Deck 4: Job-Order Costing Systems

Question 1

Which of the following firms would make extensive use of service costing?

A)auto manufacturer
B)furniture manufacturer
C)auto dealer
D)CPA firm

Answer 1

CPA firm

Question 2

What accounting process involves determining the dollar amounts of direct materials,direct labour,and overhead used in production?

A)cost accumulation
B)cost measurement
C)cost assignment
D)job-order costing

Answer 2

B

Question 3

In what type of production is a single product produced on a continuous basis?

A)process production
B)job production
C)job-order production
D)operating production

Answer 3

A

Question 4

What does inseparability refer to?

A)the nonphysical nature of services as opposed to products
B)the fact that production and consumption are unable to be divided for services
C)greater chances for variation in the performance of services than in the production of products
D)the fact that services cannot be inventoried but must be consumed when performed

Question 5

What is the definition of a pure service organization?

A)an organization that does not have raw materials or inventories,and has a definite separation between the plant and the customer
B)an organization that has raw materials and tangible items,and does not have a separation between the plant and the customer
C)an organization that does not have raw materials or tangible items,and does not have a separation between the plant and the customer
D)an organization that has raw materials and inventories,and does not have a separation between the plant and the customer

Question 6

What does heterogeneity refer to?

A)the nonphysical nature of services as opposed to products
B)the fact that production and consumption are inseparable for services
C)greater chances for variation in the performance of services than in the production of products
D)the fact that services cannot be inventoried but must be consumed when performed

Question 7

For which of the following products would one NOT use a process costing system?

A)electrical wire
B)cotton yarn
C)newsprint
D)satellites

Question 8

What is the term for the recognition and recording of costs?

A)cost accumulation
B)cost measurement
C)cost assignment
D)job-order costing

Question 9

Which of the following is a pure service?

A)bungee jumping
B)beauty salon
C)restaurant
D)software

Question 10

What type of costing system would manufacturers that produce unique or customized products employ?

A)a process costing system
B)a job-costing system
C)a homogeneous costing system
D)a job process system

Question 11

Which of the following firms would make extensive use of job-order costing?

A)dental and medical services
B)canned foods
C)discount brokers
D)petroleum

Question 12

In regard to services,what is the definition of perishability?

A)the nonphysical nature of services as opposed to products
B)the fact that production and consumption are inseparable for services
C)greater chances for variation in the performance of services than in the production of products
D)the fact that services cannot be inventoried but must be consumed when performed

Question 13

Which of the following is a manufactured product?

A)bungee jumping
B)beauty salon
C)restaurant
D)automobile

Question 14

What is the definition of homogeneous products?

A)products similar in nature
B)the nonphysical nature of services and opposed to products
C)great variation in the nature products
D)products that can be inventoried

Question 15

What source document is used to assign direct labour costs to individual jobs?

A)job-order cost sheet
B)payroll check
C)time sheet
D)requisition form

Question 16

For which of the following products would one NOT use job-order costing?

A)houses
B)chemicals
C)ships
D)custom-built furniture

Question 17

In regard to services,what does intangibility refer to?

A)the nonphysical nature of services as opposed to products
B)the fact that production and consumption are inseparable for services
C)greater chances for variation in the performance of services than in the production of products
D)the fact that services cannot be inventoried but must be consumed when performed

Question 18

What is the purpose of developing a source document?

A)It is only an external document.
B)It provides transaction data that can be recorded in a database.
C)It is only used to record a transaction between an organization and an outside vendor.
D)It is only an internal document.

Question 19

For which of the following would process costing be most applicable?

A)producing electronics
B)machining custom components
C)constructing high-rise buildings
D)performing CPA audits

Question 20

Which cost accounting process would be most appropriate for accumulating costs of identical,standardized units?

A)job-order costing
B)process costing
C)normal costing
D)standard costing

Question 21

A normal costing system records which costs in work in process?

A)actual direct materials,actual direct labour,actual manufacturing overhead
B)applied direct materials,applied direct labour,applied manufacturing overhead
C)applied materials and labour and actual manufacturing overhead
D)actual materials and labour and applied overhead

Question 22

How can the effect of uniform production levels on unit production costs be achieved?

A)by using a factory overhead rate based on different production levels for each year
B)by using a factory overhead rate based on selling price
C)by closing the factory overhead at the end of the accounting period
D)by using a factory overhead rate based on long-run normal production activity level

Question 23

Overhead is applied using what types of costs?

A)actual overhead and budgeted amount of cost driver
B)budgeted overhead and budgeted amount of cost driver
C)actual overhead and actual amount of cost driver
D)budgeted overhead and actual amount of cost driver

Question 24

What is the term for the absolute maximum production activity of a manufacturing firm?

A)expected activity level
B)normal activity level
C)theoretical activity level
D)practical activity level

Question 25

For which of the following companies would a job-order costing process be most applicable?

A)food processing plant
B)natural gas processing plant
C)airplane manufacturer
D)fertilizer producer

Question 26

In the long run,for any product to be viable,its price must cover which type of costs?

A)full cost
B)variable cost
C)fixed cost
D)mixed costs

Question 27

Which of the following costing system assigns actual costs of materials to inventory?

A)actual costing system
B)budgeted costing system
C)standard costing system
D)time-based costing system

Question 28

What does manufacturing overhead consist of?

A)all costs other than direct materials
B)all manufacturing costs other than direct materials
C)all costs other than direct materials and direct labour
D)all manufacturing costs other than direct materials and direct labour

Question 29

In developing unit costs,overhead costs should be assigned using activity drivers.Which of the following would be the likely activity driver for a production process using a lathe?

A)units produced
B)direct labour hours
C)machine hours
D)direct materials cost

Question 30

When can an actual overhead rate be calculated?

A)at the beginning of the year
B)at the end of each month
C)at the beginning of each month
D)either at the beginning of the year or at the beginning of the month

Question 31

Which of the following costs are usually easily traceable to finished units of product?

A)direct labour
B)manufacturing overhead
C)indirect labour
D)supplies

Question 32

What is the term for the maximum output that can be realized if everything operates efficiently?

A)expected activity level
B)normal activity level
C)theoretical activity level
D)practical activity level

Question 33

Normal costing uses which cost in work in process?

A)applied direct materials
B)actual overhead
C)applied overhead
D)budgeted overhead

Question 34

Unit costs are critical information for what type of financial reporting?

A)reporting the total liabilities
B)determining the accounts payable
C)calculating the accounts receivable
D)disclosing the cost of inventory

Question 35

What is a disadvantage of actual costing?

A)Actual cost systems cannot provide accurate unit cost information on a timely basis.
B)Actual cost systems produce unit costs that do not change from period to period.
C)Estimates must be used when calculating the actual overhead rate.
D)Problems are created by the calculation of direct labour.

Question 36

What is the term for the average activity that a firm experiences in the long term (more than one year)?

A)expected activity level
B)normal activity level
C)theoretical activity level
D)practical activity level

Question 37

What is the principal difficulty with normal costing?

A)The unit cost information is not received on a timely basis.
B)It can result in fluctuating per-unit overhead costs.
C)It often results in underapplied or overapplied overhead.
D)The tracing of the direct materials is complex.

Question 38

What is the term for the production level the firm expects to attain for the coming year?

A)expected activity level
B)normal activity level
C)theoretical activity level
D)practical activity level

Question 39

When is the predetermined overhead rate usually calculated?

A)at the end of each month
B)at the beginning of each month
C)at the beginning of the year
D)at the end of the year

Question 40

What is the term for the association of production costs with the units produced?

A)cost accumulation
B)cost measurement
C)cost assignment
D)job-order costing

Question 41

What information will be found on a materials requisition form?

A)the hourly rate paid to the employees
B)the number of hours used to complete a job
C)the quantity of a component used for a job
D)the name of the job a particular employee worked on

Question 42

What is a work-in-process inventory file?

A)a file of electronic job-order cost sheets
B)a file cabinet where work tickets are stored
C)a file of electronic materials requisitions
D)a file cabinet where material tickets are stored

Question 43

The Kraig Corporation manufactures custom-made purses. The following data pertains to Job XY5:
Factory overhead is applied using a plant-wide rate based on direct labour hours.
$$\begin{array} { l l } \text { Direct materials placed into production } & \$ 4,000 \\\text { Direct labour hours worked } & 50 \text { hours } \\\text { Direct labour rate per hour } & \$ 15 \\\text { Machine hours worked } & 100 \text { hours }\end{array}$$
Factory overhead was budgeted at $60,000 for the year and the direct labour hours were estimated to be 15,000. Job XY5 consists of 50 units.

-Refer to the figure.What the total cost assigned to Job XY5?

A)$4,200
B)$4,400
C)$4,950
D)$5,150

Question 44

The Kraig Corporation manufactures custom-made purses. The following data pertains to Job XY5:
Factory overhead is applied using a plant-wide rate based on direct labour hours.
$$\begin{array} { l l } \text { Direct materials placed into production } & \$ 4,000 \\\text { Direct labour hours worked } & 50 \text { hours } \\\text { Direct labour rate per hour } & \$ 15 \\\text { Machine hours worked } & 100 \text { hours }\end{array}$$
Factory overhead was budgeted at $60,000 for the year and the direct labour hours were estimated to be 15,000. Job XY5 consists of 50 units.

-Refer to the figure.What is the labour cost per unit for Job XY5?

A)$0.80
B)$4
C)$15
D)$40

Question 45

Which of the following credits would normally NOT accompany a journal entry debiting work in process?

A)a credit to materials inventory
B)a credit to finished goods
C)a credit to overhead control
D)a credit to wages payable

Question 46

The King Corporation manufactures custom-made furniture. The following data pertains to Job X4A:
$$\begin{array} { l l } \text { Direct materals placed into production } & \$ 9,000 \\\text { Direct labour hours warked } & 300 \text { hours } \\\text { Direct labou rate per hour } & \$ 15 \\\text { Machine hours worked } & 100 \text { hours }\end{array}$$
Factory overhead rate is $22.50 per machine hour.Job X4A consists of 500 units.

-Refer to the figure.One-half of Job X4A was sold for $10,000.What is the total amount of costs assigned to Job X4A?

A)$9,000
B)$13,500
C)$15,750
D)$20,250

Question 47

What document indicates the type and quantity of each component issued to the factory?

A)control account
B)materials requisition form
C)production list
D)work ticket

Question 48

Olson Corporation constructs new homes. Assume that Olson uses a job-order costing system. During May, the following transactions occurred:
1. Olson purchased $4,500 of lumber on account.
2. Olson used $3,750 of lumber in production and incurred 50 hours of direct labour hours at $15 per hour.
3. Depreciation of $1,500 on equipment used to build new houses was recorded.
4. A house that was completed last period at a cost of $150,000 was sold for $180,000 in cash.


-Refer to the figure.What debit or credit would be used to record labour for Olson include?

A)a debit to finished goods of $750
B)a credit to wages payable of $750
C)a credit to finished goods of $750
D)a debit to work in process of $750

Question 49

The King Corporation manufactures custom-made furniture. The following data pertains to Job X4A:
$$\begin{array} { l l } \text { Direct materals placed into production } & \$ 9,000 \\\text { Direct labour hours warked } & 300 \text { hours } \\\text { Direct labou rate per hour } & \$ 15 \\\text { Machine hours worked } & 100 \text { hours }\end{array}$$
Factory overhead rate is $22.50 per machine hour.Job X4A consists of 500 units.

-Refer to the figure.One-half of Job X4A was sold for $10,000.What is the cost per unit for Job X4A?

A)$18
B)$27
C)$31.50
D)$40.50

Question 50

The Kraig Corporation manufactures custom-made purses. The following data pertains to Job XY5:
Factory overhead is applied using a plant-wide rate based on direct labour hours.
$$\begin{array} { l l } \text { Direct materials placed into production } & \$ 4,000 \\\text { Direct labour hours worked } & 50 \text { hours } \\\text { Direct labour rate per hour } & \$ 15 \\\text { Machine hours worked } & 100 \text { hours }\end{array}$$
Factory overhead was budgeted at $60,000 for the year and the direct labour hours were estimated to be 15,000. Job XY5 consists of 50 units.

-Refer to the figure.What is the materials cost per unit for Job XY5?

