98)
The Work in Process Inventory account of a manufacturing company that uses an overhead rate
based on direct labor cost has a $3,200 debit balance after all posting is completed. The cost sheet
of the one job still in process shows direct material cost of $1,400 and direct labor cost of $800.
Therefore, the amount of the applied overhead is:
A) $800. B) $1,800. C) $2,400. D) $2,200. E) $1,000.
99)
The Work in Process Inventory account of a manufacturing company that uses an overhead rate
based on direct labor cost has a $4,400 debit balance after all posting is completed. The cost sheet
of the one job still in process shows direct material cost of $2,000 and direct labor cost of $800.
Therefore, the company’s overhead application rate is:
A)
50% of direct labor cost.
B)
80% of direct labor cost.
C)
300% of direct labor cost.
D)
40% of direct labor cost.
E)
200% of direct labor cost.
100)
A perpetual record of a raw materials item that records data on the quantity and cost of units
purchased, units issued for use in production, and units that remain in the raw materials inventory,
is called a(n):
A)
Materials ledger card.
B)
Purchase order.
C)
Materials voucher.
D)
Materials requisition.
E)
Purchase ledger.
101)
A source document that production managers use to request materials for production and that is
used to assign materials costs to specific jobs or to overhead is a:
A)
Receiving report.
B)
Job cost sheet.
C)
Materials purchase order.
D)
Production order.
E)
Materials requisition.
102)
A company that uses a job order costing system would make the following entry to record the flow
of direct materials into production:
A)
debit Work in Process Inventory, credit Raw Materials Inventory.
B)
debit Work in Process Inventory, credit Cost of Goods Sold.
C)
debit Work in Process Inventory, credit Factory Overhead.
D)
debit Finished Goods Inventory, credit Raw Materials Inventory.
E)
debit Factory Overhead, credit Raw Materials Inventory.
103)
The Work in Process Inventory account for DG Manufacturing follows. Compute the cost of jobs
completed and transferred to Finished Goods Inventory.
Work in Process Inventory
Beginning WIP 4,500
Direct materials 47,10
0
Direct labor 29,60
0
Applied Overhead 15,80
0
Total Manufacturing Costs 97,00
0
To Finished Goods ?
Ending WIP 8,900
The cost of units transferred to finished goods is:
A) $88,100. B) $97,000. C) $95,200. D) $92,500. E) $105,900.
104)
A company’s overhead rate is 60% of direct labor cost. Using the following incomplete accounts,
determine the cost of direct materials used.
Work in Process Inventory
Beginning WIP 100,80
0
Direct Materials ?
Direct Labor ?
Applied Overhead ?
To Finished Goods ?
Ending WIP 131,04
0
Factory Overhead
100,800 90,720
Finished Goods Inventory
Beginning FG 118,20
0
324,80 45 301,00
324,80
0
Ending FG 142,00
0
301,00
0
A) $113,120. B) $106,400. C) $324,800. D) $211,680. E) $30,240.
105)
A company’s overhead rate is 200% of direct labor cost. Using the following incomplete accounts,
determine the cost of direct materials used.
Work in Process Inventory
Beginning WIP 50,00 50
Beginning WIP 50,00
0
Direct Materials ?
Direct Labor ?
Applied Overhead ?
To Finished Goods ?
Ending WIP 60,00
0
Factory Overhead
138,000 140,000
Finished Goods Inventory
Beginning FG 40,000
265,00
0
Ending FG 35,000
270,00
0
A) $270,000. B) $130,000. C) $280,000. D) $265,000. E) $65,000.
106)
A source document that an employee uses to report how much time was spent working on a job or
on overhead activities and that is used to determine the amount of direct labor to charge to the job
or to determine the amount of indirect labor to charge to factory overhead is called a:
A)
Factory Overhead Ledger.
B)
Payroll Register.
C)
Time ticket.
D)
General Ledger.
E)
Factory payroll record.
107)
When Factory Wages Payable costs for labor are allocated in a job cost accounting system:
A)
Cost of Goods Manufactured is debited and Direct Labor is credited.
B)
Factory Wages Payable is debited and Work in Process Inventory is credited.
C)
Work in Process Inventory is debited and Factory Overhead is credited.
D)
Work in Process Inventory and Factory Overhead are debited and Factory Wages Payable is
credited.
E)
Direct Labor and Indirect Labor are debited and Factory Wages Payable is credited.
108)
Oxford Company 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?
A)
Debit Work in Process Inventory $24,600; Debit Factory Overhead $4,300; Credit Factory
Wages Payable $28,900.
B)
Debit Work in Process Inventory $28,900; credit Factory Wages Payable $28,900.
C)
Debit Payroll Expense $28,900; credit Cash $28,900.
D)
Debit Work in Process Inventory $24,600; credit Factory Wages Payable $28,900.
E)
Debit Payroll Expense $24,600; debit Factory Overhead $4,300; credit Factory Wages
Payable $28,900.
109)
Labor costs in production can be:
A)
Indirect or sunk.
B)
Direct or sunk.
C)
Direct or indirect.
D)
Direct or payroll.
E)
Indirect or payroll.
110)
An example of direct labor cost is:
A)
Accountant salary
B)
Janitor wages
C)
Maintenance worker wages
D)
Supervisor salary
E)
Product assembler wages
111)
A company has an overhead application rate of 125% of direct labor costs. How much overhead
would be allocated to a job if it required total labor costing $20,000?
A) $250,000. B) $5,000. C) $25,000. D) $125,000. E) $16,000.
112)
The rate established prior to the beginning of a period that uses estimated overhead and an
allocation factor such as estimated direct labor, and that is used to assign overhead cost to jobs, is
the:
A)
Predetermined overhead rate.
B)
Overhead variance rate.
C)
Miscellaneous overhead rate.
D)
Chargeable overhead rate.
E)
Estimated labor cost rate.
113)
Lowden Company has an overhead application rate of 160% and allocates 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 overhead Lowden Company should record in the
current period.
A) $128,000. B) $80,000. C) $50,000. D) $31,250. E) $208,000.