Acct 201B Exam Review (Ch. 1 -4) Solved
Exam Questions and Answers (Complete
Practice Papers)
Ch. 2 - Job Order Costing: Calculating Unit Product Costs
Dolan Manufacturing Company's accounting records reflect
the following inventories:
Dec. 31, 2011
Raw materials inventory - $310,000
Work in process inventory - $300,000
Finished goods inventory - $190,000
Dec. 31, 2010
Raw materials inventory - $260,000
Work in process inventory - $160,000
Finished goods inventory - $150,000
During 2011, $400,000 of raw materials were purchased,
direct labor costs amounted to $500,000, and manufacturing
overhead incurred was $480,000.If Dolan Manufacturing
Company's cost of goods manufactured for 2011 amounted
to $1,190,000, its cost of goods sold for the year is
A. $1,300,000.
B. $1,230,000.
C. $1,050,000.
,Acct 201B Exam Review (Ch. 1 -4) Solved
Exam Questions and Answers (Complete
Practice Papers)
D. $1,150,000. - Correct Answers ✅D. $1,150,000.
COGS = Beginning Finished Goods + COGM - End FG
COGS = (150,000 + 1,190,000) - 190,000
COGS = 1,150,000
On the costs of goods manufactured schedule, the item raw
materials inventory (ending) appears as a(n)
A. addition to raw materials available for use.
B. subtraction from raw materials purchases.
C. addition to raw materials purchases.
D. subtraction from raw materials available for use. - Correct
Answers ✅D. subtraction from raw materials available for
use.
RM: (Beg RM + Purchases) - End RM
RM available for use = Beg RM + Purchases
A company expected its annual overhead costs to be
$900,000 and direct labor costs to be $1,000,000. Actual
overhead was $870,000, and actual labor costs totaled
$1,100,000. How much is the company's predetermined
overhead rate to the nearest cent?
, Acct 201B Exam Review (Ch. 1 -4) Solved
Exam Questions and Answers (Complete
Practice Papers)
A. $0.79
B. $0.90
C. $0.87
D. $0.82 - Correct Answers ✅B. $0.90
Predetermined overhead rate = est manufacturing cost/ est
allocation base
*Predetermined overhead rate is computed BEFORE the
period begins, therefore, it uses estimated costs, not actual*
POHR = 900,000/1,000,000 = $0.9
An important feature of a job order cost system is that each
job
A. has its own distinguishing characteristics.
B. consists of one unit of output.
C. must be similar to previous jobs completed.
D. must be completed before a new job is accepted. -
Correct Answers ✅A. has its own distinguishing
characteristics.
*Job order costing system is used where many different
products have their individual and unique features.
Exam Questions and Answers (Complete
Practice Papers)
Ch. 2 - Job Order Costing: Calculating Unit Product Costs
Dolan Manufacturing Company's accounting records reflect
the following inventories:
Dec. 31, 2011
Raw materials inventory - $310,000
Work in process inventory - $300,000
Finished goods inventory - $190,000
Dec. 31, 2010
Raw materials inventory - $260,000
Work in process inventory - $160,000
Finished goods inventory - $150,000
During 2011, $400,000 of raw materials were purchased,
direct labor costs amounted to $500,000, and manufacturing
overhead incurred was $480,000.If Dolan Manufacturing
Company's cost of goods manufactured for 2011 amounted
to $1,190,000, its cost of goods sold for the year is
A. $1,300,000.
B. $1,230,000.
C. $1,050,000.
,Acct 201B Exam Review (Ch. 1 -4) Solved
Exam Questions and Answers (Complete
Practice Papers)
D. $1,150,000. - Correct Answers ✅D. $1,150,000.
COGS = Beginning Finished Goods + COGM - End FG
COGS = (150,000 + 1,190,000) - 190,000
COGS = 1,150,000
On the costs of goods manufactured schedule, the item raw
materials inventory (ending) appears as a(n)
A. addition to raw materials available for use.
B. subtraction from raw materials purchases.
C. addition to raw materials purchases.
D. subtraction from raw materials available for use. - Correct
Answers ✅D. subtraction from raw materials available for
use.
RM: (Beg RM + Purchases) - End RM
RM available for use = Beg RM + Purchases
A company expected its annual overhead costs to be
$900,000 and direct labor costs to be $1,000,000. Actual
overhead was $870,000, and actual labor costs totaled
$1,100,000. How much is the company's predetermined
overhead rate to the nearest cent?
, Acct 201B Exam Review (Ch. 1 -4) Solved
Exam Questions and Answers (Complete
Practice Papers)
A. $0.79
B. $0.90
C. $0.87
D. $0.82 - Correct Answers ✅B. $0.90
Predetermined overhead rate = est manufacturing cost/ est
allocation base
*Predetermined overhead rate is computed BEFORE the
period begins, therefore, it uses estimated costs, not actual*
POHR = 900,000/1,000,000 = $0.9
An important feature of a job order cost system is that each
job
A. has its own distinguishing characteristics.
B. consists of one unit of output.
C. must be similar to previous jobs completed.
D. must be completed before a new job is accepted. -
Correct Answers ✅A. has its own distinguishing
characteristics.
*Job order costing system is used where many different
products have their individual and unique features.
