Question 1

The total costs on job cost sheets for jobs that are not yet completed equals the balance in the Finished Goods Inventory account.

Accepted Answer

A) True 
 B)False

Question 2

At the current year-end,Ruiz Company found that its overhead was underapplied by $2,500,and this amount was not considered material.Based on this information,Ruiz should:

Accepted Answer

A)  close the $2,500 to Cost of Goods Sold.
B)  close the $2,500 to Finished Goods Inventory.
C)  do nothing about the $2,500,since it is not material,and it is likely that overhead will be overapplied by the same amount next year.
D)  carry the $2,500 to the income statement as "Other Expense".
E)  carry the $2,500 to the next period.F) A) and E)
G) A) and D)

Question 3

CWN Company uses a job order costing system and last period incurred $80,000 of actual overhead and $100,000 of direct labor.CWN estimates that its overhead next period will be $75,000.It also expects to incur $100,000 of direct labor cost.If CWN bases applied overhead on direct labor cost,its predetermined overhead rate for the next period should be:

Accepted Answer

A)  75%.
B)  80%.
C)  107%.
D)  125%.
E)  133%.F) All of the above
G) A) and B)

Question 4

Merker Manufacturing Company has the following job cost sheets on file.They represent jobs that have been worked on during April of the current year.This table summarizes information provided on each sheet:
  (a)What is the cost of goods sold for the month of April?
(b)What is the cost of the Work in Process inventory on April 30?
(c)What is the cost of the finished goods inventory on April 30?

Accepted Answer

(a)Cost of goods sold for Apri...

Question 5

Andrew Industries purchased $165,000 of raw materials on account during the month of March.The beginning Raw Materials Inventory balance was $22,000,and the materials used to complete jobs during the month were $141,000 of direct materials and $13,000 of indirect materials.
-What amount will Andrew debit to Work in Process Inventory for the month of March?

Accepted Answer

A)  $165,000
B)  $154,000
C)  $13,000
D)  $141,000
E)  $33,000F) B) and E)
G) B) and D)

Question 6

Southwick Company uses a job order costing system.On November 1,$15,000 of direct materials and $3,500 of indirect materials were requisitioned for production.Prepare the general journal entries to record this requisition.

Accepted Answer

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

Question 7

In nearly all job order cost systems,materials ledger cards are perpetual records that are updated each time materials are purchased or issued for use in production.

Accepted Answer

A) True 
 B)False

Question 8

Portside Watercraft uses a job order costing system.During one month Portside purchased $173,000 of raw materials on credit; issued materials to production of $164,000,of which $24,000 were indirect.Portside incurred a factory payroll cost of $95,000,of which $25,000 was indirect labor.Portside uses a predetermined overhead rate of 170% of direct labor cost.
-The journal entry to record the issuance of materials to production is:

Accepted Answer

A)  Debit Raw Materials Inventory $153,000; credit Accounts Payable $153,000.
B)  Debit Work in Process Inventory $140,000; debit Factory Overhead $24,000; credit Raw Materials Inventory $164,000.
C)  Debit Raw Materials Inventory $195,000; credit Work in Process Inventory $195,000.
D)  Debit Work in Process Inventory $140,000; debit Raw Materials Inventory $24,000; credit Materials Inventory $164,000.
E)  Debit Finished Goods Inventory $140,000; credit Raw Materials Inventory $140,000.F) A) and C)
G) C) and D)

Question 9

The target cost for a job using job costing is calculated as:

Accepted Answer

A)  direct costs + desired profit.
B)  direct costs − desired profit.
C)  expected selling price − direct costs.
D)  expected selling price − desired profit.
E)  expected selling price + desired profit.F) A) and B)
G) D) and E)

Question 10

A source document that production managers use to request materials for production and that is used to assign materials costs to specific jobs or to overhead is a:

Accepted Answer

A)  Job cost sheet.
B)  Production order.
C)  Materials requisition.
D)  Materials purchase order.
E)  Receiving report.F) A) and B)
G) B) and D)

Question 11

Large aircraft manufacturers normally use:

