QUESTION 1
Which of the following is one of the components of cost accounting?
A. It involves the determination of company profits.
B. It requires GAAP to be applied.
C. It requires cost minimizing principles.
D. It involves measuring product costs.
QUESTION 2
When a job is completed and all costs have been accumulated on a job cost sheet, the journal entry that should be made is
A. Finished Goods Inventory
Direct Materials
Direct Labor
Manufacturing Overhead
B. Work In Process Inventory
Direct Materials
Direct Labor
Manufacturing Overhead
C. Raw Materials Inventory
Work In Process Inventory
D. Finished Goods Inventory
Work In Process Inventory
QUESTION 3
Which of the following is not a control account?
A. Accounts Receivable
B. Factory Labor
C. Raw Materials Inventory
D. Manufacturing Overhead
QUESTION 4
Which one of the following should be equal to the balance of the Work In Process Inventory account at the end of the period?
A. The total of manufacturing overhead applied to work in process for the period
B. The total manufacturing costs for the period
C. The sum of the costs shown on the job cost sheets of unfinished jobs
D. The total of the amounts transferred from raw materials for the current period
QUESTION 5
Cost of goods manufactured equals $65,000 for 2013. Finished goods inventory is $2,000 at the beginning of the year and $5,500 at the end of the year. Beginning and ending work in process for 2013 are $4,000 and $5,000, respectively. How much is cost of goods sold for the year?
A. $61,500
B. $67,500
C. $68,500
D. $63,000
QUESTION 6
The predetermined overhead rate is based on the relationship between
A. estimated annual costs and actual activity.
B. estimated annual costs and expected annual activity.
C. estimated monthly costs and actual monthly activity.
D. actual monthly costs and actual annual activity.
QUESTION 7
At the beginning of the year, Monroe Company estimates annual overhead costs to be $1,600,000 and that 300,000 machine hours will be operated. Using machine hours as a base, the amount of overhead applied during the year if actual machine hours for the year was 315,000 hours is
A. $1,120,000.
B. $1,523,809.
C. $1,680,000.
D. $1,600,000.
QUESTION 8
Hayward Manufacturing Company developed the following data:
Beginning work in process inventory $450,000
Direct materials used 350,000
Actual overhead 550,000
Overhead applied 400,000
Cost of goods manufactured 600,000
Ending work in process 750,000
Hayward Manufacturing Company’s total manufacturing costs for the period is
A. $650,000.
B. $950,000.
C. $900,000.
D. cannot be determined from the data provided.
QUESTION 9
During 2013, Cotte Manufacturing expected Job No. 59 to cost $300,000 of overhead, $500,000 of materials, and $200,000 in labor. Cotte applied overhead based on direct labor cost. Actual production required an overhead cost of $290,000, $550,000 in materials used, and $220,000 in labor. All of the goods were completed. How much is the amount of over- or underapplied overhead?
A. $10,000 underapplied
B. $40,000 overapplied
C. $40,000 underapplied
D. $10,000 overapplied
QUESTION 10
If actual overhead is less than applied manufacturing overhead, then manufacturing overhead is:
A. a loss on the income statement under “Other Expenses and Losses.”
B. overapplied.
C. considered a miscellaneous expense.
D. underapplied.
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