Chapter 04 - Lecture Questions - Student Handout

Chapter 04 - Lecture Questions - Student Handout - Lecture...

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Unformatted text preview: Lecture Questions 1 4) Quality control costs may be a direct cost of the Manufacturing Department, but an indirect cost of an individual job. 5) Cost objects may be jobs, products, or customers. 23) To smooth fluctuating levels of output, separate indirect- cost rates should be calculated for each month. 27) The budgeted indirect cost rate (POR) is the budgeted indirect costs divided by budgeted quantity of the cost allocation base. 29) Normal costing assigns indirect costs based on an actual indirect- cost rate. 33) The Work- in- Process Control account tracks job costs from the time jobs are started until they are completed. 36) Indirect materials that are requisitioned increase the Work- in- Process Control account. 42) For external reporting purposes, it is acceptable to allocate marketing costs to individual jobs. 67) Process costing: A) allocates all product costs, including materials and labor B) results in different costs for different units produced C) is commonly used by general contractors who construct custom- built homes D) is used exclusively in manufacturing 68) ________ costing is used by a business to price unique products for different jobs. A) Actual B) Job C) Process D) Traditional 80) Normand eau Company's actual manufacturing overhead is $1,400,000. Overhead is allocated on the basis of direct labor hours. The direct labor hours were 25,000 for the period. What is the manufacturing overhead rate? A) $47.00 B) $56.00 C) $75.00 D) None of the above are correct. 81) Copley Enterprises manufactures digital video equipment. For each unit $1,475 of direct material is used and there is $1,500 of direct manufacturing labor at $30 per hour. Manufacturing overhead is applied at $35 per direct manufacturing labor hour. Calculate the cost of each unit. A) $2,975 B) $4,025 C) $4,725 D) $3,150 107) What is the appropriate journal entry if $100,000 of materials were purchased on account for the month of August? A) Materials Control 100,000 Accounts Payable Control 100,000 B) Work- in- Process Control 100,000 Accounts Payable Control 100,000 C) Manufacturing Overhead Control 100,000 Accounts Receivable Control 100,000 D) Manufacturing Allocated 100,000 Accounts Receivable Control 100,000 108) What is the appropriate journal entry if direct materials of $50,000 and indirect materials of $3,000 are sent to the manufacturing plant floor? A) Work- in- Process Control 50,000 Materials Control 50,000 B) Work- in- Process Control 53,000 Materials Control 53,000 C) Manufacturing Overhead Control 3,000 Materials Control 50,000 Work- in- Process Control 53,000 D) Work- in- Process Control 50,000 Manufacturing Overhead Control 3,000 Materials Control 53,000 109) All of the following items are debited to Work- in- Process EXCEPT: A) allocated manufacturing overhead B) completed goods being transferred out of the plant C) direct labor consumed D) direct materials consumed 111) Manufact...
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Chapter 04 - Lecture Questions - Student Handout - Lecture...

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