Question 1.1. When a job is completed and all costs have been accumulated on a job cost sheet, what is the the journal entry that should be made? (Points : 2)

Debit	Credit
Finished goods inventory
Direct Materials	manufacturing overhead

Debit	Credit
Work in process inventory
Direct Materials	manufacturing overhead

Debit	Credit
Raw materials inventory
	Work in process inventory

Debit	Credit
Finished goods inventory
	Work in process Inventory

Question 2.2. A department adds raw materials to a process at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of January, there were 1,000 units in the beginning work in process inventory; 75,000 units were started into production in January; and there were 10,000 units that were 40% complete in the ending work in process inventory at the end of January. What were the equivalent units of production for materials for the month of January? (Points : 2)

75,000 equivalent units 76,000 equivalent units 79,000 equivalent units 80,000 equivalent units

Question 3.3. How are Equivalent units calculated? (Points : 2)

by multiplying the percentage of work done by the physical units by dividing physical units by the percentage of work done by multiplying the percentage of work done by the equivalent units of output by dividing equivalent units by the percentage of work done

Question 4.4. When is the Cost of raw materials debited to Raw Materials Inventory? (Points : 2)

when the materials are ordered when the materials are received when the materials are put into production when the bill for the materials is paid

Question 5.5. When is Process costing used? (Points : 2)

The production process is continuous. Production is aimed at filling a specific customer order. Dissimilar products are involved. Costs are to be assigned to specific jobs.

Question 6.6. In a process cost system, what can you say about summarized product costs? (Points : 2)

on job cost sheets on production cost reports after each unit is produced when the products are sold

Question 7.7. A company manufactures customized furniture. The following pertains to Job No. 735: Direct materials used $12,500 Direct labor hours worked 400 Direct labor rate per hour $13.00 Machine hours used 250 Applied factory overhead rate per machine hour $15.00 What is the total manufacturing cost for Job No. 735? (Points : 2)

$21,450 $21,700 $25,550 $26,200

Question 8.8. A materials requisition slip showed that direct materials requested were $65,000 and indirect materials requested were $8,000. What would the entry be to record the transfer of materials from the storeroom? (Points : 2)

Work In Process Inventory 65,000 Raw Materials Inventory 65,000 Direct Materials 65,000 Indirect Materials 8,000 Work in Process Inventory 73,000 Manufacturing Overhead 73,000 Raw Materials Inventory 73,000 Work In Process Inventory 65,000 Manufacturing Overhead 8,000 Raw Materials Inventory 73,000

Question 9.9. Why are many United States firms switching to Just-In-Time (JIT) processing? (Points : 2)

because they desire a "push" approach to manufacturing because it eliminates conversion costs because it can reduce the funds invested in inventories because it is a means of building up inventories

Question 10.10. A company expected its annual overhead costs to be $2,750,000 and direct labor costs to be $2,500,000. Actual overhead was $1,890,000, and actual labor costs totaled $1,160,000. How much is the company's predetermined overhead rate to the nearest cent? (Points : 2)

$1.05 $1.10 $1.18 $1.22

Question 11.11. Which of the following is considered a difference between a job order cost and a process cost system? (Points : 2)

The manufacturing cost elements The flow of costs The accumulation of the costs of materials, labor, and overhead Documents used to track costs

Question 12.12. A Manufacturer assigns overhead based on machine hours. The Milling Department logs 1,200 machine hours and Cutting Department shows 2,000 machine hours for the period. If the overhead rate is $7 per machine hour, what will the entry to assign overhead show? (Points : 2)

a debit to Manufacturing Overhead for $22,400. a credit to Work in Process-Cutting Department for $14,000. a debit to Work in Process for $14,000. a credit to Manufacturing Overhead for $22,400.

Question 13.13. A comtainer company thinks machine hours is the best activity base for its manufacturing overhead. The estimate of annual overhead costs for its jobs was $1,750,000. The company used 1,500 hours of processing on Job No. B12 during the period and incurred overhead costs totaling $1,500,000. The budgeted machine hours for the year totaled 50,000. How much overhead should be applied to Job No. B12? (Points : 2)

$979 $1,000 $52,500 $57,600

Question 14.14. Which of the following shows entries only to control accounts? (Points : 2)

Factory Labor Factory Wages Payable Work in Process Factory Labor Raw Materials Inventory Factory Wages Payable Work in Process Manufacturing Overhead Raw Materials Inventory Factory Labor Raw Materials Inventory Accounts Payable Factory Wages Payable

Question 15.15. In the a particular company, materials are entered at the beginning of the process. If there is no beginning work in process, but there is an ending work in process inventory, what will the number of equivalent units for materials costs be? (Points : 2)

the same as the units started the same as the units completed less than the units started less than the units completed

Question 16.16. What is a characteristic of products that are mass-produced in a continuous fashion? (Points : 2)

The products are identical or very similar in nature. They are grouped in batches. They are produced at the time an order is received. Their costs are accumulated on job cost sheets.

Question 17.17. Why is it necessary to calculate equivalent units of production in a department? (Points : 2)

because a physical count of units is impossible because some units worked on in the department are not fully complete because the physical units in the department are always 100% complete because at times a department may use a job order cost system and then switch to a process cost system

Question 18.18. As of December 31, 2014, a company had $2,500 of raw materials inventory. At the beginning of 2014, there was $3,000 of materials on hand. During the year, the company purchased $215,500 of materials; however, it paid for only $202,500. How much inventory was requisitioned for use on jobs during 2014? (Points : 2)

$202,500 $204,000 $216,000 $316,000

Question 19.19. Total units to be accounted for less units in beginning work in process equals what? (Points : 2)

total units accounted for units transferred out units started into production equivalent units

Question 20.20. In a comapny, one department had beginning work in process of 5,000 units, transferred out 15,000 units, and had an ending work in process of 2,500 units. How many units were started by the company during the month? (Points : 2)

7,500 12,500 17,500 20,000

Question 21.21. What is true about the existence of under- or overapplied overhead at the end of the year? (Points : 2)

It requires an adjustment to Cost of Goods Sold. It indicates that an error has been made. It requires a retroactive adjustment to the cost of all jobs completed. It is written off as a bad estimate expense.

Question 22.22. Which of the following is one of the components of cost accounting? (Points : 2)

It involves measuring product costs. It involves the determination of company profits. It requires GAAP to be applied. It requires cost minimizing principles.

Question 23.23. When manufacturing overhead costs are assigned to production in a process cost system, what are they debited to? (Points : 2)

the Finished Goods Inventory account Cost of Goods Sold a Manufacturing Overhead account the Work in Process account

Question 24.24. If there are no units in process at the beginning of the period, then what is true? (Points : 2)

The company must be using a job order cost system. Only one computation of equivalent units of production will be necessary. The units started into production will equal the number of units transferred out. The units to be accounted for will equal the units transferred out and the units in process at the end of the period.

Question 25.25. A company developed the following data for the current year: Beginning work in process inventory $123,000 Direct materials used 121,000 Actual overhead 120,000 Overhead applied 135,000 Cost of goods manufactured 675,000 Total manufacturing costs 525,000 How much is Harlee Company's direct labor cost for the year? (Points : 2)

$269,000 $278,000 $282,000 $293,000