Module 4 2021/2022

Which of the following is one of the purposes of cost accounting? 1 It involves measuring product costs. 2 It involves the determination of company profits. 3 It requires GAAP to be applied. 4 It requires cost minimizing principles. 1. It involves measuring product costs. A process cost system would most likely be used by a company that makes? 1 music videos. 2 repairs to electric bicycles. 3 ramen noodles. 4 college graduation announcements. 3. Ramen Noodles As of December 31, 2022, Stand Still Industries had $2500 of raw materials inventory. At the beginning of 2022, there was $2000 of materials on hand. During the year, the company purchased $ of materials; however, it paid for only $. How much inventory was requisitioned for use on jobs during 2022? 1 $ 2 $ 3 $ 4 $ $2000 + $ - $2500 = $ In a job order cost system, the Work in Process Inventory account is: 1 an expense. 2 a control account. 3 not used. 4 a period cost. 2 A control account Records of individual items of raw materials would not be maintained: 1 electronically. 2 manually. 3 on stores ledger cards. 4 in the Raw Materials Inventory account. 4 in the Raw Materials Inventory account. Factory labor costs: 1 accumulate in advance of utilization. 2 accumulate in a control account. 3 include sick pay earned by factory workers. 4 accumulate in the Factory Labor Expense account. 3 include sick pay earned by factory workers. Manufacturing Overhead does not include amounts paid for 1 factory utilities. 2 property taxes on the manufacturing facility. 3 supervisor labor costs. 4 the CEO's salary. 4 the CEO's salary. Which one of the following best describes a job cost sheet? 1 It is a form used to record the costs chargeable to a specific job and to determine the total and unit costs of the completed job. 2 It is used to track manufacturing overhead costs to specific jobs. 3 It is used by management to understand how direct costs affect profitability. 4 It is a daily form that management uses for tracking worker productivity on which employee raises are based. 1 It is a form used to record the costs chargeable to a specific job and to determine the total and unit costs of the completed job. A materials requisition slip shows that direct materials requisitioned were $66000 and indirect materials requisitioned were $9000. The entry to record the transfer of materials from the storeroom is: Work in Process Inventory$66000 Manufacturing Overhead$9000 Raw Materials Inventory$75000 Materials requisition slips are costed 1 by production supervisors. 2 by factory personnel who work on the production line. 3 after the goods have been sold. 4 using any of the inventory costing methods. 4 using any of the inventory costing methods. Which one of the following should be equal to the balance of the Work in Process Inventory account at the end of the period? 1 The total of the amounts transferred from raw materials for the current period 2 The sum of the costs shown on the job cost sheets for unfinished jobs 3 The total of manufacturing overhead applied to Work in Process for the period 4 The total manufacturing costs for the period 2 The sum of the costs shown on the job cost sheets for unfinished jobs The principal accounting record used in assigning costs to jobs is 1 the job cost sheet. 2 the cost of goods manufactured schedule. 3 the Manufacturing Overhead control account. 4 the stores ledger cards. 1 the job cost sheet. Upgrade to remove ads Only $35.99/year Barr Mfg. provided the following information from its accounting records for 2022: Expected production: 60000 labor hours Actual production56000 labor hours Estimated overhead$ Actual overhead$ What is the overhead application rate if Barr bases the rate on direct labor hours (rounded to the nearest cent)? $16.07 per hour $15.00 per hour $14.50 per hour $15.54 per hour ($ / 60000) = $15.00 Norman Company manufactures customized metal buildings. The following pertains to Job No. 953: Direct materials used $22800 Direct labor hours worked 600 Direct labor rate per hour $16 Machine hours used 400 Applied factory overhead rate per machine hour$30 What is the total manufacturing cost for Job No. 953? $41200 $44400 $47200 $50400 $44400 The predetermined overhead rate is based on the relationship between: 1 estimated annual costs and actual activity. 2 estimated annual costs and estimated annual activity. 3 actual monthly costs and actual annual activity. 4 estimated monthly costs and actual monthly activity. 2 estimated annual costs and estimated annual activity. Annual overhead costs are estimated to be $ and direct labor costs are estimated to be $. If the activity base is direct labor costs, 1. $1.3 is the predetermined overhead rate. 2. for every dollar of manufacturing overhead, 75 cents of direct labor cost will be assigned. 3. for every dollar of direct labor cost, 75 cents of manufacturing overhead will be assigned. 4.a predetermined overhead rate cannot be determined. 3. for every dollar of direct labor cost, 75 cents of manufacturing overhead will be assigned. $ / $ = 75 cents Spencer Inc. applies overhead to production at a predetermined rate of 80% of direct labor cost. Job No. 130, the only job still in process at the end of August, has been charged with manufacturing overhead of $6400. What was the amount of direct materials charged to Job 130 if the balance in Work in Process Inventory is $20000? 1 $7000. 2 $6400. 3 $5600. 4 $20000. $6400 ÷ 80% = $8000; X + $8000 + $6400 = $20000; X = $5600 At the beginning of the year, Monroe Company estimates annual overhead costs to be $ and that machine hours will be operated. Machine hours is the overhead allocation base. What is the amount of overhead applied during the year if actual machine hours for the year was hours? 1 $. 2 $. 3 $. 4 $. ($ / ) × = $ Cost of goods sold is obtained from 1 analysis of all the control accounts in the cost system. 2 the Finished Goods Inventory records. 3 the Work in Process Inventory records. 4 the Raw Materials Inventory control account. 2 the Finished Goods Inventory records. In a job order cost system, a credit to Manufacturing Overhead will be accompanied by a debit to 1 Cost of Goods Manufactured. 2 Finished Goods Inventory. 3 Work in Process Inventory. 4 Raw Materials Inventory. 3 Work in Process Inventory. In determining total manufacturing costs on the cost of goods manufactured schedule, 1 beginning Work in Process Inventory should have a zero balance. 2 actual manufacturing overhead costs appear as a deduction. 3 manufacturing overhead applied is added to direct materials and direct labor. 4 ending Work in Process inventory is deducted from beginning Work in Process Inventory. 3 manufacturing overhead applied is added to direct materials and direct labor. Gulick Company developed the following data for the current year: Beginning work in process inventory$ Direct materials used Actual overhead Overhead applied Cost of goods manufactured Total manufacturing costs Gulick Company's direct labor cost for the year is 1 $72000. 2 $. 3 $. 4 $. ($ - $- $) = $ Upgrade to remove ads Only $35.99/year Chmelar Manufacturing Company developed the following data for the current period: Beginning Work in Process Inventory $ Direct materials used Actual overhead Overhead applied Cost of goods manufactured Ending Work in Process Inventory 90000 What are total manufacturing costs for the period? $ $ $ $ $ + X - $90000 = $; X = $ Jinnah Company applies overhead on the basis of 200% of direct labor cost. Job No. 501 is charged with $ of direct materials costs and $ of manufacturing overhead. The total manufacturing costs for Job No. 501 is $. $. $. $. ($ / 2.0) +