- check my work. submit assignment. save & exit. instructions I help. Chapter 03 Practice Test. f'. D. All of the above.

Transcription

1 <i4 prev I Question # 1 (of 18) 1. value: Which of the following statements is (are) true? 0 A. Companies that produce many different products or services would use joborder costing systems. 0 B. Joborder costing systems cannot be used by service firms. 0 C. Costs are traced to departments and then allocated to units of product when joborder costing is used. f'. D. All of the above. check my work,,. 1 ~ J references

2 ~prov I Question #2 (of 18) 2. value: In a joborder costing system, the basic document for accumulating costs for a specific job is: 0 the materials requisition form 0 the labor time ticket 0 the job cost sheet 0 the Work in Process inventory account check my work 1 ~ ) references

3 ~prov I Question #3 (of 18) 3. value: Harrington Company uses predetermined overhead rates to apply manufacturing overhead to jobs. The predetermined overhead rate is based on machine hours in the Machining Department and on direct labor cost in the Assembly Department. At the beginning of the year, the company made the following estimates: Direct labor hours Direct labor cost Machine hours Manufacturing overhead Machining 12,000 $18,000 5,000 $23,000 Assembly 11,000 $18,000 3,000 $36,000 What predetermined overhead rates would be used in the Machining and the Assembly Department, respectively? (Round your answers to 2 decimal places.) 0 $4.60 and /o 0 $6.00 and /o 0 $4.60 and /o (', $8.20 and /o check my work r 1 ~ J references

4 ~prov I Question #4 (of 18) 4. value: Hiassen Company's predetermined overhead rate is based on direct labor costs. The company's Work in process inventory account has a balance of $5,360, which relates to the one job that was in process at the end of an accounting period. The related job cost sheet includes total charges of $1,440 for direct materials and $2,000 for direct labor. The company's predetermined overhead rate, as a percentage of direct labor costs, must be: 0 96%. 0 48%. 0 27%. n 1s%. check my work 1 ~ ) references

5 ~prov I Question #5 (of 18) 5. value: Unit product cost information is used for: 0 raw materials used in production. 0 manufacturing overhead costs. 0 valuing unsold units in ending inventory and for determining cost of goods sold. 0 determining nonmanufacturing costs. check my work 1 ~ l references

6 ~prov I Question #6 (of 18) 6. value: Vahedi Company manufactures a specialty line of silkscreened ties. The company uses a joborder costing system. During the month, the following costs were incurred on Job 1041: direct materials $57,200 and direct labor $14,900. In addition, selling and shipping costs of $36,000 were incurred on the job. Manufacturing overhead was applied at the rate of $40 per machinehour (MH) and Job 1041 required 460 MHs. If Job 1041 consisted of 5,000 ties, the cost of goods sold per tie was: (Round your answer to 2 decimal places.) 0 $ $ $ $18.10 check my work,,. 1 ~ J references

7 ~prov I Question #7 (of 18) 7. value: Suppose $52,000 of raw materials is withdrawn from the storeroom to be used in production. Of this amount, $31,000 consists of direct materials and $21,000 consists of indirect materials. What account or accounts will be debited? 0 Work in process $31,000 and Raw materials $21,000 0 Work in process $31,000 and Manufacturing overhead $21,000 0 Raw materials $31,000 and Manufacturing overhead $21,000 0 Manufacturing overhead $31,000 and Work in process $21,000 ~ check my work < ~) references

8 ~prov I Question #8 (of 18) 8. value: Suppose a total of $30,000 of overhead is applied to jobs. What account will be debited? 0 Manufacturing overhead $30,000 0 Finished goods $30,000 0 Work in process $30,000 0 Cost of goods sold $30,000 check my work 1 ~ ) references

9 ~prov I Question #9 (of 18) 9. value: The ending Finished goods account balance is determined by adding the beginning balance to the: 0 cost of goods manufactured and then subtracting the cost of goods sold. 0 cost of goods sold and then subtracting the cost of goods manufactured. 0 direct materials, direct labor, and overhead applied. 0 actual amount of overhead and the subtracting the amount of overhead applied. check my work 1 ~ ) references

