Topics: Inventory, FIFO and LIFO accounting, Costs Pages: 12 (3000 words) Published: November 2, 2014

Costs assigned to the building of a house should appear on the income statement when Answer
a. the purchase order to manufacture the house is received. b. the house is sold.
c. cash is collected for the sale of the house.
d. the house is completed.
The basic document for keeping track of costs in a job order costing system is a Answer
a. labor time card.
b. job order cost card.
c. process cost report.
d. materials requisition form.
The following information is available at the end of May:
Balance in work in process on May 1 $141,800
Direct materials costs for May 174,500
Direct labor costs for May 162,500
Overhead applied at rate of 140% of direct labor dollars
Jobs completed during May:  
Job 84 $198,780  
Job 85 102,520  
Job 86 119,450  
Job 87 93,150  
Job 88 was not complete at the end of May.
If $72,400 of materials were charged to Job 88's job cost card, how much overhead was applied to Job 88? Answer
a. $70,000
b. $120,000
c. $72,400
d. $35,100
Unit costs for each job are computed by dividing
a. estimated total costs by planned units to be produced.
b. actual costs by actual units sold.
c. cost of direct materials, direct labor, and overhead by number of units produced. d. estimated total costs by actual units produced.
The _________ provide(s) the most direct means of calculating unit costs for a job. Answer
a. job order cost card
b. general ledger
c. Finished Goods Inventory account
d. Overhead and Work in Process Inventory accounts
The following information is available at the end of the period for the completed Job 713: Beginning balance $21,500.00
Direct materials 30,600
Direct labor 24,500
Overhead applied 41,700
Adjustment—overapplied overhead 1,600
Total number of units produced 30,000
Total number of units sold 28,500
What is the unit cost for Job 713?
a. $3.89
b. $4.00
c. $3.94
d. $4.09
The balance in the Work in Process account equals the
a. balance in the Cost of Goods Sold account.
b. balance in the Finished Goods Inventory account.
c. balance in the Overhead account.
d. balances on the job cost sheets of uncompleted jobs.
Actual overhead during the year was more than applied overhead,  the journal entry to close the Overhead account for the difference? Answer
a. Overhead                        XX      Finished Goods Inventory                  XX b. Overhead                        XX      Cost of Goods Sold                  XX c. Cost of Goods Sold                  XX      Finished Goods Inventory                  XX d. Cost of Goods Sold                  XX      Overhead                              XX Which one of the following entries includes the initial application of indirect labor to production? Answer

a. Factory Payroll                  XX      Overhead                              XX b. Work in Process Inventory            XX      Overhead                              XX c. Overhead                        XX      Work in Process Inventory                  XX d. Overhead                        XX      Factory Payroll                        XX Service organizations incur little or no cost for

a. materials.
b. actual overhead.
c. labor.
d. applied overhead.
The following partially completed T accounts summarize the transactions of Carlton Company for last year:   Materials Inventory
  Beg Bal 5,000 20,000 (2)
  (1) 17,000    
  Work in Process Inventory
  Beg Bal 9,000 63,600 (7)
  (2) 13,000    
  (4) 16,000    
  (6) 29,000    
  (2) 7,000 29,000 (6)
  (3) 14,000    
  (4) 6,000    
  (5) 3,000    
       Cost of Goods Sold
       Accounts Payable
      17,000 (1)
      3,000 (5)
  Finished Goods Inventory
  Beg Bal 16,000    
  (7) 63,600    
  End Bal 13,000    
            Payroll Payable
      5,000 Beg Bal
      31,000 (4)
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