Question 1

The following information was taken from the job cost sheet for Job 101 for Scott Manufacturing Company:
 $\begin{array}{ll}
\text { Date started: } & \text { July 5 } \
\text { Date completed: } & \text { August 21 }
\end{array}$ Job 101 was sold on account on August 25 for 160% of its cost.
Required:
  A. Prepare the journal entries to record the costs incurred for Job 101 in the current year for
direct materials, direct labour, and factory overhead.
B. Prepare the journal entry to record the completion of Job 101 .
C. What is the predetermined factory overhead rate for Scott?
D. Prepare the journal entries to record the sale of Job 101 .

Accepted Answer

The answer of The following information was taken from the...

Question 2

Michelle's has the following transactions for the month of October:
1.Purchased materials on account for $111,482.
2.Materials requisitioned for $82,383.
3.Direct labour of $51,000 was incurred (but not yet paid) .
4.Actual overhead for the month was $33,000. It has not been paid yet (charge to various payables) .
5.Overhead is applied to production at the rate of 70% of direct labour.
6.Jobs totalling $56,000 were transferred from work in process to finished goods.
7.Jobs costing $41,000 were sold.Balances at the beginning of the month were:
   Materials $17,890 Work in process 0 Finished goods 8,321\begin{array}{lr}	ext { Materials } & \$ 17,890 \	ext { Work in process } & 0 \	ext { Finished goods } & 8,321\end{array} Materials  Work in process  Finished goods ​$17,89008,321​ 
-Refer to the Figure.What is the journal entry to record applied overhead for the month?

Accepted Answer

A)  Work in Process 35,700Overhead Control 35,700
B)  Various Payables 35,700Overhead Control 35,700
C)  Overhead Control 35,700Work in Process 35,700
D)  Overhead Control 35,700Various Payables 35,700 E) B) and D)
F) C) and D)

Question 3

Big Red Truck Company designs and builds fire trucks.During June,it had applied overhead of $125,000.Overhead is applied at the rate of 80% of direct labour cost.Direct labour wages average $10 per hour. How many direct labour hours did Big Red Truck Company have for the month of June?

Accepted Answer

A)  4,500
B)  10,500
C)  12,500
D)  156,250E) All of the above
F) A) and D)

Question 4

Which of the following events would require two separate journal entries?

Accepted Answer

A)  selling a good
B)  transferring a good to finished goods
C)  purchasing raw materials
D)  hiring an hourly employeeE) A) and D)
F) A) and C)

Question 5

Match the following cost flows with the proper event in a job-costing firm:
-Cost of materials is removed from materials account and added to work in process

Accepted Answer

A)  Completion of job
B)  End of each accounting period
C)  Materials are removed from storage into production
D)  Product is sold
E)  End of yearF) A) and D)
G) C) and D)

Question 6

Which of the following methods of measuring costs associated with production is more widely used in practice?

Accepted Answer

A)  normal costing
B)  actual costing
C)  authentic costing
D)  ordinary costingE) B) and D)
F) All of the above

Question 7

What form requires the job number and the type,quantity,and unit price of direct materials issued?

Accepted Answer

A)  time ticket
B)  materials requisition form
C)  job-order cost sheet
D)  labour summary sheetE) All of the above
F) B) and D)

Question 8

HiTech Housing uses job-order costing. At the end of the month, the following data were gathered:
HiTech Housing's selling price is cost plus 50% for each of its houses.
   Job #  Total Cost  Complete?  Sold? 529$409 no  no 530$513 yes  no 531$115 no  no 532$790 yes  yes 533$650 yes  no 534$540 no  no 535$90 no  no 536$970 yes  yes 537$179 no  no 538$400 no  no \begin{array}{lrrr}	ext { Job \# } & 	ext { Total Cost } & 	ext { Complete? } & 	ext { Sold? } \529 & \$ 409 & 	ext { no } & 	ext { no } \530 & \$ 513 & 	ext { yes } & 	ext { no }\531 & \$ 115 & 	ext { no } & 	ext { no } \532 & \$ 790 & 	ext { yes } & 	ext { yes } \533 & \$ 650 & 	ext { yes } & 	ext { no } \534 & \$ 540 & 	ext { no } & 	ext { no } \535 & \$ 90 & 	ext { no } & 	ext { no } \536 & \$ 970 & 	ext { yes } & 	ext { yes } \537 & \$ 179 & 	ext { no } & 	ext { no } \538 & \$ 400 & 	ext { no } & 	ext { no }\end{array} Job # 529530531532533534535536537538​ Total Cost $409$513$115$790$650$540$90$970$179$400​ Complete?  no  yes  no  yes  yes  no  no  yes  no  no ​ Sold?  no  no  no  yes  no  no  no  yes  no  no ​ 
-Refer to the Figure.What is the selling price of Job 536?

