Chapter 15

अब Quizwiz के साथ अपने होमवर्क और परीक्षाओं को एस करें!

61. Which one of the following best describes a job cost sheet?

a. It is a form used to record the costs chargeable to a specific job and to determine the total and unit costs of the completed job.

75. The principal accounting record used in assigning costs to jobs is

a. a job cost sheet.

74. If the entry to assign factory labor showed only a debit to Work In Process Inventory, then all labor costs were

a. direct labor.

132. The Manufacturing Overhead account shows debits of $30,000, $24,000, and $28,000 and one credit for $86,000. Based on this information, manufacturing overhead

a. has been overapplied. Solution: debits = $30,000 + $24,000 + $28,000 = $82,000 versus $86,000; $4,000 overapplied (credit position)

45. The flow of costs in a job order cost system

a. involves accumulating manufacturing costs incurred and assigning the accumulated costs to work done.

89. The labor costs that have been identified as indirect labor should be charged to

a. manufacturing overhead.

68. Postings to control accounts in a costing system are made

a. monthly.

133. If Manufacturing Overhead has a debit balance at the end of the period, then

a. overhead has been underapplied.

138. The existence of under- or overapplied overhead at the end of the year:

a. requires an adjustment to Cost of Goods Sold.

41. Process costing is used when

a. the production process is continuous.

53. All of the following would be entries in assigning accumulated costs to the Work In Process Inventory except:

a. the purchase of raw materials.

134. If actual overhead is greater than applied manufacturing overhead, then manufacturing overhead is:

a. underapplied.

123. During 2017, Durham Manufacturing expected Job No. 51 to cost $300,000 of overhead, $500,000 of materials, and $200,000 in labor. Durham applied overhead based on direct labor cost. Actual production required an overhead cost of $295,000, $570,000 in materials used, and $220,000 in labor. All of the goods were completed. What amount was transferred to Finished Goods?

b. $1,120,000 Solution: ($300,000 / $200,000) x $220,000 = $330,000; $570,000 + $220,000 + $330,000 = $1,120,000

78. Madison Inc. uses job order costing for its brand new line of sewing machines. The cost incurred for production during 2017 totaled $18,000 of materials, $9,000 of direct labor costs, and $6,000 of manufacturing overhead applied. The company ships all goods as soon as they are completed which results in no finished goods inventory on hand at the end of any year. Beginning work in process totaled $15,000, and the ending balance is $9,000. During the year, the company completed 25 machines. How much is the cost per machine?

b. $1,560 Solution: ($15,000 + $18,000 + $9,000 + $6,000 - $9,000) ÷ 25 = $1,560

113. Hayward Manufacturing Company developed the following data: Beginning work in process inventory $900,000 Direct materials used 700,000 Actual overhead 1,100,000 Overhead applied 800,000 Cost of goods manufactured 1,200,000 Ending work in process 1,500,000 Hayward Manufacturing Company's total manufacturing costs for the period is

b. $1,800,000. Solution: $900,000 + x - $1,500,000 = $1,200,000; x = $1,800,000

139. Conceptually, any under- or overapplied overhead at the end of the year should be allocated among all of the following except

c. ending raw materials inventory.

94. 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:

c. for every dollar of direct labor, 75 cents of manufacturing overhead will be assigned. Solution: $750,000 / $1,000,000 = .75

57. Factory labor costs

c. include sick pay earned by factory workers.

54. Factory labor costs

c. include vacation pay.

42. Process costing is not used when

c. jobs have distinguishing characteristics.

93. In calculating a predetermined overhead rate, a recent trend in automated manufacturing operations is to choose an activity base related to

c. machine hours.

148. Overapplied manufacturing overhead exists when overhead assigned to work in process is

c. more than overhead incurred and there is a credit balance in Manufacturing Overhead at the end of a period.

143. In a manufacturing company, the cost of factory labor consists of all of the following except

c. net earnings of factory workers.

71. A time ticket does not indicate the

c. number of personal exemptions claimed by the employee.

131. If Manufacturing Overhead has a credit balance at the end of the period, then

c. overhead has been overapplied.

141. A process cost system would be used for all of the following except the

c. printing of wedding invitations.

73. Time tickets should be approved by

c. the employee's supervisor.

