Question 1

Which of the following types of costing is used for many similar products?

Accepted Answer

A)  Process costing
B)  Batch costing
C)  Service costing
D)  Job costingE) All of the above
F) A) and B)

Question 2

The amount of overallocation or underallocation is typically corrected by adjusting Cost of
Goods Sold on the income statement.

Accepted Answer

A) True 
 B)False

Question 3

Before the year began,Murphy Manufacturing estimated that manufacturing overhead for the year would be $175,500 and that 13,000 direct labor hours would be worked.Actual results for the year included the following:

The amount of manufacturing overhead allocated for the year based on direct labor hours would have been

Accepted Answer

A)  $179,750.
B)  $195,750.
C)  $175,500.
D)  $184,000.E) A) and B)
F) A) and C)

Question 4

To record the costs of indirect labor,which of the following accounts would be debited?

Accepted Answer

A)  Work-in-Process Inventory account
B)  Manufacturing Overhead account
C)  Finished Goods Inventory account
D)  Wages Payable accountE) All of the above
F) A) and C)

Question 5

When is the adjusting of cost of goods sold for the underallocation or overallocation of manufacturing overhead generally done?

Accepted Answer

A)  At the end of the period
B)  During the period
C)  Before the period starts
D)  NeverE) B) and C)
F) None of the above

Question 6

A production schedule always covers a one-year period of time.

Accepted Answer

A) True 
 B)False

Question 7

Oakland Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead.The following information is available for the most recent year:  
Determine the following:
a)Predetermined manufacturing overhead rate using direct labor cost as the allocation base
b)Predetermined manufacturing overhead rate using direct labor hours as the allocation base
c)Allocated manufacturing overhead costs based on direct labor cost for the year
d)Allocated manufacturing overhead costs based on direct labor hours for the year

Accepted Answer

The answer of Oakland Company is debating the use of...

Question 8

Nadal Company is debating the use of direct labor cost or direct labor hours as the cost allocation base for allocating manufacturing overhead.The following information is available for the most recent year:

If Nadal Company uses direct labor hours as the allocation base,what would the predetermined manufacturing overhead rate be?

Accepted Answer

A)  $1.51 per direct labor hour
B)  $1.40 per direct labor hour
C)  $1.60 per direct labor hour
D)  $1.72 per direct labor hourE) A) and D)
F) A) and B)

Question 9

Poland's Paints allocates overhead based on machine hours.Selected data for the most recent year follow.

The estimates were made as of the beginning of the year,while the actual results were for the entire year.
The amount of manufacturing overhead allocated for the year based on machine hours would have been

Accepted Answer

A)  $244,000.
B)  $238,000.
C)  $267,750.
D)  $241,000.E) All of the above
F) A) and B)

Question 10

Job 123 requires $12,000 of direct materials,$5,500 of direct labor,500 direct labor hours,and 300 machine hours.It also requires 6 hours of inspection at $40 per hour.Manufacturing overhead is computed at $30 per direct labor hour used and $40 per machine hour used.
The total amount charged for inspection

Accepted Answer

A)  is $40.
B)  is $40 × budgeted hours.
C)  is $240.
D)  does not figure into the total cost of the job.E) A) and B)
F) C) and D)

Question 11

Job 450 requires $9,800 of direct materials,$6,400 of direct labor,590 direct labor hours,and 400 machine hours.Manufacturing overhead is computed at $14 per direct labor hour used and $10 per machine hour used.
The total cost of Job 450 is

Accepted Answer

A)  $12,260.
B)  $28,460.
C)  $16,200.
D)  $24,460.E) B) and C)
F) All of the above

Question 12

Here are selected data for Bailey Company:

Manufacturing overhead is allocated at 50% of direct labor cost.
What was the amount of direct labor costs?

Accepted Answer

A)  $78,000
B)  $161,333
C)  $168,000
D)  $242,000E) A) and B)
F) A) and C)

Question 13

The amount of overallocation or underallocation is found by taking the difference between the amount of overhead allocated during the year and the amount of overhead estimated for the year.

Accepted Answer

A) True 
 B)False

Question 14

Here are selected data for Tyler Corporation:

What is the balance in work in process inventory at the end of the year?

Accepted Answer

A)  $30,300
B)  $27,700
C)  $49,200
D)  $23,800E) A) and B)
F) None of the above

Question 15

To allocate manufacturing overhead to specific jobs,the needed journal entry would include a

Accepted Answer

A)  credit to Work-in-Process Inventory account.
B)  debit to Manufacturing Overhead account.
C)  debit to Cost of Goods Sold account.
D)  credit to Manufacturing Overhead account.E) B) and C)
F) A) and D)

Question 16

An overallocation of manufacturing overhead is typically corrected by decreasing Cost of Goods Sold on the income statement.

