1. Consider the following statements about applying overhead to jobs in a job-order costing system.

Overhead can be applied when the job is completed.

Overhead can be applied slowly or periodically as a job is being worked on.

Overhead should be applied to any job not yet completed at year-end in order to value the work-in-process inventory.

Which of these statements is correct?

1) I only

2) II only

3) I and II only

4) I, II, and III

2. For external reporting purposes, manufacturing overhead applied is a recorded as a debit to which account in a job-order costing system?

1) Raw Materials inventory

2) Finished Goods inventory

3) Work in Process inventory

4) Cost of Goods Sold

3. Graca Tools shows the following entries in a T-account:

Manufacturing Overhead
(2)	9,000	(12)	167,000
(3)	15,000
(4)	80,000
(5)	30,000
(6)	25,000
159,000		167,000
		Bal.	8,000

What does the ending balance of $8,000 represent?

1) Overapplied overhead

2) Underapplied overhead

3) Manufacturing overhead that will be carried over to the next period

4) An accounting error