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Accounting
Q:
Gardner Machine Shop estimates manufacturing overhead costs for the coming year at $316,000. They will allocate based on direct labor hours. Gardner estimates 5,000 direct labor hours for the coming year. In January, Gardener completed job number A33, which included 15 direct labor hours. How much overhead was allocated to the job?
A) $948
B) $632
C) $1,204
D) $990
Q:
Inglesias Company just completed job number 12. See details below.
Direct labor cost: $840
Direct materials cost: $1,100
Machine hours for milling machinery: 7
Direct labor hours: 22
Predetermined manufacturing overhead allocation rate: $90 per machine hour
What was the total job cost?
A) $2,570
B) $1,940
C) $1,947
D) $3.920
Q:
Haverhill Products just completed job number 440. In addition to direct labor and direct materials cost, Haverhill allocated $450 of manufacturing overhead to the job. Which of the following describes the correct journal entry to record the allocation of overhead to the job?
A) Debit Finished goods, credit Manufacturing overhead
B) Debit Work in process, credit Cash
C) Debit Manufacturing overhead, credit Work in process
D) Debit Work in process, credit Manufacturing overhead
Q:
Falstaff Products estimated manufacturing overhead costs for the year at $500,000. Falstaff also estimated 8,000 machine hours for the year. Falstaff bases their predetermined manufacturing overhead rate on machine hours. On January 31, job 300 was completed. It required 12 machine hours to produce. How much manufacturing overhead was allocated to the job?
A) $62.50
B) $19.20
C) $750.00
D) $42.00
Q:
Falstaff Products allocates manufacturing overhead with a rate of $62.50 per machine hour. Job number 300 was just completed. It used 12 machine hours. How much overhead was allocated to the job?
A) $625
B) $75
C) $750
D) $7,500
Q:
Gardner Machine Shop estimates manufacturing overhead costs for the coming year at $316,000. They will allocate based on direct labor hours. Gardner estimates 5,000 direct labor hours for the coming year. What is the predetermined manufacturing overhead rate?
A) $6.32 per direct labor hour
B) $0.016 per direct labor hour
C) $63.20 per direct labor hour
D) $16.00 per direct labor hour
Q:
Falstaff Products estimates manufacturing overhead costs for the coming year at $500,000. Falstaff will allocate based on machine hours. Falstaff estimates 8,000 machine hours for the coming year. What is the predetermined manufacturing overhead rate?
A) $62.50 per machine hour
B) $0.016 per machine hour
C) $32.00 per machine hour
D) $6.25 per machine hour
Q:
When is the predetermined manufacturing overhead rate for a given production year calculated?
A) At the end of the production year
B) Before the production year begins
C) After each job is completed
D) At the mid-point of the production year
Q:
When calculating the predetermined manufacturing overhead rate, what is the correct basis of calculation?
A) Estimated overhead costs divided by the number of days in a year
B) Estimated amount of the cost driver divided by the estimated total overhead costs
C) Actual overhead costs of the prior year divided by the actual amount of the cost driver or allocation base
D) Estimated overhead costs divided by the estimated amount of the cost driver or allocation base
Q:
Which of the following correctly describes the predetermined manufacturing overhead rate?
A) The rate for factory utilities costs
B) The rate of actual overhead costs per day
C) The rate used to allocate overhead to production
D) The rate of increase in factory costs
Q:
Which of the following would NOT be considered a manufacturing overhead cost?
A) Insurance for the factory
B) Indirect labor cost
C) Property tax for the plant
D) Direct labor
Q:
Which of the following would NOT be considered a manufacturing overhead cost?
A) Depreciation of plant equipment
B) Direct labor cost
C) Plant utilities costs
D) Indirect labor
Q:
Which of the following correctly describes the term cost driver?
A) The inflation rate which causes costs to rise
B) The initial purchase price of direct materials
C) The primary factor which is correlated with the amount of cost incurred to produce a product
D) The total material, labor, and overhead cost of a completed job
Q:
Which of the following describes the allocation base for allocating manufacturing overhead costs?
A) The factor that reflects the relationship between goods produced and the amount of overhead costs incurred
B) The estimated base amount of manufacturing overhead costs in a year
C) The percentage used to allocate direct labor to work in process
D) The formula for allocating depreciation expense over the life on an asset
Q:
When manufacturing overhead costs are incurred, the amounts are recorded as a credit to Manufacturing overhead.
Q:
When manufacturing overhead is allocated, the amount is recorded as a debit to Work in process and a credit to Manufacturing overhead.
Q:
When manufacturing overhead is allocated, the amount is recorded as a debit to Finished goods and a credit to Work in process.
Q:
In a manufacturing operation, taxes and insurance for the plant should be debited to Manufacturing overhead.
Q:
The entry to allocate manufacturing overhead costs to work in process requires a debit to Manufacturing overhead.
Q:
In a manufacturing operation, depreciation of the plant and plant equipment should be debited to Depreciation expense.
Q:
All manufacturing overhead costs incurred are accumulated as debits to a general ledger account titled Manufacturing overhead.
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Which of the following correctly describes the term conversion costs?
A) The combination of direct plus indirect labor costs
B) The combination of indirect labor plus indirect materials cost
C) The combination of direct materials, direct labor, and manufacturing overhead costs
D) The combination of direct labor and manufacturing overhead costs
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The journal entry to record the incurrence of $1,500 of direct labor and $200 of indirect labor includes which of the following?
A) Debit to Manufacturing overhead for $1,700
B) Debit to Work in process inventory for $1,500 and debit to Finished goods for $200
C) Debit to Work in process inventory for $1,700
D) Debit to Work in process for $1,500, debit to Manufacturing overhead for $200
Q:
The journal entry to issue $500 of direct materials and $30 of indirect materials to production includes which of the following?
A) Debit to Work in process for $500 and debit to Finished goods for $30
B) Debit to Manufacturing overhead for $530
C) Debit to Work in process for $500 and debit to Manufacturing overhead for $30
D) Debit to Work in process inventory for $530
Q:
In job order costing, the journal entry to issue indirect materials to production should include which of the following?
A) Credit to Finished goods inventory
B) Credit to Materials inventory
C) Credit to Manufacturing overhead
D) Credit to Work in process inventory
Q:
Which of the following would be included in the journal entry to record the requisition of indirect materials?
A) Debit to Manufacturing overhead
B) Debit to Work in process inventory
C) Debit to Materials inventory
D) Debit to Finished goods inventory
Q:
Which of the following would be included in the journal entry to record the incurrence of indirect labor costs?
A) Debit to Manufacturing overhead
B) Debit to Wages payable
C) Debit to Finished goods inventory
D) Debit to Work in process inventory
Q:
Which of the following would be included in the journal entry to record direct labor costs actually incurred?
A) Debit to Work in process Inventory
B) Debit to Wages payable
C) Debit to Manufacturing overhead
D) Debit to Finished goods inventory
Q:
Which of the following would be included in the journal entry to record the requisition of direct materials?
A) Debit to Cost of goods sold
B) Debit to Work in process inventory
C) Debit to Finished goods inventory
D) Debit to Materials inventory
Q:
The entry to record the purchase of materials on account using a job order 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 materials inventory.
Q:
Direct materials and direct labor are assigned to individual job cost records, and recorded with a debit to Work in process.
Q:
Indirect materials issued and indirect labor costs incurred are debited to the Manufacturing overhead account.
Q:
When direct materials are requisitioned, the Work in process account will be debited.
Q:
Indirect materials and indirect labor are tracked to individual job costing records and recorded in the Work in process account.
Q:
Work in process inventory is debited for the incurrence of both direct and indirect labor in a job costing system.
Q:
When materials are requisitioned for a job, the materials inventory account is debited.
Q:
A job order costing system is useful in which of the following circumstances?
A) Mass production of a commodity
B) Manufacturing multiple products in separate batches
C) Continuous flow production of a single product
D) Manufacturing a product in a multi-step flow of production
Q:
A process costing system is useful in which of the following circumstances?
A) Providing specialized services
B) Production of unique products
C) Production of multiple products in separate batches
D) Mass production of a single type of product
Q:
Which of the following statements is FALSE?
A) A job order costing system would be used by manufacturers of custom made products.
B) A process costing system would be used by manufacturers of commodities, such as flour or sugar.
C) A service firm would likely use a job order costing system.
D) A print and copy shop would likely use a process costing system.
Q:
Job order costing is most likely used in which of the following industries?
A) Pharmaceutical manufacturing
B) Medical clinic
C) Oil refinery
D) Food and beverage manufacturing
Q:
Which of the following is an industry that would use a process costing system rather than a job order costing system?
