Question 1

For an automotive repair shop,the wages of mechanics would be classified as direct labor cost.

Accepted Answer

A) True 
 B)False

Question 2

Mountain View Manufacturers Inc.has estimated total factory overhead costs of $90,000,and 15,000 direct labor hours for the current fiscal year.If job number 112 incurred 1,000 direct labor hours,the work-in-process account will be increased and factory overhead will be decreased by:

Accepted Answer

A)  $15,000.
B)  $0.
C)  $6,000.
D)  $1,000.E) B) and D)
F) A) and D)

Question 3

Hudson,Inc.has estimated total factory overhead costs of $400,000 and 20,000 direct labor hours for the current fiscal year.If direct labor hours for the year totals 18,000 and actual factory overhead totals $350,000,what is the amount of overapplied or underapplied overhead for the year?

Accepted Answer

A)  $10,000 overapplied
B)  $10,000 underapplied
C)  $50,000 underapplied
D)  $50,000 overappliedE) A) and D)
F) A) and C)

Question 4

Each account in the subsidiary ledger for work in process is called a:

Accepted Answer

A)  finished goods sheet.
B)  stock record.
C)  materials requisition.
D)  job cost sheet.E) B) and C)
F) A) and D)

Question 5

After the goods are completed,their costs are transferred from Work in Process to Finished Goods.

Accepted Answer

A) True 
 B)False  True

Question 6

In job order cost accounting system,perpetual inventory records are maintained in controlling accounts and subsidiary ledgers for materials,work in process,and finished goods.

Accepted Answer

A) True 
 B)False

Question 7

The Harold Company forecasts that total overhead for the current year will be $12,000,000 and total machine hours will be 200,000 hours.However,the actual overhead is $4,000,000 and the actual machine hours are 100,000 hours.If the company uses a predetermined overhead rate based on machine hours for applying overhead,the overhead will be:

Accepted Answer

A)  overapplied by $2,000,000.
B)  underapplied by $2,000,000.
C)  overapplied by $4,000,000.
D)  underapplied by $4,000,000.E) A) and B)
F) All of the above

Question 8

In a job order cost system,materials and supply costs for a service business are normally included as part of overhead cost.

Accepted Answer

A) True 
 B)False  True

Question 9

The cost of wages paid to employees directly involved in the manufacturing process of converting materials into finished product is classified as:

Accepted Answer

A)  factory overhead cost.
B)  direct labor cost.
C)  wages expense.
D)  direct materials cost.E) A) and B)
F) A) and C)

Question 10

Upon completing a job,direct materials totaled $3,000; direct labor,$3,500; and factory overhead,$1,500.Units produced totaled 1,000.What is the per unit cost?

Accepted Answer

A)  $8,000
B)  $6,500
C)  $6.50
D)  $8E) All of the above
F) A) and D)

Question 11

The cost of a manufactured product generally consists of direct materials cost,direct labor cost,and factory overhead cost.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following items would be classified as a part of prime cost?

Accepted Answer

A)  Direct labor cost
B)  Factory overhead cost
C)  Selling cost
D)  Administrative costE) A) and B)
F) C) and D)

Question 13

Recording direct labor costs in a job order cost accounting system:

Accepted Answer

A)  increases Factory Overhead and decreases Work-in-Process.
B)  increases Finished Goods and increases Wages Payable.
C)  increases Work-in-Process and increases Wages Payable.
D)  increases Factory Overhead and increases Wages Payable.E) C) and D)
F) All of the above

Question 14

Applying of factory overhead costs to jobs would decrease:

Accepted Answer

A)  Factory Overhead.
B)  Wages Payable.
C)  Work-in-Process.
D)  Cost of Goods Sold.E) None of the above
F) A) and B)

Question 15

In a job order cost accounting system,when goods that have been ordered are received,the receiving department personnel inspects the goods and completes the:

Accepted Answer

A)  purchase order.
B)  sales invoice.
C)  receiving report.
D)  purchase requisition.E) A) and B)
F) All of the above

Question 16

Heedy Winery accumulates the costs incurred in the labeling process in an activity cost pool.Costs for the labeling process are estimated to be $320,000,and the winery expects to generate 640,000 labels for the coming year.Production for its top-selling wine is estimated at 160,000 bottles.How much overhead from the labeling process will be allocated to this particular variety of wine?

Accepted Answer

A)  $40,000
B)  $80,000
C)  $160,000
D)  $320,000E) C) and D)
F) A) and C)

Question 17

For a construction contractor,the wages of carpenters would be classified as direct labor cost.

Accepted Answer

A) True 
 B)False

Question 18

Calculate direct labor cost for Brandt,Inc.

Accepted Answer

A)  $226,000
B)  $206,000
C)  $231,000
D)  $218,000E) A) and C)
F) None of the above

Question 19

The recording of the jobs completed would increase:

Accepted Answer

A)  Factory Overhead.
B)  Finished Goods.
C)  Work-in-Process.
D)  Cost of Goods Sold.E) B) and C)
F) C) and D)

Question 20

Increase in the Work-in-Process account occur when:

Accepted Answer

A)  materials are received into the storeroom.
B)  factory overhead costs are incurred.
C)  direct labor is recorded from the time sheets.
D)  materials are ordered.E) A) and D)
F) C) and D) C

Exam 10: Accounting Systems for Manufacturing Businesses

For an automotive repair shop,the wages of mechanics would be classified as direct labor cost.