A)$4
B)$40
C)$80
D)$267

Question 51

What document identifies each product and accumulates its manufacturing costs?

A)job-order cost sheet
B)control account
C)production order
D)bill of materials

Question 52

Olson Corporation constructs new homes. Assume that Olson uses a job-order costing system. During May, the following transactions occurred:
1. Olson purchased $4,500 of lumber on account.
2. Olson used $3,750 of lumber in production and incurred 50 hours of direct labour hours at $15 per hour.
3. Depreciation of $1,500 on equipment used to build new houses was recorded.
4. A house that was completed last period at a cost of $150,000 was sold for $180,000 in cash.


-Refer to the figure.What debit or credit would be used to record the requisition of lumber for Olson include?

A)a credit to work in process of $4,500
B)a debit to materials inventory of $4,500
C)a credit to finished goods of $3,750
D)a debit to work in process of $3,750

Question 53

The Kraig Corporation manufactures custom-made purses. The following data pertains to Job XY5:
Factory overhead is applied using a plant-wide rate based on direct labour hours.
$$\begin{array} { l l } \text { Direct materials placed into production } & \$ 4,000 \\\text { Direct labour hours worked } & 50 \text { hours } \\\text { Direct labour rate per hour } & \$ 15 \\\text { Machine hours worked } & 100 \text { hours }\end{array}$$
Factory overhead was budgeted at $60,000 for the year and the direct labour hours were estimated to be 15,000. Job XY5 consists of 50 units.

-Refer to the figure.What is overhead cost assigned to Job XY5?

A)$200
B)$400
C)$750
D)$1,500

Question 54

Walter Company uses a job-order costing system to account for product costs. The following information pertains to the current year:
$\begin{array}{lr}\text { Materials placed into production } & \$ 140,000 \\\text { Indirect labour } & 40,000 \\\text { Direct labour (10,000 hours) } & 160,000 \\\text { Depreciation of factory building } & 60,000 \\\text { Other factory overhead } & 100,000 \\\text { Increase in work-in-process inventory } & 30,000\end{array}$
Factory overhead rate is $18 per direct labour hour.

-Refer to the figure.What is the total amount credited to materials inventory for Walter?

A)$110,000
B)$140,000
C)$170,000
D)$480,000

Question 55

Which of the following systems assigns costs by the job?

A)the process costing system
B)the job-order costing system
C)the project costing system
D)the batch costing system

Question 56

What does a debit to materials inventory indicate?

A)Materials were purchased.
B)Materials were requisitioned.
C)Materials were put into production.
D)Materials were ordered.

Question 57

Which of the following costs are included on a job-order cost sheet?

A)direct material costs,direct labour costs,and applied factory overhead costs
B)budgeted direct material costs,direct labour costs,and applied factory overhead costs
C)direct material costs,budgeted direct labour costs,and applied factory overhead costs
D)direct material costs,direct labour costs,and actual factory overhead costs

Question 58

What source document is used to assign the cost of the components to a job?

A)job cost sheet
B)control account
C)production order
D)materials requisition form

Question 59

What is the term for a collection of all job cost sheets?

A)materials file
B)finished goods file
C)cost of goods file
D)work-in-process inventory file

Question 60

Walter Company uses a job-order costing system to account for product costs. The following information pertains to the current year:
$\begin{array}{lr}\text { Materials placed into production } & \$ 140,000 \\\text { Indirect labour } & 40,000 \\\text { Direct labour (10,000 hours) } & 160,000 \\\text { Depreciation of factory building } & 60,000 \\\text { Other factory overhead } & 100,000 \\\text { Increase in work-in-process inventory } & 30,000\end{array}$
Factory overhead rate is $18 per direct labour hour.

-Refer to the figure.What is the total amount debited to finished goods inventory?

A)$450,000
B)$490,000
C)$510,000
D)$550,000

Question 61

What is the flow of costs through the system in a traditional enterprise?