10 ~prov I Question #10 (of 18) 10. value: On January 1, Hessler Company's Work in Process account had a balance of $30,000. During the year, direct materials costing $40,000 were placed into production. Direct labor cost for the year was $65,000. The predetermined overhead rate for the year was set at 150 /o of direct labor cost. Actual overhead costs for the year totaled $99,500. Jobs costing $209,500 to manufacture according to their job cost sheets were completed during the year. On December 31, the balance in the Work in Process inventory account was: 0 $25,000 0 $12,500 0 $30,000 0 $23,000 check my work,,. 1 ~ J references

11 ~prov I Question #11 (of 18) 11. value: Walston Manufacturing Company has provided the following data concerning its raw materials inventories last month: Beginning raw materials inventory Purchases of raw materials Ending raw materials inventory $ 50, ,000 20,000 The cost of the raw materials used in production for the month was: 0 $390,000 0 $470,000 0 $450,000 0 $440,000 check my work,,. 1 ~ J references

12 ~prov I Question #12 (of 18) 12. value: Juniper Company has provided the following data concerning its manufacturing costs and work in process inventories last month: Raw materials used in production Direct labor Manufacturing overhead Beginning work in process inventory Ending work in process inventory $ 360, , ,000 65,000 95,000 The cost of goods manufactured for the month was: 0 $1,090,000 0 $930,000 0 $900,000 0 $960,000 check my work 1 ~ l references

13 ~prov I Question #13 (of 18) 13. value: Jurden Company bases its predetermined overhead rates on machinehours. At the beginning of the year, the company estimated $75,850 of manufacturing overhead and 41,000 machinehours for the year. Actual manufacturing overhead for year amounted to $81,000 and the actual machinehours totaled 43,000. Manufacturing overhead for the year was: (Round your intermediate calculations to 2 decimal places.) 0 Overapplied by $5, Overapplied by $3, Underapplied by $1,450 0 Underapplied by $3,700 check my work 1 ~ ) references

14 ~prov I Question #14 (of 18) 14. value: Malt Company's Manufacturing overhead account showed a $17,000 underapplied overhead balance on December 31. Other accounts showed the following amounts of overhead applied from the current period in their ending balances: Work in process Finished goods Cost of goods sold $ 81,000 40, ,500 If the company allocates the underapplied overhead among Cost of goods sold, Work in process, and Finished goods, the amount allocated to Work in process was: 0 $3,770 0 $10,200 0 $3,570 0 $5,100 check my work 1 ~ l references

15 '4 prov I Question #15 (of 18),,.., next _ value: Traditionally, the predetermined overhead rate is based on the estimated total amount of the allocation base for the next year. If demand falls due to a recession or other reason, the estimated total amount of the allocation base: 0 is likely to increase. is likely to decrease. 0 may change in any manner. 0 is likely to stay the same. check my work < ~ ) references

16 '4 prov I Question #16 (of 18),,.., next _ value: A longestablished practice in industry is to determine the predetermined overhead rate as follows: estimated total manufacturing overhead cost divided by estimated or budgeted activity. 0 estimated total manufacturing overhead cost at capacity divided by estimated or budgeted activity at capacity. 0 estimated total manufacturing overhead cost divided by estimated or budgeted activity at capacity. 0 estimated total manufacturing overhead cost at capacity divided by estimated or budgeted activity. check my work 1 ~ 1 references

17 ~prov I Question #17 (of 18) 17. value: All of the following statements regarding idle time are correct except: 0 Idle time is treated as part of manufacturing overhead. 0 Idle time refers to the costs of direct labor workers who are unable to perform their assignments due to material shortages. 0 Idle time is treated as part of direct labor cost. 0 Idle time refers to the costs of direct labor workers who are unable to perform their assignments due to power failures. ~ check my work < ~) references

18 ~prov I Question #18 (of 18) I I next ~ 18. value: A machinist earns $26 per hour. During a given week he works 35 hours, of which he is idle 5 hours. For the week: 0 $130 cost should be charged to overtime premium. 0 $975 cost should be charged to direct labor and $65 cost should be charged to overhead. 0 $130 cost should be charged to overhead 0 $910 cost should be charged to direct labor. check my work r 1 ~ J references