Accepted Answer

A)  Job order costing.
B)  Process costing.
C)  Mixed costing.
D)  Full costing.
E)  Simple costing.F) C) and D)
G) B) and D)

Question 12

Match between columns
                        Premises: The rate established prior to the beginning of a period that relates estimated overhead to an activity base such as estimated direct labor and is used to assign overhead cost to a job.
The amount by which actual overhead incurred in a period exceeds the overhead applied to jobs with the predetermined overhead rate.
A source document that is used to report how much time an employee spent working on a job or on overhead activities and the labor costs to assign to jobs or overhead.
The amount by which the overhead applied to jobs in a period with the predetermined overhead rate exceeds the actual overhead incurred in a period.
A source document that production managers use to request materials needed for manufacturing and that is used to assign materials costs to specific jobs or to overhead.
An asset account where costs of completed jobs are kept until the jobs are delivered to customers.
An asset account where costs are accumulated while jobs are being produced.
The production of products in response to special orders; also called customized production.
A cost record maintained for each job in a job order costing system; it shows the costs of direct materials,direct labor,and overhead for each job.
A perpetual record that is updated each time units of raw material are purchased and issued for use in production.
Accumulates production costs and assigns them to products and services.

Accepted Answer

The Answer of Predetermined overhead rate and Job order production is...

Question 13

Morris Company applies overhead based on direct labor costs.For the current year,Morris Company estimated total overhead costs to be $400,000,and direct labor costs to be $2,000,000.Actual overhead costs for the year totaled $380,000,and actual direct labor costs totaled $1,800,000.
-At year-end,the balance in the Factory Overhead account is a:

Accepted Answer

A)  $380,000 Debit balance.
B)  $360,000 Debit balance.
C)  $20,000 Debit balance.
D)  $400,000 Credit balance.
E)  $20,000 Credit balance.F) A) and D)
G) A) and B)

Question 14

The total costs on job cost sheets for jobs that are completed but not yet sold equals the balance in the Work in Process Inventory account.

Accepted Answer

A) True 
 B)False

Question 15

Actual factory overhead incurred in a job costing system is debited to a Factory Overhead general ledger account and credited to various other accounts.

Accepted Answer

A) True 
 B)False

Question 16

The Factory Overhead account will have a credit balance at the end of a period if overhead applied during the period is greater than the overhead incurred.

Accepted Answer

A) True 
 B)False

Question 17

A company's predetermined overhead rate is applied at 150% of direct materials cost.How much overhead would be allocated to a job that used total direct materials costs was $40,000?

Accepted Answer

$40,000 ∗ ...

Question 18

Describe how materials flow through a job order costing system,and identify the key documents in the system.

Accepted Answer

When materials are received from supplie...

Question 19

Marina Corp.applied overhead to jobs during the period as follows: The application of overhead has resulted in a $5,600 credit balance in the Factory Overhead account.The entry to dispose of this remaining factory overhead balance is:

Accepted Answer

A)  Debit Cost of Goods Sold $5,600; credit Factory Overhead $5,600.
B)  Debit Factory Overhead $5,600; credit Cost of Goods Sold $5,600.
C)  Debit Factory Overhead $5,600; credit Work in Process Inventory $5,600.
D)  Debit Work in Process Inventory $5,600; credit Factory Overhead $5,600.
E)  No entry is needed.F) A) and D)
G) A) and C)

Question 20

Predetermined overhead rates are calculated before the start of the accounting period,and are therefore based on estimates.

Accepted Answer

A) True 
 B)False

Exam 15: Job Order Costing and Analysis

Marina Corp.applied overhead to jobs during the period as follows: The application of overhead has resulted in a $5,600 credit balance in the Factory Overhead account.The entry to dispose of this remaining factory overhead balance is:

Correct Answer
verified

A company's predetermined overhead rate is applied at 150% of direct materials cost.How much overhead would be allocated to a job that used total direct materials costs was $40,000?

Correct Answer
verified
$40,000 ∗ ...
View Answer

Correct Answer
verified
(a)Cost of goods sold for Apri...
View Answer

Southwick Company uses a job order costing system.On November 1,$15,000 of direct materials and $3,500 of indirect materials were requisitioned for production.Prepare the general journal entries to record this requisition.