A)materials inventory,work-in-process inventory,finished goods inventory,cost of goods sold
B)materials inventory,work-in-process inventory,cost of goods sold,finished goods inventory
C)work-in-process inventory,materials inventory,finished goods inventory,cost of goods sold
D)work-in-process inventory,materials inventory,cost of goods sold,finished goods inventory

Question 62

The following information is available pertaining to the Production Division:
$\begin{array}{lrrr}&\text { Mixing Dept. }&\text { Finishing Dept. }&\text { Total }\\\text { Overhead costs } & \$ 7,500 & \$ 22,500 & \$ 30,000 \\\text { Direct labour hours } & 7,500 & 2,500 & 10,000 \\\text { Machine hours } & 2,500 & 7,500 & 10,000\end{array}$

$\text { Production information pertaining to Job } 4 \text { X5: }$
$\begin{array}{lrrr}&\text { Mixing Dept. }&\text { Finishing Dept. }&\text { Total }\\\text { Prime costs } & \$ 1,250 & \$ 0 & \$ 1,250 \\\text { Direct labour hours } & 250 & 0 & 250 \\\text { Machine hours } & 1 & 0 & 1 \\\text { Units produced } & 500 & 0 & 500\end{array}$

-Refer to the figure.What is the overhead rate for the Finishing Department based on machine hours?

A)$1.00
B)$2.25
C)$3.00
D)$9.00

Question 63

What is done with factory overhead in normal costing?

A)The balance in factory overhead at the end of the accounting period is closed.
B)Different overhead rates are used for different quantities of predicted activity.
C)The balance in factory overhead at the end of the accounting period is kept open.
D)The immaterial balance in factory overhead at the end of the accounting period is allocated to the cost of goods sold and inventory accounts.

Question 64

$\text { In the Mains Company, the following job cards were totalled at the end of the month: }$
$\begin{array}{ll}\text { Job 243 } & \$ 5,750 \\\text { Job 244 } & \$ 4,980 \\\text { Job 245 } & \$ 3,675 \\\text { Job 246 } & \$ 4,250 \\\text { Job 247 } & \$ 5,100 \\\text { Job 248 } & \$ 3,800\end{array}$

Jobs 243 and 244 were in finished goods inventory at the beginning of the month. Jobs 245 and 246 were in work in process at the beginning of the month. Jobs 247 and 248 were started during the month. At the end of the month, Jobs 243 and 247 were sent to customers; jobs 245, 247, and 248 were completed and sent to finished goods.

-Refer to the figure.What is the balance in work in process for Wright at the end of December?

A)$53,750
B)$56,250
C)$85,000
D)$87,500

Question 65

Carlson Company uses a predetermined rate to apply overhead.At the beginning of the year,Carlson estimated its overhead costs at $240,000,direct labour hours at 40,000,and machine hours at 10,000.Actual overhead costs incurred were $249,280,actual direct labour hours were 41,000,and actual machine hours were 11,000. If the predetermined overhead rate is based on machine hours,what is the total amount credited to the factory overhead account for the year for Carlson?

A)$240,000
B)$246,000
C)$249,280
D)$264,000

Question 66

On April 9,Job XX4 was completed.The job cost sheet showed a total of $4,000 in direct materials and $6,000 in direct labour at a rate of $20 per direct labour hour.Factory overhead is applied at $30 per direct labour hour.What would be the debit to finished goods inventory to record the completion of Job XX4?

A)$4,000
B)$9,000
C)$13,000
D)$19,000

Question 67

The following information is available pertaining to the Production Division:
$\begin{array}{lrrr}&\text { Mixing Dept. }&\text { Finishing Dept. }&\text { Total }\\\text { Overhead costs } & \$ 7,500 & \$ 22,500 & \$ 30,000 \\\text { Direct labour hours } & 7,500 & 2,500 & 10,000 \\\text { Machine hours } & 2,500 & 7,500 & 10,000\end{array}$

$\text { Production information pertaining to Job } 4 \text { X5: }$
$\begin{array}{lrrr}&\text { Mixing Dept. }&\text { Finishing Dept. }&\text { Total }\\\text { Prime costs } & \$ 1,250 & \$ 0 & \$ 1,250 \\\text { Direct labour hours } & 250 & 0 & 250 \\\text { Machine hours } & 1 & 0 & 1 \\\text { Units produced } & 500 & 0 & 500\end{array}$

-Refer to the figure.Using the plantwide overhead rate based on direct labour hours,what is the cost of Job 4X5?

