acc 3 week 1 - Page 1 of 6 Exam:ary automatioaiiy...

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Unformatted text preview: Page 1. of 6 Exam :ary automatioaiiy coa’nputed ggzgxarn, Gradgg {Qt eggay Date and Time Started: 11’2‘31201'6 813‘; 123 AM i coinw'seois from your Time Spent: 29 min , 30 secs m the "wetafis" $436350“ Points Received: 24 I 30 (809/0) ST‘ (3):“ Qiieéiiflnffiir ii Correct: 4 3 1 1 9 C6 H Al! Questions Which of the foiiowing statements is correct concerning job—order costing? Job—order costing would be appropriate for a textbook pubiisher‘ , All the costs appearing on a job cost sheet are actual costs. indirect materials are charged to a specific job. “ Job-order costing is mainly used in firms with homogeneous products such as oil refineries. Exeiametéon: Textbooks can vary in many ways so job order costing would be a good fit for this industry“ Received} 7 2932' ants: Job-order costing is used in manufacturing companies and process costing is used in service companies. <3 True ,6; ii? Faise Either costing methods can be used in either types of companies. Received!” zrdfiz ants: A flour manufacturer is more likely to use process costing than jobworder costing whereas a manufacturer of customized leather jackets is more likely to use job~order costing than process costing. 'ugz' {:0} True if} False Job costing is more appropriate when costs are traceabie such as in customized orders. Received: 2 of 2 ents: nextecoi{egofiomfljN E37<T(6c96576bb5 D/l‘viainffl‘ourseR/i odefStudentCara . . i i /3 (it/2016 Page 2 of 6 Exam Which of the following types of companies would typically use process costing rather than job-order costing? 3mg": (3-? A small appliance repair shop. {:5 'A' manufacturer of commercial passenger aircraft. {:3 A specialty equipment manufacturer. a” 59.} A breakfast cereal manufacturer. Fixpiaz'ietien: Many of the stages of production of food items are difficult to trace to a specific product so process costing is a better fit. .eceived: 2 of 2 {THE I. including manufacturing overhead costs in product costs ensures that each product will earn a profit. my (:3 False {"1 g; kg) True ”his ensures that we have good cost information, not recessarily a profit. Received: 0 of 2 :nts: ‘ Normally a job cost sheet is not prepared for a job until after the job has been completed. ‘7'“ False {:3 True W M" i‘his sheet is prepared at the beginning and costs are tracked onto it. Received: 2 of 2 ants: in a job~order costing system. the incurrence of indirect labor caste would be recorded as a charge to: Wis-1W5?” a?“ £8} Manufacturing Overhead incurred. 5:} Finished Goods. 5:} Work in Process. <32 Cost of Goods eoid. * Stixgrganatiem: indirect labor is classified as manufacturing overhead. Received: 2 of 2 ents: 'i : Overapplied overhead would result if: f“ “‘5 fi‘figv‘xafi the plant was operated at less than normal capacity. manufacturing overhead costs incurred were less than estimated man ufacl’u ring overhead oosts. .27 {1.0th630(3)]l.Sgt-.3,Ct3f'IL/(N13erfiéc396 5 7613135))/’i\/i‘aim/CourseR/Iode/StudentGi-a. . . 