Q&A Hero

Q: A company that uses a job order cost accounting system incurred $10,000 of factory payroll during May. Present the May 31 entry assuming $8,000 is direct labor and $2,000 is indirect labor.

Q: The following information is available for the Millennium Corporation for the current year: Cost of goods sold $292,000 Depreciation of factory equipment 25,200 Direct labor 64,750 Finished goods inventory, beginning of year 45,000 Factory insurance 11,200 Factory utilities 16,800 Goods transferred from Goods in Process Inventory to Finished Goods Inventory 285,150 Indirect labor 8,400 Raw materials inventory, beginning of year 4,200 Raw materials purchased 116,200 Raw materials used in production (includes $7,000 of indirect materials) 121,800 Rent on factory building 22,400 Millennium Corporation uses a predetermined overhead rate of 150% of direct labor cost. Prepare journal entries for the following transactions/ and events: (a) Purchase of raw materials on account. (b) Assignment of materials costs to Goods in Process Inventory and Factory Overhead (c) Payment of Factory Payroll in cash (d) Assignment of Factory Payroll to Goods in Process Inventory and Factory Overhead (e) Recording of other factory overhead. Assume that all items other than depreciation are paid in cash. (f) Assignment of Factory Overhead to Goods in Process Inventory (g) Transfer of goods completed to Finished Goods Inventory (h) Recording cost of goods sold (i) Assignment of over- or underapplied overhead to Cost of Goods Sold

Q: Dina Corp. uses a job order cost accounting system. Four jobs were started during the current year. The following is a record of the costs incurred: Material Direct Labor Direct Labor Job # Used Used Hours Used 1010 $45,000 $72,000 8,000 1011 59,000 77,000 7,000 1012 35,000 30,000 3,000 1013 26,000 40,000 5,000 Actual overhead costs were $55,800. The predetermined overhead allocation rate is $2.40 per direct labor hour. During the year, Jobs 1010, 1012, and 1013 were completed. Also, Jobs 1010 and 1013 were sold for $387,000. Assuming that this is Dina's first year of operations: (A. Calculate the balance in the Goods in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold accounts. (B. Does the Factory Overhead account balance indicate an over- or underapplication of overhead? Prepare the entry to close this out assuming the amount is not material.

Q: Selwyn's Service applied overhead on the basis of direct labor costs during the current year. Overhead applied was $16,500. Actual overhead incurred was $17,200. A. Prepare a journal entry to remove this difference assuming that it is not material. B. Instead, assume actual overhead incurred was only $24,000. Describe (without computations) the alternative procedure that Selwyn might use to record this material difference.

Q: Medlar Corp. maintains a Web-based general ledger. Overhead is applied on the basis of direct labor costs. Its bookkeeper accidentally deleted most of the entries that had been recorded for January. A printout of the general ledger (in T-account form) showed the following: Raw Materials Inventory Goods in Process Inventory Bal.1/1 10,000 Bal 1/1 4,000 f) (a) (b) (c) (d) (e) 17,500 (g) Accounts Payable Finished Goods Inventory (h) Bal. 1/1 5,000 (j) (l) (i) (k) Bal. 1/31 9,000 Bal. 1/31 15,000 Factory Overhead Cost of Goods Sold (m) (n) (o) A review of the prior year's financial statements, the current year's budget, and January's source documents produced the following information: (1) Accounts Payable are used for raw material purchases only. January purchases were $49,000. (2) Factory overhead costs for January were $17,000 none of which is indirect materials. (3) The January 1 balance for finished goods inventory was $10,000. (4) There was a single job in process at January 31 with a cost of $2,000 for direct materials and $1,500 for direct labor. (5) Total cost of goods manufactured for January was $90,000. (6) All direct laborers earn the same rate ($13/hour). During January, 2,500 direct labor hours were worked. (7) The predetermined overhead allocation rate is based on direct labor costs. Budgeted (expected) overhead for the year is $195,000 and budgeted (expected) direct labor is $390,000. Write in the missing amounts (a) through (o) in the T-accounts above.