Accepted Answer

A) True 
 B)False

Question 17

In the basic flow of inventory through a manufacturing system,which of the following occurs first in a job costing system?

Accepted Answer

A)  Cost of goods sold
B)  Finished goods inventory
C)  Work in process inventory
D)  Raw materials inventoryE) None of the above
F) A) and D)

Question 18

The cost of direct labor used in production is recorded as a

Accepted Answer

A)  debit to Work-in-Process Inventory account.
B)  debit to Manufacturing Overhead account.
C)  debit to wages expense.
D)  debit to wages payable.E) A) and D)
F) B) and C)

Question 19

On the line in front of each statement,enter either a D for debit or a C for credit to indicate the normal entry that would be needed for each account named.

Accepted Answer

The answer of On the line in front of each...

Question 20

The Work-in-Process account is debited for the cost of direct labor in a job cost system.

Accepted Answer

A) True 
 B)False

Exam 3: Job Costing

Correct Answer
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Correct Answer
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Job 450 requires $9,800 of direct materials,$6,400 of direct labor,590 direct labor hours,and 400 machine hours.Manufacturing overhead is computed at $14 per direct labor hour used and $10 per machine hour used. The total cost of Job 450 is

Correct Answer
verified

Correct Answer
verified

An overallocation of manufacturing overhead is typically corrected by decreasing Cost of Goods Sold on the income statement.

Correct Answer
verified

The Work-in-Process account is debited for the cost of direct labor in a job cost system.

Correct Answer
verified

Here are selected data for Bailey Company: Manufacturing overhead is allocated at 50% of direct labor cost. What was the amount of direct labor costs?

Correct Answer
verified

When is the adjusting of cost of goods sold for the underallocation or overallocation of manufacturing overhead generally done?

Correct Answer
verified

On the line in front of each statement,enter either a D for debit or a C for credit to indicate the normal entry that would be needed for each account named.

Correct Answer
verified

To record the costs of indirect labor,which of the following accounts would be debited?

Correct Answer
verified

In the basic flow of inventory through a manufacturing system,which of the following occurs first in a job costing system?

Correct Answer
verified

Correct Answer
verified

Which of the following types of costing is used for many similar products?

Correct Answer
verified

To allocate manufacturing overhead to specific jobs,the needed journal entry would include a

Correct Answer
verified

The amount of overallocation or underallocation is typically corrected by adjusting Cost of Goods Sold on the income statement.

Correct Answer
verified

Correct Answer
verified

A production schedule always covers a one-year period of time.

Correct Answer
verified

Here are selected data for Tyler Corporation: What is the balance in work in process inventory at the end of the year?

Correct Answer
verified

The amount of overallocation or underallocation is found by taking the difference between the amount of overhead allocated during the year and the amount of overhead estimated for the year.

Correct Answer
verified

The cost of direct labor used in production is recorded as a

Correct Answer
verified

Exam 3: Job Costing

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Job 450 requires $9,800 of direct materials,$6,400 of direct labor,590 direct labor hours,and 400 machine hours.Manufacturing overhead is computed at $14 per direct labor hour used and $10 per machine hour used. The total cost of Job 450 is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An overallocation of manufacturing overhead is typically corrected by decreasing Cost of Goods Sold on the income statement.

Correct AnswerverifiedShow Answer

The Work-in-Process account is debited for the cost of direct labor in a job cost system.

Correct AnswerverifiedShow Answer

Here are selected data for Bailey Company: Manufacturing overhead is allocated at 50% of direct labor cost. What was the amount of direct labor costs?

Correct AnswerverifiedShow Answer

When is the adjusting of cost of goods sold for the underallocation or overallocation of manufacturing overhead generally done?

Correct AnswerverifiedShow Answer

On the line in front of each statement,enter either a D for debit or a C for credit to indicate the normal entry that would be needed for each account named.

Correct AnswerverifiedShow Answer

To record the costs of indirect labor,which of the following accounts would be debited?

Correct AnswerverifiedShow Answer

In the basic flow of inventory through a manufacturing system,which of the following occurs first in a job costing system?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which of the following types of costing is used for many similar products?

Correct AnswerverifiedShow Answer

To allocate manufacturing overhead to specific jobs,the needed journal entry would include a

Correct AnswerverifiedShow Answer

The amount of overallocation or underallocation is typically corrected by adjusting Cost of Goods Sold on the income statement.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A production schedule always covers a one-year period of time.

Correct AnswerverifiedShow Answer

Here are selected data for Tyler Corporation: What is the balance in work in process inventory at the end of the year?

Correct AnswerverifiedShow Answer

The amount of overallocation or underallocation is found by taking the difference between the amount of overhead allocated during the year and the amount of overhead estimated for the year.

Correct AnswerverifiedShow Answer

The cost of direct labor used in production is recorded as a

Correct AnswerverifiedShow Answer

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