Accepted Answer

A)  $790
B)  $970
C)  $1,185
D)  $1,455 E) A) and B)
F) B) and D)

Question 9

From an operational perspective,which is not a decision that unit costs are used to make?

Accepted Answer

A)  hiring a new CEO
B)  evaluating performance on an ongoing basis
C)  establishing a price for a product or service
D)  determining the long-term feasibility of a business strategyE) B) and C)
F) A) and D)

Question 10

What account increases when raw materials are purchased on account?

Accepted Answer

A)  expenses
B)  liabilities
C)  equity
D)  revenueE) B) and C)
F) All of the above B

Question 11

Match the following cost flows with the proper event in a job-costing firm:
-Direct materials,direct labour and applied overhead are totalled to yield manufacturing cost of job

Accepted Answer

A)  Completion of job
B)  End of each accounting period
C)  Materials are removed from storage into production
D)  Product is sold
E)  End of yearF) A) and E)
G) None of the above

Question 12

Valley Water Slides makes custom water slides for hotels. On September 1, three jobs were in process: Jobs 812, 813, and 814. Two more jobs, Jobs 815 and 816, were started during September. By September 30, Jobs 812, 814, and 816 were finished. The following data were collected:
Overhead is applied at the rate of 120% of direct labour cost. Jobs are sold at cost plus 60%. Selling and administrative expenses for September totalled $2,950. By September 30, Jobs 812 were 816 are sold, but the customer who ordered Job 814 cancelled the order so the slide is still in the warehouse.   Job 812  Job 813  Job 814  Job 815  Job 816 9/1Bal ance $615$830$945…… Direct Materials 7502351,280$200$915 Direct Labour 420115560320875\begin{array}{lrrrrr} & 	ext { Job 812 } & 	ext { Job 813 } & 	ext { Job 814 } & 	ext { Job 815 } & 	ext { Job 816 } \9 / 1 \mathrm{Bal} 	ext { ance } & \$ 615 & \$ 830 & \$ 945 & \ldots & \ldots\	ext { Direct Materials } & 750 & 235 & 1,280 & \$ 200 & \$ 915 \	ext { Direct Labour } & 420 & 115 & 560 & 320 & 875\end{array}9/1Bal ance  Direct Materials  Direct Labour ​ Job 812 $615750420​ Job 813 $830235115​ Job 814 $9451,280560​ Job 815 …$200320​ Job 816 …$915875​ 
-Refer to the Figure.What is the cost of goods sold for September?

Accepted Answer

A)  $3,575.00
B)  $5,129.00
C)  $5,720.00
D)  $8,206.40 E) B) and C)
F) A) and D)

Question 13

What are the three steps of overhead application?

Accepted Answer

The answer of What are the three steps of overhead...

Question 14

For which of the following are time tickets filled out?

Accepted Answer

A)  indirect labourers
B)  direct labourers
C)  managers
D)  supervisorsE) C) and D)
F) B) and D)

Question 15

The three manufacturing cost elements are direct materials,direct labour,and overhead.

Accepted Answer

A) True 
 B)False  True

Question 16

Match each item with the correct statement below.
-An approach that assigns the actual costs of direct materials and direct labour to products but uses a predetermined rate to assign overhead costs

Accepted Answer

A)  Actual cost system
B)  Job-order cost system
C)  Normal cost system
D)  Process-costing systemE) C) and D)
F) B) and C)

Question 17

Which of the following costs are easy to trace to individual jobs?

Accepted Answer

A)  direct materials and overhead
B)  direct materials and direct labour
C)  direct labour and overhead
D)  overhead and indirect labourE) A) and B)
F) None of the above

Question 18

Match each item with the correct statement below.
-The difference between actual overhead and applied overhead

Accepted Answer

A)  Predetermined overhead rate
B)  Plantwide overhead rate
C)  Departmental overhead rate
D)  Overhead variance
E)  Overapplied overheadF) Underapplied overheadG) Applied overheadH) Normal cost of goods soldI) B) and D)
J) B) and H)

Question 19

Which of the following is a characteristic of normal costing?

