correct Answer
verified
Use Unadjusted Cost of Goods S...
View Answer

When units are completed, the cost associated with the job is debited to which account?

Correct Answer
verified

Which of the following would be used to record the property taxes on a factory building?

Correct Answer
verified

When direct materials are used in production, which of the following accounts is debited?

Correct Answer
verified

Correct Answer
verified

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. The amount debited to the Manufacturing Overhead account would be:

Correct Answer
verified

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. The amount credited to the Manufacturing Overhead account would be:

Correct Answer
verified

Manufacturing overhead was estimated to be $200,000 for the year along with 20,000 direct labor hours. Actual manufacturing overhead was $215,000, and actual labor hours were 21,000. The amount of manufacturing overhead applied to production would be:

Correct Answer
verified

Correct Answer
verified
Use Adjusted Cost of Goods Sol...
View Answer

Which of the following is incorrect regarding service firms?

Correct Answer
verified

In a service firm, the cost associated with time that employees spend on training, paperwork, and supervision is considered part of manufacturing overhead

Correct Answer
verified

Mendez Inc. had the following information for the preceding year: Additional information for the year is as follows: What was the beginning Work in Process Inventory balance on 1/1?

Correct Answer
verified

Which of the following would be used to record the depreciation of manufacturing equipment?

Correct Answer
verified

Exam 2: Job-Order Costing

Which of the following would be used to apply manufacturing overhead to production for the period?

Correct AnswerverifiedShow Answer

Nashville Inc. uses a job order costing system with manufacturing overhead applied to products at a rate of 200% of direct labor cost. Treating each case independently, find the missing amounts for a through l:

Correct AnswerverifiedShow Answer

Manufacturing overhead was estimated to be $200,000 for the year along with 20,000 direct labor hours. Actual manufacturing overhead was $215,000, and actual labor hours were 21,000. The amount debited to the Manufacturing Overhead account would be:

Correct AnswerverifiedShow Answer

To eliminate underapplied overhead at the end of the year, Manufacturing Overhead would be debited and Cost of Goods Sold would be credited

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The cost of materials used on a specific job is first captured on which source document?

Correct AnswerverifiedShow Answer

When disposed of, overapplied manufacturing overhead will:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedUse Unadjusted Cost of Goods S...View AnswerShow Answer

When units are completed, the cost associated with the job is debited to which account?

Correct AnswerverifiedShow Answer

Which of the following would be used to record the property taxes on a factory building?

Correct AnswerverifiedShow Answer

When direct materials are used in production, which of the following accounts is debited?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

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. The amount debited to the Manufacturing Overhead account would be:

Correct AnswerverifiedShow Answer

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. The amount credited to the Manufacturing Overhead account would be:

Correct AnswerverifiedShow Answer

Manufacturing overhead was estimated to be $200,000 for the year along with 20,000 direct labor hours. Actual manufacturing overhead was $215,000, and actual labor hours were 21,000. The amount of manufacturing overhead applied to production would be:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedUse Adjusted Cost of Goods Sol...View AnswerShow Answer

Which of the following is incorrect regarding service firms?

Correct AnswerverifiedShow Answer

In a service firm, the cost associated with time that employees spend on training, paperwork, and supervision is considered part of manufacturing overhead

Correct AnswerverifiedShow Answer

Mendez Inc. had the following information for the preceding year: Additional information for the year is as follows: What was the beginning Work in Process Inventory balance on 1/1?

Correct AnswerverifiedShow Answer

Which of the following would be used to record the depreciation of manufacturing equipment?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Use Unadjusted Cost of Goods S...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Use Adjusted Cost of Goods Sol...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified