Exam (elaborations)
Cost and Managerial Accounting - D101 (57 questions and answers)
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Cost and Managerial Accounting - D101 (57 questions and answers)
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Cost and ManagerialAccounting - D101 (57
questions and
answers)
When a movie producer receives a contract to
produce movies following the specifications of the
customer. - answer When would it be appropriate
to use job order costing?
When an oil producer produces a large volume of
regular unleaded gasoline for a gas station chain
of stores.
When a company provides warranty services to a
group of customers using a uniform set of
processes and services for each customer.
When a clothing manufacturer produces a line of
clothes having the same production cost for each
clothing line.
,When a movie producer receives a contract to
produce movies following the specifications of the
customer.
Forecasted overhead costs and forecasted activity
level. - answer Which figures are used in
computing a predetermined overhead rate?
Forecasted overhead costs and actual activity
level.
Actual overhead costs and forecasted activity
level.
Actual overhead costs and actual activity level.
Forecasted overhead costs and forecasted activity
level.
$40 per direct labor hour. - answer A company uses
direct labor hours to apply manufacturing
overhead. Budgeted manufacturing overhead for
the coming year is $640,000. Budgeted direct
materials purchases are $400,000. Budgeted direct
labor cost is $720,000. Budgeted direct labor hours
for the coming year are 16,000 hours. Actual
manufacturing overhead for the year was
$600,000. Actual direct materials purchases were
$380,000. Actual direct labor cost was $700,000.
Actual direct labor hours for the year were 20,000
hours.
,What is this company's predetermined overhead
rate?
$30 per direct labor hour.
$36 per direct labor hour.
$40 per direct labor hour.
$61 per direct labor hour
Debit to manufacturing overhead for $16,000. -
answer A company's actual manufacturing
overhead was $156,000, and applied
manufacturing overhead was $172,000.
What should be included in the journal entry
necessary to close the manufacturing overhead
account?
Debit to manufacturing overhead for $16,000.
Debit to cost of goods sold for $16,000.
Debit to cost of goods sold for $156,000.
Debit to manufacturing overhead for $156,000.
Credit to cash for $3,000. - answer A
manufacturing company used cash to purchase raw
materials costing $3,000.
What should be included in the journal entry
necessary to record this purchase of raw
materials?
Credit to accounts payable for $3,000.
, Credit to cash for $3,000.
Credit to work-in-process inventory for $3,000.
Credit to raw materials inventory for $3,000.
Debit to work-in-process inventory for $12,500. -
answer A company that manufactures wood
furniture paid $12,500 in cash for the wages of
woodworkers who create the wood furniture in the
factory.
What should be included in the journal entry
necessary to record this payment of wages to the
woodworkers?
Credit to manufacturing overhead for $12,500.
Debit to work-in-process inventory for $12,500.
Debit to manufacturing overhead for $12,500.
Credit to work-in-process inventory for $12,500.
Debit to manufacturing overhead for $16,000. -
answer A company recorded depreciation of
$16,000 on factory equipment.
What should be included in the journal entry
necessary to record this depreciation on factory
equipment?
Credit to work-in-process inventory for $16,000.
Debit to work-in-process inventory for $16,000.
Credit to manufacturing overhead for $16,000.
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