ACCT 211 Ch.1-3

Which of the following would usually be found on a job cost sheet under a normal cost system? Actual direct material cost Actual manufacturing overhead cost A) Yes Yes B) Yes No C) No Yes D) No No

Choice B

In the Schedule of Cost of Goods Manufactured and Cost of Goods Sold, the cost of goods manufactured is computed according to which of the following equations? Multiple Choice Cost of goods manufactured = Total manufacturing costs + Ending work in process inventory - Beginning work in process inventory Cost of goods manufactured = Total manufacturing costs + Beginning work in process inventory - Ending work in process inventory Cost of goods manufactured = Total manufacturing costs + Beginning finished goods inventory - Ending finished goods inventory Cost of goods manufactured = Total manufacturing costs + Ending finished goods inventory - Beginning finished goods inventory

Cost of goods manufactured = Total manufacturing costs + Beginning work in process inventory - Ending work in process inventory

Ruddick Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Cost of goods manufactured $ 1,486,000 Cost of goods sold (unadjusted) $ 1,337,000 The journal entry to record the transfer of completed goods from Work in Process to Finished Goods is:

Finished Goods 1,486,000 Work in Process 1,486,000

In a job-order costing system, indirect labor cost is usually recorded as a debit to: Multiple Choice Manufacturing Overhead. Finished Goods. Work in Process. Cost of Goods Sold.

Manufacturing Overhead.

Refer to the T-account below: Manufacturing Overhead (2) 9,000 (12) 167,000 (3) 15,000 (4) 80,000 (5) 30,000 (6) 25,000 159,000 167,000 Bal. 8,000 The ending balance of $8,000 represents which of the following? Underapplied overhead. Manufacturing overhead that will be carried over to the next period. Overapplied overhead. A bookkeeping error.

Overapplied overhead.

In a job-order costing system that is based on machine-hours, which of the following formulas is correct? Multiple Choice Predetermined overhead rate = Actual manufacturing overhead ÷ Actual machine-hours Predetermined overhead rate = Actual manufacturing overhead ÷ Estimated machine-hours Predetermined overhead rate = Estimated manufacturing overhead ÷ Estimated machine-hours Predetermined overhead rate = Estimated manufacturing overhead ÷ Actual machine-hours

Predetermined overhead rate = Estimated manufacturing overhead ÷ Estimated machine-hours

In the Schedule of Cost of Goods Manufactured and Cost of Goods Sold, the "Total raw materials available" is computed by adding together the "Beginning raw materials inventory" and: Multiple Choice Ending raw materials inventory Raw materials used in production Purchases of raw materials Indirect materials included in manufacturing overhead

Purchases of raw materials

Contribution margin is: Multiple Choice Sales less cost of goods sold. Sales less variable production, variable selling, and variable administrative expenses. Sales less variable production expense. Sales less all variable and fixed expenses.

Sales less variable production, variable selling, and variable administrative expenses.

Firebaugh Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Raw materials purchased on account $ 520,000 Raw materials (all direct) requisitioned for use in production $ 467,000 What is the journal entry to record raw materials used in production?

Work In Process 467,000 Raw Materials 467,000

Farrel Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Direct labor cost $ 574,000 Manufacturing overhead: Indirect labor cost $ 163,000 Other manufacturing overhead costs incurred $ 584,000 What is the journal entry to record the direct and indirect labor costs incurred during the year?

Work in Process 574,000 Manufacturing Overhead 163,000 Wages Payable 737,000

In a job-order costing system, manufacturing overhead applied is recorded as a debit to: Multiple Choice Raw Materials inventory. Finished Goods inventory. Work in Process inventory. Cost of Goods Sold.

Work in Process inventory.

The salary paid to the president of a company would be classified on the income statement as a(n): Multiple Choice administrative expense. direct labor cost. manufacturing overhead cost. selling expense.

administrative expense

Manufacturing overhead includes: Multiple Choice all direct material, direct labor and administrative costs. all manufacturing costs except direct labor. all manufacturing costs except direct labor and direct materials. all selling and administrative costs.

all manufacturing costs except direct labor and direct materials.

Direct costs: Multiple Choice are incurred to benefit a particular accounting period. are incurred due to a specific decision. can be easily traced to a particular cost object. are the variable costs of producing a product.

can be easily traced to a particular cost object.

Fixed costs expressed on a per unit basis: Multiple Choice increase with increases in activity. decrease with increases in activity. are not affected by activity. should be ignored in making decisions since they cannot change.

decrease with increases in activity.

The term that refers to costs incurred in the past that are not relevant to a decision is: Multiple Choice marginal cost. indirect cost. period cost. sunk cost.

sunk cost.