question archive Question 1 2 / 2 pts The combined costs of direct labor and factory overhead used by many businesses with process operations is called: Conversion costs Combined costs Overhead costs Finished costs Question 2 0 / 2 pts Which of the following would not be considered a product cost? Manufacturing overhead costs
Question 1 2 / 2 pts The combined costs of direct labor and factory overhead used by many businesses with process operations is called: Conversion costs Combined costs Overhead costs Finished costs Question 2 0 / 2 pts Which of the following would not be considered a product cost? Manufacturing overhead costs
Subject:AccountingPrice:5.91 Bought16
Question 1
2 / 2 pts
The combined costs of direct labor and factory overhead used by many businesses with process operations is called:
Conversion costs
Combined costs
Overhead costs
Finished costs
0 / 2 pts
Which of the following would not be considered a product cost?
Manufacturing overhead costs.
Budget accountant's salary.
Factory supervisor's salary.
Direct material costs.
2 / 2 pts
From an ABC costing perspective, what causes costs to be incurred?
Management decisions.
Activities.
The volume of units produced.
Debits and credits.
2 / 2 pts
The two basic types of cost accounting systems are:
Job order costing and periodic costing.
Job order costing and customized service costing.
Job order costing and perpetual costing.
Job order costing and process costing.
2 / 2 pts
If overhead applied is greater than actual overhead incurred, it is:
Overapplied.
Fully applied.
Underapplied.
Normal.
2 / 2 pts
Beta Installers manufactures each house to customer specifications. It most likely would use:
Unique costing.
Job order costing.
Activity-based costing.
Process costing.
0 / 2 pts
Georgia Contractors purchased $165,000 of raw materials on account during the month of June. The beginning Raw Materials Inventory balance was $22,000, and the materials used to complete jobs during the month were $141,000 of direct materials and $13,000 of indirect materials. What is the ending Raw Materials Inventory balance for June?
$9,000
$24,000
$46,000
$33,000
2 / 2 pts
A company that uses a job order costing system would make the following entry to record the flow of direct materials into production:
debit Work in Process Inventory, credit Raw Materials Inventory.
debit Work in Process Inventory, credit Cost of Goods Sold.
debit Finished Goods Inventory, credit Raw Materials Inventory.
debit Work in Process Inventory, credit Factory Overhead.
2 / 2 pts
A company has a predetermined overhead rate of 125% of direct labor costs. How much overhead would be applied to a job if it required total labor costing $20,000?
$250,000.
$5,000.
$25,000.
$125,000.
2 / 2 pts
Job Z4B was ordered by a customer on June 15. During the month of June, Cooper Company requisitioned $2,500 of direct materials and used $4,000 of direct labor. The company applies overhead at the end of each month at a rate of 200% of the direct labor cost incurred. What is the balance in the Work in Process account at the end of June relative to Job Z4B?
$11,500
$5,500
$9,500
$14,500
2 / 2 pts
The Lacyee Corporations's production costs for September are: direct labor, $13,000; indirect labor, $6,500; direct materials, $15,000; property taxes on production facility, $800; factory heat, lights and power, $1,000; and insurance on plant and equipment, $200. Lacyee Corporation's actual manufacturing overhead incurred for Septebmer is:
$6,500.
$21,500.
$8,500.
$36,500.
2 / 2 pts
The overhead cost applied to a job during a period is recorded with a credit to Manufacturing Overhead and a debit to:
Cost of Goods Sold.
Work in Process Inventory.
Jobs Overhead Expense.
Finished Goods Inventory.
2 / 2 pts
Bowman Corporation has a predetermined overhead rate of 160% and applies overhead based on direct material cost. During the current period, direct labor cost is $50,000 and direct materials used cost $80,000. Determine the amount of applied overhead Bowman Corporation should record in the current period.
$50,000.
$80,000.
$128,000.
$208,000.
2 / 2 pts
An example of direct labor cost is:
Supervisor salary
Product assembler wages
Maintenance worker wages
Accountant salary
2 / 2 pts
Which of the following products is most likely to be produced in a process costing system?
Airplanes
Designer bridal gowns
Custom cabinets
Cereal
2 / 2 pts
The three costs added to Work in Process inventory during production are:
Direct materials, direct labor, selling costs.
Direct material, direct labor, applied overhead.
Direct materials, direct labor, operating costs.
Direct labor, actual overhead, selling costs.
2 / 2 pts
A company identified the following partial list of activities, costs, and activity drivers expected for the next year:
| Activity Expected Costs | Cost Driver | |
| Extrusion costs | $83,600 | Number batches made |
| Handling costs | $8,800 | Number of orders filled |
| Packaging costs | $40,500 | Number of units made |
| Product A | Product B | |
| Production volume | 750,000 units | 600,000 units |
| Batches made | 200 batches | 750 batches |
| Orders filled | 75 | 200 |
Calculate activity rates for each of the three activities using activity-based costing (ABC).
Extrusion: $304 per batch; handling: $32 per unit; packaging: $.03 per unit.
Extrusion: $418 per batch; handling: $117.33 per order; packaging: $.054 per unit.
Extrusion: $88 per batch; handling: $32 per order; packaging: $.03 per unit.
Extrusion: $88 per order; handling: $32 per unit; packaging: $.33 per batch.
0 / 2 pts
Emigh, Inc. applies overhead based on direct labor costs. For the current year, Emigh, Inc. estimated total overhead costs to be $400,000, and direct labor costs to be $2,000,000. Actual overhead costs for the year totaled $380,000, and actual direct labor costs totaled $1,800,000. At year-end, the balance in the Manufacturing Overhead account is a:
$20,000 Debit balance.
$380,000 Debit balance.
$400,000 Credit balance.
$20,000 Credit balance.
2 / 2 pts
A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table:
| Budgeted Activity | ||||
| Activity Cost Pool | Budgeted Cost | Product A | Product B | Product C |
| Activity 1 | $70,000 | 6,000 | 9,000 | 20,000 |
| Activity 2 | $45,000 | 7,000 | 15,000 | 8,000 |
| Activity 3 | $82,000 | 2,500 | 1,000 | 1,625 |
Which of the following statements is true regarding this company's activity rates?
The activity rate under the activity-based costing system for Activity 2 is $16.00.
The activity rate under the activity-based costing system for Activity 2 is $19.50.
The activity rate under the activity-based costing system for Activity 2 is $2.00.
The activity rate under the activity-based costing system for Activity 2 is $1.50.
2 / 2 pts
Ollie Corporation uses a job order costing system. In the last month, the system accumulated labor time tickets total $24,600 for direct labor and $4,300 for indirect labor. How are these costs recorded?
Debit Work in Process Inventory $24,600; Debit Manufacturing Overhead $4,300; Credit Factory Wages Payable $28,900.
Debit Payroll Expense $24,600; debit Manufacturing Overhead $4,300; credit Factory Wages Payable $28,900.
Debit Payroll Expense $28,900; credit Cash $28,900.
Debit Work in Process Inventory $28,900; credit Factory Wages Payable $28,900.
0 / 40 pts
The predetermined overhead rate for Fanniel Corporation for 2020, is based on estimated direct labor costs of $400,000 and estimated factory overhead of $500,000.
Actual costs incurred in 2020 were:
| Direct materials | $240,000 |
| Direct labor | 410,000 |
| Indirect materials | 55,000 |
| Indirect labor | 125,000 |
| Sales commissions | 55,000 |
| Factory depreciation | 170,000 |
| Property taxes, factory | 15,000 |
| Factory utilities | 35,000 |
| Advertising | 62,500 |
| Factory equipment rental | 110,000 |
Required:
(a) Calculate the predetermined overhead rate.
(b) Calculate the overhead applied during the year.
(c) Add up the actual manufacturing costs from the list provided.
(d) Determine the amount of over- or underapplied overhead.
(e) Prepare the journal entry to eliminate the over- or underapplied overhead.
Your answer:
0 / 20 pts
Alpha Corporation completed and transferred 90,000 units during the current period and had 8,000 units in ending inventory that were 75% complete with materials and 25% complete with conversion.
Based on the following information, determine the total costs of the 90,000 units completed and transferred out and the 8,000 units in ending inventory during the current reporting period.
Extra credit - journalize the transfer of the completed units (5 points).
| Direct Materials | Conversion | |
| Costs of Beginning Work in Process: | $576,000 | $400,000 |
| Costs added this period | $2,400,000 | $5,120,000 |
| Equivalent units of production | 96,000 | 92,000 |
Your answer:
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
Question 1
2 / 2 pts
The combined costs of direct labor and factory overhead used by many businesses with process operations is called:
Correct!
Conversion costs
Combined costs
Overhead costs
Finished costs
0 / 2 pts
Which of the following would not be considered a product cost?
Manufacturing overhead costs.
Correct answer
Budget accountant's salary.
Factory supervisor's salary.
You Answered
Direct material costs.
2 / 2 pts
From an ABC costing perspective, what causes costs to be incurred?
Management decisions.
Correct!
Activities.
The volume of units produced.
Debits and credits.
2 / 2 pts
The two basic types of cost accounting systems are:
Job order costing and periodic costing.
Job order costing and customized service costing.
Job order costing and perpetual costing.
Correct!
Job order costing and process costing.
2 / 2 pts
If overhead applied is greater than actual overhead incurred, it is:
Correct!
Overapplied.
Fully applied.
Underapplied.
Normal.
2 / 2 pts
Beta Installers manufactures each house to customer specifications. It most likely would use:
Unique costing.
Correct!
Job order costing.
Activity-based costing.
Process costing.
0 / 2 pts
Georgia Contractors purchased $165,000 of raw materials on account during the month of June. The beginning Raw Materials Inventory balance was $22,000, and the materials used to complete jobs during the month were $141,000 of direct materials and $13,000 of indirect materials. What is the ending Raw Materials Inventory balance for June?
$9,000
$24,000
You Answered
$46,000
Correct answer
$33,000
2 / 2 pts
A company that uses a job order costing system would make the following entry to record the flow of direct materials into production:
Correct!
debit Work in Process Inventory, credit Raw Materials Inventory.
debit Work in Process Inventory, credit Cost of Goods Sold.
debit Finished Goods Inventory, credit Raw Materials Inventory.
debit Work in Process Inventory, credit Factory Overhead.
2 / 2 pts
A company has a predetermined overhead rate of 125% of direct labor costs. How much overhead would be applied to a job if it required total labor costing $20,000?
$250,000.
$5,000.
Correct!
$25,000.
$125,000.
2 / 2 pts
Job Z4B was ordered by a customer on June 15. During the month of June, Cooper Company requisitioned $2,500 of direct materials and used $4,000 of direct labor. The company applies overhead at the end of each month at a rate of 200% of the direct labor cost incurred. What is the balance in the Work in Process account at the end of June relative to Job Z4B?
$11,500
$5,500
$9,500
Correct!
$14,500
2 / 2 pts
The Lacyee Corporations's production costs for September are: direct labor, $13,000; indirect labor, $6,500; direct materials, $15,000; property taxes on production facility, $800; factory heat, lights and power, $1,000; and insurance on plant and equipment, $200. Lacyee Corporation's actual manufacturing overhead incurred for Septebmer is:
$6,500.
$21,500.
Correct!
$8,500.
$36,500.
2 / 2 pts
The overhead cost applied to a job during a period is recorded with a credit to Manufacturing Overhead and a debit to:
Cost of Goods Sold.
Correct!
Work in Process Inventory.
Jobs Overhead Expense.
Finished Goods Inventory.
2 / 2 pts
Bowman Corporation has a predetermined overhead rate of 160% and applies overhead based on direct material cost. During the current period, direct labor cost is $50,000 and direct materials used cost $80,000. Determine the amount of applied overhead Bowman Corporation should record in the current period.
$50,000.
$80,000.
Correct!
$128,000.
$208,000.
2 / 2 pts
An example of direct labor cost is:
Supervisor salary
Correct!
Product assembler wages
Maintenance worker wages
Accountant salary
2 / 2 pts
Which of the following products is most likely to be produced in a process costing system?
Airplanes
Designer bridal gowns
Custom cabinets
Correct!
Cereal
2 / 2 pts
The three costs added to Work in Process inventory during production are:
Direct materials, direct labor, selling costs.
Correct!
Direct material, direct labor, applied overhead.
Direct materials, direct labor, operating costs.
Direct labor, actual overhead, selling costs.
2 / 2 pts
A company identified the following partial list of activities, costs, and activity drivers expected for the next year:
| Activity Expected Costs | Cost Driver | |
| Extrusion costs | $83,600 | Number batches made |
| Handling costs | $8,800 | Number of orders filled |
| Packaging costs | $40,500 | Number of units made |
| Product A | Product B | |
| Production volume | 750,000 units | 600,000 units |
| Batches made | 200 batches | 750 batches |
| Orders filled | 75 | 200 |
Calculate activity rates for each of the three activities using activity-based costing (ABC).
Extrusion: $304 per batch; handling: $32 per unit; packaging: $.03 per unit.
Extrusion: $418 per batch; handling: $117.33 per order; packaging: $.054 per unit.
Correct!
Extrusion: $88 per batch; handling: $32 per order; packaging: $.03 per unit.
Extrusion: $88 per order; handling: $32 per unit; packaging: $.33 per batch.
0 / 2 pts
Emigh, Inc. applies overhead based on direct labor costs. For the current year, Emigh, Inc. estimated total overhead costs to be $400,000, and direct labor costs to be $2,000,000. Actual overhead costs for the year totaled $380,000, and actual direct labor costs totaled $1,800,000. At year-end, the balance in the Manufacturing Overhead account is a:
Correct answer
$20,000 Debit balance.
$380,000 Debit balance.
You Answered
$400,000 Credit balance.
$20,000 Credit balance.
2 / 2 pts
A company uses activity-based costing to determine the costs of its three products: A, B, and C. The budgeted cost and activity for each of the company's three activity cost pools are shown in the following table:
| Budgeted Activity | ||||
| Activity Cost Pool | Budgeted Cost | Product A | Product B | Product C |
| Activity 1 | $70,000 | 6,000 | 9,000 | 20,000 |
| Activity 2 | $45,000 | 7,000 | 15,000 | 8,000 |
| Activity 3 | $82,000 | 2,500 | 1,000 | 1,625 |
Which of the following statements is true regarding this company's activity rates?