1 1 130/201 6 Exam Page 3 of6 a_} {manufacturing overhead costs incurred were tees than manufacturing overhead costs charged to production, at“ ”Ii? manufacturing overhead costs incurred were greater than manufacturing overhead charged to production. Excéarsatien; if actual manufacturing overhead is tees than applied overhead, we refer to this as being overapplied. eceived: 0 of 2 "its: Crichman Corporation uses direct laboruhours in its predetermined overhead rated At the beginning of the year. the eetimated direct iabor— hours were 14,900 hours and the total estimated manufacturing overhead was $382,070. At the end of the year, actual direct {abor- hours for the year were 16,000 hours and the actual manufacturing overhead for the year was $357,OTOA Overhead at the end of the year was: “refer. um (a?) $31,730 overappiied {,3 $26,730 overapplied <1} $31,730 underapplied 5:} $26,730 underappiied Exoiahatiorx; $362,070 / 14,900 eetimated hours = $24.30 per direct labor hour 16,000 actuai hours x $24.30 = $388,800 applied overhead $357,070 actuai overhead - $388,800 applied overhead = ($31,730) overapplied Received: I 2 of 2 ants: Chipata Corporation appties manufacturing overhead to jobs on the basis of inachine—hours. Chipata estimated 25,000 machine~houre and $10,000 of manufacturing overhead cost for the year. During the year. Chipata incurred 26,200 machine—hours and $1 1,300 of manufacturing overhead. What was Chipata's underappiied or overapplied overhead for the year? \hawer' " - $480 overappiied $820 undereppiied \ $1 .300 overapplied 9:} $1,300 underappiied *' txpéaeatéors: $10,000 / 25,000 machine hours = $.40 per machine hour 26.200 machine hours x $.40 per machine hour = $10,480 applied $1 1,300 actual _ $10,480 applied = $820 underappiied Received: 2 of 2 ients: n : Bake Corporation appliea manufacturing overhead on the basis of direct iabor—hours. At the beginning of the most recent year, the company based its; predetermined overhead rate on totai estimated overhead of $239,700 and 4,700 estimated direct taboizhoure Actual n‘tanufacturing overhead for the year amouhted to $242,000 and actuai direct iabor—r hex Loco-liege.corrt/(NEIX'T{6396S 76bb5)yi‘viain!Coursc§\rfiIodeJStuden thra. . . 1 1/3 0/20 1 6 t Exam} “‘eE-Z-kfi‘f‘jfl' ' 9 Ez'ixei .. n M a} m Received: mate: *3": $355}: {I Received: :ext . 600 ii age . Gerri/(N EXT£6$965 76bb5))/iv¥a§n/’(:01.1r3<:M0de/Studentt’jra. . . at} or: ' Page: 4 of 6 hours were 4,600.. The applied manufacturing overhead for the year was oioeest to: {1:}? $228,586 a? ((-2; $234,603 5" 1 $242,005 {:3 $235,854 Eetimeted totai manufacturing overhead $239,700 7 Eetimeted total direct labor hours 4,700 = Predetermined overhead rate $51 per direct iebor hour Appiied manufacturing overhead = $51 per direct labor hour x 4,600 aotuai machine hours 2 $234,600 77201:: Dacosta Company had only one job in process on May 1. The job had been charged with $1,800 of direct materiale, $6,988 of direct iabor, and $9,936 of manufacturing overhead cost. The company assigns overhead cost to jobs: using the predetermined overhead rate of $18.40 per direct labor—hour. During May, the activity was recorded: Iiznw meted it} e (:31 i direo t ['naieriaii a; j}: Beginnjeg; Euxiange,u..- SS,§GO Pu-reheeed during; the111ea‘1t!1.....-_-_-........-_...._..--.-., $383380 listed in {areduetio-n ....................... - ....................... $13€3$ifi0 I.;eiacur: {Direct labor—hours «Nari-zed duriflg the -nzent§t,.,..“_, 1.,Qtiii} lfiirtzet Either: Guest ineurred....m.....”a......,..........,.....-,-, $24,516 .Axettzai manukhctiit‘ing ea—‘evheeai fleets incuu‘red-,.-., 3133,3111!) ifi are flier; a: s : Raw anater-fiam, Ewlay 3f} ,--, ‘? “Earth: in presses-3.. Mia}? 