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

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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.

  

Budget accountant's salary.

   

Factory supervisor's salary.

  

Direct material costs.

 

 

Question 3

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.

 

 

Question 4

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.

 

 

Question 5

2 / 2 pts

If overhead applied is greater than actual overhead incurred, it is:

  

Overapplied.

   

Fully applied.

   

Underapplied.

   

Normal.

 

 

Question 6

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.

 

 

Question 7

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

 

 

Question 8

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.

 

 

Question 9

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.

 

 

Question 10

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

 

 

Question 11

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.

 

 

Question 12

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.

 

 

Question 13

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.

 

 

Question 14

2 / 2 pts

An example of direct labor cost is:

  

Supervisor salary

   

Product assembler wages

   

Maintenance worker wages

   

Accountant salary

 

 

Question 15

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

 

 

Question 16

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.

 

 

Question 17

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.

 

 

Question 18

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.

 

 

Question 19

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.

 

 

Question 20

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.

 

 

Question 21

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:

 

Question 22

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: