Question 1

Cavy Company estimates that total factory overhead costs will be $660,000 for the year. Direct labor hours are estimated to be 100,000. Determine (a) the predetermined factory overhead rate, (b) the amount of factory overhead applied to Job 345 if the amount of direct labor hours is 560 and Job 777 if the amount of direct labor hours is 800, and (c) prepare the journal entry to apply factory overhead in April according to the predetermined overhead rate.

Accepted Answer

(a) $660,000 / 100,000 = $6.60...

Question 2

Job cost sheets can provide information to managers for all but the following:

Accepted Answer

A)   cost impact of materials changes
B)   cost impact of continuous improvement in the manufacturing process
C)   cost impact of materials price or direct labor rate changes over time
D)   utilities, managerial salaries, and depreciation of computers in the corporate officeE) A) and B)
F) A) and C)

Question 3

In a job order cost accounting system for a service business, materials costs are normally included as part of overhead.

Accepted Answer

A) True 
 B)False

Question 4

When the goods are sold, their costs are transferred from Work in Process to Finished Goods.

Accepted Answer

A) True 
 B)False

Question 5

Zeke Company is a manufacturing company that has worked on several production jobs during the 1st quarter of the year. Below is a list of all the jobs for the quarter:  Job 356, 357, 358 & 359 were completed. Jobs 356 & 357 were sold at a profit of $500 on each job.
What is Sales for Zeke Company as of the end of the 1st quarter?

Accepted Answer

A)   $1,685
B)   $2,685
C)   $1,000
D)   $685E) A) and B)
F) B) and C)

Question 6

Interim financial statements for a manufacturing business would report overapplied factory overhead as a deferred item on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 7

The document that serves as the basis for recording direct labor on a job cost sheet is the time card.

Accepted Answer

A) True 
 B)False

Question 8

Job order costing and process costing are

Accepted Answer

A)   pricing systems.
B)   cost accounting systems.
C)   cost flow systems.
D)   inventory tracking systems.E) B) and C)
F) A) and C)

Question 9

The entry to record the flow of direct labor costs into production in a job order cost accounting system is:

Accepted Answer

A)   debit Factory Overhead, credit Work in Process
B)   debit Finished Goods, credit Wages Payable
C)   debit Work in Process, credit Wages Payable
D)   debit Factory Overhead, credit Wages PayableE) None of the above
F) A) and C)

Question 10

The following are true regarding product costs except

Accepted Answer

A)   product costs are found on the balance sheet until they are sold.
B)   product costs consist of direct labor, direct materials, and factory overhead.
C)   product costs can be found in three accounts in the balance sheet.
D)   product costs include sales and administrative expenses.E) All of the above
F) A) and D)

Question 11

Which of the following is not true about why a service firm will use the job order costing system?

Accepted Answer

A)   to help control costs
B)   to determine client billing
C)   to determine department costs within the firm
D)   to determine profitE) C) and D)
F) A) and C)

Question 12

Information about costs developed through a job order cost system can not be used to evaluate an organization's cost performance.

Accepted Answer

A) True 
 B)False

Question 13

Bar code scanners are now being used to track incoming materials and to electronically transmit this data. Scanners have replaced which of the following:

Accepted Answer

A)   receiving report
B)   materials requisition
C)   materials ledger
D)   job cost sheetE) A) and C)
F) B) and C)

Question 14

Put the following in the order of the flow of manufacturing costs for a company
a. Closing under/over applied factory overhead to cost of goods sold
b. Materials purchased
c. Factory labor used and factory overhead incurred in production
d. Completed jobs moved to finished goods
e. Factory overhead applied to jobs according to the predetermined overhead rate
f. Materials requisitioned to jobs
g. Selling of finished product
h. Preparation of financial statements to determine gross profit

Accepted Answer

b. Materials purchased
f. Materials requ...

Question 15

During June, the receipts and issuances of Material No. A2FO are as follows:

Accepted Answer

The answer of During June, the receipts and issuances of...

Question 16

Crain Company budgeted 35,000 direct labor hours and incurred 40,000 direct labor hours. It incurred $780,000 of overhead and estimated overhead was $735,000.
What is Crain's predetermined overhead rate? Was overhead overapplied or underapplied for the year? By how much?

Accepted Answer

Predetermined overhead rate: $...

Question 17

The direct labor and overhead costs of providing services to clients are accumulated in:

Accepted Answer

A)   finished services expense
B)   work in process
C)   administrative salaries expense
D)   overheadE) A) and B)
F) A) and C)

Question 18

A manufacturer may employ a job order cost system for some of its products and a process cost system for others.

