Question 1

In the Schedule of Cost of Goods Manufactured, Raw materials used in production = Beginning raw materials inventory + Purchases of raw materials - Ending raw materials inventory.

Accepted Answer

A) True 
 B)False

Question 2

The ending balance in the Work in Process account is closest to:

Accepted Answer

A)  $94,000
B)  $84,000
C)  $74,000
D)  $64,000E) B) and C)
F) B) and D)

Question 3

The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for January would include the following:

Accepted Answer

A)  credit to Cost of Goods Sold of $760
B)  debit to Cost of Goods Sold of $128,180
C)  credit to Cost of Goods Sold of $128,180
D)  debit to Cost of Goods Sold of $760E) A) and B)
F) A) and C)

Question 4

Fisher Corporation uses a predetermined overhead rate based on direct labor cost to apply manufacturing overhead to  jobs.The following information about Fisher Corporation's Work in Process inventory account has been provided for the month of May:  During the month, Fisher Corporation's Work in Process inventory account was credited for $120,500, which represented the Cost of Goods Manufactured for the month.Only one job remained in process on May 31; this job had been charged with $9,600 of applied overhead cost.The amount of direct materials cost in the unfinished job would be:

Accepted Answer

A)  $10,600
B)  $16,700
C)  $12,800
D)  $23,400E) A) and B)
F) B) and C)

Question 5

How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold?

Accepted Answer

A)  $136,000
B)  $185,000
C)  $144,000
D)  $141,000E) A) and D)
F) A) and B)

Question 6

In October, Raddatz Inc.incurred $73,000 of direct labor costs and $6,000 of indirect labor costs.The journal entry to record the accrual of these wages would include a:

Accepted Answer

A)  debit to Manufacturing Overhead of $6,000
B)  debit to Work in Process of $79,000
C)  credit to Manufacturing Overhead of $6,000
D)  credit to Work in Process of $79,000E) A) and B)
F) C) and D)

Question 7

During September at Renfro Corporation, $65,000 of raw materials were requisitioned from the storeroom for use in production.These raw materials included both direct and indirect materials.The indirect materials totaled $4,000.The journal entry to record this requisition would include a debit to Manufacturing Overhead of:

Accepted Answer

A)  $65,000
B)  $4,000
C)  $0
D)  $61,000E) C) and D)
F) B) and D)

Question 8

The cost of goods manufactured for May was:

Accepted Answer

A)  $97,110
B)  $110,600
C)  $98,770
D)  $100,535E) C) and D)
F) A) and B)

Question 9

The entire difference between the actual manufacturing overhead cost for a period and the applied manufacturing overhead cost is typically closed to the Work In Process account.

Accepted Answer

A) True 
 B)False

Question 10

When closing overapplied manufacturing overhead to Cost of Goods Sold, which of the following would be true?

Accepted Answer

A)  Work in Process will decrease.
B)  Cost of Goods Sold will increase.
C)  Net income will decrease.
D)  Gross margin will increase.E) C) and D)
F) B) and D)

Question 11

Leelanau Corporation uses a job-order costing system.The following data are for last year:  Leelanau applies overhead using a predetermined rate.What amount of overhead was applied to work in process last year?

Accepted Answer

A)  $138,500
B)  $121,500
C)  $130,000
D)  $203,500E) B) and C)
F) None of the above

Question 12

During December, Moulding Corporation incurred $76,000 of actual Manufacturing Overhead costs.During the same period, the Manufacturing Overhead applied to Work in Process was $74,000.
Required:
Prepare journal entries to record the incurrence of manufacturing overhead and the application of manufacturing overhead to Work in Process.

Accepted Answer

The answer of During December, Moulding Corporation incurred $76,000 of...

Question 13

The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for January would include the following:

Accepted Answer

A)  credit to Work in Process of $480
B)  debit to Work in Process of $8,830
C)  debit to Work in Process of $480
D)  credit to Work in Process of $8,830E) A) and D)
F) A) and C)

Question 14

The balance in the raw materials inventory account on May 30 was:

Accepted Answer

A)  $7,200
B)  $1,300
C)  $29,500
D)  $30,800E) A) and B)
F) B) and C)

Question 15

Manufacturing overhead is overapplied or underapplied by:

Accepted Answer

A)  $186,000 Underapplied
B)  $5,000 Underapplied
C)  $186,000 Overapplied
D)  $5,000 OverappliedE) None of the above
F) A) and B)

Question 16

The balance in the Finished Goods inventory account at the beginning of the year was:

Accepted Answer

A)  $28,000
B)  $13,000
C)  $17,500
D)  $8,500E) A) and B)
F) A) and C)

Question 17

The journal entry to record the transfer of completed goods from Work in Process to Finished Goods is:

Accepted Answer

A)   
B)   
C)   
D)   E) None of the above
F) B) and C)

Question 18

Testor Products uses a job-order costing system with a predetermined overhead rate based on machine-hours.The company closes out any underapplied or overapplied overhead to Cost of Goods Sold.

