quiz 2 chapter 16

ased on the trends you can observe in the data, which of the following is likely true?

Production processes are becoming more efficient.

in a job order cost accounting system, the journal entry to record the flow of direct labor costs into production consists of a

debit to work in process and a credit to wages payable

Journalizing the entry to record jobs shipped and customers billed would include a debit to

finished goods

The controlling account for the job cost sheets is

work in process

when a job is completed in a service organization, the job costs are transferred to the

cost of services account

in a job order cost accounting system, the journal entry to record the flow of direct materials into production consists of a

debit to Work in Process and a credit to Materials

The journal entry to record the transfer of 1,600 units of Part No. 1177, with a value of $2.50 each, to work in process is

debit work in process 4000 credit materials 4000

Which of the following types of inventories does a manufacturing business report on the balance sheet?

direct materials inventory, work in process inventory, and finished goods inventory

Each document in the cost ledger is called a

job cost sheet

For which of the following businesses would the job order cost system be appropriate?

lumber mill

The source document for the data for debiting Work in Process for direct materials is a

materials requisition

Period costs are

not involved in the production process

Costs that are incurred in generating revenues during the period, but are not involved in the manufacturing process are referred to as

period costs

All of the following are examples of activity bases except

salaries of supervisors

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 30,000. Actual manufacturing overhead costs incurred were $377,200, and actual direct labor hours were 36,000. What is the predetermined overhead rate per direct labor hour?

$12

ob 356 $ 450 Job 357 1,235 Job 358 378 Job 359 689 Job 360 456 Jobs 356, 357, 358, and 359 were completed. Jobs 356 and 357 were sold at a profit of $500 on each job.

1000

Sanders Inc. has applied $567,988 of overhead to jobs. Actual overhead at the end of the year is $575,000. The adjustment for over- or underapplied overhead is

7,012 underapplied, increase Cost of Goods Sold

During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 for general factory use. Factory overhead applied to production was $32,000. The journal entry to record the actual factory overhead costs incurred is

Accounts Payable 25,000 Factory Overhead 25,000

a manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 30,000. Actual manufacturing overhead costs incurred were $377,200, and actual direct labor hours were 36,000. The journal entry to apply the factory overhead costs for the year would include a

credit to factory overhead for 360000

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 30,000. Actual factory overhead costs incurred were $377,200, and actual direct labor hours were 36,000. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year?

$54,800 overapplied ($12 x 36000)- 377200