ACCT 526 Final Exam Questions and
Answers Verified Solutions Latest Update
2026/2027
Question:
In a job order cost system, the amount of overhead cost that has been applied to a job that remains
incomplete at the end of a period:
Answer:
is part of the ending balance of the Work in Process inventory account
Question:
Archer Company uses a job order cost system. During the month of September, the company
worked on Job B. The information contained on the cost sheet is as follows:
Job B
Beg Balance $1,500
Direct Material $800
Direct Labor $2,300
The company applied overhead at 120% of direct labor cost. During September Job B was
completed and sold in October. If Job B sold for $8,000, what was the amount of gross profit for
this job? (Ignore any consideration of over/under applied overhead)
Answer:
$640
Question:
At the end of the accounting period, applied overhead was larger than actual overhead by a material
amount. The over applied overhead should be:
Answer:
apportioned among Work in Process Inventory, Finished Goods Inventory and Cost of Goods Sold
Question:
, At December 31, 2017, Stand Still Industries had $2,500 of raw material inventory. At the
beginning of 2017, there was $2,000 of materials on hand. During the year, the company purchased
$305,000 of materials; however, it paid for only $292,500. How much inventory was used of jobs
during 2017?
Answer:
$304,500
Question:
In the year-end financial statements, the Manufacturing Overhead account should have:
Answer:
a zero balance, since all overhead costs incurred during the year should be assigned to the
production of the year
Question:
ABC Company budgeted the following transactions for April:
Sales (75% collected in month of sale) $200,000
Cash operating expense $105,000
Cash purchases of capital investments $75,000
Cash payment of debt $20,000
Depreciation on operating assets $15,000
There was a $50,000 beginning cash balance. The company desires to have a $25,000 ended cash
balance. What is the amount of cash overage or shortage?
Answer:
$25,000 shortage
Question:
The estimated period costs necessary to support a given level of sales will be shown on the
Answer:
selling and administrative budget
Question:
Answers Verified Solutions Latest Update
2026/2027
Question:
In a job order cost system, the amount of overhead cost that has been applied to a job that remains
incomplete at the end of a period:
Answer:
is part of the ending balance of the Work in Process inventory account
Question:
Archer Company uses a job order cost system. During the month of September, the company
worked on Job B. The information contained on the cost sheet is as follows:
Job B
Beg Balance $1,500
Direct Material $800
Direct Labor $2,300
The company applied overhead at 120% of direct labor cost. During September Job B was
completed and sold in October. If Job B sold for $8,000, what was the amount of gross profit for
this job? (Ignore any consideration of over/under applied overhead)
Answer:
$640
Question:
At the end of the accounting period, applied overhead was larger than actual overhead by a material
amount. The over applied overhead should be:
Answer:
apportioned among Work in Process Inventory, Finished Goods Inventory and Cost of Goods Sold
Question:
, At December 31, 2017, Stand Still Industries had $2,500 of raw material inventory. At the
beginning of 2017, there was $2,000 of materials on hand. During the year, the company purchased
$305,000 of materials; however, it paid for only $292,500. How much inventory was used of jobs
during 2017?
Answer:
$304,500
Question:
In the year-end financial statements, the Manufacturing Overhead account should have:
Answer:
a zero balance, since all overhead costs incurred during the year should be assigned to the
production of the year
Question:
ABC Company budgeted the following transactions for April:
Sales (75% collected in month of sale) $200,000
Cash operating expense $105,000
Cash purchases of capital investments $75,000
Cash payment of debt $20,000
Depreciation on operating assets $15,000
There was a $50,000 beginning cash balance. The company desires to have a $25,000 ended cash
balance. What is the amount of cash overage or shortage?
Answer:
$25,000 shortage
Question:
The estimated period costs necessary to support a given level of sales will be shown on the
Answer:
selling and administrative budget
Question:
