1)
What are
the two basic types of costing systems?
A) product costing and materials inventory
costing
B) job costing and process costing
C)
periodic costing
and process costing
D)
periodic costing
and perpetual costing
2) Which
costing system would better account for a unique individual
product?
A) job costing system
B)
product costing system
C)
process costing system
D)
overhead
costing system
3) What type of businesses can use a job costing
system?
A) service and manufacturing businesses
B)
Service and merchandising businesses
C)
manufacturing and merchandising businesses
D) Service, merchandising, and manufacturing businesses
4) Which of the following is an example of an industry that would
use a process costing system rather than a job costing system?
A) custom furniture
B)
unique furniture accessories
C) paint
D) aircraft
5) Job costing is most likely
used in which
of the following industries?
A) pharmaceuticals
B) printing
C)
chemicals
D)
food and beverage
6) The document used to accumulate
the costs of a job is called the:
A) manufacturing
overhead document.
B) job cost record.
C)
labor time ticket.
D)
materials inventory
requisition form.
7)
Which of the following companies is most likely to use
job costing?
A) Exxon Mobil Oil Refinery
B) Elizabeth's Custom Furniture Company
C) DuPont
Chemical Company
D) Kellogg's
Cereal Company
8) _____ is assigning
costs such as direct materials and direct labor
to products.
A) Cost assigning
B) Cost tracing
C)
Cost allocation
D)
None of the these
9) What type of costing system
would
a manufacturer of plywood
use?
A) job costing
B) process costing
C)
either job costing or process costing
D)
both job costing
and process costing
10) What type of costing system would a manufacturer of luxury yachts use?
A) job costing
B)
process costing
C) either job costing or process costing
D)
both job costing
and process costing
11) The entry to record the purchase of materials
on account using a
job costing system
would
include a:
A) debit to materials inventory.
B)
debit to accounts payable.
C) debit to work in process inventory.
D)
credit to work in process inventory.
12)
Which of the following would be debited
to record the requisition of direct
materials?
A) materials inventory
B) work in process inventory
C)
finished goods inventory
D)
cost of goods
manufactured
13) Which of the following would be debited
to record direct labor costs
actually incurred?
A) wages payable
B) manufacturing wages
C)
manufacturing overhead
D)
finished goods inventory
14) Which of the following would be debited to assign
the costs of indirect
labor?
A) manufacturing overhead
B)
wages payable
C) finished
goods inventory
D)
work in process inventory
15) Which of the following would be credited to accumulate the actual labor costs incurred?
A) manufacturing overhead
B)
work in process inventory
C)
manufacturing wages
D) wages payable
16)
The ______ _ is a
document prepared by manufacturing
personnel to request materials for the production process.
A)
cost ticket
B)
manufacturing ticket
C)
job order card
D) materials requisition
17)
The entry to transfer direct labor and indirect
labor costs from manufacturing
wages into production includes
a debit to which of the following?
A) manufacturing overhead and work in process inventory
B)
finished goods inventory
C) manufacturing overhead
D)
finished goods inventory
and work in process inventory
18)
In job costing, indirect materials used in production are
credited to which of the following?
A)
finished goods inventory
B) materials inventory
C) manufacturing overhead
D) work in process inventory
19) In job costing, direct
materials used in production are debited to which
of the following?
A)
manufacturing overhead
B) work in process inventory
C) finished
goods inventory
D) either manufacturing overhead or work in process inventory
20) The Hemingway Company uses a job costing system. In April, material requisitions of $44,000 were issued (direct materials, $40,000) and
materials purchases of both
direct and indirect materials
totaled $56,600. The ending balance
in
materials inventory was $18,400. What
was the beginning
balance?
A) $5,800 B) $31,000 C) $25,600
D) none of the above
21) Direct materials flow
directly into what
account?
A)
cost of goods
sold
B)
finished goods inventory
C)
manufacturing overhead
D) work in process inventory
22) Allocation
of direct and indirect materials
requires a credit to
what account?
A) materials inventory
B) manufacturing overhead
C) work in process inventory
D) finished
goods inventory
23) The journal entry to issue $500 of direct materials
and $30 of indirect
materials to production involves a debit to
what account(s)?
