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| 1 | |
A product-costing system is needed for which of the following? |
| | A) | Financial accounting |
| | B) | Managerial accounting |
| | C) | Cost management |
| | D) | All of the above |
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| 2 | |
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Which shows the correct flow of costs through manufacturing accounts? |
| | A) | Line A |
| | B) | Line B |
| | C) | Line C |
| | D) | Line D |
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| 3 | |
The typical inventories carried by a manufacturer include which of the following? |
| | A) | Raw-materials inventory, work-in-process inventory, and merchandise. |
| | B) | Raw-materials inventory, work-in-process inventory, and finished-goods inventory. |
| | C) | Office supplies inventory, work-in-process inventory, and merchandise. |
| | D) | Raw-materials inventory, finished-goods inventory, and cost of goods sold. |
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| 4 | |
Which account is debited for the transfer of completed products from work-in-process? |
| | A) | Work-in-Process Inventory |
| | B) | Finished-Goods Inventory |
| | C) | Cost of Goods Sold |
| | D) | Manufacturing Overhead |
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| 5 | |
During the time period when products are sold, the accounting entry to record the product cost of the inventory sold requires a debit to which of the following accounts? |
| | A) | Work-in-Process Inventory |
| | B) | Finished-Goods Inventory |
| | C) | Cost of Goods Sold |
| | D) | Manufacturing Overhead |
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| 6 | |
Which of the following businesses is most likely to use a process costing system? |
| | A) | Custom cabinet-maker |
| | B) | Ship builder |
| | C) | Print shop |
| | D) | Petroleum refinery |
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| 7 | |
Which one of the following is a list of all the materials needed to manufacture a product or product component? |
| | A) | Bill of materials |
| | B) | Material requisition |
| | C) | Job-cost record |
| | D) | Purchase order |
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| 8 | |
Which one of the following is a form completed by the production department supervisor to request the release of materials for production? |
| | A) | Bill of materials |
| | B) | Material requisition |
| | C) | Job-cost record |
| | D) | Purchase order |
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| 9 | |
Which of the following is used to accumulate the costs of direct material, direct labor, and manufacturing overhead costs for a particular job or batch? |
| | A) | Bill of materials |
| | B) | Material requisition form |
| | C) | Job-cost record |
| | D) | Purchase order |
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| 10 | |
Which of the following is a source document? |
| | A) | Bill of materials |
| | B) | Material requisition form |
| | C) | Job-cost records |
| | D) | Both (B) and (C) |
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| 11 | |
The volume-based cost driver is machine hours, which have been budgeted for 100,000 hours. Budgeted manufacturing-overhead costs are $150,000. Calculate the predetermined overhead rate. |
| | A) | $ 0.75 per machine hour |
| | B) | $1.00 per machine hour |
| | C) | $10.00 per machine hour. |
| | D) | $1.50 per machine hour |
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| 12 | |
How often may the accounting entries be made to add manufacturing overhead to the Work-in-Process Inventory account? |
| | A) | Daily |
| | B) | Weekly |
| | C) | Monthly |
| | D) | Any of the above |
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| 13 | |
In a job-order costing system, the $45,000 purchase of raw materials for producing units of product includes requires an accounting entry in which a debit is made to which of the following accounts? |
| | A) | Work-in-Process Inventory |
| | B) | Raw-Material Inventory |
| | C) | Finished-Goods Inventory |
| | D) | Indirect materials |
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| 14 | |
The release of $32,000 of raw materials for production requires an accounting entry that would include a debit to which of the following accounts? |
| | A) | Work-in-Process Inventory |
| | B) | Raw-Material Inventory |
| | C) | Finished-Goods Inventory |
| | D) | Indirect materials |
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| 15 | |
The release of $8,000 of indirect materials to production requires an accounting entry that includes a credit to which of the following accounts? |
| | A) | Work-in-Process Inventory |
| | B) | Raw-Material Inventory |
| | C) | Finished-Goods Inventory |
| | D) | Manufacturing Supplies Inventory |
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| 16 | |
Time records for the two-week pay period total $34,500, of which $31,000 can be charged to specific jobs. The required accounting entry will include a debit for $3,500 to which of the following accounts? |
| | A) | Work-in-Process Inventory |
| | B) | Manufacturing Overhead |
| | C) | Wages Payable |
| | D) | Indirect Labor |
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| 17 | |
Recognition of the expiration of 1/12 of a prepaid factory rent of $144,000 will include a debit to which of the following accounts? |
| | A) | Factory Rent Expense |
| | B) | Prepaid Factory Rent |
| | C) | Accounts Receivable |
| | D) | Manufacturing Overhead |
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| 18 | |
In an accounting entry, the debits to the Manufacturing Overhead account are which of the following: |
| | A) | Applications of overhead to the Work-in-Process Inventory account |
| | B) | Actual manufacturing-overhead costs that were incurred |
| | C) | Based on the predetermined overhead rate |
| | D) | Based on estimated overhead costs |
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| 19 | |
The sale of manufactured goods requires which of the following number of journal entries? |
| | A) | One |
| | B) | Two |
| | C) | Three |
| | D) | Four |
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| 20 | |
An accounting entry in which the Cost of Goods Sold is debited and Manufacturing Overhead is credited indicates which of the following? |
| | A) | Manufacturing overhead was underapplied |
| | B) | Manufacturing overhead was overapplied |
| | C) | Cost of Goods Sold is overstated |
| | D) | An error occurred when determining the predetermined overhead rate |
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| 21 | |
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After the proration of the overapplied manufacturing overhead, what will be the new balance of the Finished-Goods Inventory account? |
| | A) | $12,000 |
| | B) | $12,600 |
| | C) | $12,072 |
| | D) | $11,928 |
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| 22 | |
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What is the amount of the applied manufacturingoverhead cost? |
| | A) | $404,000 |
| | B) | $398,000 |
| | C) | $402,000 |
| | D) | $400,000 |
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| 23 | |
Job 124K was charged $45,000 for direct materials and $20,000 for direct labor. The total charges to the job-cost record for Job 124K were $105,000. What was the manufacturing overhead application rate as a percentage of direct-labor dollars? |
| | A) | 50% |
| | B) | 100% |
| | C) | 200% |
| | D) | 150% |
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| 24 | |
Job 1254K was charged $40,000 for direct materials. Total charges to the job-cost record for Job 1254K were $100,000. The overhead application rate is 50% of direct-labor dollars. What was the amount of direct-labor cost? |
| | A) | $30,000 |
| | B) | $40,000 |
| | C) | $60,000 |
| | D) | There is insufficient information to determine the direct-labor cost. |
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| 25 | |
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What is the cost of goods manufactured that would be reported in a schedule of cost of goods manufactured? |
| | A) | $1,168,000 |
| | B) | $1,152,000 |
| | C) | $1,136,000 |
| | D) | $1,164,000 |
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| 26 | |
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What is the adjusted cost of goods sold shown on the schedule of cost of goods sold, assuming no proration of underapplied or overapplied overhead? |
| | A) | $400,000 |
| | B) | $398,000 |
| | C) | $386,000 |
| | D) | $412,000 |
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| 27 | |
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The income tax rate is 25% of income before taxes. What is the amount of net income reported in the income statement? |
| | A) | $112,500 |
| | B) | $60,000 |
| | C) | $172,500 |
| | D) | $67,500 |
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| 28 | |
A predetermined overhead rate calculated over a long time period is called which of the following? |
| | A) | Long-term overhead rate. |
| | B) | Actual overhead rate. |
| | C) | Normalized overhead rate. |
| | D) | Standardized overhead rate. |
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| 29 | |
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The rent expense was $42,000 and there was no beginning or ending balance in Work-in-Process Inventory. Using a two-stage cost allocation process, what was the amount of rent charged to each unit of production of Department A if the Maintenance and Purchasing departments spend 60% of their time, respectively, performing maintenance and purchasing supplies for Department A? |
| | A) | $1.89 |
| | B) | $0.315 |
| | C) | $1.9215 |
| | D) | $2.10 |
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| 30 | |
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Budgeted professional labor is $200,000. One of the firm's professionals completed work and the customer was billed $45,000 for the professional's labor, $2,000 for direct materials, and an appropriate amount of overhead. Using a predetermined overhead rate based on the relationship of budgeted overhead and professional labor, what was the total amount of the billing? |
| | A) | $107,750 |
| | B) | $105,750 |
| | C) | $47,000 |
| | D) | $110,450 |
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