A) Custom furniture manufacturer
B) Music production studio
C) Paint manufacturer
D) Home remodeling contractor
Q:
Which of the following companies would NOT use job order costing?
A) A lawn maintenance company
B) A legal firm
C) An auto repair shop
D) A beverage manufacturer
Q:
Process costing is used by companies that produce large numbers of identical units in a continuous fashion.
Q:
Accounting firms, building contractors, and healthcare providers are companies that use job order costing.
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Q:
The following information was obtained from Fizz Company:
Advertising costs: $9,900
Indirect labor: $11,000
CEO's salary: $49,000
Direct Labor: $41,000
Indirect materials: $7,900
Direct materials: $61,000
Factory utilities: $700
Factory janitorial costs: $2,300
Manufacturing equipment depreciation: $2,100
Delivery vehicle depreciation: $1,100
Administrative wages and salaries: $21,000
How much were Fizz's inventoriable product costs?
A) $126,000
B) $104,100
C) $127,100
D) $115,000
Q:
The following information was obtained from Fizz Company:
Advertising costs: $9,900
Indirect labor: $11,000
CEO's salary: $49,000
Direct Labor: $41,000
Indirect materials: $7,900
Direct materials: $61,000
Factory utilities: $9,000
Factory janitorial costs: $2,300
Manufacturing equipment depreciation: $2,100
Delivery vehicle depreciation: $1,100
Administrative wages and salaries: $21,000
How much were Fizz's period costs?
A) $60,000
B) $81,000
C) $92,000
D) $79,900
Q:
The following information has been provided by Buffalo Company:
Direct labor: $100,000
Direct materials used: $40,000
Direct materials purchased: $67,000
Cost of goods manufactured: $199,000
Ending work in process: $46,000
Corporate headquarters' property taxes: $6,000
Manufacturing overhead: $79,000
How much was Buffalo's beginning work in process?
A) $20,000
B) $42,000
C) $26,000
D) $66,000
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Q:
Arturo Manufacturing Company provided the following information for the year 2012:
Beginning balancefinished goods inventory $49,500
Ending balancefinished goods inventory $42,000
Cost of goods manufactured $591,000
How much is the cost of goods sold?
A) $682,500
B) $598,500
C) $549,000
D) $682,000
Q:
Arturo Manufacturing Company provided the following information for the year 2012:
Beginning balancework in process inventory $12,000
Ending balancework in process inventory $28,000
Beginning balancedirect materials inventory $42,000
Ending balancedirect materials inventory $30,000
Purchasesdirect materials $180,000
Direct labor $235,000
Indirect materials $23,500
Indirect labor $9,500
Depreciation on factory plant & equipment $12,000
Plant utilities & insurance $135,000
What was the amount of the cost of goods manufactured for the year?
A) $591,000
B) $579,000
C) $619,000
D) $607,000
Q:
Arturo Manufacturing Company provided the following information for the year 2012:
Beginning balancework in process inventory $12,000
Ending balancework in process inventory $28,000
Beginning balancedirect materials inventory $42,000
Ending balancedirect materials inventory $30,000
Purchasesdirect materials $180,000
Direct labor $235,000
Indirect materials $23,500
Indirect labor $9,500
Depreciation on factory plant & equipment $12,000
Plant utilities & insurance $135,000
What was the amount of manufacturing costs incurred during the year?
A) $427,000
B) $607,000
C) $180,000
D) $595,000
Q:
Arturo Manufacturing Company provided the following information for the year 2012:
Beginning balancework in process inventory $12,000
Ending balancework in process inventory $28,000
Beginning balancedirect materials inventory $42,000
Ending balancedirect materials inventory $30,000
Purchasesdirect materials $180,000
Direct labor $235,000
Indirect materials $23,500
Indirect labor $9,500
Depreciation on factory plant & equipment $12,000
Plant utilities & insurance $135,000
What was the amount of manufacturing overhead costs?
A) $180,000
B) $156,500
C) $147,000
D) $135,000
Q:
Arturo Manufacturing Company provided the following information for the year 2012:
Beginning balancework in process inventory $12,000
Ending balancework in process inventory $28,000
Beginning balancedirect materials inventory $42,000
Ending balancedirect materials inventory $30,000
Purchasesdirect materials $180,000
Direct labor $235,000
Indirect materials $23,500
Indirect labor $9,500
Depreciation on factory plant & equipment $12,000
Plant utilities & insurance $135,000
What was the amount of direct materials used in production?
