Question 1

Cavy Company estimates that total factory overhead costs will be $660,000 for the year.Direct labor hours are estimated to be 100,000.
​
Determine (a)the predetermined factory overhead rate; (b)the amount of factory overhead applied to Job 345 if the amount of direct labor hours is 560 and Job 777 if the amount of direct labor hours is 800; and (c)prepare the journal entry to apply factory overhead for April according to the predetermined overhead rate.

Accepted Answer

(a)$660,000 / 100,000 = $6.60 ...

Question 2

The following budget data are available for Sharp Company: ​
 If factory overhead is applied based on direct labor hours,the amount of overhead to be applied is

Accepted Answer

A)   $180,000
B)   $181,000
C)   $172,500
D)   $184,000E) C) and D)
F) A) and C)

Question 3

Recording jobs shipped and customers billed would include a credit to

Accepted Answer

A)   Accounts Payable
B)   Cash
C)   Finished Goods
D)   Cost of Goods SoldE) All of the above
F) A) and B)

Question 4

The materials requisition serves as the source document for debiting the accounts in the materials ledger.

Accepted Answer

A) True 
 B)False

Question 5

During April,Cavy Company incurred factory overhead as follows:
​
  Record the entry for factory overhead incurred during April.

Accepted Answer

The answer of During April,Cavy Company incurred factory overhead as...

Question 6

Selected accounts with a credit amount omitted are as follows ​
 ​
 What was the balance of Work in Process as of April 30?

Accepted Answer

A)   $8,100
B)   $35,000
C)   $29,900
D)   $22,900E) B) and C)
F) A) and B)

Question 7

Match the costs that follow to the type of product cost (a-c) or designate as not a product cost (d) .
-maintenance supplies

Accepted Answer

A)  direct labor
B)  direct materials
C)  factory overhead
D)  not a product costE) A) and D)
F) A) and C)

Question 8

Selected accounts with amounts omitted are as follows ​
 ​
 If the balance of Work in Process on August 31 is $220,000,what was the amount debited to Work in Process for direct materials in August?

Accepted Answer

A)   $390,000
B)   $170,000
C)   $525,000
D)   $580,000E) None of the above
F) All of the above

Question 9

The direct labor and overhead costs of providing services to clients are accumulated in

Accepted Answer

A)   finished services expense
B)   work in process
C)   administrative salaries expense
D)   overheadE) A) and B)
F) C) and D)

Question 10

Job cost sheets can provide information to managers on unit cost trends,the cost impact of continuous improvement in the manufacturing process,the cost impact of materials changes,and the cost impact of direct materials price or direct labor rate changes over time.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following would record the labor costs to an individual job?

Accepted Answer

A)   clock cards
B)   in-and-out cards
C)   time tickets
D)   a payroll registerE) A) and B)
F) A) and C)

Question 12

What is the ending balance of Cost of Goods Sold for Adams Company at the end of the first quarter?

Accepted Answer

A)   $456
B)   $2,685
C)   $1,685
D)   $685E) A) and C)
F) B) and C)

Question 13

The source document for the data for debiting Work in Process for direct materials is a

Accepted Answer

A)   purchase order
B)   purchase requisition
C)   materials requisition
D)   receiving reportE) B) and C)
F) None of the above

Question 14

The Cavy Company accumulated 560 hours of direct labor on Job 345 and 800 hours on Job 777.The direct labor was incurred at a rate of $20 per direct labor hour for Job 345 and $21 per direct labor for Job 777.Journalize the entry to record the flow of labor costs into production.

Accepted Answer

*(560 × $2...

Question 15

Each account in the work in process subsidiary ledger in a job order costing system is called a job cost sheet.

Accepted Answer

A) True 
 B)False

Question 16

The recording of the application of factory overhead costs to jobs would include a credit to

Accepted Answer

A)   Factory Overhead
B)   Wages Payable
C)   Work in Process
D)   Cost of Goods SoldE) A) and D)
F) A) and B)

Question 17

A law firm would use a job order cost system to accumulate all of the costs associated with a particular client engagement,such as lawyer time,copying charges,filing fees,and overhead.

Accepted Answer

A) True 
 B)False

Question 18

A job order cost system would be appropriate for a crude oil refining business.

Accepted Answer

A) True 
 B)False

Question 19

Perpetual inventory controlling accounts and subsidiary ledgers are maintained for materials,work in process,and finished goods in job order costing systems.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is a period cost?

Accepted Answer

A)   depreciation on factory lunchroom furniture
B)   salary of telephone receptionist in the sales office
C)   salary of a security guard for the factory parking lot
D)   computer chips used by a computer manufacturerE) A) and B)
F) All of the above

Exam 16: Job Order Costing

During April,Cavy Company incurred factory overhead as follows: Record the entry for factory overhead incurred during April.

Correct Answer
verified

Perpetual inventory controlling accounts and subsidiary ledgers are maintained for materials,work in process,and finished goods in job order costing systems.

Correct Answer
verified

A job order cost system would be appropriate for a crude oil refining business.

Correct Answer
verified

The direct labor and overhead costs of providing services to clients are accumulated in

Correct Answer
verified

A law firm would use a job order cost system to accumulate all of the costs associated with a particular client engagement,such as lawyer time,copying charges,filing fees,and overhead.

Correct Answer
verified

Which of the following would record the labor costs to an individual job?

Correct Answer
verified

Which of the following is a period cost?