36} ., $167,593"? Work. in process inventory on May 30 contains $3,741 of direct labor cost. Raw materiais coneist soieiy of items that are ciassified as direct materials. The cost of goods manufactured for May was: if} $97,1 10 {.5 $110,800 “= $98,770 ~ $100,535 Raw rnateriele used in production $39,300 Direct labor $24,510 Manufacturing overhead appiied ($18.40 x 1,900) $34,960 Total nwanufacturing coets $98,770 Work in process, beginning (DM $1,800 + DL $6,986 + MO $9,936) $18,702 = $1 17,472 a Work. in process, ending $16,937 = Coet of Geode Manufactured $100,535 +||++ 2of2 } i/BO/LZOI 6 Exam-n Page 5 of 6 rte: Rediger lnc. a manufacturing company, has provided the following data for the month of June. “(he balance in the Work in Process inventory account was $22,000 at the beginning of the month and $17,000 at the end of the month. During the month, the company incurred direct materie§s cost of $55,000 and direct labor coet of $28.000. The actual manufacturing overhead cost incurred \Nes $53,000. The manufacturing overhead cost applied to jobs was $51 ,000. The cost of goods manufactured for June was; WWW: if} $141,000 43‘“ €161?! $139,000 <11?) $134,000 :1.) $136,000 :rtzcn: Manufacturing costs charged to jobs: + Direct materials $55,000 -+- Direct labor $28,000 + Manufacturing overhead applied $51 .000 : Tote! manufacturing cocts $1 34000 + Beginning work in process inventory $22,000 = $1 56,000 — Ending work in process inventory $17,000 i $139,000 “l la: 1 x p a. .4} x Received: 2 of 2 ants: Hamilton (Sompany uses job—order costing. Manufacturing overhead is applied using a predetermined rate of 1 50°16 of direct labor cost. Any underepplied or overapplied manufacturing overhead is closed to Cost of Goods Sold at the end of each month. Additional information is available as follows: ° Job 101 was the only job in process at January 31 . The job cost sheet for this job contained the following costs at the beginning of the month: [3‘51“ch R31$Q€Iléitisu-u. $44300 {B‘imet Extinct -..,nl‘, $2,000 fiprl-icd nuanrrfaeturing carverhued ...... . ,,,,,,,,, $31300 ° Jobs 102, 103. and 104 were started during February. 0 Direct materials: requieitione for February totaled $26,000. " Direct labor cost of $20,000 was incurred for February. 6 Actual manufacturing overhead was $32,000 for February. 9 The only job still in process at February 28 was Job 104, with costs of $2,800 for direct lhateriais and $1,800 for direct labor. For the month of February, the manufacturing overhead was: «5:33: web: a“ $700 overapplied $1.000 overepplied ‘ $2,000 overepplied 1 $2,000 underepolied nchccoilcge.c:om/(NEXT(6€9©E§ 76bb5 ))/M.ain_!(fiour5;c1‘vl ode/Studentfiira- . . 1 3/3 0/20} 6 ,Fixaln Page 6 0.176 Actual manufacturing overhead $32,000 — Appiied manufacturing overhead (1500/0 x 29,000) $30,000 = $2.900 underappiied .eceived: o of 2 ”HTS: The foilowing data have beer“; recorded for recentiy compieied Job 450 on its job cost sheet, Direct materials coat was $3,944. A tote: 01°46 direct labor—hours and 104 machine~hour$ were worked on the jet} The direct labor wage rate ie $15 per labor—hour. The company applies manufacturing overhead on the basis of machine—hours. The predetermined overhead rate is; $13 per machine—hour. The total (303% for the job on its job coat sheet would be: :‘ifi'wu'fifi'. “:3 $4.332 M? $3,?34 Q} $3,072 e? if} $5,086 Efixgfiafiafign, Direct materials $3,044 (given) 4» Direct labor $690 (46 hours x $15 per hour) + Manufacturing overhead $1 ,352 (104 machine hour-e x $13 per machine hour) = $5,086 (“x 2 (”'3 z r» Received: 7 r 2 of 2 I ”WES: agaiayed in (GMTrG7:OO) Mountain Time QUS 8: Canada} nexLenoliege.comJ(N'F3XT(6t:965 7613135)j/éViain/Cfourseh/Iode!StudcntGra.. . ’1 1 1’3 0/120 i 6 ...
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