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Study Resources (Accounting)

57) On the line in front of each statement, enter the letter corresponding to the term that best fits that statement. You may use a letter more than once and some letters may not be used at all. A. bill of materials F. job cost record B. cost driver G. process costing C. materials requisition H. labor time record D. invoice I. receiving report E. purchase order J. job.
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61) Manufacturing overhead may include depreciation on the factory plant and equipment, utilities to run the plant, property taxes and insurance on the plant, and salaries of plant janitors. 62) Generally accepted accounting principles (GAAP) mandate that manufacturing overhead must be treated as an inventoriable product cost for financial reporting purposes. 63).
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314) Job costing is not commonly used by service firms (such as law firms) or trades people (such as auto mechanics). 315) Service firms follow the same approach for indirect costs as manufacturing companies because they develop a predetermined indirect cost allocation rate. 316) A service firm's costs are comprised of direct.
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208) An underallocation of manufacturing overhead is typically corrected by decreasing cost of goods sold on the income statement. 209) If jobs have been undercosted due to underallocation of manufacturing overhead, then cost of goods sold (COGS) is too low and which of the following corrections must be made? A) Decrease COGS.
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91) Nemec Manufacturing uses job costing. In May, material requisitions were $44,000 ($39,000 of these were direct materials), and raw material purchases were $60,000. The end of month balance in raw materials inventory was $24,300. What was the beginning raw materials inventory balance? A) $74,700 B) $45,300 C) $8,300 D) $23,000 92) Ryan's Paints allocates.
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259) In job costing, the journal entry to record the use of direct materials on jobs is to debit work in process inventory and credit A) raw materials inventory. B) finished goods inventory. C) manufacturing overhead. D) wages payable. 260) Cost of goods sold is debited and finished goods inventory is credited for A) purchase of.
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193) Hardrock Company uses job costing. Hardrock Company has two departments, Sanding and Finishing. Manufacturing overhead is allocated based on direct labor cost in the Sanding Department and direct labor hours in the Finishing Department. The following additional information is available: Estimated amounts Sanding Dept. Finishing Dept. Direct labor cost $ 250,000 $ 500,000 Direct.
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228) Before the year began, Plastics Manufacturing estimated that manufacturing overhead for the year would be $150,000 and that 25,000 direct labor hours would be worked. Actual results for the year included the following: Actual direct labor hours $20,000 Actual manufacturing overhead cost 182,000 If the company allocates manufacturing overhead based on direct labor.
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244) Variable costs per unit decrease as production volume increases. 245) Fixed costs vary in total over a wide range of activity levels. 246) All costs contain both a fixed and a variable portion. 247) The total cost of a product equals the total fixed costs plus the total variable costs. 248) A marginal.
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245) For each of the following statements, determine if it would be handled: A)Before the period B)During the period C)At the end of the period Put the correct letter on the line in front of each statement. ____Calculate the amount of overallocated or underallocated manufacturing overhead. ____Compute the predetermined manufacturing overhead rate. ____Adjust cost of goods sold.
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247) The following account balances at the beginning of January were selected from the general ledger of Bluestone Industries: Work in process inventory$0 Raw materials inventory$30,900 Finished goods inventory$54,800 Additional data: 1) Actual manufacturing overhead for January amounted to $80,500. 2) Total direct labor cost for January was $70,000; actual direct labor hours for January were.
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140) Calculate the unknowns for the following independent situations. 1) Selected data for Lion Corporation: Actual manufacturing overhead costs $ 35,400 Underallocated manufacturing overhead costs $ 3,000 Allocated manufacturing overhead is based on 50% of direct labor cost. a) Calculate the allocated manufacturing overhead cost. b) Calculate the direct labor cost. 2) Selected data for Tiger Corporation: Actual.
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238) The following account balances at the beginning of January were selected from the general ledger of Ocean City Manufacturing Company: Work in process inventory $0 Raw materials inventory $28,000 Finished goods inventory $40,000 Additional data: 1) Actual manufacturing overhead for January amounted to $62,000. 2) Total direct labor cost for January was $63,000. 3) The predetermined manufacturing overhead rate.
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254) An example of a fixed cost for a manufacturer would be which of the following? A) Sales commissions B) Salary of plant manager C) Direct materials D) Delivery costs 255) Which of the following is an example of a fixed cost for a manufacturer? A) Income Taxes B) Machine Repair Expense C) Fire Insurance on buildings D) Delivery.
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197) Hollinger Ceramics makes custom ceramic tiles. During March, the company started and finished Job #755. The company's records show the following direct materials were requisitioned for Job #755. Plain white tiles:1,200 units at $5.00 per unit Specialty paint:9 quarts at $8.00 per quart High gloss glaze:5 quarts at $12.00 per quart Labor time.
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27) State whether each company below would be more likely to use a job costing system or a process costing system. A)________custom home builder B)________paint manufacturer C)________carpet manufacturer D)________concrete manufacturer E)________jumbo jet manufacturer 28) State whether each company below would be more likely to use a job costing system or a process costing system: A)________soft drink.
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141) Krepes Manufacturing has two departments that produce small appliances. The Drilling Department allocates manufacturing overhead using machine hours as the allocation base while the Cutting Department allocates manufacturing overhead using direct labor cost as the allocation base. Data for April are shown below:   Drilling Dept.   Cutting Dept. Estimated annual manufacturing overhead costs $150,000 $300,000 Estimated.
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81) Manufacturing overhead is allocated on the basis of A) machine hours. B) direct labor hours. C) direct labor costs. D) any of the listed choices. 82) Allocating manufacturing overhead costs is done A) during the period. B) before the period starts. C) at the end of the period. D) never. 83) When is the predetermined manufacturing overhead rate computed? A).
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11) Companies use job costing when their products or services vary in terms of materials needed, time required to complete the product, and/or the complexity of the production process. 12) A receiving report is typically a duplicate of the purchase order but without the prices and quantities pre-listed on the form. 13).
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299) Job 222 started on June 1 and finished on July 15. Total cost on July 1 was $12,400, and the costs added in July were $188,500. The entry for the sale at a price of $310,000 would be: A) Accounts receivable 310,000 Sales Revenue 310,000 B) Finished goods inv. 200,900 Cost of goods sold 200,900 C) Sales Revenue 310,000 Accounts.
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269) How is the cost of direct materials used in production recorded? A) Credit to manufacturing overhead B) Credit to work in process inventory C) Credit to direct materials expense D) Credit to raw materials inventory 270) How is the cost of indirect materials used in the factory recorded? A) Debit to work in process inventory B).
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248) The following information was gathered for the Falsetto Corporation for the most recent year. Manufacturing overhead is allocated using direct labor hours. Estimated direct labor hours 75,000 Actual direct labor hours 82,000 Estimated manufacturing overhead costs $ 1,275,000 Actual manufacturing overhead costs $ 1,335,000 Compute: a)Predetermined manufacturing overhead rate b)Manufacturing overhead allocated for the year c)Amount of.
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218) Manufacturing overhead is underallocated if the amount A) estimated for the period is greater than the actual amount incurred. B) estimated for the period is less than the actual amount incurred. C) allocated during the period is less than the actual amount incurred. D) allocated during the period is greater than the actual.
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131) 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: Actual direct labor hours 232,000 Estimated direct labor hours 250,000 Actual manufacturing overhead costs $350,000 Estimated manufacturing overhead costs $400,000 Actual direct labor.
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111) Missy & Daughters allocates manufacturing overhead to jobs based on machine hours. The company has the following estimated costs for the upcoming year: Direct materials used $ 50,000 Direct labor costs $ 70,000 Wages of factory janitors $ 39,000 Sales supervisor salary $ 51,000 Utilities for factory $ 16,000 Rent.
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121) Perry Moldings has the following estimated costs for the upcoming year: Direct labor costs $ 62,000 Direct materials used $ 25,000 Salary of factory supervisor $ 39,000 Sales commissions $ 8,000 Heating and lighting costs for factory $ 22,000 Depreciation on factory equipment $ 5,000 Advertising expense $ 33,000 The company estimates that 1,200 direct labor hours.
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289) To record direct labor costs incurred, which of the following would be debited? A) Finished goods inventory B) Manufacturing overhead C) Work in process inventory D) Wages payable 290) To record the requisition of direct materials, which of the following would be debited? A) Finished goods inventory B) Work in process inventory C) Raw materials inventory D) Cost.
