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Exam 2: A Further Look at Financial Statements

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Question 61

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A materials requisition slip showed that direct materials requested were $63,000 and indirect materials requested were $9,000.The entry to record the transfer of materials from the storeroom is a. Work In Process Inventory $\quad$$\quad$ 63,000 $\quad$ Raw Materials Inventory $\quad$$\quad$$\quad$ 63,000 b. Direct Materials $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ 63,000 $\quad$ Indirect Materials $\quad$$\quad$$\quad$$\quad$ 9,000 $\quad$ Work in Process Inventory $\quad$$\quad$ 72,000 c. Manufacturing Overhead $\quad$$\quad$ 72,000 $\quad$ Raw Materials Inventory $\quad$$\quad$ 72,000 d. Work In Process Inventory $\quad$$\quad$ 63,000 $\quad$ Manufacturing Overhead $\quad$$\quad$$\quad$ 9,000 $\quad$ Raw Materials Inventory $\quad$$\quad$ 72,000

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Question 62

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All of the following would be entries in assigning accumulated costs to the Work In Process Inventory except:

A) the purchase of raw materials.
B) raw materials are used.
C) overhead is applied.
D) factory labor is used.

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Question 63

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An important feature of a job order cost system is that each job

When the company assigns factory labor costs to jobs, the direct labor cost is debited to

When goods are sold, the Cost of Goods Sold account is debited and Work in Process Inventory account is credited.

Chmelar Manufacturing Company developed the following data: $\begin{array} { l r } \text { Beginning work in process inventory } & \$ 80,000 \\\text { Direct materials used } & 480,000 \\\text { Actual overhead } & 560,000 \\\text { Overhead applied } & 540,000 \\\text { Cost of goods manufactured } & 1,280,000 \\\text { Ending work in process } & 60,000\end{array}$ How much are total manufacturing costs for the period?

Which one of the following best describes a job cost sheet?

A major purpose of cost accounting is to

The existence of under- or overapplied overhead at the end of the year:

Usually, under- or overapplied overhead is considered to be an adjustment to

A cost accounting system consists of manufacturing cost accounts that are fully integrated into the general ledger of a company.

Kinney Company applies overhead on the basis of 150% of direct labor cost.Job No.176 is charged with $100,000 of direct materials costs and $120,000 of manufacturing overhead.The total manufacturing costs for Job No.176 is

Factory Labor is a(n)

Cost accounting is primarily concerned with accumulating information about product costs.

Gulick Company developed the following data for the current year: $\begin{array}{lr}\text { Beginning work in process inventory } & \$ 160,000 \\\text { Direct materials used } & 96,000 \\\text { Actual overhead } & 192,000 \\\text { Overhead applied } & 144,000 \\\text { Cost of goods manufactured } & 176,000 \\\text { Total manufacturing costs } & 480,000\end{array}$ - Gulick Company's direct labor cost for the year is

During 2013, Durham Manufacturing expected Job No.51 to cost $300,000 of overhead, $500,000 of materials, and $200,000 in labor.Durham applied overhead based on direct labor cost.Actual production required an overhead cost of $290,000, $550,000 in materials used, and $220,000 in labor.All of the goods were completed.What amount was transferred to Finished Goods?

Records of individual items of raw materials would not be maintained

Actual manufacturing overhead costs are assigned to each job by tracing each overhead cost to a specific job.

Emley Company incurred direct materials costs of $600,000 during the year.Manufacturing overhead applied was $560,000 and is applied based on direct labor costs.The predetermined overhead rate is 70%.How much are Emley Company's total manufacturing costs for the year?

When raw materials are received, there is no effort at this point to associate the cost of materials with specific jobs.