ACCT42 Mid-Term Study Guide Chapter 15

Process costing is not used when A. jobs have distinguishing characteristics B. similar goods are being produced C. a series of connected manufacturing processes is necessary D. large volumes are produced

A, jobs have distinguishing characteristics

Cost of raw materials is debited to Raw Materials Inventory when the A. materials are received B. materials are put into production C. bill for the materials is paid D. materials are ordered

A, materials are received

a time ticket does not indicate the A. number of personal exemptions claimed by the employee B. account to be charged C. employees name D. job number

A, number of personal exemptions claimed by the employee

Kimble Company applies overhead on the basis of machine-hours. Given the following data compute overhead applied and the under- or- over-application of overhead for the period: Estimated annual overhead cost. 1,600,000 Actual annual overhead cost 1,575,000 Estimated machine hours 400,000 Actual machine hours. 390,000 A. 1,560,000 applied and 15,000 under-applied B. 1,575,000 applied and neither under-nor- over-applied C. 1,560,000 applied and 15,000 over-applied D. 1,600,000 applied and 15,000 over-applied

A. 1,560,000 applied and 15,000 under-applied

process costing is used when A. the production process is continuous B. production is aimed at filling a specific customer order C. dissimilar products are involved D. costs are to be assigned to specific jobs

A. the production process is continuous

The two basic types of cost accounting systems are A. job order and batch systems B. a job order and process cost systems C.job order and job accumulation systems

B, job order and process cost systems

Which of the following is not viewed as part of assigning manufacturing costs in a job oder cost system A. Raw materials are used B. Manufacturing overhead is incurred C. Manufacturing overhead is applied D. completed goods are recognized

B. Manufacturing overhead is incurred

If annual overhead costs are expected to be $750,000 and direct labor costs are expected to be $1,000,000 then if the activity base is direct labor costs: A. a predominate overhead rate cannot be determined B. for every dollar of direct labor, 75 cents of manufacturing overhead will be assigned C. for every dollar of manufacturing overhead 75 cents of direct labor will be assigned D. $1.33 is the predominate overhead rate

B. for every dollar of direct labor, 75 cents of manufacturing overhead will be assigned

Manufacturing overhead is applied to each job A. only if the overhead costs can be directly traced to that job B. at the time when the overhead cost is incurred C. by means of a predetermined overhead rate D. at the end of the year when actual costs are known

C, by means of a predetermine overhead rate

Simpson company applies overhead on the basis of 200% of direct labor cost. Job No.305 is charged with $180,000 of direct materials cost and $200,000 of manufacturing overhead. The total manufacturing cost for Job No. 305 is: A. 380,000 B. 560,000 C. 580,000 D. 480,000

D, 480,000

Sportly, Inc. completed Job No. B14 during 2017. The job cost sheet listed the following: Direct materials $110,000 Direct labor $60,000 Manufacturing overhead applied $40,000 Units produced 3,000 units Units sold 1,800 units How much is the cost of the finished goods on hand from this job? A. 210,000 B. 126,000 C. 102,000 D. 84,000

D, 84,000

Barger company had the following information at December 31: Finished goods inventory Jan 1 90,000 Finished goods inventory Dec 31 126,000 If the costs of goods manufactured during the year amounted to $1,895,000 and annual sales were 2,994,000 how much is the amount of gross profits for the year? A. 1,099,000 B. 1,859,000 C. 1,009,000 D. 1,135,000

D. 1,135,000

Gulick company developed the following data for the current year Beginning work in process inventory 240,000 Direct materials used 144,000 Actual overhead 288,000 Overhead applied 216,000 Cost of goods manufactured 264,000 Total manufacturing costs 720,000 Gulick company's direct labor cost for the year is A.216,000 B. 288,000 C. 72,000 D. 360,000

D. 360,000

A company assigned overhead to work in process. At the end of the year, what does the amount of over-applied overhead mean? A. The overhead assigned to work in process is greater than the estimated overhead costs B. The overhead assigned to work in process is less than the actual overhead C. The overhead assigned to work in process is less than the estimated overhead costs D. The overhead assigned to work in process us greater than the overhead incurred

D. The overhead assigned to work in process us greater than the overhead incurred

The predominate overhead rate is based on the relationship between A. estimated annual costs and expected annual activity B. estimated annual cost and actual activity C. actual monthly costs and actual annual activity D. estimated annual costs and expected annual activity

D. estimated annual costs and expected annual activity