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162) Sales revenue is $750,000; actual manufacturing overhead is $120,000; allocated manufacturing overhead is $95,000; and cost of goods sold before adjustment is $380,000. What is the actual gross profit? A) $395,000 B) $370,000 C) $345,000 D) $250,000 163) Sales revenue is $725,000; allocated manufacturing overhead is $95,000; actual manufacturing overhead is $120,000; and cost.
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1) A paper mill company like International Paper would most likely use job costing. 2) A food and beverage company like Coca-Cola would most likely use job costing. 3) Process costing is used by companies that produce large numbers of identical units of production in a continuous fashion. 4) Job costing systems accumulate.
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40) The quantities of incoming shipments of raw materials are counted and recorded on a purchase order. 41) Which of these documents authorizes the purchase of specific raw materials from a specific supplier? A) Labor time record B) Materials inventory requisition form C) Job cost record D) Purchase order 42) A ________ is used to accumulate.
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136) Stars and Stripes Corporation uses job costing. The following is selected financial data from the company for the most recent year. Ending raw materials inventory $ 18,500 Ending work in process inventory $ 57,300 Ending finished goods inventory $ 54,000 Amount of underallocated manufacturing overhead $ 3,200 Cost of goods.
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198) If manufacturing overhead allocated is less than the actual manufacturing overhead incurred, then jobs have been overcosted. 199) Overallocated overhead costs occur when the overhead costs allocated are greater than the amount actually incurred. 200) If manufacturing overhead has been underallocated during the year, it means the jobs have been undercosted. 201).
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172) Spruce Company uses a job costing system. Spruce Company's schedule of cost of goods manufactured showed the following amounts for the month ended August 31. Cost of goods manufactured $124,000 Cost of direct materials used 42,000 Cost of direct labor ($32 per hour) 76,000 Work in process inventory, August 1 14,500 Allocated manufacturing overhead costs for August amount.
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313) At Plastastic, Inc., the beginning balance of the work in process inventory account in April of the most recent year was $19,000. Direct materials used during April totaled $130,000. Total manufacturing labor incurred in April was $180,000, 75% of this amount represented direct labor. The predetermined manufacturing overhead rate.
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277) On the line in front of each statement, enter the letter corresponding to the term that best fits that statement. You may use a letter more than once and some letters may not be used at all. a. Direct costs e. Variable costs b. Marginal cost f. Indirect cost c. Average cost g. Sunk cost d. Conversion costs h. Differential cost ___The total cost divided by.
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182) Twinkle Ornaments Company uses job costing. Twinkle Ornaments Company has two departments, Trimming and Finishing. Manufacturing overhead is allocated based on direct labor cost in the Trimming Department and direct labor hours in the Finishing Department. The following additional information is available: Estimated amounts Trimming Dept Finishing Dept Direct labor cost $ 320,000.
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30) For a manufacturing system, inventory flows from raw materials inventory to work in process inventory to finished goods inventory. 31) A job cost record is a document that accumulates direct materials costs, direct labor costs and manufacturing overhead costs assigned to each individual job. 32) At a manufacturing company, inventory flows.
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194) Records for Speedy's Custom Networks contained the following data. Compute: a)Work in process inventory on June 30 b)Finished goods inventory on June 30 c)Cost of goods sold for June 195) Alpha Technology's work in process inventory on June 1 has a balance of $27,200 representing Job No. 72. During June, $68,900 of direct materials.
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138) 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: Estimated direct labor cost$560,000 Actual direct labor cost$475,000 Estimated manufacturing overhead costs$420,000 Actual manufacturing overhead costs$353,000 Estimated direct labor hours200,000 Actual direct.
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101) Here are selected data for Wilson Company: Estimated manufacturing overhead $ 243,750 Factory utilities $ 30,200 Estimated labor hours 35,000 Indirect labor $ 22,400 Actual direct labor hours 36,000 Sales commissions $ 53,700 Estimated direct labor cost $ 325,000 Factory rent $ 47,700 Actual direct labor cost $ 320,000 Factory property taxes $ 28,100 Factory.
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71) The predetermined manufacturing overhead rate is calculated by multiplying the total estimated manufacturing overhead costs by the total estimated amount of the allocation base. 72) The cost of wages paid to assembly-line workers should be treated as a manufacturing overhead cost. 73) The overhead allocation base should be the cost driver.
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