Q: The overhead allocation rate in Frantz Company's job order cost accounting system applies overhead based on direct labor costs. The company's manufacturing costs for the current year were: direct materials, $108,000; direct labor, $144,000; and factory overhead, $18,000. At year-end, the total cost of goods in process is $36,000, which includes $12,000 of direct labor cost. What amount of direct material cost is included in the ending goods in process inventory?

Q: The following data relates to the Density Company's first operating period. Calculate cost of ending inventory for each product. Overhead Rate Cost/Unit Units (Percent Direct Direct Ending of Direct Product Materials Labor Produced Inventory Labor Cost) A $10 $12 215 115 60% B 8 15 330 180 40% C 14 10 250 200 80%

Q: The following data relates to the Density Company's first operating period. Calculate cost of goods sold for each product. Overhead Rate Cost/Unit Units (Percent Direct Direct Ending of Direct Product Materials Labor Produced Inventory Labor Cost) A $10 $12 215 115 60% B 8 15 330 180 40% C 14 10 250 200 80%

Q: A company uses a job order cost accounting system and applies overhead on the basis of direct labor cost. At the end of a recent period, the company's Goods in Process Inventory account appeared as follows: Goods in Process Date Explanation PR Debit Credit Balance Mar. 17 Job No. 5 completed G-8 90,900 (17,100 ) Apr. 13 Job No. 6 completed G-10 131,400 (148,500 ) July 20 Job No. 7 completed G-12 73,800 (222,300 ) Oct. 11 Job No. 8 completed G-15 168,300 (390,600 ) Dec. 31 Direct Materials G-20 235,800 (154,800 ) 31 Direct Labor G-20 117,000 (37,800 ) 31 Factory Overhead G-20 187,200 149,400 Write in the blanks for the following: A. The total cost of the direct materials, direct labor, and factory overhead applied in the December 31 goods in process inventory is $_______________________. B The company's overhead application rate is __________________% C Job No. 6 had $26,550 of direct labor cost. Therefore, the job must have had $________ of direct materials cost. D. Job No. 8 had $73,998 of direct materials cost. Therefore, the job must have had $________ of factory overhead cost.

Q: A company's ending inventory of finished goods has a cost of $35,000 and consists of 750 units. If the overhead applicable to these goods is $8,400, and overhead is applied at the rate of 60% of direct labor, what is the cost of the direct materials used to produce these units?

Q: Prepare journal entries to record the following transactions and events for April using a job order cost accounting system. (a) Purchased raw materials on credit, $69,000. (b) Raw materials requisitioned: $26,000 direct and $5,400 indirect. (c) Factory payroll totaled $46,000 (paid in cash), including $9,500 indirect labor. (d) Paid other actual overhead costs totaling $14,500 cash. (e) Applied overhead totaling $28,200. (f) Finished and transferred jobs totaling $77,500. (g) Jobs costing $58,800 were sold on credit for $103,000.

Q: PRO, Inc. had the following activities during its most recent period of operations: (a) Purchased raw materials on account for $140,000 (both direct and indirect materials are recorded in the Raw Materials Inventory account). (b) Issued raw materials to production of $130,000 (80% direct and 20% indirect). (c) Incurred and paid labor costs of $250,000 cash (70% direct and 30% indirect). (d) Incurred factory utilities costs of $20,000; this amount is still payable. (e) Applied overhead at 80% of direct labor costs. (f) Recorded factory depreciation, $22,000. Prepare journal entries to record the above transactions.

Q: Key Manufacturing Co. applies factory overhead to production on the basis of direct labor costs. Assume that at the beginning of the current year the company estimated that direct material costs would be $178,800, direct labor costs would be $154,000, and factory overhead costs would be $231,000. A. If the $28,000 cost of Key's goods in process inventory included $5,200 of direct labor cost, what amount of direct materials cost was included? B. If $8,100 of the company's $34,300 finished goods inventory was direct materials cost, determine the direct labor cost and factory overhead cost of the finished goods inventory.