The activity rate under the activity-based costing system for Activity 2 is $16.00.
The activity rate under the activity-based costing system for Activity 2 is $19.50.
The activity rate under the activity-based costing system for Activity 2 is $2.00.
Correct!
The activity rate under the activity-based costing system for Activity 2 is $1.50.
2 / 2 pts
Ollie Corporation uses a job order costing system. In the last month, the system accumulated labor time tickets total $24,600 for direct labor and $4,300 for indirect labor. How are these costs recorded?
Correct!
Debit Work in Process Inventory $24,600; Debit Manufacturing Overhead $4,300; Credit Factory Wages Payable $28,900.
Debit Payroll Expense $24,600; debit Manufacturing Overhead $4,300; credit Factory Wages Payable $28,900.
Debit Payroll Expense $28,900; credit Cash $28,900.
Debit Work in Process Inventory $28,900; credit Factory Wages Payable $28,900.
0 / 40 pts
The predetermined overhead rate for Fanniel Corporation for 2020, is based on estimated direct labor costs of $400,000 and estimated factory overhead of $500,000.
Actual costs incurred in 2020 were:
| Direct materials | $240,000 |
| Direct labor | 410,000 |
| Indirect materials | 55,000 |
| Indirect labor | 125,000 |
| Sales commissions | 55,000 |
| Factory depreciation | 170,000 |
| Property taxes, factory | 15,000 |
| Factory utilities | 35,000 |
| Advertising | 62,500 |
| Factory equipment rental | 110,000 |
Required:
(a) Calculate the predetermined overhead rate.
(b) Calculate the overhead applied during the year.
(c) Add up the actual manufacturing costs from the list provided.
(d) Determine the amount of over- or underapplied overhead.
(e) Prepare the journal entry to eliminate the over- or underapplied overhead.
Your answer:
Estimated Factory overheads = $500,000
Estimated Direct labor cost = $400,000
Predetermined overhead rate = Estimated Factory overheads/Estimated Direct labor cost
= 500,000/400,000
= 125% of Direct labor cost
b)
Overhead applied = Actual direct labor cost x Predetermined overhead rate
= 410,000 x 125%
= $512,500
c)
Actual manufacturing overheads = Indirect materials + Indirect labor + Factory depreciation + Property taxes, factory + Factory utilities + Factory equipment rental
= 55,000 + 125,000 + 170,000 + 15,000 + 35,000 + 110,000
= $510,000
d)
Over applied manufacturing overheads = Applied manufacturing overheads - Actual manufacturing overheads
= 512,500 - 510,000
= $2,500
e)
Journal
| Manufacturing overheads | 2,500 | ||
| Cost of goods sold | 2,500 |
for c you needed to do all manufacturing costs not just MOH
0 / 20 pts
Alpha Corporation completed and transferred 90,000 units during the current period and had 8,000 units in ending inventory that were 75% complete with materials and 25% complete with conversion.
Based on the following information, determine the total costs of the 90,000 units completed and transferred out and the 8,000 units in ending inventory during the current reporting period.
Extra credit - journalize the transfer of the completed units (5 points).
| Direct Materials | Conversion | |
| Costs of Beginning Work in Process: | $576,000 | $400,000 |
| Costs added this period | $2,400,000 | $5,120,000 |
| Equivalent units of production | 96,000 | 92,000 |
Your answer:
Equivalent Units:
UNITS Material Cost Conversion
% Completion Units % Completion Units
Units completed and transferred 90000 100% 90,000 100% 90,000
Ending Work in Process 8000 75% 6,000 25% 2,000
Total Equivalent units 98000 96,000 92,000
TOTAL COST TO ACCOUNT FOR:
Material Conversion
Cost of Beginning WIP 576000 400000
Cost incurred 24,00,000 51,20,000
Total Cost to account for: 29,76,000 55,20,000
Equivalent Units 96,000 92,000
Cost per Equivalent unit 31 60
TOTAL COST ACCOUNTED FOR:
Units completed and transferred (90000 units)
Equivalent unit Cost per EU Total Cost
Material 90,000 31 2790000
Conversion Cost 90,000 60 5400000
Total cost of units transferred out 8190000
Ending Work in process (8000 units)
Equivalent unit Cost per EU Total Cost
Material 6,000 31 186000
Conversion Cost 2,000 60 120000
Total cost of Ending Work in process: 3, 06,000
Journal entry
S.no. Accounts title and explanations Debit $ Credit $
- Finished goods inventory 81,90,000
Work in process inventory 81,90,000
