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ACCT 346 Week 4 Midterm 1.docx

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Business

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Homework

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1) What is the best way to handle manufacturing overhead costs in order to get the most
timely job cost information?
A. The company should add actual manufacturing overhead costs to jobs as soon as
the overhead costs are incurred.
B. The company should determine an allocation rate as soon as the actual costs are
known, and then apply manufacturing overhead to jobs.
C. The company should account for only the direct production costs.
D. The company should apply overhead using an estimated rate throughout the
year.
2) At the end of the year, manufacturing overhead has been overapplied. What occurred
to create this situation?
A. The company incurred more manufacturing overhead costs than the
manufacturing overhead assigned to jobs.
B. The actual manufacturing overhead costs were less than the manufacturing
overhead assigned to jobs.
C. The company incurred more total job costs than the amount budgeted for the job.
D. Estimated manufacturing overhead was less than actual manufacturing overhead
costs.
3) Luca Company overapplied manufacturing overhead during 2006. Which one of the
following is part of the year end entry to dispose of the overapplied amount assuming
the amount is material?
A. A decrease to work in process
inventory
B. A decrease to applied overhead
C. An increase to finished goods
D. An increase to cost of goods sold
4) Which of the following would be accounted for using a job order cost system?

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A. The production of textbooks
B. The production of town
homes
C. The pasteurization of milk
D. The production of cans of
spinach
5) Which one of the following is NEVER part of recording the issuance of raw materials
in a job order cost system?
A. Debit Manufacturing Overhead
B. Debit Finished Goods
Inventory
C. Debit Work in Process
Inventory
D. Credit Raw Materials Inventory
6) What is unique about the flow of costs in a job order cost system?
A. It involves accumulating material, labor, and manufacturing overhead costs as they
are incurred in order to determine the job cost.
B. Each job is costed separately in a Work in Process subsidiary ledger.
C. Job costs cannot be measured until all overhead costs are determined.
D. There are no costs remaining in Work in Process at year end.
7) Which one of the following costs would be included in manufacturing overhead of a
lawn mower manufacturer?
A. The cost of the fuel lines that run from the motor to the gas
tank
B. The cost of the wheels

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A. The cost of the fuel lines that run from the motor to the gas
tank
C. Depreciation on the testing equipment
D. The wages earned by motor assemblers
8) What broad functions do the management of an organization perform?
A. Planning, directing, and controlling
B. Directing, manufacturing, and
controlling
C. Planning, directing, and selling
D. Planning, manufacturing, and
controlling
9) Which of the following represents the correct order in which inventories are reported
on a manufacturers balance sheet?
A. Work in process, finished goods raw materials
B. Raw materials, work in process, finished
goods
C. Finished goods, work in process, raw materials
D. Work in process, raw materials, finished goods
Copyright © 2010 University of Phoenix ONLPPASWEB04

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