Q: RC Corp. uses a job order cost accounting system. During the month of April, the following events occurred: A. Purchased raw materials on credit, $32,000. B. Raw materials requisitioned: $25,800 as direct materials (Job 1:$4,200, Job 2: $7,500, Job 3: $3,600 and Job 4: $10,500) and $10,500 indirect materials. C. Paid factory payroll for the month totaling $37,700 which includes $8,200 indirect labor. D. Assigned the factory payroll to jobs and overhead. (Job 1:$7,000, Job 2: $9,800, Job 3: $3,000 and Job 4: $9,700) E. Overhead was assigned at a rate of 50% of direct labor cost. Determine the total cost of each job.

Q: RC Corp. uses a job order cost accounting system. During the month of April, the following events occurred: A. Purchased raw materials on credit, $32,000. B. Raw materials requisitioned: $25,800 as direct materials and $10,500 indirect materials. C. Paid factory payroll for the month totaling $37,700 which includes $8,200 indirect labor. D. Assigned the factory payroll to jobs and overhead. Make the necessary journal entries to record the above transactions and events.

Q: Erlander Company uses a job order cost accounting system. On November 1, $15,000 of direct materials and $3,500 of indirect materials were requisitioned for production. Prepare the general journal entry to record this requisition.

Q: Plumley Ad Agency contracted with a company to prepare an ad campaign. Plumley uses a job order costing system. Plumley estimates that the job will take 145 designer hours at $90 per hour and 85 staff hours at $45 per hour. Plumley uses two overhead rates in applying overhead to jobs: Designer-related at $100 per designer hour and staff-related at $50 per staff hour. Determine the total estimated cost for this job.

Q: The Terrapin Manufacturing Company has the following job cost sheets on file. They represent jobs that have been worked on during June of the current year. This table summarizes information provided on each sheet: Number Total Cost Incurred Status of Job 951 $ 4,200 Finished and delivered 952 $ 7,700 Unfinished 953 $ 9,300 Finished and unsold 954 $11,100 Finished and delivered 955 $ 3,000 Finished and unsold 956 $ 5,500 Finished and delivered 957 $35,000 Unfinished 958 $ 3,200 Finished and delivered 959 $ 500 Unfinished 960 $22,110 Unfinished 961 $ 7,200 Finished and unsold 962 $ 8,500 Unfinished 963 $11,200 Finished and unsold a. What is the cost of the goods in process inventory on June 30? b. What is the cost of the finished goods inventory on June 30? c. What is the cost of goods sold for the month of June?

Q: The Johnson Manufacturing Company has the following job cost sheets on file. They represent jobs that have been worked on during March of the current year. This table summarizes information provided on each sheet: Number Total Cost Incurred Status of Job 444 $15,050 Finished and delivered 445 $22,400 Finished and delivered 446 $ 7,500 Finished and unsold 447 $ 4,300 Finished and delivered 448 $33,000 Finished and unsold 449 $62,000 Finished and unsold 450 $14,600 Unfinished 451 $22,200 Finished and delivered 452 $ 3,600 Unfinished 453 $ 1,000 Unfinished A. What is the cost of goods sold for the month of March? B. What is the cost of the goods in process inventory on March 31? C. What is the cost of the finished goods inventory on March 31?

Q: Briefly describe how manufacturing firms dispose of overapplied or underapplied factory overhead.

Q: Explain what a predetermined overhead allocation rate is, how it is calculated, and why it is used.

Q: Describe the flow of labor costs in a job order costing system and identify the documents used in the system.

Q: Describe how materials flow through a job order cost accounting system and identify the key documents in the system.

Q: Explain how a service firm, such as an advertising agency, might use job order costing.

Q: Describe the purpose of a job cost sheet and explain what information is found on the job cost sheet.

Q: How does job order cost accounting affect the company Astor and Black?

Q: What is a cost accounting system? What are the two basic types of cost accounting systems?

Q: Match the following terms to the appropriate definition: (a) General accounting system (b) Time ticket (c) Clock card (d) Materials requisition (e) Underapplied overhead (f) Job order manufacturing (g) Overapplied overhead (h) Job cost sheet (i) Job order cost accounting system (j) Predetermined overhead allocation rate (k) Materials ledger card _______ (1)The production of products in response to special orders; also called customized production. _______ (2)A source document that is used to record the number of hours an employee works and to determine the total labor cost for each pay period. _______ (3)The amount by which the overhead applied to jobs in a period with the predetermined overhead allocation rate exceeds the overhead incurred in a period. _______ (4)An accounting system for manufacturing activities based on the periodic inventory system. _______ (5)The rate established prior to the beginning of a period that relates estimated overhead to an allocation factor such as estimated direct labor and is used to assign overhead cost to a job. _______ (6)A cost accounting system designed to determine the cost of producing each job or job lot. _______ (7)A source document that production managers use to request materials for manufacturing and that is used to assign materials costs to specific jobs or to overhead. _______ (8)A perpetual record that is updated each time units of raw material are both purchased and issued for use in production. _______ (9)A source document that is used to report how much time an employee spent working on a job or on overhead activities and then to determine the amount of direct labor to charge to the job or the amount of indirect labor to charge to overhead. _______(10)The amount by which overhead incurred in a period exceeds the overhead applied to jobs with the predetermined overhead allocation rate. _______(11) A separate record maintained for each job in a job order costing system; it shows direct materials, direct labor, and overhead for each job.

Q: The Dina Corp. has applied overhead to jobs during the period as follows: Jobs finished and sold $ 46,000 Jobs started and in process 54,000 Jobs finished and unsold 100,000 The application of overhead has resulted in a $5,600 credit balance in the Factory Overhead account, and this amount is not material. The entry to dispose of this remaining factory overhead balance is: A. Cost of Goods Sold 5,600 Factory Overhead 5,600 B. Factory Overhead 5,600 Cost of Goods Sold 5,600 C. Factory Overhead 5,600 Goods in Process 5,600 D. Goods in Process 5,600 Factory Overhead 5,600 E. No entry is needed. A. Journal entry A B. Journal entry B C. Journal entry C D. Journal entry D E. Journal entry E

Q: A material amount of overapplied or underapplied overhead should be disposed of by allocating it to: A. Cost of goods sold and finished goods. B. Finished goods and goods in process. C. Goods in process, finished goods, and cost of goods sold. D. Goods in process. E. Raw materials, goods in process, and finished goods.

Q: Overhead is applied as a percent of direct labor costs. Estimated overhead and direct labor costs for the year were $250,000 and $125,000, respectively. During the year, actual overhead was $248,000 and actual direct labor cost was $123,000. The entry to close the over- or underapplied overhead at year-end, assuming an immaterial amount, would include: A. A debit to Cost of Goods Sold for $2,000. B. A debit to Factory Overhead for $2,000. C. A credit to Finished Goods Inventory for $2,000. D. A debit to Goods in Process Inventory for $2,000. E. A credit to Cost of Goods Sold for $2,000.

Q: Overhead is applied as a percent of direct labor costs. Estimated overhead and direct labor costs for the year were $112,500 and $125,000, respectively. During the year, actual overhead was $107,400 and actual direct labor cost was $120,000. The entry to close the over- or underapplied overhead at year-end, assuming an immaterial amount, would include: A. A debit to Cost of Goods Sold for $600. B. A credit to Factory Overhead for $600. C. A credit to Finished Goods Inventory for $600. D. A debit to Goods in Process Inventory for $600. E. A credit to Cost of Goods Sold for $600.

Q: M.A.E. charged the following amounts of overhead to jobs during the year: $20,000 to jobs still in process; $60,000 to jobs completed but not sold; and $120,000 to jobs finished and sold. At year-end, M.A.E. Company's Factory Overhead account has a credit balance of $5,000, which is not a material amount. What entry should M.A.E. make at year-end? A. No entry is needed. B. Factory Overhead 5,000 Cost of Goods Sold 5,000 C. Cost of Goods Sold 5,000 Factory Overhead 5,000 D. Factory Overhead 5,000 Goods in Process Inventory 5,000 E. Factory Overhead 5,000 Finished Goods 5,000 A. A B. B C. C D. D E. E

Q: If a company applies overhead to production with a predetermined rate, a credit balance in the Factory Overhead account at the end of the period means that: A. The bookkeeper has made an error because the debits don't equal the credits. B. The balance will be carried forward to the next period as an overhead cost. C. Actual overhead was less than the overhead amount charged to production. D. The overhead was underapplied for the period. E. Actual overhead was greater than the overhead amount charged to production.

Q: The amount by which overhead incurred during a period exceeds the overhead applied to jobs is: A. Balanced overhead. B. Predetermined overhead. C. Actual overhead. D. Underapplied overhead. E. Overapplied overhead.

Q: The amount by which the overhead applied to jobs during a period exceeds the overhead incurred during the period is known as: A. Adjusted overhead. B. Estimated overhead. C. Predetermined overhead. D. Underapplied overhead. E. Overapplied overhead.

Q: If overhead applied is less than actual overhead, it is: A. Fully applied. B. Underapplied. C. Overapplied. D. Expected. E. Normal.

Q: At the current year-end, Hardly Company found that its overhead was underapplied by $2,500, and this amount was not deemed to be a material amount. Based on this information, Hardly should: A. Close the $2,500 to Cost of Goods Sold. B. Close the $2,500 to Finished Goods Inventory. C. Do nothing about the $2,500 since it is not material, and it is likely that overhead will be overapplied by the same amount next year. D. Carry the $2,500 to the income statement as Other Expense. E. Carry the $2,500 to the next period.

Q: A manufacturing company uses a job order cost accounting system. Overhead is applied using pounds of direct materials used as an allocation base. Total costs for a particular job were $5,720. Of this amount $2,600 was direct labor and $1,040 was direct material. The company pays $26 per hour of direct labor and $2 per pound of direct materials. What is this companys overhead rate? A. $2 per pound of direct material used. B. $1,040 per pound of direct material used. C. $520 per pound of direct material used. D. $4 per pound of direct material used. E. $2,080 per pound of direct material used.

Q: A manufacturing company uses a job order cost accounting system. Overhead is applied using direct labor hours as an allocation base. Total costs for a particular job were $5,720. Of this amount $2,600 was direct labor and $1,040 was direct material. The company pays $26 per hour of direct labor and $2 per pound of direct materials. What is this companys overhead rate? A. $26.00 per direct labor hour. B. $20.80 per direct labor hour. C. $ 4.00 per direct labor hour. D. $80.00 per direct labor hour. E. $2,080 per direct labor hour.

Q: The ending inventory of finished goods has a total cost of $10,000 and consists of 500 units. If the overhead applied to these goods is $2,000, and the overhead rate is 50% of direct labor, how much direct materials cost was incurred in producing these units? A. $4,000 B. $6,000 C. $3,000 D. $7,000 E. $10,000

Q: If one unit of Product X used $.75 of direct materials and $6.00 of direct labor, sold for $12.00, and was assigned overhead at the rate of 20% of direct labor costs, how much gross profit was realized from this sale? A. $12.00 B. $6.75 C. $.75 D. $1.20 E. $4.05

Q: If one unit of Product X used $2.50 of direct materials and $3.00 of direct labor, sold for $8.00, and was assigned overhead at the rate of 30% of direct labor costs, how much gross profit was realized from this sale? A. $8.00 B. $5.50 C. $2.50 D. $1.60 E. $0.90

Q: Using the following accounts and an overhead rate of 80% of direct labor cost, determine the amount of applied overhead. Goods in Process Inventory Finished Goods Inventory Beg. Bal. 53,000 Beg. Bal. 9,000 D.M. 48,000 200,000 129,000 D.L. ? O.H. ? F. G. ? End. Bal. 36,000 End. Bal. 80,000 A. $135,000 B. $75,000 C. $60,000 D. $101,000 E. $17,000

Q: Using the following accounts and an overhead rate of 90% of direct labor cost, determine the amount of applied overhead. Goods in Process Inventory Finished Goods Inventory Beg. Bal. 17,600 Beg. Bal. 5,200 D.M. 52,800 201,520 D.L. ? O.H. ? F. G. ? End. Bal. 36,080 A. $79,200 B. $167,200 C. $34,320 D. $88,000 E. $35,376

Q: The Goods in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $7,750 debit balance after all posting is completed. The cost sheet of the one job still in process shows direct material cost of $6,000 and direct labor cost of $1,000. Therefore, the company's overhead application rate is: A. 10.7% B. 75.0% C. 133.0% D. 90.3% E. 111.0%

