Q&A Hero

Q: Alexandra Company’s Molding Department opened on July 1. During July, 70,000 units were completed and transferred out to the next department. On July 31, the 10,000 units that remained in inventory were 40% complete with respect to conversion costs and 100% complete with respect to materials. How many equivalent units of work did the Molding Department complete during July for materials and conversion costs?

Q: Match each of the following businesses to the type of cost system (a or b) it would most likely use.a. Job order cost systemb. Process cost systemLotions and cosmetics manufacturer

Q: Match each of the following phrases to the term (a–e) it best describes.a. Cost of production reportb. Equivalent units of productionc. Manufacturing cellsd. Yielde. Lean manufacturingWork centers for processing in a lean production process

Q: Match each of the following phrases to the term (a–i) it best describes.a. Direct labor and factory overheadb. Direct labor and direct materialsc. Transferred-in costsd. Equivalent unitse. Process costingf. Job order costingg. First-in, first-out methodh. Cost of production reporti. Whole unitsCost system used by a company producing custom window treatments

Q: Which of the following is not included in conversion costs? a. direct labor b. factory overhead c. indirect labor d. direct materials

Q: The materials equivalent units of production for the period are a. 48,000 b. 49,000 c. 43,000 d. 53,000

Q: Use this information about Super Co. to answer the questions that follow.The following unit data were assembled for the assembly process of Super Co. for the month of April. Direct materials are added at the beginning of the process. Conversion costs are added uniformly over the production process. The company uses the FIFO cost flow method. UnitsBeginning work in process (60% completed) 5,000Units started in April 48,000Ending work in process (30% completed) 4,000The conversion equivalent units of production for the period are a. 50,200 b. 48,000 c. 53,000 d. 46,200

Q: The two categories of cost comprising conversion costs are a. direct labor and indirect labor b. direct labor and factory overhead c. factory overhead and direct materials d. direct labor and direct materials

Q: Use this information about Department A to answer the questions that follow.Department A had 5,000 units in Work in Process that were 60% completed as to labor and overhead at the beginning of the period. There were 39,000 units of direct materials added during the period, 31,000 units were completed during the period, and 8,000 units were 80% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process, and the first-in, first-out cost flow method is used.The conversion equivalent units of production for the period are a. 34,400 b. 34,200 c. 32,400 d. 34,000

Q: Department E had 4,000 units in work in process that were 40% completed at the beginning of the period at a cost of $12,500. During the period, 14,000 units of direct materials were added at a cost of $28,700 and 15,000 units were completed. At the end of the period, 3,000 units were 75% completed. All materials are added at the beginning of the process. Direct labor was $32,450, and factory overhead was $18,710. The number of equivalent units of production for the period for conversion if the first-in, first-out method is used to cost inventories was a. 15,650 b. 14,850 c. 14,150 d. 14,650

Q: Use this information about the Assembly Department to answer the questions that follow.The debits to Work in Process—Assembly Department for April, together with data concerning production, are as follows:April 1, work in process: Materials cost, 3,000 units $ 7,500 Conversion costs, 3,000 units, 80% completed 6,000Materials added during April, 10,000 units 29,000Conversion costs during April 35,000Goods finished during April, 11,500 units —April 30 work in process, 1,500 units, 60% completed —All direct materials are added at the beginning of the process, and the average cost method is used to cost inventories. The cost per equivalent unit for April is a. $2.70 b. $6.25 c. $6.40 d. $6.74

Q: Lean manufacturing attempts to significantly reduce a. profits b. inventory needed to produce products c. waste and simplify the production process d. processing time

Q: Use this information about Department J to answer the questions that follow.Department J had no work in process at the beginning of the period. 18,000 units were completed during the period, and 2,000 units were 30% completed at the end of the period. The following manufacturing costs were debited to the departmental work in process account during the period:Direct materials (20,000 at $5) $100,000Direct labor 142,300Factory overhead 57,200Assume that all direct materials are added at the beginning of the process, the company uses the FIFO cost flow method, and unit cost computations are rounded to the nearest cent. The total cost of the departmental work in process inventory at the end of the period is a. $90,000 b. $283,140 c. $199,500 d. $16,438

