ACCT 241 Week 3 Quiz 2

ACCT 241 Week 3 Quiz 2 | Chapter 3 Quiz | Assignment Help | American University 

1.In a job-order costing system, indirect labor cost is usually recorded as a debit to:

Multiple Choice

• Manufacturing Overhead.

• Finished Goods.

• Work in Process.

• Cost of Goods Sold.

2.  In a job-order costing system, which of the following events would trigger recording data on a job cost sheet?

Multiple Choice

• the purchase of direct materials

• the payment of fire insurance on the factory building

• the payment for product advertising

• none of the choices

3. Refer to the T-account below:

Raw Materials

Bal. 15,000 (9) 75,000

(5) 85,000  

Bal. 25,000  

Entry (5) could represent which of the following?

Multiple Choice

• Payments for raw materials.

• Requisitions of raw materials to be used in production.

• Purchases of raw materials.

• Overhead cost applied to Work in Process.

4.When closing over applied manufacturing overhead to Cost of Goods Sold, which of the following would be true?

Multiple Choice

• Work in Process will decrease.

• Cost of Goods Sold will increase.

• Net income will decrease.

• Gross margin will increase.

5. Gallon Corporation had $24,000 of raw materials on hand on April 1. During the month, the Corporation purchased an additional $52,000 of raw materials. During April, $62,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $2,000. The debits to the Work in Process account as a consequence of the raw materials transactions in April total:

Multiple Choice

• $60,000       

• $62,000

• $0

• $52,000

Work in Process      60,000  

Manufacturing Overhead    2,000  

Raw Materials       62,000

6. Holmstrom Corporation has provided the following data concerning last month’s operations.

Direct materials              $14,000

Direct labor cost $58,000

Manufacturing overhead applied to Work in Process $79,000

                              Beginning      Ending

Work in process inventory $47,000 $53,000  

Finished goods inventory $41,000 $42,000  

How much is the cost of goods available for sale on the Schedule of Cost of Goods Sold?

Multiple Choice

• $186,000

• $145,000

• $144,000

• $138,000

7.In the Vasquez Corporation, any overapplied or underapplied manufacturing overhead is closed out to Cost of Goods Sold. Last year, the Corporation incurred $27,000 in actual manufacturing overhead cost, and applied $29,000 of manufacturing overhead cost to jobs. The beginning and ending balances of Finished Goods were equal, and the Corporation's Cost of Goods Manufactured for the year totaled $71,000. Given this information, Cost of Goods Sold, after adjustment for any overapplied or underapplied manufacturing overhead, for the year must have been:

Multiple Choice

• $98,000

• $73,000

• $71,000

• $69,000

8. Braam Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 11,500 hours. At the end of the year, actual direct labor-hours for the year were 9,700 hours, the actual manufacturing overhead for the year was $143,350, and manufacturing overhead for the year was underapplied by $18,220. The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been

Multiple Choice

• $164,023

• $125,130

• $148,350

• $138,350

9.Daget Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the total estimated manufacturing overhead was $364,140. At the end of the year, actual direct labor-hours for the year were 24,000 hours, manufacturing overhead for the year was overapplied by $8,060, and the actual manufacturing overhead was $359,140. The predetermined overhead rate for the year must have been closest to:

Multiple Choice

• $15.43 per direct labor-hour

• $15.30 per direct labor-hour

• $15.17 per direct labor-hour

• $14.96 per direct labor-hour

10. Tyare Corporation had the following inventory balances at the beginning and end of May:

                    May 1   May 30

Raw materials     $25,500 $30,000  

Finished Goods    $75,000 $66,000  

Work in Process   $13,500 $16,500  

During May, $58,500 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $12 per direct labor-hour, and it paid its direct labor workers $15 per hour. A total of 300 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $7,050 of direct materials cost. The Corporation incurred $42,000 of actual manufacturing overhead cost during the month and applied $39,600 in manufacturing overhead cost.

 The direct materials cost in the May 1 Work in Process inventory account totaled:

Multiple Choice

• $9,900

• $5,400

• $9,000

• $4,500