Accepted Answer

A)  Actual overhead costs are not assigned directly to jobs.
B)  Predetermined rates are not used to assign overhead.
C)  Applied overhead is not calculated on a job-specific basis.
D)  Plant-wide and departmental rates cannot be used to assign overhead.E) A) and B)
F) A) and C) A

Question 20

The use of a departmental rate has the advantage of being simple and reduces data collection requirements.

Accepted Answer

A) True 
 B)False

Exam 5: Job-Order Costing

Correct Answer
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Correct Answer
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Big Red Truck Company designs and builds fire trucks.During June,it had applied overhead of $125,000.Overhead is applied at the rate of 80% of direct labour cost.Direct labour wages average $10 per hour. How many direct labour hours did Big Red Truck Company have for the month of June?

Correct Answer
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Which of the following events would require two separate journal entries?

Correct Answer
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Match the following cost flows with the proper event in a job-costing firm: -Cost of materials is removed from materials account and added to work in process

Correct Answer
verified

Which of the following methods of measuring costs associated with production is more widely used in practice?

Correct Answer
verified

What form requires the job number and the type,quantity,and unit price of direct materials issued?

Correct Answer
verified

Correct Answer
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From an operational perspective,which is not a decision that unit costs are used to make?

Correct Answer
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What account increases when raw materials are purchased on account?

Correct Answer
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B

Match the following cost flows with the proper event in a job-costing firm: -Direct materials,direct labour and applied overhead are totalled to yield manufacturing cost of job

Correct Answer
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Correct Answer
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What are the three steps of overhead application?

Correct Answer
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For which of the following are time tickets filled out?

Correct Answer
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The three manufacturing cost elements are direct materials,direct labour,and overhead.

Correct Answer
verified
True

Match each item with the correct statement below. -An approach that assigns the actual costs of direct materials and direct labour to products but uses a predetermined rate to assign overhead costs

Correct Answer
verified

Which of the following costs are easy to trace to individual jobs?

Correct Answer
verified

Match each item with the correct statement below. -The difference between actual overhead and applied overhead

Correct Answer
verified

Which of the following is a characteristic of normal costing?

Correct Answer
verified
A

The use of a departmental rate has the advantage of being simple and reduces data collection requirements.

Correct Answer
verified

Exam 5: Job-Order Costing

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Big Red Truck Company designs and builds fire trucks.During June,it had applied overhead of $125,000.Overhead is applied at the rate of 80% of direct labour cost.Direct labour wages average $10 per hour. How many direct labour hours did Big Red Truck Company have for the month of June?

Correct AnswerverifiedShow Answer

Which of the following events would require two separate journal entries?

Correct AnswerverifiedShow Answer

Match the following cost flows with the proper event in a job-costing firm: -Cost of materials is removed from materials account and added to work in process

Correct AnswerverifiedShow Answer

Which of the following methods of measuring costs associated with production is more widely used in practice?

Correct AnswerverifiedShow Answer

What form requires the job number and the type,quantity,and unit price of direct materials issued?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

From an operational perspective,which is not a decision that unit costs are used to make?

Correct AnswerverifiedShow Answer

What account increases when raw materials are purchased on account?

Correct AnswerverifiedB

Match the following cost flows with the proper event in a job-costing firm: -Direct materials,direct labour and applied overhead are totalled to yield manufacturing cost of job

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

What are the three steps of overhead application?

Correct AnswerverifiedShow Answer

For which of the following are time tickets filled out?

Correct AnswerverifiedShow Answer

The three manufacturing cost elements are direct materials,direct labour,and overhead.

Correct AnswerverifiedTrue

Match each item with the correct statement below. -An approach that assigns the actual costs of direct materials and direct labour to products but uses a predetermined rate to assign overhead costs

Correct AnswerverifiedShow Answer

Which of the following costs are easy to trace to individual jobs?

Correct AnswerverifiedShow Answer

Match each item with the correct statement below. -The difference between actual overhead and applied overhead

Correct AnswerverifiedShow Answer

Which of the following is a characteristic of normal costing?

Correct AnswerverifiedA

The use of a departmental rate has the advantage of being simple and reduces data collection requirements.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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B

Correct Answer
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Correct Answer
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True

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A

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