Correct Answer
verified

The Factory Overhead account will have a credit balance at the end of a period if overhead applied during the period is greater than the overhead incurred.

Correct Answer
verified

The total costs on job cost sheets for jobs that are completed but not yet sold equals the balance in the Work in Process Inventory account.

Correct Answer
verified

Correct Answer
verified

Predetermined overhead rates are calculated before the start of the accounting period,and are therefore based on estimates.

Correct Answer
verified

The target cost for a job using job costing is calculated as:

Correct Answer
verified

Describe how materials flow through a job order costing system,and identify the key documents in the system.

Correct Answer
verified
When materials are received from supplie...
View Answer

Match the following terms to the appropriate definition.

Correct Answer
verified

At the current year-end,Ruiz Company found that its overhead was underapplied by $2,500,and this amount was not considered material.Based on this information,Ruiz should:

Correct Answer
verified

A source document that production managers use to request materials for production and that is used to assign materials costs to specific jobs or to overhead is a:

Correct Answer
verified

Correct Answer
verified

In nearly all job order cost systems,materials ledger cards are perpetual records that are updated each time materials are purchased or issued for use in production.

Correct Answer
verified

Correct Answer
verified

Large aircraft manufacturers normally use:

Correct Answer
verified

Actual factory overhead incurred in a job costing system is debited to a Factory Overhead general ledger account and credited to various other accounts.

Correct Answer
verified

The total costs on job cost sheets for jobs that are not yet completed equals the balance in the Finished Goods Inventory account.

Correct Answer
verified

Exam 15: Job Order Costing and Analysis

Marina Corp.applied overhead to jobs during the period as follows: The application of overhead has resulted in a $5,600 credit balance in the Factory Overhead account.The entry to dispose of this remaining factory overhead balance is:

Correct AnswerverifiedShow Answer

A company's predetermined overhead rate is applied at 150% of direct materials cost.How much overhead would be allocated to a job that used total direct materials costs was $40,000?

Correct Answerverified$40,000 ∗ ...View AnswerShow Answer

Correct Answerverified(a)Cost of goods sold for Apri...View AnswerShow Answer

Southwick Company uses a job order costing system.On November 1,$15,000 of direct materials and $3,500 of indirect materials were requisitioned for production.Prepare the general journal entries to record this requisition.

Correct AnswerverifiedShow Answer

The Factory Overhead account will have a credit balance at the end of a period if overhead applied during the period is greater than the overhead incurred.

Correct AnswerverifiedShow Answer

The total costs on job cost sheets for jobs that are completed but not yet sold equals the balance in the Work in Process Inventory account.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Predetermined overhead rates are calculated before the start of the accounting period,and are therefore based on estimates.

Correct AnswerverifiedShow Answer

The target cost for a job using job costing is calculated as:

Correct AnswerverifiedShow Answer

Describe how materials flow through a job order costing system,and identify the key documents in the system.

Correct AnswerverifiedWhen materials are received from supplie...View AnswerShow Answer

Match the following terms to the appropriate definition.

Correct AnswerverifiedShow Answer

At the current year-end,Ruiz Company found that its overhead was underapplied by $2,500,and this amount was not considered material.Based on this information,Ruiz should:

Correct AnswerverifiedShow Answer

A source document that production managers use to request materials for production and that is used to assign materials costs to specific jobs or to overhead is a:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In nearly all job order cost systems,materials ledger cards are perpetual records that are updated each time materials are purchased or issued for use in production.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Large aircraft manufacturers normally use:

Correct AnswerverifiedShow Answer

Actual factory overhead incurred in a job costing system is debited to a Factory Overhead general ledger account and credited to various other accounts.

Correct AnswerverifiedShow Answer

The total costs on job cost sheets for jobs that are not yet completed equals the balance in the Finished Goods Inventory account.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
$40,000 ∗ ...
View Answer

Correct Answer
verified
(a)Cost of goods sold for Apri...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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When materials are received from supplie...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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