Summer 2017 Acct 2302 CRN 1054Acct 2302 Managerial Acco
1. 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.
2.If a company applies overhead to production with a predetermined overhead rate, a credit balance in the Factory Overhead account at the end of the period means that:
The bookkeeper has made an error because the debits don't equal the credits.
The balance will be carried forward to the next period as an overhead cost.
Actual overhead incurred was less than the overhead amount applied to production.
The overhead was underapplied for the period.
Actual overhead was greater than the overhead amount applied to production
3.Andrew Industries purchased $165,000 of raw materials on account during the month of March. The beginning Raw Materials Inventory balance was $22,000, and the materials used to complete jobs during the month were $141,000 direct materials and $13,000 indirect materials. What is the ending Raw Materials Inventory balance for March?
4. Juarez Builders incurred $285,000 of labor costs for construction jobs completed during the month of August, of which $212,000 was direct and $73,000 was indirect supervisory costs. The correct journal entry to record the direct labor for the month is:
Debit Payroll Expense $212,000; credit Cash $212,000.
Debit Factory Wages Payable $285,000; credit Work in Process Inventory $212,000.
Debit Work in Process Inventory $212,000; credit Cash $285,000.
Debit Factory Wages $285,000; credit Factory Wages Payable $285,000.
Debit Work in Process Inventory $212,000; credit Factory Wages Payable $212,000.
5 A job order costing system would best fit the needs of a company that makes:
Shoes and apparel.
Pencils and erasers.
6 Andrew Industries purchased $165,000 of raw materials on account during the month of March. The beginning Raw Materials Inventory balance was $22,000, and the materials used to complete jobs during the month were $141,000 direct materials and $13,000 indirect materials. What amount will Andrew transfer to Work In Process Inventory for the month of March?
7 An example of direct labor cost is:
Maintenance worker wages
Product assembler wages
8 A company that makes which of the following types of products would best be suited for a job costing system?
9. A type of production that yields customized products or services for each customer is called:
Customer orientation production.
Job order production.
Job lot production.
10. A job cost sheet shows information about each of the following items except:
The direct labor costs assigned to the job.
The name of the customer.
The costs incurred by the marketing department in selling the job.
The overhead costs assigned to the job.
The direct materials costs assigned to the job.
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