Required:
If overhead is overapplied, what adjustment does the company make to Cost of Goods Sold? Is Cost of Goods Sold increased or decreased? Why?

Accepted Answer

If overhead is overapplied, too much ove...

Question 19

The cost of goods sold (after adjustment for underapplied or overapplied manufacturing overhead) is:

Accepted Answer

A)  $58,000
B)  $69,000
C)  $72,000
D)  $65,000E) All of the above
F) C) and D)

Question 20

The predetermined overhead rate is closest to:

Accepted Answer

A)  $34.06
B)  $34.90
C)  $34.67
D)  $35.52E) All of the above
F) A) and D)

Exam 3: Job-Order Costing: Cost Flows and External Reporting

The ending balance in the Work in Process account is closest to:

Correct Answer
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Correct Answer
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In October, Raddatz Inc.incurred $73,000 of direct labor costs and $6,000 of indirect labor costs.The journal entry to record the accrual of these wages would include a:

Correct Answer
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Manufacturing overhead is overapplied or underapplied by:

Correct Answer
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Correct Answer
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The journal entry to record the transfer of completed goods from Work in Process to Finished Goods is:

Correct Answer
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The balance in the raw materials inventory account on May 30 was:

Correct Answer
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Correct Answer
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If overhead is overapplied, too much ove...
View Answer

The balance in the Finished Goods inventory account at the beginning of the year was:

Correct Answer
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The entire difference between the actual manufacturing overhead cost for a period and the applied manufacturing overhead cost is typically closed to the Work In Process account.

Correct Answer
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The predetermined overhead rate is closest to:

Correct Answer
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In the Schedule of Cost of Goods Manufactured, Raw materials used in production = Beginning raw materials inventory + Purchases of raw materials - Ending raw materials inventory.

Correct Answer
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When closing overapplied manufacturing overhead to Cost of Goods Sold, which of the following would be true?

Correct Answer
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The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for January would include the following:

Correct Answer
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The cost of goods manufactured for May was:

Correct Answer
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The cost of goods sold (after adjustment for underapplied or overapplied manufacturing overhead) is:

Correct Answer
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Leelanau Corporation uses a job-order costing system.The following data are for last year: Leelanau applies overhead using a predetermined rate.What amount of overhead was applied to work in process last year?

Correct Answer
verified

The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for January would include the following:

Correct Answer
verified

Correct Answer
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How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold?

Correct Answer
verified

Exam 3: Job-Order Costing: Cost Flows and External Reporting

The ending balance in the Work in Process account is closest to:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In October, Raddatz Inc.incurred $73,000 of direct labor costs and $6,000 of indirect labor costs.The journal entry to record the accrual of these wages would include a:

Correct AnswerverifiedShow Answer

Manufacturing overhead is overapplied or underapplied by:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The journal entry to record the transfer of completed goods from Work in Process to Finished Goods is:

Correct AnswerverifiedShow Answer

The balance in the raw materials inventory account on May 30 was:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedIf overhead is overapplied, too much ove...View AnswerShow Answer

The balance in the Finished Goods inventory account at the beginning of the year was:

Correct AnswerverifiedShow Answer

The entire difference between the actual manufacturing overhead cost for a period and the applied manufacturing overhead cost is typically closed to the Work In Process account.

Correct AnswerverifiedShow Answer

The predetermined overhead rate is closest to:

Correct AnswerverifiedShow Answer

In the Schedule of Cost of Goods Manufactured, Raw materials used in production = Beginning raw materials inventory + Purchases of raw materials - Ending raw materials inventory.

Correct AnswerverifiedShow Answer

When closing overapplied manufacturing overhead to Cost of Goods Sold, which of the following would be true?

Correct AnswerverifiedShow Answer

The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for January would include the following:

Correct AnswerverifiedShow Answer

The cost of goods manufactured for May was:

Correct AnswerverifiedShow Answer

The cost of goods sold (after adjustment for underapplied or overapplied manufacturing overhead) is:

Correct AnswerverifiedShow Answer

Leelanau Corporation uses a job-order costing system.The following data are for last year: Leelanau applies overhead using a predetermined rate.What amount of overhead was applied to work in process last year?

Correct AnswerverifiedShow Answer

The journal entry to record the allocation of any underapplied or overapplied manufacturing overhead for January would include the following:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

How much is the adjusted cost of goods sold on the Schedule of Cost of Goods Sold?

Correct AnswerverifiedShow Answer

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If overhead is overapplied, too much ove...
View Answer

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