1.Which of the following is true?

Select one:

A. Job order costing accumulates indirect costs for each job and applies overhead to each job using a pre-determined overhead rate

B. Job order costing is suitable when different products are produced

C. Job order costing is suitable for mass production of the same product

D.Job order costing is suitable for small businesses only

2.The entry to record the issuance of $50,000 of raw materials to production, which consist of $10,000 of indirect materials and $40,000 direct

materials would be: (2 marks)

Select one:

1. Debit WIP for $40,000, credit Raw materials inventory for $50,000, debit MOH for $10,000
2. Debit WIP for $50,000, credit Raw materials inventory for $50,000
3. Credit WIP for $10,000, debit Raw materials inventory for $50,000, debit MOH for $10,000
4. Debit WIP for $40,000, credit raw materials inventory for $40,000

3.A product cost under a normal costing system includes:

Select one:

1. actual direct materials, actual direct labour and actual manufacturing overhead X
2. actual direct materials, actual direct labour and applied manufacturing overhead
3. normal direct materials and normal direct labour
4. all normal product costs

4.Which of the following companies would be most likely to use a job-order costing system rather than a process costing system?

Select one:

1. Milk producer
2. Wedding planner
3. Crude oil refining
4. Paint manufacturer

5. ABC Inc. applies manufacturing overhead on the basis of direct labour hours.

Correct Estimated manufacturing overhead for the year = $1,000,000

Marked out of

3.00 Estimated base = 10,000 direct labour hours

Actual manufacturing overhead for the year = $900,000

Actual direct labour hours = 9,800 hours

What is the predetermined overhead rate that was used during the year to apply manufacturing overhead to products?

Select one:

1. $90 per direct labour hour
2. $91.83 per direct labour hour
3. $100 per direct labor hour
4. $102.041 per direct labour hour.

6. Arless Inc. uses a predetermined rate to apply manufacturing overhead to products based on direct labor dollars. Actual manufacturing incorrect overhead for the year was $2,000,000 and actual direct labor dollar cost was $400,000. If the overhead was under applied by $200,000 the

Marked out of estimated predetermined overhead rate was:

Select one:

A. $4.50 per direct labour dollar

B. $3.00 per direct labour dollar

C. Not enough information to determine this

Question 7

Doreen Inc.s predetermined manufacturing overhead rate is $15 per machine hour. Job # 456 has accumulated $1,000 of direct materials,$500 of direct labor has used 100 machine hours. What is the entry to record the manufacturing overhead applied to Job # 456?

Select one:

1. Credit work in progress $1,500, debit manufacturing overhead $1,500
2. Debit work in progress $1,500, credit manufacturing overhead $1,500
3. Credit work in progress $3,000, debit manufacturing overhead $3,000
4. Debit work in progress $3,000, credit manufacturing overhead $3,000

Question 8

What is the entry to record actual factory rent for the month of October 2020?

1. Debit work in progress and credit accounts payable (or cash)
2. Debit manufacturing overhead and credit accounts payable (or cash)
3. Debit work in progress, credit manufacturing overhead
4. Debit factory rent expense, credit accounts payable (or cash) ]

Question 9

What is the entry to record factory supervisors salary?

Select one:

1. Debit work in progress and credit salaries payable (or cash)
2. question Debit Salary expense, credit salaries payable (or cash)
3. Debit manufacturing overhead and credit salaries payable (or cash)

D.,Debit work in progress, credit manufacturing overhead

Question 10

What is the entry to record the issue of of raw materials ( all direct) to production?

Select one:

1. Debit direct materials expense, credit accounts payable (or cash)
2. Debit manufacturing overhead and credit accounts payable (or cash)
3. Debit work in progress, credit raw materials inventory
4. Debit work in progress and credit accounts payable (or cash)

Question 11

What is the entry to record the issue of raw materials ( some are indirect and some are direct) to production?

Select one:

1. Debit work in progress, credit raw materials inventory, credit manufacturing overhead
2. Debit work in progress and credit accounts payable (or cash)
3. Debit manufacturing overhead and credit accounts payable (or cash)
4. Debit direct materials expense, credit accounts payable (or cash)

Question 12

Doreen Inc.s predetermined manufacturing overhead rate is $18 per machine hour based on an estimated manufacturing overhead of incorrect $180,000 and 10,00 machine hours. For the year 2020, actual overhead was $200,000 and actual machine hours were 11,000. How much

Marked out of manufacturing overhead was applied during 2020?

Select one:

1. $198,000
2. $180,000
3. None of these answers is correct
4. $200,000

Question 13

ABC Inc.s predetermined manufacturing overhead rate is $18 per direct labour hour based on an estimated manufacturing overhead of incorrect $3,600,000. What is the estimated number of direct labour hours for the period?

Select one:

1. 200,000
2. not enough information is given to determine this
3. 100,000
4. 360,000

Question 14

ABC Incs actual manufacturing overhead for the period is $300,000. If manufacturing overhead was applied using a rate of $20 per machine Correct hour and actual machine hours for the period were 16,250 hours, the manufacturing overhead was:

Select one:

1. neither over or under applied
2. not enough information is given to determine this
3. over applied by $25,000
4. under applied by $25,000

Question 15 Overapplied manufacturing overhead that is not material is adjusted by which entry?

Select one:

A. debit cash and credit manufacturing overhead

B,. question debit manufacturing overhead and credit miscellaneous expense

3. debit manufacturing overhead and credit cost of goods sold
4. debit cost of goods sold and credit manufacturing overhead

Question 16

Boo Inc.s predetermined overhead rate is $12 per machine hour. Job # 456 has accumulated $1,000 of direct materials, $500 of direct labor

orrec has used 100 machine hours. Job # 457 has accumulated $500 of direct materials, $700 of direct labour and has used 60 machine hours.

Marked out of How much manufacturing overhead will be applied to Job # 456 and Job # 457 respectively?

Select one:

1. $12,000 and $7,200
2. $1,500 and $1,200
3. $1,200 and $720

Question 17

Given net income is $100,000 (before adjusting for over or under applied manufacturing overhead) and manufacturing overhead is under Correct applied by $30,000.What is the net income after adjustment for the under applied manufacturing overhead?

Select one:

1. $70,000
2. $130,000
3. $200,000
4. $100,000

Question 18

Given net income is $300,000 (before adjusting for over or underapplied manufacturing overhead) and manufacturing overhead is overapplied Correct by $30,000.What is the net income after adjustment for the overapplied manufacturing overhead?

Select one:

1. $200,000
2. $330,000
3. $270,000
4. $300,000

Question 19

Given cost of goods sold is $500,000 (before adjusting for over or under applied manufacturing overhead) and manufacturing overhead is incorrect

over applied by 50,000.What is the cost of goods sold after adjustment for the over applied manufacturing overhead?

Select one:

1. $550,000
2. $450,000
3. $300,000
4. $500,000