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Acct 201B Exam Review (Ch. 1 -4) Questions with
100% Verified Answers 2025 | 2026
Ch. 2 - ANSWER 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
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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.
D. $1,150,000. - 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.
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D. subtraction from raw materials available for use. - ANSWER
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?
A. $0.79
B. $0.90
C. $0.87
D. $0.82 - 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*
Acct 201B Exam Review (Ch. 1 -4) Questions with
100% Verified Answers 2025 | 2026
Ch. 2 - ANSWER 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
,2|Page
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.
D. $1,150,000. - 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.
, 3|Page
D. subtraction from raw materials available for use. - ANSWER
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?
A. $0.79
B. $0.90
C. $0.87
D. $0.82 - 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*