Q: The Goods in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $4,400 debit balance after all posting is completed. The cost sheet of the one job still in process shows direct material cost of $2,000 and direct labor cost of $800. Therefore, the company's overhead application rate is: A. 40% B. 50% C. 80% D. 200% E. 220%

Q: A company allocates overhead to production on the basis of direct labor cost. If the companys total estimated overhead is $870,000 and estimated direct labor cost is $1,160,000, determine the amount of overhead to be allocated to finished goods inventory. There is $791,000 of total direct labor cost in the jobs in the finished goods inventory. A. $1,054,667 B. $593,250 C. $1,275,853 D. $1,079,482 E. $79,000

Q: Deltan Corp. allocates overhead to production on the basis of direct labor costs. If Deltan's total estimated overhead is $450,000 and estimated direct labor cost is $180,000, determine the amount of overhead to be allocated to finished goods inventory. There is $20,000 of total direct labor cost in the jobs in the finished goods inventory. A. $8,000 B. $20,000 C. $70,000 D. $50,000 E. $90,000

Q: The R&R Company's manufacturing costs for August are: direct labor, $13,000; indirect labor, $6,500; direct materials, $15,000; taxes on raw materials and work in process, $800; heat, lights, and power, $1,000; and insurance on plant and equipment, $200. R&R Company's factory overhead incurred for August is: A. $2,000 B. $6,500 C. $8,500 D. $21,500 E. $36,500

Q: Austin Company uses a job order cost accounting system. The company's executives estimated that direct labor would be $2,000,000 (200,000 hours at $10/hour) and that factory overhead would be $1,500,000 for the current period. At the end of the period, the records show that there had been 180,000 hours of direct labor and $1,200,000 of actual overhead costs. Using direct labor hours as the allocation base, calculate the under- or overapplied overhead for the period. A. $150,000 overapplied. B. $150,000 underapplied. C. $300,000 underapplied. D. $300,000 overapplied. E. $200,000 underapplied.

Q: Austin Company uses a job order cost accounting system. The company's executives estimated that direct labor would be $2,000,000 (200,000 hours at $10/hour) and that factory overhead would be $1,500,000 for the current period. At the end of the period, the records show that there had been 180,000 hours of direct labor and $1,200,000 of actual overhead costs. Using direct labor hours as a base, what was the predetermined overhead allocation rate? A. $6.00 per direct labor hour. B. $7.50 per direct labor hour. C. $6.67 per direct labor hour. D. $8.33 per direct labor hour. E. $7.08 per direct labor hour.

Q: O.K. Company uses a job order cost accounting system and allocates its overhead on the basis of direct labor costs. O.K. expects to incur $800,000 of overhead during the next period and expects to use 50,000 labor hours at a cost of $10.00 per hour. What is O.K. Company's overhead application rate? A. 6.25% B. 62.5% C. 160% D. 1600% E. 67%

Q: BVD Company uses a job order cost accounting system and last period incurred $80,000 of overhead and $100,000 of direct labor. BVD estimates that its overhead next period will be $75,000. It also expects to incur $100,000 of direct labor. If BVD bases applied overhead on direct labor cost, their overhead application rate for the next period should be: A. 75% B. 80% C. 107% D. 125% E. 133%

Q: The rate established prior to the beginning of a period that relates estimated overhead to an allocation factor such as estimated direct labor and that is used to assign overhead cost to jobs is the: A. Predetermined overhead allocation rate. B. Overhead variance rate. C. Estimated labor cost rate. D. Chargeable overhead rate. E. Miscellaneous overhead rate.

Q: The overhead cost applied to a job during a period is recorded with a credit to Factory Overhead and a debit to: A. Jobs Overhead Expense B. Cost of Goods Sold C. Finished Goods Inventory D. Indirect Labor E. Goods in Process Inventory

Q: Canoe Company's manufacturing accounting system uses direct labor costs to apply overhead to goods in process and finished goods inventories. Canoe Company's manufacturing costs for the year were: direct labor, $30,000; direct materials, $50,000; and factory overhead applied, $6,000. The overhead application rate was: A. 5.0% B. 12.0% C. 20.0% D. 500.0% E. 16.7%

Q: A company has an overhead application rate of 125% of direct labor costs. How much overhead would be allocated to a job if it required total labor costing $20,000? A. $5,000 B. $16,000 C. $25,000 D. $125,000 E. $250,000

Q: Canberra Company uses a job order cost accounting system. During the current month, the factory payroll of $180,000 was paid in cash. The amount of labor classified as direct labor was three times greater than the amount classified as indirect labor. What amount should be debited to Factory Overhead for indirect labor for this month? A. $135,000 B. $180,000 C. $45,000 D. $60,000 E. $20,000

Q: Labor costs in manufacturing can be: A. Direct or indirect. B. Indirect or sunk. C. Direct or payroll. D. Indirect or payroll. E. Direct or sunk.

Q: Penn Company uses a job order cost accounting system. In the last month, the system accumulated labor time tickets totaling $24,600 for direct labor and $4,300 for indirect labor. These costs were accumulated in Factory Payroll as they were paid. Which entry should Penn make to assign the Factory Payroll? (A) Payroll Expense 28,900 Cash 28,900 (B) Payroll Expense 24,600 Factory Overhead 4,300 Factory Payroll 28,900 (C) Goods in Process Inventory 24,600 Factory Overhead 4,300 Factory Payroll 28,900 (D) Goods in Process Inventory 24,600 Factory Overhead 4,300 Accrued Wages Payable 28,900 (E) Goods in Process Inventory 28,900 Factory Payroll 28,900 A. A B. B C. C D. D E. E

Q: When factory payroll costs are recorded in a job cost accounting system: A. Factory Payroll is debited and Goods in Process is credited. B. Goods in Process Inventory and Factory Overhead are debited and Factory Payroll is credited. C. Cost of Goods Manufactured is debited and Direct Labor is credited. D. Direct Labor and Indirect Labor are debited and Factory Payroll is credited. E. Goods in Process is debited and factory payroll is credited.

Q: When raw materials are used in production and are recorded in a job cost system: A. Goods in Process is credited and Finished Goods is debited. B. Direct Material and Indirect Material are debited and Goods in Process is credited. C. Direct Material and Indirect Material are debited and Raw Materials Inventory is credited. D. Goods in Process is debited and Raw Materials Inventory is credited. E. Goods in Process and Factory Overhead are debited and Raw Materials Inventory is credited.

Q: A source document that an employee uses to report how much time was spent working on a job or on overhead activities and that is used to determine the amount of direct labor to charge to the job or to determine the amount of indirect labor to charge to factory overhead is called a: A. Payroll Register. B. Factory payroll record. C. General Ledger. D. Time ticket. E. Factory Overhead Ledger.

Q: A source document that an employee uses to record the number of hours at work and that is used to determine the total labor cost for each pay period is a: A. Job cost sheet. B. Hours-of-production sheet. C. Time ticket. D. Job order ticket. E. Clock card.

Q: During last period, a company's overhead rate was 150% of direct labor cost. This caused factory overhead to be $10,000 overapplied. Use the following incomplete accounts to determine the cost of goods sold: Goods in Process Inventory Finished Goods Inventory Beg. Bal. 10,000 Beg. Bal. 30,000 D.M. 80,000 ? ? D.L. ? O.H. ? COGM ? End. Bal. 20,000 End. Bal. 70,000 Factory Overhead 50,000 A. $130,000 B. $170,000 C. $ 40,000 D. $ 60,000 E. $ 90,000

Q: During last period, a company's overhead rate was 150% of direct labor cost. This caused factory overhead to be $10,000 overapplied. Use the following incomplete accounts to determine the cost of goods manufactured: Goods in Process Inventory Finished Goods Inventory Beg. Bal. 10,000 Beg. Bal. 30,000 D.M. 80,000 ? ? D.L. ? O.H. ? COGM ? End. Bal. 20,000 End. Bal. 70,000 Factory Overhead 50,000 A. $130,000 B. $170,000 C. $ 40,000 D. $ 60,000 E. $ 90,000

Q: During last period, a company's direct labor cost was double the cost of its direct material used. In addition, factory overhead was $5,000 underapplied. Use the following incomplete accounts to determine the cost of direct labor: Goods in Process Inventory Finished Goods Inventory Beg. Bal. 60,000 Beg. Bal. 76,000 D.M. ? ? 93,000 D.L. ? O.H. ? F. G. ? End. Bal. 87,000 End. Bal. 71,000 Factory Overhead 75,000 A. $15,000 B. $88,000 C. $45,000 D. $70,000 E. $30,000

Q: A company's overhead rate is 60% of direct labor cost. Using the following incomplete accounts, determine the cost of direct materials used: Goods in Process Inventory Finished Goods Inventory Beg. Bal. 100,800 Beg. Bal. 118,200 D.M. ? 324,800 301,000 D.L. ? O.H. ? F. G. ? End. Bal. 131,040 End. Bal. 142,000 Factory Overhead 93,240 90,720 A. $106,400 B. $113,120 C. $30,240 D. $211,680 E. $324,800

Q: The Goods in Process Inventory Account for XYZ Inc. follows: Goods in Process Inventory Beginning balance $4,750 Direct materials 17,925 ? COG Manufactured Direct labor 24,750 Applied overhead ? Ending balance $10,400 If the overhead is applied at the rate of 80% of direct labor cost, what is the amount of Cost of Goods Manufactured? A. $19,800 B. $56,825 C. $61,775 D. $51,365 E. $37,025

Q: The Goods in Process Inventory account for the AB Corp. follows: Goods in Process Inventory Beginning balance 4,500 Direct materials 47,100 Direct labor 29,600 ? Finished goods Applied overhead 15,800 Ending balance 8,900 The cost of units transferred to finished goods is: A. $97,000 B. $105,900 C. $88,100 D. $95,200 E. $92,500

Q: A source document that production managers use to request materials for manufacturing and that is used to assign materials costs to specific jobs or to overhead is a: A. Job cost sheet. B. Production order. C. Materials requisition. D. Materials purchase order. E. Receiving report.

Q: A perpetual record of a raw materials item that records data on the quantity and cost of units purchased, units issued for use in production, and units that remain in the raw materials inventory is called a(n): A. Materials ledger card. B. Materials requisition. C. Purchase order. D. Materials voucher. E. Purchase ledger.

Q: A job cost sheet includes: A. Direct materials, direct labor, operating costs. B. Direct materials, overhead, administrative costs. C. Direct labor, overhead, selling costs. D. Direct material, direct labor, overhead. E. Direct materials, direct labor, selling costs.

Q: The job order cost sheets used by Garza Company revealed the following: Job. No. Bal. May 1 May Production Costs 124 $1,700 $---- 125 1,200 300 126 ---- 900 Job No. 125 was completed during May and Jobs No. 124 and 125 were shipped to customers in May. What was the companys cost of goods sold for May and the goods in process inventory on May 31? A. $3,200; $900 B. $2,900; $1,200 C. $1,200; $2,900 D. $1,700; $1,200 E. $4,100; $ 0

Q: A job cost sheet shows information about each of the following items except: A. The direct labor costs assigned to the job. B. The name of the customer. C. The costs incurred by the marketing department in selling the job. D. The overhead costs assigned to the job. E. The direct materials costs assigned to the job.

Q: A document in a job order cost accounting system that is used to record the costs of producing a job is a(n): A. Job cost sheet. B. Job lot. C. Finished goods summary. D. Process cost system. E. Units-of-production sheet.

Q: Large aircraft manufacturers such as McDonnell Douglas normally use: A. Job order costing. B. Process costing. C. Mixed costing. D. Full costing. E. Simple costing.

Q: A job order manufacturing system would be appropriate for a company that produces which one of the following items? A. A landscaping design for a new hospital. B. Seedlings for sale in a nursery. C. Sacks of yard fertilizer. D. Packets of flower seeds. E. Small gardening tools, including rakes, shovels, and hoes.

Q: Dell Builders manufactures each house to customer specifications. It most likely would use: A. Capital process costing. B. A periodic inventory system. C. Unique costing. D. Job order costing. E. Activity-based costing.