106. During 2017, Tanner Manufacturing expected Job No. 26 to cost $300,000 of overhead, $500,000 of materials, and $200,000 in labor. Tanner applied overhead based on direct labor cost. Actual production required an overhead cost of $290,000, $550,000 in materials used, and $220,000 in labor. All of the goods were completed. What amount was transferred to Finished Goods?

d. $1,100,000 Solution: ($300,000 / $200,000) = 1.5; 1.5 x $220,000 = $330,000; $330,000 + $550,000 + $220,000 = $1,100,000

121. Barger Company had the following information at December 31: Finished goods inventory, January 1 $ 90,000 Finished goods inventory, December 31 126,000 If the cost 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 profit for the year?

d. $1,135,000 Solution: $2,994,000 - ($90,000 + $1,895,000 - $126,000) = $1,135,000

36. Which of the following is one of the components of cost accounting?

a. It involves measuring product costs.

39. A process cost system would most likely be used by a company that makes

c. breakfast cereal.

92. The predetermined overhead rate is

c. determined at the beginning of the year.

136. If manufacturing overhead has been underapplied during the year, the adjusting entry at the end of the year will show a

137. If manufacturing overhead has been overapplied during the year, the adjusting entry at the end of the year will show a

117. Haight Company incurred direct materials costs of $2,500,000 during the year. Manufacturing overhead applied was $450,000 and is applied at the rate of 60% of direct labor costs. Haight Company's total manufacturing costs for the year was

a. $3,700,000. Solution: $2,500,000 + ($450,000 / .60) + $450,000 = $3,700,000

88. Minton Company provided the following information from its accounting records for 2017: Expected production 60,000 labor hours Actual production 56,000 labor hours Budgeted overhead $1,800,000 Actual overhead $1,740,000 How much is the overhead application rate if Minton Company bases it on direct labor hours?

a. $30.00 per hour Solution: $1,800,000 / 60,000 = $30.00

99. For Jacobs Company, the predetermined overhead rate is 70% of direct labor cost. During the month, $600,000 of factory labor costs are incurred of which $140,000 is indirect labor. Actual overhead incurred was $320,000. The amount of overhead debited to Work in Process Inventory should be:

a. $322,000 Solution: ($600,000 - $140,000) x .70 = $322,000

101. For Wilton Company, the predetermined overhead rate is 70% of direct labor cost. During the month, $720,000 of factory labor costs are incurred of which $200,000 is indirect labor. Actual overhead incurred was $360,000. The amount of overhead debited to Work in Process Inventory should be:

a. $364,000 Solution: ($720,000 - $200,000) x .70 = $364,000

56. Kline Manufacturing has the following labor costs: Factory—Gross wages $500,000 Factory—Net wages 420,000 Employer Payroll Taxes Payable 50,000 The entry to record the cost of factory labor and the associated payroll tax expense will include a debit to Factory Labor for

a. $550,000.

112. 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 ending work in process inventory is

a. $696,000. Solution: $240,000 + $720,000 - x = $264,000; x = $696,000

119. Greer Company developed the following data for the current year: Beginning work in process inventory $ 136,000 Direct materials used 208,000 Actual overhead 176,000 Overhead applied 184,000 Cost of goods manufactured 900,000 Total manufacturing costs 856,000 How much is Greer Company's ending work in process inventory for the year?

a. $92,000 Solution: $136,000 + $856,000 - x = $900,000; x = $92,000

114. Which of the following is not used in assigning manufacturing costs to work in process inventory?

a. Actual manufacturing overhead

150. Which of the following statements about under- or overapplied manufacturing overhead is correct?

a. After the entry to transfer over- or underapplied overhead to Cost of Goods Sold is posted, Manufacturing Overhead will have a zero balance.

108. Which of the following is not viewed as part of accumulating manufacturing costs in a job order cost system?

a. Cost of goods sold is recognized

120. Chmelar Manufacturing Company developed the following data: Beginning work in process inventory $ 120,000 Direct materials used 720,000 Actual overhead 840,000 Overhead applied 810,000 Cost of goods manufactured 1,920,000 Ending work in process 90,000 How much are total manufacturing costs for the period?

b. $1,890,000 Solution: $120,000 + x - $90,000 = $1,920,000; x = $1,890,000

82. Vektek, Inc. thinks machine hours is the best activity base for its manufacturing overhead. The estimate of annual overhead costs for its jobs was $2,050,000. The company used 1,000 hours of processing on Job No. B12 during the period and incurred overhead costs totaling $2,100,000. The budgeted machine hours for the year totaled 20,000. How much overhead should be applied to Job No. B12?

