Question 1

In job costing,when indirect materials are requisitioned for a job,the raw materials inventory account is credited.

Accepted Answer

A) True 
 B)False

Question 2

Match between columns
                        Premises: Compute the predetermined manufacturing overhead rate.
Allocate the manufacturing overhead costs.
Calculate the amount of overallocated or underallocated manufacturing overhead.
Adjust cost of goods sold for the amount of overallocated or underallocated manufacturing overhead.

Accepted Answer

The Answer of At the end of the period and is...

Question 3

Manufacturing overhead is underallocated if the amount

Accepted Answer

A)  estimated for the period is greater than the actual amount incurred.
B)  estimated for the period is less than the actual amount incurred.
C)  allocated during the period is greater than the actual amount incurred.
D)  allocated during the period is less than the actual amount incurred.E) A) and B)
F) A) and C)

Question 4

At Johnson Manufacturing the predetermined manufacturing overhead rate per direct labour hour is closest to

Accepted Answer

A)  $13.33
B)  $10.67
C)  $11.67
D)  $14.58E) C) and D)
F) B) and C)

Question 5

When raw materials are transferred out of the storeroom to the factory,their cost is transferred out of raw materials inventory and into finished goods inventory.

Accepted Answer

A) True 
 B)False

Question 6

Manufacturers follow four steps to implement a manufacturing overhead allocation system.The first step is to calculate a manufacturing overhead rate.

Accepted Answer

A) True 
 B)False

Question 7

Star Corporation manufactures custom molds for use in the extrusion industry.The company allocates manufacturing overhead based on machine hours.Selected data for costs incurred for Job 732 are as follows:

What is the manufacturing cost of Job 732?

Accepted Answer

A)  $8,100
B)  $11,700
C)  $11,100
D)  $3,600E) A) and C)
F) A) and D)

Question 8

If manufacturing overhead has been underallocated during the year,it means the jobs have been overcosted.

Accepted Answer

A) True 
 B)False

Question 9

Wesley Corporation charged Job 110 with $12,000 of direct materials and $13,500 of direct labour.Allocation for manufacturing overhead is 80% of direct labour costs.What is the total cost of Job 110?

Accepted Answer

A)  $10,800
B)  $42,375
C)  $36,300
D)  $25,500E) A) and D)
F) B) and C)

Question 10

Smith Paints allocates overhead based on machine hours.Selected data for the most recent year follow.

The estimates were made as of the beginning of the year,while the actual results were for the entire year.
The manufacturing overhead for the year would have been

Accepted Answer

A)  $32,500 overallocated.
B)  $32,500 underallocated.
C)  $20,000 overallocated.
D)  $20,000 underallocated.E) A) and B)
F) A) and D)

Question 11

What amount of manufacturing overhead would be allocated for the year at Buckley Corporation?

Accepted Answer

A)  $729,000
B)  $685,000
C)  $769,500
D)  $723,056E) C) and D)
F) B) and D)

Question 12

Job 2301 requires $12,000 of direct materials,$5,000 of direct labour,500 direct labour hours,and 300 machine hours.Manufacturing overhead is computed at $15 per direct labour hour used and $12 per machine hour used.
The total cost of Job 1547 is

Accepted Answer

A)  $28,100
B)  $11,100
C)  $17,000
D)  $24,500E) None of the above
F) A) and D)

Question 13

What is the beginning work in process inventory at Harmon Manufacturing?

Accepted Answer

A)  $17,000
B)  $50,300
C)  $53,400
D)  $2,300E) All of the above
F) C) and D)

Question 14

The journal entry to record $200 of depreciation expense on factory equipment involves a

Accepted Answer

A)  debit to manufacturing overhead for $200.
B)  debit to accumulated depreciation for $200.
C)  debit to depreciation expense for $200.
D)  credit to manufacturing overhead for $200.E) A) and B)
F) A) and C)

Question 15

The total amount of overhead allocated to Job 2908 is

Accepted Answer

A)  $23,750
B)  $30,000
C)  $41,250
D)  $12,500E) None of the above
F) C) and D)

Question 16

Willy's Wagons manufactures custom carts for a variety of uses.The following data has been recorded for Job 531,which was recently completed.Direct materials used cost $12,900.There were 210 direct labour hours worked on this job at a direct labour wage rate of $20 per hour.There were 165 machine hours used on this job.The predetermined overhead rate is $32 per machine hour used.
What is the total manufacturing cost of Job 531?

Accepted Answer

A)  $3,600
B)  $22,380
C)  $23,820
D)  $6,555E) B) and C)
F) C) and D)

Question 17

Job costing is most likely used in which of the following industries?

Accepted Answer

A)  Chemicals
B)  Food and beverage
C)  Pharmaceuticals
D)  Commercial building constructionE) C) and D)
F) B) and C)

Question 18

Fulton Corporation uses estimated direct labour hours of 210,000 and estimated manufacturing overhead costs of $840,000 in establishing manufacturing overhead rates.Actual manufacturing overhead was $960,000,and allocated manufacturing overhead was $980,000.What were the number of actual direct hours worked?

Accepted Answer

A)  214,375
B)  245,000
C)  183,750
D)  210,000E) All of the above
F) None of the above

Question 19

The predetermined manufacturing overhead rate is calculated by multiplying the total estimated manufacturing overhead costs by the total estimated amount of the allocation base.

Accepted Answer

A) True 
 B)False

Question 20

The cost of direct materials used in production is recorded as a

Accepted Answer

A)  debit to manufacturing overhead.
B)  debit to work in process inventory.
C)  debit to raw materials inventory.
D)  debit to direct materials expense.E) B) and C)
F) A) and C)

Exam 3: Job Costing

Manufacturers follow four steps to implement a manufacturing overhead allocation system.The first step is to calculate a manufacturing overhead rate.

Correct Answer
verified

At Johnson Manufacturing the predetermined manufacturing overhead rate per direct labour hour is closest to

Correct Answer
verified

Job 2301 requires $12,000 of direct materials,$5,000 of direct labour,500 direct labour hours,and 300 machine hours.Manufacturing overhead is computed at $15 per direct labour hour used and $12 per machine hour used. The total cost of Job 1547 is

Correct Answer
verified

When raw materials are transferred out of the storeroom to the factory,their cost is transferred out of raw materials inventory and into finished goods inventory.

Correct Answer
verified

Correct Answer
verified

Manufacturing overhead is underallocated if the amount

Correct Answer
verified

The cost of direct materials used in production is recorded as a

Correct Answer
verified

Smith Paints allocates overhead based on machine hours.Selected data for the most recent year follow. The estimates were made as of the beginning of the year,while the actual results were for the entire year. The manufacturing overhead for the year would have been

Correct Answer
verified

Wesley Corporation charged Job 110 with $12,000 of direct materials and $13,500 of direct labour.Allocation for manufacturing overhead is 80% of direct labour costs.What is the total cost of Job 110?

Correct Answer
verified

What is the beginning work in process inventory at Harmon Manufacturing?

Correct Answer
verified

The predetermined manufacturing overhead rate is calculated by multiplying the total estimated manufacturing overhead costs by the total estimated amount of the allocation base.

Correct Answer
verified

Correct Answer
verified

Star Corporation manufactures custom molds for use in the extrusion industry.The company allocates manufacturing overhead based on machine hours.Selected data for costs incurred for Job 732 are as follows: What is the manufacturing cost of Job 732?

Correct Answer
verified

The total amount of overhead allocated to Job 2908 is

Correct Answer
verified

If manufacturing overhead has been underallocated during the year,it means the jobs have been overcosted.

Correct Answer
verified

Job costing is most likely used in which of the following industries?

Correct Answer
verified

The journal entry to record $200 of depreciation expense on factory equipment involves a

Correct Answer
verified

What amount of manufacturing overhead would be allocated for the year at Buckley Corporation?

Correct Answer
verified

In job costing,when indirect materials are requisitioned for a job,the raw materials inventory account is credited.

Correct Answer
verified

Match the following:

Exam 3: Job Costing

Manufacturers follow four steps to implement a manufacturing overhead allocation system.The first step is to calculate a manufacturing overhead rate.

Correct AnswerverifiedShow Answer

At Johnson Manufacturing the predetermined manufacturing overhead rate per direct labour hour is closest to

Correct AnswerverifiedShow Answer

Job 2301 requires $12,000 of direct materials,$5,000 of direct labour,500 direct labour hours,and 300 machine hours.Manufacturing overhead is computed at $15 per direct labour hour used and $12 per machine hour used. The total cost of Job 1547 is

Correct AnswerverifiedShow Answer

When raw materials are transferred out of the storeroom to the factory,their cost is transferred out of raw materials inventory and into finished goods inventory.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Manufacturing overhead is underallocated if the amount

Correct AnswerverifiedShow Answer

The cost of direct materials used in production is recorded as a

Correct AnswerverifiedShow Answer

Smith Paints allocates overhead based on machine hours.Selected data for the most recent year follow. The estimates were made as of the beginning of the year,while the actual results were for the entire year. The manufacturing overhead for the year would have been

Correct AnswerverifiedShow Answer

Wesley Corporation charged Job 110 with $12,000 of direct materials and $13,500 of direct labour.Allocation for manufacturing overhead is 80% of direct labour costs.What is the total cost of Job 110?

Correct AnswerverifiedShow Answer

What is the beginning work in process inventory at Harmon Manufacturing?

Correct AnswerverifiedShow Answer

The predetermined manufacturing overhead rate is calculated by multiplying the total estimated manufacturing overhead costs by the total estimated amount of the allocation base.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Star Corporation manufactures custom molds for use in the extrusion industry.The company allocates manufacturing overhead based on machine hours.Selected data for costs incurred for Job 732 are as follows: What is the manufacturing cost of Job 732?

Correct AnswerverifiedShow Answer

The total amount of overhead allocated to Job 2908 is

Correct AnswerverifiedShow Answer

If manufacturing overhead has been underallocated during the year,it means the jobs have been overcosted.

Correct AnswerverifiedShow Answer

Job costing is most likely used in which of the following industries?

Correct AnswerverifiedShow Answer

The journal entry to record $200 of depreciation expense on factory equipment involves a

Correct AnswerverifiedShow Answer

What amount of manufacturing overhead would be allocated for the year at Buckley Corporation?

Correct AnswerverifiedShow Answer

In job costing,when indirect materials are requisitioned for a job,the raw materials inventory account is credited.

Correct AnswerverifiedShow Answer

Match the following:

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