Acct 201B Exam Review (Ch. 1 -4)
Questions And Answers
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
,Acct 201B Exam Review (Ch. 1 -4)
Questions And Answers
A. $1,300,000.
B. $1,230,000.
C. $1,050,000.
D. $1,150,000. -
correct answer ✅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 answer ✅D. subtraction from raw materials available for
use.
RM: (Beg RM + Purchases) - End RM
, Acct 201B Exam Review (Ch. 1 -4)
Questions And Answers
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?
A. $0.79
B. $0.90
C. $0.87
D. $0.82 -
correct answer ✅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
Questions And Answers
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
,Acct 201B Exam Review (Ch. 1 -4)
Questions And Answers
A. $1,300,000.
B. $1,230,000.
C. $1,050,000.
D. $1,150,000. -
correct answer ✅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 answer ✅D. subtraction from raw materials available for
use.
RM: (Beg RM + Purchases) - End RM
, Acct 201B Exam Review (Ch. 1 -4)
Questions And Answers
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?
A. $0.79
B. $0.90
C. $0.87
D. $0.82 -
correct answer ✅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
