Question 1

Ragtime Company had the following information for the year: Ragtime Company used a predetermined overhead rate of $35 per direct labor hour for the year.Assume the only inventory balance is an ending Work in Process Inventory balance of $17,000.What was cost of goods manufactured?

Accepted Answer

A)  $260,000
B)  $426,000
C)  $435,000
D)  $418,000E) C) and D)
F) A) and D)

Question 2

Cost of goods sold is the amount of cost transferred

Accepted Answer

A)  out of Finished Goods Inventory and into Cost of Goods Sold.
B)  out of Work in Process Inventory and into Cost of Goods Sold.
C)  out of Work in Process Inventory and into Manufacturing Overhead.
D)  out of Work in Process Inventory and into Finished Goods Inventory.E) A) and B)
F) A) and C)

Question 3

Which of the following represents the cost of the jobs sold during the period?

Accepted Answer

A)  Raw Materials Inventory
B)  Work in Process Inventory
C)  Finished Goods Inventory
D)  Cost of Goods SoldE) A) and D)
F) A) and C)

Question 4

Sawyer Company had the following information for the year: Sawyer Company used a predetermined overhead rate using estimated overhead of $320,000 and 8,000 estimated direct labor hours.Assume the only inventory balance is an ending Finished Goods Inventory balance of $9,000.What was adjusted cost of goods sold?

Accepted Answer

A)  $715,000
B)  $708,000
C)  $706,000
D)  $699,000E) A) and B)
F) A) and C)

Question 5

Which of the following is a characteristic of a manufacturing environment that would use job order costing?

Accepted Answer

A)  Standardized production process
B)  Continuous manufacturing
C)  Homogenous products
D)  Differentiated productsE) A) and B)
F) A) and C)

Question 6

The most common method for disposing of over- or underapplied overhead is to

Accepted Answer

A)  recalculate the overhead rate for the period.
B)  recalculate the overhead rate for the next period.
C)  make a direct adjustment to Work in Process Inventory.
D)  make a direct adjustment to Cost of Goods SolD.The most common method for disposing of the balance in Manufacturing Overhead is to make a direct adjustment to Cost of Goods Sold.E) None of the above
F) B) and C)

Question 7

Which of the following types of firms would most likely use job order costing?

Accepted Answer

A)  Happy-Oh Cereal Company
B)  Huey,Lewey & Dewie,Attorneys
C)  SoooSweet Beverage
D)  C-5 Cement CompanyE) None of the above
F) A) and B)

Question 8

Which of the following would be used to transfer the cost of completed goods during the period?

Accepted Answer

A)  Credit to Raw Materials Inventory
B)  Credit to Work in Process Inventory
C)  Debit to Manufacturing Overhead
D)  Credit to Manufacturing OverheadE) A) and B)
F) None of the above

Question 9

Process costing averages the total cost of the process over the number of units produced.Process costing breaks the production process down into its basic steps,or processes,and then averages the total cost of the process over the number of units produced.

Accepted Answer

A) True 
 B)False

Question 10

Manufacturing overhead was estimated to be $250,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $225,000,and actual direct labor hours were 19,000.To dispose of the balance in the Manufacturing Overhead account,which of the following would be correct?

Accepted Answer

A)  Manufacturing Overhead would be credited for $12,500
B)  Manufacturing Overhead would be credited for $25,000
C)  Manufacturing Overhead would be debited for $12,500
D)  Manufacturing Overhead would be debited for $25,000E) A) and B)
F) A) and C)

Question 11

Which of the following represents the accumulated costs of jobs as yet incomplete?

Accepted Answer

A)  Raw Materials Inventory
B)  Work in Process Inventory
C)  Finished Goods Inventory
D)  Cost of Goods SoldE) B) and D)
F) A) and D)

Question 12

When direct materials are used in production,which of the following accounts is debited?

Accepted Answer

A)  Raw Materials Inventory
B)  Work in Process Inventory
C)  Finished Goods Inventory
D)  Cost of Goods SoldE) All of the above
F) A) and B)

Exam 2: Job Order Costing

Which of the following represents the cost of the jobs sold during the period?

Correct Answer
verified

The most common method for disposing of over- or underapplied overhead is to

Correct Answer
verified

Ragtime Company had the following information for the year: Ragtime Company used a predetermined overhead rate of $35 per direct labor hour for the year.Assume the only inventory balance is an ending Work in Process Inventory balance of $17,000.What was cost of goods manufactured?

Correct Answer
verified

Which of the following represents the accumulated costs of jobs as yet incomplete?

Correct Answer
verified

Process costing averages the total cost of the process over the number of units produced.Process costing breaks the production process down into its basic steps,or processes,and then averages the total cost of the process over the number of units produced.

Correct Answer
verified

Cost of goods sold is the amount of cost transferred

Correct Answer
verified

Which of the following would be used to transfer the cost of completed goods during the period?

Correct Answer
verified

When direct materials are used in production,which of the following accounts is debited?

Correct Answer
verified

Which of the following types of firms would most likely use job order costing?

Correct Answer
verified

Which of the following is a characteristic of a manufacturing environment that would use job order costing?

Correct Answer
verified

Correct Answer
verified

Manufacturing overhead was estimated to be $250,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $225,000,and actual direct labor hours were 19,000.To dispose of the balance in the Manufacturing Overhead account,which of the following would be correct?

Correct Answer
verified

Exam 2: Job Order Costing

Which of the following represents the cost of the jobs sold during the period?

Correct AnswerverifiedShow Answer

The most common method for disposing of over- or underapplied overhead is to

Correct AnswerverifiedShow Answer

Ragtime Company had the following information for the year: Ragtime Company used a predetermined overhead rate of $35 per direct labor hour for the year.Assume the only inventory balance is an ending Work in Process Inventory balance of $17,000.What was cost of goods manufactured?

Correct AnswerverifiedShow Answer

Which of the following represents the accumulated costs of jobs as yet incomplete?

Correct AnswerverifiedShow Answer

Process costing averages the total cost of the process over the number of units produced.Process costing breaks the production process down into its basic steps,or processes,and then averages the total cost of the process over the number of units produced.

Correct AnswerverifiedShow Answer

Cost of goods sold is the amount of cost transferred

Correct AnswerverifiedShow Answer

Which of the following would be used to transfer the cost of completed goods during the period?

Correct AnswerverifiedShow Answer

When direct materials are used in production,which of the following accounts is debited?

Correct AnswerverifiedShow Answer

Which of the following types of firms would most likely use job order costing?

Correct AnswerverifiedShow Answer

Which of the following is a characteristic of a manufacturing environment that would use job order costing?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Manufacturing overhead was estimated to be $250,000 for the year along with 20,000 direct labor hours.Actual manufacturing overhead was $225,000,and actual direct labor hours were 19,000.To dispose of the balance in the Manufacturing Overhead account,which of the following would be correct?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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