Q: Use this information about Department S to answer the questions that follow.Department S had no work in process at the beginning of the period. It added 12,000 units of direct materials during the period at a cost of $84,000. During the period, 9,000 units were completed, and 3,000 units were 30% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. Direct labor was $49,500, and factory overhead was $9,900.The total conversion costs for the period were a. $59,400 b. $49,500 c. $143,400 d. $9,900

Q: Department K had 3,000 units 45% completed in process at the beginning of the period, 17,000 units completed during the period, and 1,200 units 40% completed at the end of the period. Assume the completion percentage applies to both direct materials and conversion costs, and the first-in first-out cost flow method is used. The conversion equivalent units of production for the period are a. 18,350 b. 16,310 c. 15,650 d. 16,130

Q: Department S had 500 units 60% completed in process at the beginning of the period, 9,000 units completed during the period, and 600 units 30% completed at the end of the period. Assume the completion percentage applies to both direct materials and conversion costs, and the first-in-first-out cost flow method is used. The conversion equivalent units of production for the period are a. 8,880 b. 9,300 c. 8,700 d. 9,000

Q: Lean manufacturing is a business philosophy that focuses on reducing time and cost and eliminating poor quality. This is accomplished in manufacturing and nonmanufacturing processes by a. moving a product from process to process as each function is completed b. combining processing functions into work centers and cross-training workers to perform more than one function c. having production supervisors attempt to enter enough materials into manufacturing to keep all manufacturing departments operating d. having workers typically perform one function on a continuous basis

Q: The following production data were taken from the records of the Finishing Department for June: Inventory in process, June 1, 25% completed 1,500 units Transferred to finished goods during June 5,000 units Equivalent units of production during June 5,200 units Determine the number of equivalent units of production in the June 30 Finishing Department inventory, assuming that the first-in, first-out cost flow method is used. The completion percentage of 25% applies to both direct materials and conversion costs. a. 575 units b. 200 units c. 1,000 units d. 300 units

Q: All of the following are characteristics of a process cost system except a. the system may use several work in process inventory accounts b. manufacturing costs are grouped by department rather than by job c. the system accumulates costs per job d. the cost flows are similar to the physical flow of materials through the production departments

Q: Use this information about Mocha Company to answer the questions that follow. Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $55,000, $65,000, and $80,000, respectively. In addition, work in process at the beginning of the period for Department 1 totaled $75,000, and work in process at the end of the period totaled $60,000. The journal entry for the flow of costs into Department 1 for direct labor is a. Work in Process—Department 1 65,000 Wages Payable 65,000 b. Wages Payable 125,000 Work in Process—Department 1 125,000 c. Work in Process—Department 1 125,000 Wages Payable 125,000 d. Wages Payable 65,000 Work in Process—Department 1 65,000

Q: The cost system best suited to industries that manufacture a large number of products that are indistinguishable from each other using a continuous production process is the a. process cost system b. departmental cost system c. first-in, first-out cost system d. job order cost system

Q: For which of the following businesses would a process cost system be appropriate? a. boat repair service b. shampoo manufacturer c. dressmaker d. custom furniture manufacturer

Q: When a firm adopts lean manufacturing, a. new, more efficient machinery and equipment must be purchased and installed in the original layout b. machinery and equipment are moved into small autonomous production lines called manufacturing cells c. new machinery and equipment must be purchased from franchised JIT dealers d. employees are retrained on different equipment but the plant layout generally stays unchanged

Q: Use this information about Department J to answer the questions that follow. Department J had no work in process at the beginning of the period. 18,000 units were completed during the period, and 2,000 units were 30% completed at the end of the period. The following manufacturing costs were debited to the departmental work in process account during the period: Direct materials (20,000 at $5) $100,000Direct labor 142,300Factory overhead 57,200 Assume that all direct materials are added at the beginning of the process, the company uses the FIFO cost flow method, and unit cost computations are rounded to the nearest cent. The total cost of the 18,000 units completed during the period is a. $199,500 b. $299,500 c. $256,500 d. $283,140

