D101 PA UPDATED ACTUAL Questions and CORRECT Answers
When a movie producer receives a contract to produce When would it be appropriate to use job order costing?
movies following the specifications of the customer. 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.
When a movie producer receives a contract to produce When would it be appropriate to use job order costing?
movies following the specifications of the customer. 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.