A)$1,250
B)$2,000
C)$8,750
D)$31,250

Question 68

Russell Company has the following data pertaining the current year: $\begin{array}{lr}\text { Beginning materials inventory } & \$ 50,000 \\\text { Beginning work-in-process inventory } &0 \\\text { Beginning finished goods inventory } & 0 \\\text { Materials placed into production } &125,000 \\\text { Materials purchased on account } &137,500 \\\text { Direct labour incurred (10,000 hours) } & 62,500 \\\text { Cost of goods completed (Job BB8) } & 25,000\end{array}$
Factory overhead rate is 125 percent of direct labour costs.
What is the ending materials inventory balance for Russell?

A)$12,500
B)$37,500
C)$50,000
D)$62,500

Question 69

$\text { In the Mains Company, the following job cards were totalled at the end of the month: }$
$\begin{array}{ll}\text { Job 243 } & \$ 5,750 \\\text { Job 244 } & \$ 4,980 \\\text { Job 245 } & \$ 3,675 \\\text { Job 246 } & \$ 4,250 \\\text { Job 247 } & \$ 5,100 \\\text { Job 248 } & \$ 3,800\end{array}$

Jobs 243 and 244 were in finished goods inventory at the beginning of the month. Jobs 245 and 246 were in work in process at the beginning of the month. Jobs 247 and 248 were started during the month. At the end of the month, Jobs 243 and 247 were sent to customers; jobs 245, 247, and 248 were completed and sent to finished goods.

-Refer to the figure.What is the cost of goods finished during December for Wright Corporation?

A)$53,750
B)$56,250
C)$85,000
D)$87,500

Question 70

What does a debit balance in overhead control imply?

A)Actual overhead costs exceed overhead applied.
B)Applied overhead exceeds actual overhead.
C)Actual overhead has not been closed to cost of goods sold.
D)Actual overhead is equal to overhead applied.

Question 71

What are the three inventory accounts on a balance sheet for a manufacturer?

A)materials,finished goods,and cost of goods sold
B)materials,overhead,and cost of goods sold
C)materials,direct labour,and overhead
D)materials,work in process,and finished goods

Question 72

The following information is available pertaining to the Production Division:
$\begin{array}{lrrr}&\text { Mixing Dept. }&\text { Finishing Dept. }&\text { Total }\\\text { Overhead costs } & \$ 7,500 & \$ 22,500 & \$ 30,000 \\\text { Direct labour hours } & 7,500 & 2,500 & 10,000 \\\text { Machine hours } & 2,500 & 7,500 & 10,000\end{array}$

$\text { Production information pertaining to Job } 4 \text { X5: }$
$\begin{array}{lrrr}&\text { Mixing Dept. }&\text { Finishing Dept. }&\text { Total }\\\text { Prime costs } & \$ 1,250 & \$ 0 & \$ 1,250 \\\text { Direct labour hours } & 250 & 0 & 250 \\\text { Machine hours } & 1 & 0 & 1 \\\text { Units produced } & 500 & 0 & 500\end{array}$

-Refer to the figure.What is the plantwide overhead rate based on direct labour hours?

A)$1.00
B)$1.50
C)$3.00
D)$9.00

Question 73

$\text { In the Mains Company, the following job cards were totalled at the end of the month: }$
$\begin{array}{ll}\text { Job 243 } & \$ 5,750 \\\text { Job 244 } & \$ 4,980 \\\text { Job 245 } & \$ 3,675 \\\text { Job 246 } & \$ 4,250 \\\text { Job 247 } & \$ 5,100 \\\text { Job 248 } & \$ 3,800\end{array}$

Jobs 243 and 244 were in finished goods inventory at the beginning of the month. Jobs 245 and 246 were in work in process at the beginning of the month. Jobs 247 and 248 were started during the month. At the end of the month, Jobs 243 and 247 were sent to customers; jobs 245, 247, and 248 were completed and sent to finished goods.

-Refer to the figure.What is the cost of goods sold for the month?