Q: The three categories of manufacturing costs comprising the total cost of work in process are direct labor, direct materials, and a. selling expenses b. direct expenses c. accounting salaries expense d. factory overhead

Q: Use this information about the Finishing Department to answer the questions that follow. The following production data were taken from the records of the Finishing Department for June: Inventory in process, June 1 (30% completed) 4,000 units Completed units during June 65,000 units Ending inventory (60% complete) 7,000 units All direct materials are added at the beginning of the process, and the first-in-first-out cost flow method is used. The conversion equivalent units of production in the June 30 Finishing Department inventory are a. 68,000 units b. 70,400 units c. 66,200 units d. 4,200 units

Q: Carolwood Company manufactures widgets and uses process costing. The status of the beginning and ending inventory is as follows:Beginning inventory 30% of the manufacturing process is completeEnding inventory 55% of the manufacturing process is completeDirect materials are added to the manufacturing process in stages. None are added when production begins. Approximately half of the materials are added when the product is 25% complete. The other half is added when the product is 50% complete.What percentage complete are beginning inventory and ending inventory with respect to direct materials (DM) and conversion costs (CC)? a. Beg. inventory: DM—50%, CC—30%End. inventory: DM—100%, CC—55% b. Beg. inventory: DM—50%, CC—30%End. inventory: DM—55%, CC—55% c. Beg. inventory: DM—30%, CC—30%End. inventory: DM—55%, CC—55% d. Beg. inventory: DM—50%, CC—70%End. inventory: DM—100%, CC—45%

Q: Department R had 5,000 units in work in process that were 75% completed as to labor and overhead at the beginning of the period. During the period, 30,000 units of direct materials were added, 32,000 units were completed, and 3,000 units were 40% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. The first-in, first-out method is used to cost inventories. The number of equivalent units of production for conversion costs for the period was a. 32,450 b. 29,450 c. 31,950 d. 26,000

Q: Department A had 1,000 units in Work in Process that were 60% completed at the beginning of the period at a cost of $7,000. During the period, 4,000 units of direct materials were added at a cost of $8,200 and 4,500 units were completed. At the end of the period, 500 units were 40% completed. All materials are added at the beginning of the process. Direct labor was $28,700, and factory overhead was $4,510. The cost of the 500 units in process at the end of the period if the first-in, first-out cost flow method is used was a. $3,240 b. $5,175 c. $2,569 d. $2,645

Q: Which of the following measures would not help managers to control and improve operations? a. units produced per time period b. cost trends of a product c. yield trends d. commissions paid per time period

Q: Which of the following costs incurred by a paper manufacturer would be included in the group of costs referred to as conversion costs? a. accounting department costs b. raw lumber c. assembly labor's wages d. administrative salaries

Q: In a process cost system, the cost of completed production in Department A is transferred to Department B by which of the following journal entries? a. debit Work in Process—Dept. B; credit Work in Process—Dept. A b. debit Work in Process—Dept. B; credit Finished Goods—Dept. A c. debit Work in Process—Dept. B; credit Cost of Goods Sold—Dept. A d. debit Finished Goods—Dept. A; credit Work in Process—Dept. B

Q: On May 15, the Stamping Department accepted Job 051507A to make 1,000 funnels. Materials requisitioned were 1,100 sheets at $1.20 per sheet and 1,150 grommets at $0.15 per set. The activity base used by the Stamping Department is the drop-forge strokes indicated by a machine-mounted counter. The counter indicated 1,115 strokes were used on the job in the current period. Factory overhead is applied at $2.25 for each drop-forge stroke. Additionally, $375 of overhead is applied to each job due to setup and tear down. Direct labor is applied at $22.50 per hour for the machine operator and $11.10 for the machine loader. The job required 6.5 hours of labor. Upon completion, the job was transferred to finished goods inventory. Journalize all events as of May 15.