Accepted Answer

A) True 
 B)False

Question 19

Generally, period costs are classified as either

Accepted Answer

A)   selling expenses or production expenses.
B)   administrative expense or production expenses.
C)   selling expenses or administrative expenses.
D)   general expenses or selling expenses.E) All of the above
F) B) and C)

Question 20

Each account in the cost ledger in a job order system is called a job cost sheet.

Accepted Answer

A) True 
 B)False

Exam 2: Job Order Costing

When the goods are sold, their costs are transferred from Work in Process to Finished Goods.

Correct Answer
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During June, the receipts and issuances of Material No. A2FO are as follows:

Correct Answer
verified

Bar code scanners are now being used to track incoming materials and to electronically transmit this data. Scanners have replaced which of the following:

Correct Answer
verified

Correct Answer
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b. Materials purchased
f. Materials requ...
View Answer

Job order costing and process costing are

Correct Answer
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Each account in the cost ledger in a job order system is called a job cost sheet.

Correct Answer
verified

Crain Company budgeted 35,000 direct labor hours and incurred 40,000 direct labor hours. It incurred $780,000 of overhead and estimated overhead was $735,000. What is Crain's predetermined overhead rate? Was overhead overapplied or underapplied for the year? By how much?

Correct Answer
verified
Predetermined overhead rate: $...
View Answer

A manufacturer may employ a job order cost system for some of its products and a process cost system for others.

Correct Answer
verified

Which of the following is not true about why a service firm will use the job order costing system?

Correct Answer
verified

The entry to record the flow of direct labor costs into production in a job order cost accounting system is:

Correct Answer
verified

Information about costs developed through a job order cost system can not be used to evaluate an organization's cost performance.

Correct Answer
verified

The following are true regarding product costs except

Correct Answer
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The direct labor and overhead costs of providing services to clients are accumulated in:

Correct Answer
verified

Job cost sheets can provide information to managers for all but the following:

Correct Answer
verified

Generally, period costs are classified as either

Correct Answer
verified

The document that serves as the basis for recording direct labor on a job cost sheet is the time card.

Correct Answer
verified

Correct Answer
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(a) $660,000 / 100,000 = $6.60...
View Answer

Correct Answer
verified

Interim financial statements for a manufacturing business would report overapplied factory overhead as a deferred item on the balance sheet.

Correct Answer
verified

In a job order cost accounting system for a service business, materials costs are normally included as part of overhead.

Correct Answer
verified

Exam 2: Job Order Costing

When the goods are sold, their costs are transferred from Work in Process to Finished Goods.

Correct AnswerverifiedShow Answer

During June, the receipts and issuances of Material No. A2FO are as follows:

Correct AnswerverifiedShow Answer

Bar code scanners are now being used to track incoming materials and to electronically transmit this data. Scanners have replaced which of the following:

Correct AnswerverifiedShow Answer

Correct Answerverifiedb. Materials purchasedf. Materials requ...View AnswerShow Answer

Job order costing and process costing are

Correct AnswerverifiedShow Answer

Each account in the cost ledger in a job order system is called a job cost sheet.

Correct AnswerverifiedShow Answer

Crain Company budgeted 35,000 direct labor hours and incurred 40,000 direct labor hours. It incurred $780,000 of overhead and estimated overhead was $735,000. What is Crain's predetermined overhead rate? Was overhead overapplied or underapplied for the year? By how much?

Correct AnswerverifiedPredetermined overhead rate: $...View AnswerShow Answer

A manufacturer may employ a job order cost system for some of its products and a process cost system for others.

Correct AnswerverifiedShow Answer

Which of the following is not true about why a service firm will use the job order costing system?

Correct AnswerverifiedShow Answer

The entry to record the flow of direct labor costs into production in a job order cost accounting system is:

Correct AnswerverifiedShow Answer

Information about costs developed through a job order cost system can not be used to evaluate an organization's cost performance.

Correct AnswerverifiedShow Answer

The following are true regarding product costs except

Correct AnswerverifiedShow Answer

The direct labor and overhead costs of providing services to clients are accumulated in:

Correct AnswerverifiedShow Answer

Job cost sheets can provide information to managers for all but the following:

Correct AnswerverifiedShow Answer

Generally, period costs are classified as either

Correct AnswerverifiedShow Answer

The document that serves as the basis for recording direct labor on a job cost sheet is the time card.

Correct AnswerverifiedShow Answer

Correct Answerverified(a) $660,000 / 100,000 = $6.60...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Interim financial statements for a manufacturing business would report overapplied factory overhead as a deferred item on the balance sheet.

Correct AnswerverifiedShow Answer

In a job order cost accounting system for a service business, materials costs are normally included as part of overhead.

Correct AnswerverifiedShow Answer

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b. Materials purchased
f. Materials requ...
View Answer

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Predetermined overhead rate: $...
View Answer

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(a) $660,000 / 100,000 = $6.60...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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