100.The Brisebois Company had the following transactions and events during its first year of operations.
Estimated overhead for the year was $770,000; estimated direct labor cost for the year was $350,000.
a. Purchased materials on account, $567,000.
106.The Perrot Company is a computer repair shop and had the following transactions and events during the
year. Estimated overhead for the year was $175,000; estimated labor for the year was 6,000 hours.
a. Purchased materials on account, $126,000.
37. Which of the following statements is (are) true regarding the application of manufacturing overhead?
(A) Manufacturing overhead is only recorded on the job cost sheets when (a) financial statements are
prepared or a job is completed.
(B) Overapplied o
55. The end of the month Work-in-Process Inventory balance would be
56. The balance in the factory overhead account would represent the fact that overhead was
53. Tillman Corporation uses job costing and has two production departments, M and A. Budgeted
manufacturing costs for the year are as follows:
The actual direct material and direct labor costs charged to Job. No. 432 during the year were as follows:
60. What is the journal entry to record the direct labor costs for the period?
61. What is the value of the ending Finished Goods Inventory?
Two jobs were worked on during the ye
The Update Company does not maintain backup documents for its computer files. In June, some of the
current data were lost, and you have been asked to help reconstruct the data. The following beginning
balances on June 1 are known:
Reviewing old documents
83. Scottso Corporation applies overhead using an actual costing approach. Budgeted factory overhead was
$266,400, budgeted machine-hours were 18,500. Actual factory overhead was $287,920, actual machinehours were 19,050. How much overhead would be applie
77. Which of the following actions do not cause an impropriety in job costing?
A. Misstating the stage of completion.
B. Choosing to use normal costing rather than actual costing.
C. Charging costs to the wrong job.
D. Choosing an allocation method based
49. Before prorating the manufacturing overhead costs at the end of 2008, the Cost of Goods Sold and Finished
Goods Inventory had applied overhead costs of $57,500 and $20,000 in them, respectively. There was
no Work-in-Process at the beginning or end of
45. The journal entry to write-off an insignificant overapplied overhead balance at the end of an accounting
period for a service firm is
46. Complex jobs that take multiple time periods and require the work of many different departmen
40. If a company multiplies its predetermined overhead rate by the actual activity level of its allocation base, it
A. standard costing.
B. normal costing.
C. actual costing.
D. budget costing.
E. ideal costing.
41. If a company multiplies its ac
32. In a job costing system, the dollar amount in the journal entry that transfers the costs of jobs from Work-inProcess Inventory to Finished Goods Inventory is the sum of the costs charged to all jobs
A. sold during the period.
B. completed during the p
27. Which of the following documents is used as the basis for posting to the direct materials section of the job
A. Purchase requisition.
B. Materials requisition.
C. Receiving report.
D. Purchase order.
E. Time card.
28. Which of the followin
22. For which of the following businesses would the job order cost system be appropriate?
Auto repair shop
Crude oil refinery
Root beer producer
23. Which of the following is not a characteristic of job costing?
Briefly explain how you would arrive at the monthly payment for a 48-month loan where the first
payment is due one month from the loan date. In your explanation, include the use of present and future
The 48-month loan described is an or
12. At the end of the accounting period, manufacturing overhead costs are applied to uncompleted jobs using
the same predetermined overhead rate that is used to apply manufacturing overhead costs to completed
13. Overapplied overhead occu
A job is a product or service that can be easily and conveniently distinguished from other products/services.
Job cost sheets are used in accounting systems as a subsidiary ledger for the Work-in-Process account.
69. What is the ending balance in the Direct Materials Inventory on June 30?
The financial records for the Lee Manufacturing Company have been destroyed in a fire. The following
information has been obtained from
73. Birk Co. uses a job order costing system. The following debits (credits) appeared in Birk's work-in-process
account for the month of April:
Birk applies overhead to production at a predetermined rate of 80% of direct labor cost. Job No. 5, the only
89. Carver Test Systems manufactures automated test systems that perform quality inspections during and
at the completion of the manufacturing process. As most manufacturing processes are unique, Carver's
test equipment is designed to customer specificati
Overapplied overhead occurs when the actual overhead costs incurred during a period are greater than
the overhead costs applied during the period.
Overapplied is when actual is less than applied.
The periodic allocation of manufacturing overhead costs to job cost sheets is based on an event, not a
Either the completion of the job or the end of the period.
Service organizations, by their nature, cannot have a balance in Work-in-Process Inventory.
A service may take several accounting periods to complete so there may very well be a Work-InProcess.
Accounting for direct materials and direct labor is easier than accounting for manufacturing overhead
This is due to the traceability of direct costs.
Lanen - Chap
A job is a product or service that can be easily and conveniently distinguished from other products/
This is the definition of a job.
Lanen - Chapter 07 #1
109.How does job costing for a service organization differ from job costing for a manufacturer?
110.Describe three possible unethical actions that can cause impropriety in job costing.
111.Describe two alternative approaches to the handling of over- or un
102.Mounder Manufacturing Company employs job costing to account for its costs. There are three production
departments, and separate departmental overhead application rates are employed. All jobs generally pass
through all three production departments. Da
104.Becker Company applies overhead at a rate of $26 per direct labor hour. Budgeted labor hours were
25,000; actual labor hours exceeded the budget by 1,600 hours. Overhead was overapplied by $3,758.
(a) Compute the budgeted overhead for the ye