Q: National Survey Company uses a job order cost system. a. Indicate the source of the data for debiting Work in Process for each of the following: (1) Direct materials requisitioned (2) Direct labor used b. Indicate the source of the data for crediting Work in Process for jobs completed. c. Present a list of the three controlling accounts used in the general ledger to record the inventories and, in each case, indicate the related subsidiary ledger.

Q: Discuss the use of job order costing for professional services businesses. What are the similarities and differences between service and manufacturing business job order costing?

Q: Define and discuss the two main types of cost accounting systems for manufacturing operations. What are their similarities and differences?

Q: Six selected transactions for the current month are indicated by letters in the following T accounts in a job order cost accounting system:Materials Work in Process (a)​ (a)(d) ​ (b)​ (c)​ Wages Payable (f) (b)​ Factory Overhead Finished Goods (a) (c)​ (d)(e) ​(b) (f)​ (f)​ Cost of Goods Sold (e) (f) Describe each of the six transactions.

Q: Cranston Company estimates the following overhead costs for the coming year:Equipment depreciation $160,000Equipment maintenance60,000Supervisory salaries40,000Factory rent 100,000Total$360,000Cranston is also budgeting $600,000 in direct labor costs and 15,000 machine hours for the coming year.a. Compute the predetermined factory overhead rate using direct labor costs as the allocation base.b. Compute the predetermined factory overhead rate using machine hours as the allocation base.

Q: On November 2, Newsprint Manufacturing purchases 5 rolls of paper on account at $125 per roll for use within the production process. On November 5, 4 rolls of this paper are issued to Job 157A in the Printing Department. The Printing Department records $675 in direct labor and $1,150 of factory overhead to Job 157A. On November 8, Printing transfers Job 157A to the Folding Department. The Folding Department applies $450 in direct labor and $655 in factory overhead to Job 157A. Job 157A is transferred to finished goods inventory on November 9. a. Journalize the purchase of the paper. b. Journalize the transfer of raw materials to work in process, the application of direct labor, and the application of manufacturing overhead to Job 157A while in the Printing Department. c. Journalize the transfer of Job 157A to the Folding Department at actual cost. d. Journalize the application of direct labor and the application of manufacturing overhead to Job 157A while in the Folding Department. e. Journalize the transfer of Job 157A to finished goods inventory at actual cost.

Q: Cavy Company estimates that total factory overhead for the following year will be $1,470,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 40,000 hours. The machine hours for the month of April for all of the jobs were 4,780. Journalize the entry to apply factory overhead.

Q: Cavy Company estimates that total factory overhead costs will be $660,000 for the year. Direct labor hours are estimated to be 100,000. a. Determine the: (1) Predetermined factory overhead rate (2) 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 b. Journalize the entry to apply factory overhead for April, assuming Jobs 560 and 777 are the only jobs in production during the month.

Q: A summary of the time tickets for August follows:Job No.AmountDescriptionAmount321$11,000 342$8,300 329 9,200 346 5,700 336 5,000 Indirect 8,000 Journalize the entries for (a) the labor cost incurred and (b) the application of factory overhead to production for August. The factory overhead rate is 70% of direct labor cost.

Q: The balance of Material Q on May 1 and the receipts and issuances during May are as follows:Balance, May 1 8 at $32Received, May 1123 at $33Received, May 2515 at $35 Issued, May 1714Issued, May 2718Determine the cost of each of the issuances under a perpetual system, using the FIFO method.

Q: Crain Company budgeted 35,000 direct labor hours and incurred 40,000 direct labor hours during the year. It estimated factory overhead at $735,000 and actually incurred $780,000 of factory overhead costs for the year. a. Compute the predetermined factory overhead rate for the year. b. Compute the amount of applied factory overhead for the year. c. Determine the amount of under- or overapplied factory overhead for the year.