Correct Answer
verified

The following budget data are available for Sharp Company: If factory overhead is applied based on direct labor hours,the amount of overhead to be applied is

Correct Answer
verified

The recording of the application of factory overhead costs to jobs would include a credit to

Correct Answer
verified

Job cost sheets can provide information to managers on unit cost trends,the cost impact of continuous improvement in the manufacturing process,the cost impact of materials changes,and the cost impact of direct materials price or direct labor rate changes over time.

Correct Answer
verified

What is the ending balance of Cost of Goods Sold for Adams Company at the end of the first quarter?

Correct Answer
verified

Correct Answer
verified
(a)$660,000 / 100,000 = $6.60 ...
View Answer

The materials requisition serves as the source document for debiting the accounts in the materials ledger.

Correct Answer
verified

The source document for the data for debiting Work in Process for direct materials is a

Correct Answer
verified

Selected accounts with a credit amount omitted are as follows What was the balance of Work in Process as of April 30?

Correct Answer
verified

Each account in the work in process subsidiary ledger in a job order costing system is called a job cost sheet.

Correct Answer
verified

The Cavy Company accumulated 560 hours of direct labor on Job 345 and 800 hours on Job 777.The direct labor was incurred at a rate of $20 per direct labor hour for Job 345 and $21 per direct labor for Job 777.Journalize the entry to record the flow of labor costs into production.

Correct Answer
verified
*(560 × $2...
View Answer

Match the costs that follow to the type of product cost (a-c) or designate as not a product cost (d) . -maintenance supplies

Correct Answer
verified

Recording jobs shipped and customers billed would include a credit to

Correct Answer
verified

Selected accounts with amounts omitted are as follows If the balance of Work in Process on August 31 is $220,000,what was the amount debited to Work in Process for direct materials in August?

Correct Answer
verified

Exam 16: Job Order Costing

During April,Cavy Company incurred factory overhead as follows: ​ Record the entry for factory overhead incurred during April.

Correct AnswerverifiedShow Answer

Perpetual inventory controlling accounts and subsidiary ledgers are maintained for materials,work in process,and finished goods in job order costing systems.

Correct AnswerverifiedShow Answer

A job order cost system would be appropriate for a crude oil refining business.

Correct AnswerverifiedShow Answer

The direct labor and overhead costs of providing services to clients are accumulated in

Correct AnswerverifiedShow Answer

A law firm would use a job order cost system to accumulate all of the costs associated with a particular client engagement,such as lawyer time,copying charges,filing fees,and overhead.

Correct AnswerverifiedShow Answer

Which of the following would record the labor costs to an individual job?

Correct AnswerverifiedShow Answer

Which of the following is a period cost?

Correct AnswerverifiedShow Answer

The following budget data are available for Sharp Company: ​ If factory overhead is applied based on direct labor hours,the amount of overhead to be applied is

Correct AnswerverifiedShow Answer

The recording of the application of factory overhead costs to jobs would include a credit to

Correct AnswerverifiedShow Answer

Job cost sheets can provide information to managers on unit cost trends,the cost impact of continuous improvement in the manufacturing process,the cost impact of materials changes,and the cost impact of direct materials price or direct labor rate changes over time.

Correct AnswerverifiedShow Answer

What is the ending balance of Cost of Goods Sold for Adams Company at the end of the first quarter?

Correct AnswerverifiedShow Answer

Correct Answerverified(a)$660,000 / 100,000 = $6.60 ...View AnswerShow Answer

The materials requisition serves as the source document for debiting the accounts in the materials ledger.

Correct AnswerverifiedShow Answer

The source document for the data for debiting Work in Process for direct materials is a

Correct AnswerverifiedShow Answer

Selected accounts with a credit amount omitted are as follows ​ ​ What was the balance of Work in Process as of April 30?

Correct AnswerverifiedShow Answer

Each account in the work in process subsidiary ledger in a job order costing system is called a job cost sheet.

Correct AnswerverifiedShow Answer

The Cavy Company accumulated 560 hours of direct labor on Job 345 and 800 hours on Job 777.The direct labor was incurred at a rate of $20 per direct labor hour for Job 345 and $21 per direct labor for Job 777.Journalize the entry to record the flow of labor costs into production.

Correct Answerverified*(560 × $2...View AnswerShow Answer

Match the costs that follow to the type of product cost (a-c) or designate as not a product cost (d) . -maintenance supplies

Correct AnswerverifiedShow Answer

Recording jobs shipped and customers billed would include a credit to

Correct AnswerverifiedShow Answer

Selected accounts with amounts omitted are as follows ​ ​ If the balance of Work in Process on August 31 is $220,000,what was the amount debited to Work in Process for direct materials in August?

Correct AnswerverifiedShow Answer

During April,Cavy Company incurred factory overhead as follows: Record the entry for factory overhead incurred during April.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

The following budget data are available for Sharp Company: If factory overhead is applied based on direct labor hours,the amount of overhead to be applied is

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
(a)$660,000 / 100,000 = $6.60 ...
View Answer

Correct Answer
verified

Correct Answer
verified

Selected accounts with a credit amount omitted are as follows What was the balance of Work in Process as of April 30?

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
*(560 × $2...
View Answer

Correct Answer
verified

Correct Answer
verified

Selected accounts with amounts omitted are as follows If the balance of Work in Process on August 31 is $220,000,what was the amount debited to Work in Process for direct materials in August?

Correct Answer
verified