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14.2   Questions 1) In a job-order system, the actual factory overhead

Question : 14.2   Questions 1) In a job-order system, the actual factory overhead : 1872749

14.2   Questions

1) In a job-order system, the actual factory overhead costs incurred are $150,000. Applied factory overhead costs are $160,000. What entry is needed to dispose of the overhead variance? Use the immediate write-off method.

A) Debit Factory Department Overhead Control, Credit Factory Department Overhead Applied

B) Debit Factory Department Overhead Applied, Credit Cost of Goods Sold

C) Debit Factory Department Overhead Applied, Credit Finished Goods Inventory

D) Debit Factory Department Overhead Control, Credit Cost of Goods Sold

2) In a job-order system, which of the following statements is TRUE?

A) The Work-in-Process Inventory account is increased by the actual factory overhead costs incurred for a job.

B) The Work-in-Process Inventory account is increased by the applied factory overhead costs for a job.

C) The Work-In-Process Inventory account is decreased by the budgeted amount of factory overhead costs for a job.

D) The Work-In-Process Inventory account is increased by the budgeted amount of factory overhead costs for a job.

3) In a job-order system, accountants apply factory overhead costs to Work-In-Process Inventory by using the ________. The company does not use activity-based costing.

A) actual overhead costs

B) budgeted indirect costs for value chain functions

C) budgeted overhead rate

D) actual overhead rate

4) Conoco Company has an actual factory overhead cost of Depreciation Expense—Equipment of $5,000. Job-order costing is used. The journal entry to record this actual cost would include ________.

A) Debit to Factory Department Overhead Control $5,000 and Credit to Accumulated Depreciation—Equipment $5,000

B) Debit to Depreciation Expense—Equipment $5,000 and Credit to Accumulated Depreciation—Equipment $5,000

C) Debit Work-In-Process Inventory $5,000 and Credit to Factory Department Overhead Control $5,000

D) Debit to Work-In-Process Inventory $5,000 and Credit to Factory Department Overhead Applied $5,000

5) Direct materials of $10,000 are requisitioned by the production supervisor for the production area. Job-order costing is used. The journal entry to record this transaction is:

A) Direct Materials Inventory$10,000

Accounts payable$10,000

B) Direct Materials Inventory$10,000

Work-In-Process Inventory$10,000

C) Work-In-Process Inventory$10,000

Direct Materials Inventory$10,000

D) Finished Goods Inventory$10,000

Direct Materials Inventory$10,000

6) In job-order costing, a Debit to Work-In-Process Inventory is used to record ________.

A) a sale of merchandise

B) a purchase of direct materials

C) the cost of goods completed

D) a requisition of direct materials for production area

7) In job-order costing, a Debit to Direct Materials Inventory is used to record ________.

A) a requisition of direct materials for production

B) cost of goods completed

C) a sale of goods

D) a purchase of direct materials

8) Job-order costing is used. When direct materials are requisitioned for production, which of the following accounts is credited?

A) Work-In-Process Inventory

B) Accounts Payable

C) Finished Goods Inventory

D) Direct Materials Inventory

9) Job-order costing is used. Which of the following accounts is debited when direct labor costs are incurred?

A) Work-In-Process Inventory

B) Finished Goods Inventory

C) Cost of Goods Sold

D) Accrued Payroll

10) Melody Scott Company uses a job-order costing system and has the following data available:

Beginning Direct Materials Inventory$26,000

Beginning Work-In-Process Inventory$64,000

Beginning Finished Goods Inventory$58,000

Direct materials purchased on account$148,000

Direct materials requisitioned$82,000

Direct labor cost incurred$130,000

Factory overhead incurred$146,000

Cost of goods completed$292,000

Cost of Goods Sold$256,000

Overhead application rate (based on direct labor cost)130%

The journal entry to record the actual factory overhead costs incurred would include a ________.

A) Debit to Factory Department Overhead Control for $146,000

B) Credit to Factory Department Overhead Control for $169,000

C) Debit to Work-In-Process Inventory for $146,000

D) Credit to Work-In-Process Inventory for $169,000

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