b. $102,500 Solution: ($2,050,000 / 20,000) = $102.50; $102.50 x 1,000 = $102,500

83. Barr Mfg. provided the following information from its accounting records for 2017: Expected production 60,000 labor hours Actual production 56,000 labor hours Budgeted overhead $900,000 Actual overhead $870,000 How much is the overhead application rate if Barr bases the rate on direct labor hours?

b. $15.00 per hour Solution: $900,000 / 60,000 = $15.00 per hour

85. Redman Company manufactures customized desks. The following pertains to Job No. 978: Direct materials used $15,450 Direct labor hours worked 360 Direct labor rate per hour $15.00 Machine hours used 300 Applied factory overhead rate per machine hour $22.00 What is the total manufacturing cost for Job No. 978?

b. $27,450 Solution: $15,450 + (360 x $15.00) + (300 x $22.00) = $27,450

111. 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

b. $360,000. Solution: $720,000 - $144,000 - $216,000 = $360,000

44. As of December 31, 2017, Stand Still Industries had $2,500 of raw materials inventory. At the beginning of 2017, there was $2,000 of materials on hand. During the year, the company purchased $375,000 of materials; however, it paid for only $312,500. How much inventory was requisitioned for use on jobs during 2017?

b. $374,500 Solution: $2,000 + $375,000 - $2,500 = $374,500

87. Norman Company manufactures customized desks. The following pertains to Job No. 953: Direct materials used $22,800 Direct labor hours worked 600 Direct labor rate per hour $16.00 Machine hours used 400 Applied factory overhead rate per machine hour $30.00 What is the total manufacturing cost for Job No. 953?

b. $44,400 Solution: $22,800 + (600 x $16.00) + (400 x $30.00) = $44,400

100. Simpson Company applies overhead on the basis of 200% of direct labor cost. Job No. 305 is charged with $180,000 of direct materials costs and $200,000 of manufacturing overhead. The total manufacturing costs for Job No. 305 is:

b. $480,000 Solution: $180,000 + ($200,000 / 2.0) + $200,000 = $480,000

144. Which of the following is not a control account?

b. Factory Labor

58. Which of the following is not a control account?

b. Raw materials inventory

69. Which one of the following should be equal to the balance of the Work In Process Inventory account at the end of the period?

b. The sum of the costs shown on the job cost sheets of unfinished jobs

46. In a job order cost accounting system, the Raw Materials Inventory account is

b. a control account.

128. If the Manufacturing Overhead account has a debit balance at the end of a period, it means that

b. actual overhead costs were greater than overhead costs applied to jobs.

140. If, at the end of the year, Manufacturing Overhead has been overapplied, it means that

b. actual overhead costs were less than the overhead assigned to jobs.

90. Manufacturing overhead is applied to each job

b. by means of a predetermined overhead rate.

95. Overhead application is recorded with a

b. credit to Manufacturing Overhead.

49. The Raw Materials Inventory account is

b. debited for invoice costs and freight costs chargeable to the purchaser.

91. The predetermined overhead rate is based on the relationship between

b. estimated annual costs and expected annual activity.

43. An important feature of a job order cost system is that each job

b. has its own distinguishing characteristics.

38. The two basic types of cost accounting systems are

b. job order and process cost systems.

51. Cost of raw materials is debited to Raw Materials Inventory when the

b. materials are received.

65. Under an effective system of internal control, the authorization for issuing materials is made

b. on a prenumbered materials requisition slip.

129. If the manufacturing overhead costs applied to jobs worked on were greater than the actual manufacturing costs incurred during a period, overhead is said to be

b. overapplied.

135. If actual overhead is less than applied manufacturing overhead, then manufacturing overhead is:

b. overapplied.

103. Cost of goods sold is obtained from

b. the finished goods inventory records.