Correct Answer
verified

Mountain View Manufacturers Inc.has estimated total factory overhead costs of $90,000,and 15,000 direct labor hours for the current fiscal year.If job number 112 incurred 1,000 direct labor hours,the work-in-process account will be increased and factory overhead will be decreased by:

Correct Answer
verified

Hudson,Inc.has estimated total factory overhead costs of $400,000 and 20,000 direct labor hours for the current fiscal year.If direct labor hours for the year totals 18,000 and actual factory overhead totals $350,000,what is the amount of overapplied or underapplied overhead for the year?

Correct Answer
verified

Each account in the subsidiary ledger for work in process is called a:

Correct Answer
verified

After the goods are completed,their costs are transferred from Work in Process to Finished Goods.

Correct Answer
verified
True

In job order cost accounting system,perpetual inventory records are maintained in controlling accounts and subsidiary ledgers for materials,work in process,and finished goods.

Correct Answer
verified

Correct Answer
verified

In a job order cost system,materials and supply costs for a service business are normally included as part of overhead cost.

Correct Answer
verified
True

The cost of wages paid to employees directly involved in the manufacturing process of converting materials into finished product is classified as:

Correct Answer
verified

Upon completing a job,direct materials totaled $3,000; direct labor,$3,500; and factory overhead,$1,500.Units produced totaled 1,000.What is the per unit cost?

Correct Answer
verified

The cost of a manufactured product generally consists of direct materials cost,direct labor cost,and factory overhead cost.

Correct Answer
verified

Which of the following items would be classified as a part of prime cost?

Correct Answer
verified

Recording direct labor costs in a job order cost accounting system:

Correct Answer
verified

Applying of factory overhead costs to jobs would decrease:

Correct Answer
verified

In a job order cost accounting system,when goods that have been ordered are received,the receiving department personnel inspects the goods and completes the:

Correct Answer
verified

Correct Answer
verified

For a construction contractor,the wages of carpenters would be classified as direct labor cost.

Correct Answer
verified

Calculate direct labor cost for Brandt,Inc.

Correct Answer
verified

The recording of the jobs completed would increase:

Correct Answer
verified

Increase in the Work-in-Process account occur when:

Correct Answer
verified
C

Exam 10: Accounting Systems for Manufacturing Businesses

For an automotive repair shop,the wages of mechanics would be classified as direct labor cost.

Correct AnswerverifiedShow Answer

Mountain View Manufacturers Inc.has estimated total factory overhead costs of $90,000,and 15,000 direct labor hours for the current fiscal year.If job number 112 incurred 1,000 direct labor hours,the work-in-process account will be increased and factory overhead will be decreased by:

Correct AnswerverifiedShow Answer

Hudson,Inc.has estimated total factory overhead costs of $400,000 and 20,000 direct labor hours for the current fiscal year.If direct labor hours for the year totals 18,000 and actual factory overhead totals $350,000,what is the amount of overapplied or underapplied overhead for the year?

Correct AnswerverifiedShow Answer

Each account in the subsidiary ledger for work in process is called a:

Correct AnswerverifiedShow Answer

After the goods are completed,their costs are transferred from Work in Process to Finished Goods.

Correct AnswerverifiedTrue

In job order cost accounting system,perpetual inventory records are maintained in controlling accounts and subsidiary ledgers for materials,work in process,and finished goods.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In a job order cost system,materials and supply costs for a service business are normally included as part of overhead cost.

Correct AnswerverifiedTrue

The cost of wages paid to employees directly involved in the manufacturing process of converting materials into finished product is classified as:

Correct AnswerverifiedShow Answer

Upon completing a job,direct materials totaled $3,000; direct labor,$3,500; and factory overhead,$1,500.Units produced totaled 1,000.What is the per unit cost?

Correct AnswerverifiedShow Answer

The cost of a manufactured product generally consists of direct materials cost,direct labor cost,and factory overhead cost.

Correct AnswerverifiedShow Answer

Which of the following items would be classified as a part of prime cost?

Correct AnswerverifiedShow Answer

Recording direct labor costs in a job order cost accounting system:

Correct AnswerverifiedShow Answer

Applying of factory overhead costs to jobs would decrease:

Correct AnswerverifiedShow Answer

In a job order cost accounting system,when goods that have been ordered are received,the receiving department personnel inspects the goods and completes the:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

For a construction contractor,the wages of carpenters would be classified as direct labor cost.

Correct AnswerverifiedShow Answer

Calculate direct labor cost for Brandt,Inc.

Correct AnswerverifiedShow Answer

The recording of the jobs completed would increase:

Correct AnswerverifiedShow Answer

Increase in the Work-in-Process account occur when:

Correct AnswerverifiedC

Correct Answer
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True

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True

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C