State True or False 1. Normally a job cost sheet is not prepared for a job until after the job has been completed. (2) 2. The following journal entry would be made to apply overhead cost to jobs in a joborder costing system (2) Work in Process Manufacturing Overhead 3. When completed goods are sold the transaction is recorded as a debit to Cost of Goods Sold and a credit to Work in Process. (2] 4. A credit balance in the Manufacturing Overhead account at the end ofthe year means that overhead was underapplied. {2} Chose the correct 5. Which of the following companies would be most likely to use a joborder costing system rather than a process costing system? (2) A. Fast food restaurant. B. Shipbuilding. C. Crude oil refining. D. Candy making. 6, In a joborder costing system, the journal entry to record the application of overhead cost to jobs would include: [2} A. a credit to the Manufacturing Overhead account. B. a credit to the Work in Process inventory account. C. a debit to Cost of Goods Sold. D. a debit to the Manufacturing Overhead account. 7. In a joborder costing system, the amount of overhead cost that has been applied to a job that remains incomplete at the end of a period is: (3} A. deducted on the Income Statement as overapplied overhead. B. closed to Cost of Goods Sold. C. transferred to Finished Goods at the end of the period. D. part of the ending balance of the Work in Process inventory account 8. Freeman Company uses a predetermined overhead rate based on direct W hours to apply manufacturing overhead to jobs. At the beginning of the year, the company estimated manufacturing overhead would be $150,000 and direct Whours would be 10,000. The actual figures for the year were $186,000 for manufacturing overhead and 12,000 direct mow/hours. The cost records for the year will show: A. overapplied overhead of $30,000. B. underapplied overhead of 530,000. C. underapplied overhead of 56,000. D. overapplied overhead of $6,000. (3) 9. Under Lamprey Company's joborder costing system, manufacturing overhead is applied to Work in Process inventory using a predetermined overhead rate. DuringJanuary, Lam prey's transactions included the following: Q) Direct mate rials issued to production Indirect mate rials issued to production Manufacturing overhead cost . 125.000 Incurred Manufacturing overhead cost appHed Direct Wcost incurred 10?.000 Lamprey Company had no beginning or ending inventories. What was the cost ofgoods manufactured forJanuary? 113.000 10. The Bus Company uses a joborder costing system. The following information was recorded for September: 1:2) Added During September September 1 _ _ Job Number Direct Materials Inventory The direct labor wage rate is $10 per hour. Overhead is applied at the rate of $5 per direct laborhour. Jobs 1, 2. and 3 have been completed and transferred to finished goods. Job 2 has been delivered to the customer. Calculate a} Ending WIP bl Cost of goods manufactured for September. cl The Cost of Goods Sold for September (before disposition of any underapplied or overapplied overhead) 11. LA done in class. (20) (will be marked and added for those who submitted)