77. 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?

c. $ 84,000 Solution: (($110,000 + $60,000 + $40,000) / 3,000) x 1,200 = $84,000

125. Kimble Company applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under- or overapplication of overhead for the period:

c. $1,560,000 applied and $15,000 underapplied Solution: ($1,600,000 / 400,000) x 390,000 = $1,560,000 applied; $1,575,000 - $1,560,000 = $15,000 underapplied

81. A company expected its annual overhead costs to be $1,500,000 and direct labor costs to be $1,000,000. Actual overhead was $1,450,000, and actual labor costs totaled $1,100,000. How much is the company's predetermined overhead rate to the nearest cent?

c. $1.50 Solution: $1,500,000 / $1,000,000 = $1.50

97. Simmons Inc. applies overhead to production at a predetermined rate of 90% based on direct labor cost. Job No. 250, the only job still in process at the end of August, has been charged with manufacturing overhead of $8,100. What was the amount of direct materials charged to Job 250 assuming the balance in Work in Process inventory is $30,000?

c. $12,900. Solution: $30,000 - ($8,100 / .90) - $8,100 = $12,900

126. Barnes Company applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under- or overapplication of overhead for the period: Estimated annual overhead cost $3,000,000 Actual annual overhead cost $2,970,000 Estimated machine hours 300,000 Actual machine hours 295,000

c. $2,950,000 applied and $20,000 underapplied Solution: ($3,000,000 / 300,000) x 295,000 = $2,950,000 applied; $2,970,000 - $2,950,000 = $20,000 underapplied

84. Kinney Company applies overhead on the basis of 150% of direct labor cost. Job No. 176 is charged with $150,000 of direct materials costs and $180,000 of manufacturing overhead. The total manufacturing costs for Job No. 176 is

c. $450,000 Solution: $150,000 + ($180,000 / 1.5) + $180,000 = $450,000

118. Greer Company developed the following data for the current year: Beginning work in process inventory $ 136,000 Direct materials used 208,000 Actual overhead 176,000 Overhead applied 184,000 Cost of goods manufactured 900,000 Total manufacturing costs 856,000 How much is Greer Company's direct labor cost for the year?

c. $464,000 Solution: $856,000 - $208,000 - $184,000 = $464,000

98. Spencer Inc. applies overhead to production at a predetermined rate of 80% based on direct labor cost. Job No. 130, the only job still in process at the end of August, has been charged with manufacturing overhead of $6,400. What was the amount of direct materials charged to Job 130 assuming the balance in Work in Process inventory is $20,000?

c. $5,600. Solution: $20,000 - ($6,400 / .80) - $6,400 = $5,600

116. Gannon Company had the following information at December 31: Finished goods inventory, January 1 $ 50,000 Finished goods inventory, December 31 150,000 If the cost of goods manufactured during the year amounted to $2,200,000 and annual sales were $2,750,000, the amount of gross profit for the year is

c. $650,000. Solution: $2,750,000 - ($50,000 + 2,200,000 - $150,000) = $650,000

146. Jinnah Company applies overhead on the basis of 200% of direct labor cost. Job No. 501 is charged with $240,000 of direct materials costs and $320,000 of manufacturing overhead. The total manufacturing costs for Job No. 501 is

c. $720,000. Solution: $240,000 + ($320,000 / 2.0) + $320,000 = $720,000

76. The following information is available for completed Job No. 402: Direct materials, $120,000; direct labor, $180,000; manufacturing overhead applied, $90,000; units produced, 5,000 units; units sold, 4,000 units. The cost of the finished goods on hand from this job is

c. $78,000. Solution: (($120,000 + $180,000 + $90,000) / 5,000) x 1,000 = $78,000

80. Cost of goods manufactured equals $85,000 for 2017. Finished goods inventory is $2,000 at the beginning of the year and $5,500 at the end of the year. Beginning and ending work in process for 2017 are $4,000 and $5,000, respectively. How much is cost of goods sold for the year?

c. $81,500 Solution: $2,000 + $85,000 - $5,500 = $81,500

130. At the end of the year, any balance in the Manufacturing Overhead account is generally eliminated by adjusting

c. Cost of Goods Sold.

104. When determining costs of jobs, how does a company account for indirect materials?

c. It is transferred out of raw materials into manufacturing overhead when used.

72. Which one of the following is a source document that impacts the job cost sheet?

c. Labor time tickets.

142. In a job order cost system, it would be correct in recording the purchase of raw materials to debit

c. Raw Materials Inventory.

62. Job cost sheets constitute the subsidiary ledger for the

c. Work In Process Inventory account.

70. Which of the following shows entries only to control accounts?

c. Work in Process Manufacturing Overhead Raw Materials Inventory

105. In a job order cost system, a credit to Manufacturing Overhead will be accompanied by a debit to

c. Work in Process Inventory.

48. The two major steps in the flow of costs are

c. accumulating and assigning.

115. On the cost of goods manufactured schedule, the cost of goods manufactured agrees with the

c. amount transferred from Work in Process Inventory to Finished Goods during the period.

122. Emley Company incurred direct materials costs of $750,000 during the year. Manufacturing overhead applied was $700,000 and is applied based on direct labor costs. The predetermined overhead rate is 70%. How much are Emley Company's total manufacturing costs for the year?

d. $2,450,000 Solution: $750,000 + ($700,000 / .70) + $700,000 = $2,450,000

102. At the beginning of the year, Monroe Company estimates annual overhead costs to be $2,400,000 and that 300,000 machine hours will be operated. Using machine hours as a base, the amount of overhead applied during the year if actual machine hours for the year was 315,000 hours is

d. $2,520,000. Solution: ($2,400,000 / 300,000) x 315,000 = $2,520,000

124. During 2017, Cotte Manufacturing expected Job No. 59 to cost $300,000 of overhead, $500,000 of materials, and $200,000 in labor. Cotte applied overhead based on direct labor cost. Actual production required an overhead cost of $295,000, $570,000 in materials used, and $220,000 in labor. All of the goods were completed. How much is the amount of over- or underapplied overhead?

d. $35,000 overapplied Solution: ($300,000 /$200,000) x $220,000 = $330,000; $295,000 - $330,000 = $35,000 overapplied

79. As of December 31, 2017, Nilsen Industries had $2,000 of raw materials inventory. At the beginning of 2017, there was $1,600 of materials on hand. During the year, the company purchased $354,000 of materials; however it paid for only $314,000. How much inventory was requisitioned for use on jobs during 2017?

d. $353,600 Solution: $1,600 + $354,000 - $2,000 = $353,600

86. Henson Company applies overhead on the basis of 120% of direct labor cost. Job No. 190 is charged with $140,000 of direct materials costs and $180,000 of manufacturing overhead. The total manufacturing costs for Job No. 190 is

d. $470,000. Solution: $140,000 + ($180,000 / 1.2) + $180,000 = $470,000

52. Which of the following is not included in factory labor costs?

d. All of these are included.

107. Debits to Work in Process Inventory are accompanied by a credit to all but which one of the following accounts?

d. Cost of Goods Sold

96. Manufacturing overhead applied is added to direct labor incurred and to what other item to equal total manufacturing costs for the period?

d. Direct materials used.

47. When a job is completed and all costs have been accumulated on a job cost sheet, the journal entry that should be made is

d. Finished Goods Inventory Work In Process Inventory

60. The entry to record the acquisition of raw materials on account is

d. Raw Materials Inventory Accounts Payable

127. A company assigned overhead to work in process. At year end, what does the amount of overapplied overhead mean?

d. The overhead assigned to work in process is greater than the overhead incurred.

63. A materials requisition slip showed that direct materials requested were $66,000 and indirect materials requested were $9,000. The entry to record the transfer of materials from the storeroom is

d. Work In Process Inventory 66,000 Manufacturing Overhead 9,000 Raw Materials Inventory 75,000

145. When the company assigns factory labor costs to jobs, the direct labor cost is debited to

d. Work in Process Inventory.

149. Usually, under- or overapplied overhead is considered to be an adjustment to

d. cost of goods sold.

50. Records of individual items of raw materials would not be maintained

d. in the Raw Materials Inventory account.

37. A major purpose of cost accounting is to

d. measure, record, and report product costs.

66. A copy of the materials requisition slip would not include the:

d. name of the supplier.

147. Companies assign manufacturing overhead to work in process on an estimated basis through the use of a(n)

d. predetermined overhead rate.

59. Manufacturing Overhead would not have a subsidiary account for

d. raw materials inventory.

55. Factory Labor is a(n)

d. temporary account.

64. The job cost sheet does not show

d. the cost of goods sold.

67. Materials requisition slips are costed

d. using any of the inventory costing methods.


संबंधित स्टडी सेट्स

1.3 Hematology Physiology - Function

View Set

ThenCultures Of North Africa. Chapter 3 Section 1

View Set

Practice Exam Insurance - 11/17/21

View Set

Working With Young Families Final

View Set

Homeland Security & Terrorism Ch. 1

View Set