Cost and Managerial Accounting -
D101/57 Exam Q’s and A’s
When a movie producer receives a contract to produce movies following the
specifications of the customer. - -When would it be appropriate to use job
order costing?
When an oil producer produces a large volume of regular unleaded gasoline
for a gas station chain of stores.
When a company provides warranty services to a group of customers using a
uniform set of processes and services for each customer.
When a clothing manufacturer produces a line of clothes having the same
production cost for each clothing line.
When a movie producer receives a contract to produce movies following the
specifications of the customer.
- Forecasted overhead costs and forecasted activity level. - -Which figures
are used in computing a predetermined overhead rate?
Forecasted overhead costs and actual activity level.
Actual overhead costs and forecasted activity level.
Actual overhead costs and actual activity level.
Forecasted overhead costs and forecasted activity level.
- $40 per direct labor hour. - -A company uses direct labor hours to apply
manufacturing overhead. Budgeted manufacturing overhead for the coming
year is $640,000. Budgeted direct materials purchases are $400,000.
Budgeted direct labor cost is $720,000. Budgeted direct labor hours for the
coming year are 16,000 hours. Actual manufacturing overhead for the year
was $600,000. Actual direct materials purchases were $380,000. Actual
direct labor cost was $700,000. Actual direct labor hours for the year were
20,000 hours.
What is this company's predetermined overhead rate?
$30 per direct labor hour.
$36 per direct labor hour.
$40 per direct labor hour.
$61 per direct labor hour
- Debit to manufacturing overhead for $16,000. - -A company's actual
manufacturing overhead was $156,000, and applied manufacturing overhead
was $172,000.
What should be included in the journal entry necessary to close the
manufacturing overhead account?
, Debit to manufacturing overhead for $16,000.
Debit to cost of goods sold for $16,000.
Debit to cost of goods sold for $156,000.
Debit to manufacturing overhead for $156,000.
- Credit to cash for $3,000. - -A manufacturing company used cash to
purchase raw materials costing $3,000.
What should be included in the journal entry necessary to record this
purchase of raw materials?
Credit to accounts payable for $3,000.
Credit to cash for $3,000.
Credit to work-in-process inventory for $3,000.
Credit to raw materials inventory for $3,000.
- Debit to work-in-process inventory for $12,500. - -A company that
manufactures wood furniture paid $12,500 in cash for the wages of
woodworkers who create the wood furniture in the factory.
What should be included in the journal entry necessary to record this
payment of wages to the woodworkers?
Credit to manufacturing overhead for $12,500.
Debit to work-in-process inventory for $12,500.
Debit to manufacturing overhead for $12,500.
Credit to work-in-process inventory for $12,500.
- Debit to manufacturing overhead for $16,000. - -A company recorded
depreciation of $16,000 on factory equipment.
What should be included in the journal entry necessary to record this
depreciation on factory equipment?
Credit to work-in-process inventory for $16,000.
Debit to work-in-process inventory for $16,000.
Credit to manufacturing overhead for $16,000.
Debit to manufacturing overhead for $16,000.
- $775,000 - -Data for an art supplies company for the year are as follows:
Finished goods inventory, beginning balance
$300,000
Work-in-process inventory, ending balance
215,000
Underapplied manufacturing overhead
40,000
Finished goods inventory, ending balance
250,000
Work-in-process inventory, beginning balance
200,000
Cost of goods manufactured
685,000
D101/57 Exam Q’s and A’s
When a movie producer receives a contract to produce movies following the
specifications of the customer. - -When would it be appropriate to use job
order costing?
When an oil producer produces a large volume of regular unleaded gasoline
for a gas station chain of stores.
When a company provides warranty services to a group of customers using a
uniform set of processes and services for each customer.
When a clothing manufacturer produces a line of clothes having the same
production cost for each clothing line.
When a movie producer receives a contract to produce movies following the
specifications of the customer.
- Forecasted overhead costs and forecasted activity level. - -Which figures
are used in computing a predetermined overhead rate?
Forecasted overhead costs and actual activity level.
Actual overhead costs and forecasted activity level.
Actual overhead costs and actual activity level.
Forecasted overhead costs and forecasted activity level.
- $40 per direct labor hour. - -A company uses direct labor hours to apply
manufacturing overhead. Budgeted manufacturing overhead for the coming
year is $640,000. Budgeted direct materials purchases are $400,000.
Budgeted direct labor cost is $720,000. Budgeted direct labor hours for the
coming year are 16,000 hours. Actual manufacturing overhead for the year
was $600,000. Actual direct materials purchases were $380,000. Actual
direct labor cost was $700,000. Actual direct labor hours for the year were
20,000 hours.
What is this company's predetermined overhead rate?
$30 per direct labor hour.
$36 per direct labor hour.
$40 per direct labor hour.
$61 per direct labor hour
- Debit to manufacturing overhead for $16,000. - -A company's actual
manufacturing overhead was $156,000, and applied manufacturing overhead
was $172,000.
What should be included in the journal entry necessary to close the
manufacturing overhead account?
, Debit to manufacturing overhead for $16,000.
Debit to cost of goods sold for $16,000.
Debit to cost of goods sold for $156,000.
Debit to manufacturing overhead for $156,000.
- Credit to cash for $3,000. - -A manufacturing company used cash to
purchase raw materials costing $3,000.
What should be included in the journal entry necessary to record this
purchase of raw materials?
Credit to accounts payable for $3,000.
Credit to cash for $3,000.
Credit to work-in-process inventory for $3,000.
Credit to raw materials inventory for $3,000.
- Debit to work-in-process inventory for $12,500. - -A company that
manufactures wood furniture paid $12,500 in cash for the wages of
woodworkers who create the wood furniture in the factory.
What should be included in the journal entry necessary to record this
payment of wages to the woodworkers?
Credit to manufacturing overhead for $12,500.
Debit to work-in-process inventory for $12,500.
Debit to manufacturing overhead for $12,500.
Credit to work-in-process inventory for $12,500.
- Debit to manufacturing overhead for $16,000. - -A company recorded
depreciation of $16,000 on factory equipment.
What should be included in the journal entry necessary to record this
depreciation on factory equipment?
Credit to work-in-process inventory for $16,000.
Debit to work-in-process inventory for $16,000.
Credit to manufacturing overhead for $16,000.
Debit to manufacturing overhead for $16,000.
- $775,000 - -Data for an art supplies company for the year are as follows:
Finished goods inventory, beginning balance
$300,000
Work-in-process inventory, ending balance
215,000
Underapplied manufacturing overhead
40,000
Finished goods inventory, ending balance
250,000
Work-in-process inventory, beginning balance
200,000
Cost of goods manufactured
685,000