A)$10,730
B)$10,850
C)$12,575
D)$15,100

Question 74

$\text { In the Mains Company, the following job cards were totalled at the end of the month: }$
$\begin{array}{ll}\text { Job 243 } & \$ 5,750 \\\text { Job 244 } & \$ 4,980 \\\text { Job 245 } & \$ 3,675 \\\text { Job 246 } & \$ 4,250 \\\text { Job 247 } & \$ 5,100 \\\text { Job 248 } & \$ 3,800\end{array}$

Jobs 243 and 244 were in finished goods inventory at the beginning of the month. Jobs 245 and 246 were in work in process at the beginning of the month. Jobs 247 and 248 were started during the month. At the end of the month, Jobs 243 and 247 were sent to customers; jobs 245, 247, and 248 were completed and sent to finished goods.

-Refer to the figure.What is the ending work-in-process inventory for the month?

A)$4,250
B)$10,730
C)$12,575
D)$15,100

Question 75

The following information is available pertaining to the Production Division:
$\begin{array}{lrrr}&\text { Mixing Dept. }&\text { Finishing Dept. }&\text { Total }\\\text { Overhead costs } & \$ 7,500 & \$ 22,500 & \$ 30,000 \\\text { Direct labour hours } & 7,500 & 2,500 & 10,000 \\\text { Machine hours } & 2,500 & 7,500 & 10,000\end{array}$

$\text { Production information pertaining to Job } 4 \text { X5: }$
$\begin{array}{lrrr}&\text { Mixing Dept. }&\text { Finishing Dept. }&\text { Total }\\\text { Prime costs } & \$ 1,250 & \$ 0 & \$ 1,250 \\\text { Direct labour hours } & 250 & 0 & 250 \\\text { Machine hours } & 1 & 0 & 1 \\\text { Units produced } & 500 & 0 & 500\end{array}$

-Refer to the figure.Departmental overhead notes for the Mixing Department are based on direct labour hours,while departmental overhead rates for the Finishing Department are based on machine hours.Based on departmental overhead rates,what is the cost of Job 4X5?

A)$31,250
B)$8,750
C)$2,000
D)$1,250

Question 76

When normal costing is used,where are actual overhead costs recorded?

A)in the work-in-process account
B)in the overhead control account
C)in the finished goods account
D)In the cost of goods sold account

Question 77

Which of the following transactions in a job-order costing system requires the procedure of merely moving a job-order cost sheet from one file to another?

A)applying factory overhead to jobs
B)closing overapplied factory overhead
C)delivering a completed job to a customer
D)moving the job from one production department to another

Question 78

$\text { In the Mains Company, the following job cards were totalled at the end of the month: }$
$\begin{array}{ll}\text { Job 243 } & \$ 5,750 \\\text { Job 244 } & \$ 4,980 \\\text { Job 245 } & \$ 3,675 \\\text { Job 246 } & \$ 4,250 \\\text { Job 247 } & \$ 5,100 \\\text { Job 248 } & \$ 3,800\end{array}$

Jobs 243 and 244 were in finished goods inventory at the beginning of the month. Jobs 245 and 246 were in work in process at the beginning of the month. Jobs 247 and 248 were started during the month. At the end of the month, Jobs 243 and 247 were sent to customers; jobs 245, 247, and 248 were completed and sent to finished goods.

-Refer to the figure.What is the cost of goods manufactured for the month?

A)$10,730
B)$10,850
C)$12,575
D)$15,100

Question 79

Smith Company has the following selected debit balance accounts at the end of the current year: work in process,$25,000; finished goods,$12,500; cost of goods sold,$37,500; and factory overhead,$6,000.What will be the pro-rated amount charged to cost of goods sold for factory overhead?

A)$3,000
B)$6,000
C)$25,000
D)$37,500

Question 80

Total manufacturing-related costs incurred for Miller Company in October for all jobs is as follows:
$\begin{array}{lr}\text { Direct materials } & \$ 900 \\\text { Insurance-factory building } & 150 \\\text { Direct labour } & 1,200 \\\text { Property taxes -factory building } & 400 \\\text { Other factory overhead costs } & 1,450 \\\text { Factory overhead applied } & 1,650\end{array}$
Assuming Miller uses a normal costing system and applies overhead based on a predetermined rate,what is the credit to overhead control to close the account at the end of the year?

A)$350
B)$900
C)$1,450
D)$1,650