A) work in process inventory for $500 and a debit to manufacturing overhead for $30
B) work in process inventory for $500 and a credit to manufacturing
overhead for $30
C) manufacturing
overhead for $530
D) work in process inventory for $530
24)
The journal entry to assign $1,500 of
direct labor and $200
of indirect labor for the current period involves a debit to what account(s)?
A)
manufacturing overhead for $1,700
B)
work in process
inventory
for $1,500 and
a credit to manufacturing overhead for $200
C) work in process inventory for $1,500 and a debit to manufacturing overhead for $200
D) work in process inventory for $1,700
25) Specialty
Wood Products company had the following labor related transactions at it plant last month:
|
Woodworkers' wages
|
100,000
|
|
Staining tank workers' wages
|
20,000
|
|
Maintenance personnel wages
|
10,000
|
What is the journal entry to record the assignment
of these wages?
|
A)
Wages payable (cash) Manufacturing wages
B) Work in process inventory
|
130,000
130,000
|
130,000
|
|
Manufacturing wages
|
|
130,000
|
|
C)
Manufacturing wages
|
130,000
|
|
|
Wages
payable (cash)
|
|
130,000
|
|
D) Work in process inventory
|
100,000
|
|
|
Manufacturing overhead
|
30,000
|
|
|
Wages
payable (cash)
|
|
130,000
|
26)
Which of the following entries would be made to record the purchase of $20,000 in
materials on account for Jake's Custom Furniture?
|
A)
Accounts payable
Work in process inventory
B)
Work in process inventory
Accounts payable
|
20,000
20,000
|
20,000
20,000
|
|
C) Materials Inventory
Accounts payable
D) Accounts
payable
|
20,000
20,000
|
20,000
|
|
Materials inventory
|
|
20,000
|
27)
Which of the following entries would be made to record $10,000 of direct materials
and $5,000 of indirect
materials used in production by Jake's Custom Furniture?
|
A) Manufacturing
overhead Materials inventory
|
15,000
|
15,000
|
|
B) Work
in process inventory
|
10,000
|
|
|
Manufacturing overhead
|
5,000
|
|
|
Materials inventory
C) Materials inventory
|
15,000
|
15,000
|
|
Work in process inventory
|
|
15,000
|
|
D) Work in process inventory
|
15,000
|
|
|
Materials inventory
|
|
15,000
|
28)
Which of the following entries would be made to assign
$10,000 of manufacturing labor to jobs, 70% of
which was direct labor and
30% of
which was indirect labor?
|
A)
Manufacturing overhead
Manufacturing wages
|
10,000
|
10,000
|
|
B) Work in process
inventory
|
7,000
|
|
|
Manufacturing overhead Manufacturing wages
|
3,000
|
10,000
|
|
C)
Manufacturing wages
|
10,000
|
|
|
Work in process inventory
|
|
7,000
|
|
Manufacturing overhead
|
|
3,000
|
|
D) Work
in
process inventory
|
10,000
|
|
|
Manufacturing wages
|
|
10,000
|
29)
The journal entry to record $200 of depreciation on factory equipment for
the current period involves which of
the following?
A) debit to accumulated
depreciation-factory equipment for $200
B) credit to manufacturing overhead for $200
C) debit to depreciation expense-factory equipment for $200
D) debit to manufacturing overhead for $200
30)
Lakeside Company's
schedule of cost of goods manufactured
showed the
following amounts
for April:
|
Cost of
goods manufactured
|
$69,300
|
|
Direct materials used
|
27,000
|
|
Direct labor ($15 per hour)
|
30,000
|
|
Work in process inventory, April 1
|
9,000
|
Manufacturing overhead is allocated at the rate of $4.00
per direct labor hour.
What is the work in
process inventory on April 30?
A) $11,700 B) $3,300 C)
$4,700 D) $2,700
31) On January 1, 2009, Matthew Company's work in process inventory account had a balance of
$30,000. During 2009, $58,000 of direct
materials were placed into production.
Manufacturing wages incurred amounted to $84,000, of which $66,000 were for
direct labor. Manufacturing overhead is allocated on the basis of 120% of direct labor
cost. Actualmanufacturing overhead was
$90,000. Jobs costing
$220,400 were completed during 2009. What is the December 31, 2006, balance
in
work in process inventory?