A) $210,000
B) $150,000
C) $192,000
D) $252,000
Q:
The following information was obtained from Sizzler Company:
Advertising costs: $7,900
Indirect labor: $9,000
Direct Labor: $31,000
Indirect materials: $7,200
Direct materials: $47,000
Factory utilities: $3,000
Factory repair and maintenance: $700
Factory janitorial costs: $1,900
Manufacturing equipment depreciation: $1,600
Delivery vehicle depreciation: $790
Administrative wages and salaries: $19,000
How much was Sizzler's factory overhead?
A) $24,190
B) $1,600
C) $23,400
D) $3,600
Q:
The following information was obtained from Sizzler Company:
Advertising costs: $7,900
Indirect labor: $9,000
Direct Labor: $31,000
Indirect materials: $7,200
Direct materials: $47,000
Factory utilities: $3,000
Factory repair and maintenance: $700
Factory janitorial costs: $1,900
Manufacturing equipment depreciation: $1,600
Delivery vehicle depreciation: $790
Administrative wages and salaries: $19,000
How much were Sizzler's product costs?
A) $102,190
B) $99,500
C) $129,090
D) $101,400
Q:
The following information was obtained from Sizzler Company:
Advertising costs: $7,900
Indirect labor: $9,000
Direct Labor: $31,000
Indirect materials: $7,200
Direct materials: $47,000
Factory utilities: $3,000
Factory repair and maintenance : $700
Factory janitorial costs: $1,900
Manufacturing equipment depreciation: $1,600
Delivery vehicle depreciation: $790
Administrative wages and salaries: $19,000
How much were Sizzler's period costs?
A) $27,690
B) $7,900
C) $19,790
D) $19,000
Q:
The following information has been provided by LeMaire Company:
Direct labor: $50,000
Direct materials used: $20,000
Materials purchased: $27,000
Cost of goods manufactured: $100,000
Ending work in process: $16,000
Corporate headquarters' property taxes: $6,000
Manufacturing overhead: $39,000
The beginning work in process was:
A) $23,000.
B) $7,000.
C) $9,000.
D) $1,000.
Q:
Which of the following properly describes the accounting for advertising costs?
A) Advertising costs are product costs and are expensed as incurred.
B) Advertising costs are period costs and are expensed as incurred.
C) Advertising costs are product costs and are expensed when the manufactured product is sold.
D) Advertising costs are period costs and are expensed when the manufactured product is sold.
Q:
Which of the following properly describes the accounting for corporate headquarters' property taxes?
A) The property taxes are product costs and are expensed as incurred.
B) The property taxes are period costs and are expensed as incurred.
C) The property taxes are product costs and are expensed when the manufactured product is sold.
D) The property taxes are period costs and are expensed when the manufactured product is sold.
Q:
Which of the following properly describes the accounting for factory depreciation?
A) Factory depreciation is a product cost and is expensed as incurred.
B) Factory depreciation is a period cost and is expensed as incurred.
C) Factory depreciation is a product cost and is expensed when the manufactured product is sold.
D) Factory depreciation is a period cost and is expensed when the manufactured product is sold.
Q:
Which of the following properly describes the accounting for indirect labor costs?
A) Indirect labor costs are product costs and are expensed as incurred.
B) Indirect labor costs are period costs and are expensed as incurred.
C) Indirect labor costs are product costs and are expensed when the manufactured product is sold.
D) Indirect labor costs are period costs and are expensed when the manufactured product is sold.
Q:
Which of the following is NOT a period cost?
A) Sales commissions
B) CEO's salary
C) Delivery van depreciation
D) Factory janitorial costs
Q:
Which of the following would probably be considered an indirect material cost in a bakery?
A) Spices
B) Flour
C) Milk
D) Eggs
Q:
The cost of goods sold for Frye Manufacturing in 2012 was $233,000. The January 1, 2012 finished goods inventory balance was $31,600, and the December 31, 2012 finished goods inventory balance was $24,200. What was cost of goods manufactured during 2012?
A) $288,800
B) $233,000
C) $225,600
D) $240,400
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A company used $35,000 of direct materials, incurred $73,000 in direct labor cost, and $114,000 in manufacturing overhead costs during the period. If beginning and ending work in process inventories were $28,000 and $21,000 respectively. What is the cost of goods manufactured?
A) $250,000
B) $229,000
C) $215,000
D) $222,000
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