Q: Journalize the following transactions:

Q: During April, Cavy Company incurred factory overhead as follows: Indirect materials$11,000Factory supervision labor4,000Utilities 500Depreciation (factory)700Equipment rental750Journalize the factory overhead incurred during April.

Q: The following account appears in the ledger after only part of the postings have been completed for July, the first month of the current fiscal year:Work in ProcessJuly 1 Balance60,200 Direct materials147,000 Direct labor120,000 Factory overhead is applied to jobs at the rate of 60% of direct labor cost. The actual factory overhead incurred for July was $75,000. Jobs completed during the month totaled $301,200.a. Journalize the entries for (1) the application of factory overhead to production during July and (2) the jobs completed during July.b. What is the balance of the factory overhead account on July 31?c. Was factory overhead over- or underapplied on July 31?d. Determine the balance of Work in Process on July 31.

Q: Journalize the entries for the following summarized operations related to production for a company using a job order cost system: a. Materials purchased on account $176,000 b. Materials requisitioned: For production orders 153,700 For general factory use 2,700 c. Factory labor used: On production orders 141,300 For general factory purposes 12,000 d. Depreciation on factory equipment 37,000 e. Expiration of prepaid expenses, chargeable to factory 6,100 f. Factory overhead costs incurred on account 76,000 g. Factory overhead applied, based on machine hours 105,300 h. Jobs finished 415,300 i. Jobs shipped to customers: Selling price (assume all sold on account) 638,000 Cost of goods sold 412,000

Q: Winston Company estimates that total factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 50,000 hours. The total actual machine hours for the year were 54,300 hours. The actual factory overhead for the year was $1,348,800. a. Determine the total factory overhead applied. b. Compute the over- or underapplied factory overhead for the year. c. Journalize the entry to close Factory Overhead to Cost of Goods Sold.

Q: Flagler Company allocates factory overhead based on machine hours. It estimated total factory overhead costs for the year to be $420,000 and estimated machine hours to be 50,000. Actual hours and costs for the year were 46,000 machine hours and $380,000 of factory overhead. a. Compute the predetermined factory overhead rate for the year. b. Compute the amount of applied factory overhead for the year. c. Determine the amount of under- or overapplied factory overhead for the year.

Q: Cavy Company accumulated 560 hours of direct labor on Job 345 and 800 hours on Job 777. The direct labor was incurred at a rate of $20 per direct labor hour for Job 345 and $21 per direct labor for Job 777. Journalize the entry for the flow of labor costs into production.

Q: On November 14, the Milling Department accepted Job 111407A for 1,000 pounds of cereal mix.Materials:Standard Qty.Standard Cost Oats525 pounds$1.25 per pound Wheat450 pounds$1.15 per pound Barley85 pounds$1.45 per pound Malt65 pounds$2.15 per pound Honey25 quarts$1.20 per quart Water25 gallons$0.45 per gallonTime: Miller4.5 hours$22.75 per hour Loader1.5 hours$11.50 per hourOverhead is applied at $5.75 per pound completed. The recipe produced 1,025 pounds of cereal mix.a. Journalize the entry for the issuance of raw materials to Job 111407A.b. Journalize the entry for direct labor incurred for Job 111407A.c. Journalize the entry to apply manufacturing overhead to Job 111407A.d. Journalize the entry to transfer Job 111407A to finished goods on November 14.

Q: Harper Company uses a job order cost system. Journalize the entries for materials and labor, based on the following data: Raw materials issued: Job No. 609, $850; for general use in factory, $600 Labor time tickets: Job No. 609, $1,600; $400 for supervision