A) $16,800 B) $34,800 C) $6,000 D) $12,800
32)
The records at
Smith
and Jones Company show
Job. No. 110 charged
with $11,000 of direct
materials and
$12,500 of direct labor.
Smith and Jones Company allocates
manufacturing overhead at 85% of direct
labor cost. What is the total cost of Job No. 110?
A) $20,625
B)
$34,125 C) $22,500 D)
$21,625
33)
Davie Company uses estimated direct labor hours
of 180,000 and estimated manufacturing
overhead costs of
$990,000 in establishing its 2009 predetermined manufacturing overhead rate. Actualresults showed:
Actual manufacturing
overhead $950,000
Allocated manufacturing overhead 962,500
What were the number
of direct labor hours worked during 2009? A) 180,000
B) 186,000
C) 192,000
D) 175,000
34)
Opague Corporation uses a job costing system. The work in process inventory balance on
December 31, 2009,
consists of Job No. 120,
which has a balance of
$19,000. Job No. 120
has been charged with manufacturing
overhead of $5,100. Opaque allocates
manufacturing overhead at a predetermined rate
of 85%
of direct labor cost. What was the amount of direct
materials charged to Job No. 120?
A) $7,900
B) $7,000 C) $7,565 D)
$5,900
35) On January 1, 2009, Jackson Company's work in process
inventory account had a balance of
$65,000. During 2009,
materials requisitioned for use in production
amounted to $70,000, of
which $66,000 represented direct materials.
Factory wages for the period were $209,000, of which $186,400 were for direct labor. Manufacturing overhead is allocated
on the basis of 60% of direct labor cost. Actualoverhead was $116,440. Jobs
costing $353,240 were completed during 2009. The December 31, 2009, balance in work in process inventory is:
A) $80,000 B) $72,800 C) $107,200 D) $76,000
36)
Marion Company uses a job costing system. The work in process inventory on December 31, 2009, consisted of Job No. 175 with a
balance of $53,400. Job
No. 175 has been charged with manufacturing
overhead of
$16,000. Marion allocates manufacturing overhead at a
rate of 80% of direct labor
cost. What was the amount of direct materials
charged to Job No. 175?
A) $20,000 B) $24,600 C) $17,400 D) $7,400
37)
Lakeside Company estimated manufacturing overhead costs for
2009 at $378,000, based on 180,000
estimated direct labor hours.
Actual direct labor hours
for 2009 totaled 195,000. Manufacturing
overhead contains debit entries
totaling $391,500. What was
the amount of manufacturing overhead for 2009?
A) $31,500
underallocated
B)
$31,500 overallocated
C) $18,000
underallocated
D) $18,000 overallocated
38) Forsyth Company uses estimated direct labor hours
of 150,000 and estimated manufacturing
overhead costs of $337,500 in establishing
its 2066 predetermined
manufacturing overhead rate. Actualresults showed:
Actual manufacturing
overhead $346,500
Allocated manufacturing overhead 343,800
The number
of direct labor hours worked during the period was:
A) 154.000.
B) 152,800.
C) 150,000.
D) none of the above.
39) How is the predetermined
manufacturing
overhead rate used to allocate manufacturing
overhead calculated?
A) by dividing the total estimated manufacturing overhead costs by the total estimated quantity of allocation base
B)
by dividing the total estimated quantity of allocation base
by the total estimated manufacturing
overhead costs
C) by multiplying the total estimated manufacturing overhead costs by
the total estimated quantity of allocation
base
D)
by dividing the total estimated manufacturing overhead costs by
the total actualquantity of the allocation base
40)
Allison Corporation
reports end-of-year data as follows for 2009:
|
Sales revenue
|
$570,000
|
|
Actual manufacturing overhead
|
103,600
|
|
Allocated manufactured overhead
|
96,000
|
|
Cost of
goods sold
|
368,000
|
Allison Corporation adjusts cost
of goods
sold for any balance in the manufacturing overhead account at the end of
the year. What is the
gross profit of Allison Corporation?
