1.All of the following are the costs of production accumulated in the Work in Process account except:
a) Material Inventory
b) Direct Labor
c) Factory Overhead
d) Direct Material
Currect Ans: a) Material Inventory
2.Factory overhead is applied to jobs in production at an estimated rate based on the number of machine hours. The estimated factory overhead for the year is $63,000 and the estimated number of machine hours for the year is 1,600. What is the predetermined overhead rate?
a) $42.98
b) $38.48
c) $40.38
d) $39.38
Currect Ans: d) $39.38
3.Job order costing is a method of cost accumulation that is used for items or batches of items for customers with different orders. In which industries or businesses is job order costing most commonly used?
a) construction industry
b) service industry
c) retail industry
d) farming industry
Currect Ans: a) construction industry
4.Job 195 requires 200 direct labor hours at $15 per hour and $2,000 in direct materials. If the predetermined overhead rate is $20 per direct labor hour, what is the total cost of Job 195?
a) $5,000
b) $4,000
c) $9,000
d) $3,000
Currect Ans: c) $9,000
5.ABC Business estimates total manufacturing overhead costs for the year to be $500,000 and direct labor hours to be 10,000. What is the predetermined factory overhead rate per direct labor hour?
a) $5
b) $2
c) $50
d) $25
Currect Ans: c) $50
6.Job 195 has accumulated 150 direct labor hours at $18 per hour and $1,500 in direct materials. If the predetermined overhead rate is $22 per direct labor hour, what is the overhead applied to Job 195?
a) $2,200
b) $3,300
c) $1,500
d) $2,500
Currect Ans: b) $3,300
7.When the beginning of Work in Process inventory is $15,000, and during the period, $40,000 of direct materials and $30,000 of direct labor are added to production, what is the ending Work in Process inventory if overhead applied is $25,000?
a) $40,000
b) $65,000
c) $50,000
d) $110,000
Currect Ans: d) $110,000
8.Best Ice Cream, Inc. has requisitioned milk, sugar and cream to begin the process of producing ice cream. The requisition total is $13,000. To complete the journal entry that represents this requisition. Debit the [Work in Process] account and credit the [Materials] account in the amount of $13,000. [Factory Overhead] [Direct Labor] .
When materials are being added to the production process, [Work in Process] is debited and [Materials] is credited. [Production] [Finished Goods] .
When materials are purchased on account for $7,500, the [Materials] account is debited and the [Accounts Payable] account is credited, creating an increase in both accounts. [Accounts Receivable] [Work in Process].
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