Q: The following is a list of costs incurred by several business organizations:a. Telephone cable for a telephone companyb. Membership fees for a health club for executivesc. Salary of the director of internal auditingd. Long-distance telephone bill for calls made by salespersonse. Carrying cases for a manufacturer of video camcordersf. Cotton for a textile manufacturer of blue jeansg. Bandages for the emergency room of a hospitalh. Cost of company holiday partyi. Electricity used to operate factory machineryj. State unemployment compensation taxes for factory workersk. Gloves for factory machine operatorsl. Fees paid for lawn service for office groundsm. Salary of secretary to vice president of financen. Salary of secretary to vice president of marketingo. Production supervisor's salaryp. Engine oil for manufacturer and distributor of motorcyclesq. Oil lubricants for factory plant and equipmentr. Cost of a radio commercials. Depreciation on factory equipmentt. Wages of checkout clerk in company-owned retail outletu. Maintenance and repair costs for factory equipmentv. Depreciation on office equipmentw. Bonuses paid to salespersonsx. Insurance on factory buildingy. Training for accounting personnel on use of microcomputerz. Steel for a construction contractorClassify each of the preceding costs as product costs or period costs. For those costs classified as product costs, indicate whether the product cost is a direct materials cost, direct labor cost, or factory overhead cost. For those costs classified as period costs, indicate whether the period cost is a selling expense or an administrative expense. Use the following tabular headings for preparing your answer. Place an X in the appropriate column. ​ Product Cost Period Cost ​​CostDirectMaterials Cost DirectLabor Cost FactoryOverhead Cost ​SellingExpense​Administrative Expense

Q: At the end of April, Cavy Company had completed Jobs 765 and 766. The individual job cost sheets reveal the following information:JobDirect MaterialsDirect LaborMachine HoursJob No. 765$5,670$3,50027Job No. 766 8,900 4,77544Job 765 produced 152 units, and Job 766 consisted of 250 units.Assuming that the predetermined factory overhead rate is applied by using machine hours at a rate of $200 per hour, determine the (a) balance on the job cost sheets for each job and (b) the cost per unit at the end of April.

Q: Discuss how job order cost information is used in decision making. What are some possible reasons that actual cost of materials would exceed expected costs for a job?

Q: At the end of the period, Carson Company had the following balances in selected accounts:Materials$ 80,000Finished goods190,000Work in process70,000Cost of goods sold1,000,000Factory overhead30,000a. The factory overhead balance is relatively small; journalize the entry to close the factory overhead account assuming a debit balance. What does a debit balance mean?b. The factory overhead balance is relatively small; journalize the entry to close the factory overhead account assuming a credit balance. What does a credit balance mean?

Q: Cavy Company completed 26,000 units during the year at a cost of $2,139,800. The beginning finished goods inventory was 5,000 units valued at $405,000. Assuming a FIFO cost flow, determine the cost of goods sold for 20,000 units.

Q: Technics Inc., a manufacturing company, utilizes job order costing. Each division establishes its own estimates regarding overhead, which are as follows: Division ADivision BTotal estimated factory overhead$128,000$261,000Total estimated machine hours 16,000 72,500Total estimated direct labor hours$155,000$290,000If Division A allocates overhead on the basis of machine hours and Division B allocates overhead as a percentage of direct labor costs, what would the predetermined factory overhead rate be for each division?

Q: During August, the receipts and distributions of Material No. B4G9 are as follows: ReceivedAug. 31,100 units at $15 161,700 units at $17 29900 units at $18 IssuedAug. 11700 units for Job No. 116 181,900 units for Job No. 117 30800 units for Job No. 118a. Determine the cost of each of the three issues under a perpetual system, using the first-in, first-out method.b. Journalize a summary entry for the issuance of the materials for the month, assuming that the cost of issuances is determined by the first-in, first-out method.

Q: Put the following in the order of the flow of manufacturing costs for a company: a. Closing under/overapplied 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

Q: List the accounts used in the cost flow for (a) a manufacturer and (b) a service provider.

Q: Jase Company allocates factory overhead based on a predetermined factory overhead rate of $9.00 per direct labor hour. Job J904 required 8 tons of direct material at a cost of $600 per ton and took employees who earn $21 per hour a total of 80 hours to complete. What is the total cost of Job J904?

Q: Match each of the following phrases with the term (ag) that it most closely describes.a. Job order cost systemb. Process cost systemc. Activity-based costingd. Underapplied overheade. Overapplied overheadf. Finished goods ledgerg. Materials ledgerApplied overhead is less than actual overhead incurred

Q: Match each of the following phrases with the term (ae) that it most closely describes. Each term will be used only once.a. Job cost sheetsb. Materials requisitionsc. Receiving reportd. Time ticketse. Cost allocationServe as the basis for recording materials used

Q: Match each of the costs that follow to the type of product cost (ac) it represents, or designate it as not a product cost (d).a. Direct laborb. Direct materialsc. Factory overheadd. Not a product costMaintenance supplies

Q: Which of the following systems provides for a separate record of the cost of each particular quantity of product that passes through the factory?a. job order cost systemb. general cost systemc. replacement cost systemd. process cost system

Q: The journal entry for the transfer of 1,600 units of Part No. 1177, with a value of $2.50 each, to work in process is a. Materials 4,000 Work in Process 4,000 b. Work in Process 4,000 Factory Overhead 4,000 c. Work in Process 4,000 Materials 4,000 d. Work in Process 4,000 Cash 4,000

Q: A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that total factory overhead costs would be $360,000 and direct labor hours would be 30,000. Actual manufacturing overhead costs incurred were $377,200, and actual direct labor hours were 36,000. The journal entry to apply the factory overhead costs for the year would include a a. debit to Factory Overhead for $360,000 b. credit to Factory Overhead for $432,000 c. debit to Factory Overhead for $377,200 d. credit to Factory Overhead for $360,000

Q: When journalizing indirect labor in a job order cost system, the debit is charged to a. Wages Expense b. Wages Payable c. Factory Overhead d. Cost of Goods Sold

Q: Use the budget and actual data provided for Sharp Company to answer the questions that follow. Sharp CompanyEstimated direct labor hours12,000Estimated direct labor dollars$90,000Estimated factory overhead costs$179,000Actual direct labor hours11,500Actual direct labor dollars$92,000Actual factory overhead costs$180,000If factory overhead is to be applied based on direct labor dollars, the predetermined factory overhead rate isa. 199%b. 196%c. $14.92d. $15.65

Q: Costs that are treated as assets until the product is sold area. product costsb. period costsc. conversion costsd. selling expenses

Q: Thomlin Company forecasts that total factory overhead for the current year will be $15,000,000 with 300,000 total machine hours. Year to date, the actual overhead is $16,000,000, and the actual machine hours are 330,000 hours. If Thomlin Company uses a predetermined factory overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is a. $1,000,000 overapplied b. $1,000,000 underapplied c. $500,000 overapplied d. $500,000 underapplied

Q: Aspen Technologies has the following budget data: Estimated direct labor hours 15,000 Estimated direct labor dollars $90,000 Estimated total factory overhead costs $198,000 If factory overhead is to be applied based on direct labor hours, the predetermined factory overhead rate is a. $7.50 b. $13.20 c. $2.20 d. $16.50

Q: When an employee reports for work, he or she may register with a. an electronic badge b. a clock card c. an in-and-out card d. All of these choices

Q: Job order costing and process costing are a. pricing systems b. cost accounting systems c. cost flow systems d. inventory tracking systems

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

Q: Period costs are classified as either a. selling expenses or production expenses b. administrative expense or production expenses c. selling expenses or administrative expenses d. general expenses or selling expenses

Q: Recording jobs shipped and customers billed would include a debit to a. Accounts Payable b. Cash c. Finished Goods d. Cost of Goods Sold

Q: Use the information provided for Adams Company to answer the questions that follow.Adams Company is a manufacturing company that has worked on several production jobs during the first quarter of the year. The balances for the jobs for the quarter are as follows:Job. No.Balance356$ 450357 1,235358 378359 689360 456Jobs 356, 357, 358, and 359 were completed. Jobs 356 and 357 were sold at a profit of $500 on each job.What is the gross profit for Adams Company at the end of the first quarter?a. $1,685b. $2,685c. $1,000d. $685