A) $184,400 B) $194,400 C) $192,000 D) $199,600
41)
Door Company estimated manufacturing overhead costs for 2009 at $378,000. The predetermined
manufacturing overhead rate was based on
105,000 estimated direct labor
hours. Actual direct labor
hours for 2009 totaled 110,000.
The manufacturing overhead account showed debit entries totaling $394,000. For
the year, was overhead over or underallocated and by
how much?
A) $16,000
underallocated
B) $2,000 overallocated
C)
$2,000 underallocated
D)
$16,000 overallocated
42)
Davidson Company's
manufacturing overhead account showed a $6,200 underallocated
balance on December 31, 2009. Other accounts showed the following
balances on December 31, 2009:
|
Materials inventory
|
$50,000
|
|
Work in process inventory
|
30,000
|
|
Finished goods inventory
|
20,000
|
|
Cost of
goods sold
|
100,000
|
Davidson adjusts costs of goods sold for
the balance in manufacturing overhead. What is the balance
in
cost of goods sold after
closing
out the
balance in manufacturing overhead?
A) $93,800 B) $103,100 C) $106,200 D) $100,000
43) Wake Corporation reports the following balances at December 31, 2009:
|
Sales revenue
|
$360,000
|
|
Cost of
goods sold
|
206,000
|
|
Allocated manufacturing overhead
|
78,800
|
|
Actual manufacturing overhead
|
72,800
|
Wake adjusts cost of goods sold
for any balance in
the manufacturing overhead
account at the end of the year.
What is
the gross
profit of Wake
Corporation
for the year
ended December 31, 2009?
A) $160,000
B) $172,000 C) $154,000 D) $148,000
44)
Clyde Company gathered the following information for
the year ended December 31, 2009:
|
Direct labor cost incurred
|
$165,000
|
|
Estimated
manufacturing overhead costs
|
$231,000
|
|
Estimated direct labor cost
|
$3,080,000
|
|
Work in process inventory, Dec, 31,
2009
|
$50,000
|
|
Finished goods
inventory, Dec. 31, 2009
|
$65,000
|
|
Cost of
goods sold
|
$135,000
|
|
Estimated direct labor hours
|
308,000
|
|
Clyde Company uses a job costing
system.
|
|
Assume that manufacturing overhead
is underallocated
on December 31, 2009, by
$17,000. After closing out
manufacturing overhead, what would the balance
be in cost of goods
sold?
A) $152,000
B) $143,500 C) $160,500 D) $118,000
45)
Manufacturing overhead is overallocated $1,000 at the end
of the
current period. The
journal entry to dispose of the overallocated
overhead balance involves a
debit
to:
A) manufacturing overhead and a credit to cost of goods sold for $1,000
B)
cost of goods sold and
a credit to manufacturing overhead for $1,000
C) manufacturing
overhead and a credit to
work in
process inventory for $1,000
D)
cost of goods sold and a credit to finished goods inventory for $1,000
46)
Actual manufacturing overhead for the
current period is $19,600
while allocated
manufacturing overhead for the current period is $18,700. What
is the proper entry to dispose of the manufacturing overhead balance?
A) debit cost of goods sold and credit manufacturing overhead for $900
B)
debit cost of goods sold and
credit finished goods inventory for $900
C) debit manufacturing
overhead and credit cost
of goods sold for $900
D)
debit manufacturing
overhead and credit work
in process
inventory
for $900
47) When a job is completed in a job costing
system, the journal entry
involves
which accounts?
A) a debit to finished goods inventory and a credit to work in process inventory for the cost of the job
B)
a debit to
finished
goods inventory and a credit to work in process
inventory
for the sales price
of the
job
C) a debit to cost of goods sold and a credit to finished goods inventory for
the cost of the job
D)
a debit to
work in
process inventory and a credit to finished goods inventory for
the
cost of the job
48) Actual manufacturing overhead
for 2009 amounts to $102,500, allocated
manufacturing overhead for 2009
amounts to $98,700. By
how much is manufacturing overhead over/underallocated?
A) $3,800 underallocated
B)
$1,900 underallocated
C) $1,900 overallocated
D)
$3,800 overallocated
49) Which of the following is the most significant
cost for a service company
which used job order
costing?
A) labor costs
B)
indirect costs
C) supplies costs
D)
overhead costs
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