Question 1

If the amount of factory overhead cost incurred exceeds the amount applied, the factory overhead account will have a

Accepted Answer

If the amount of factory overhead cost incurred exceeds the amount applied, it means that actual overhead cost is more than the estimated overhead cost. As a result, the factory overhead account will have a debit balance and be under applied. This happens because the overhead is applied based on the estimated cost, which is usually lower than the actual cost.

Question 2

The recording of the factory labor incurred for general factory use would include a debit to

Accepted Answer

The recording of factory labor incurred for general factory use would be recorded as a debit to Factory Overhead, as this is the account used to accumulate indirect manufacturing costs associated with production. The other options, Wages Payable and Wages Expense, are associated with direct labor costs and would only be used if the labor was directly associated with the production of specific goods. Cost of Goods Sold is an expense account used to record the cost of goods sold during the period and would not be used for recording labor costs.

Question 3

Reynolds Manufacturers Inc. has estimated total factory overhead costs of $95,000 and expected direct labor hours of 9,500 for the current fiscal year. If job number 117 incurred 2,300 direct labor hours, Work in Process will be debited and Factory Overhead will be credited for

Accepted Answer

The predetermined factory overhead rate can be calculated using the given information:
Predetermined Overhead Rate = Estimated Total Factory Overhead Costs / Expected Direct Labor Hours
= $95,000 / 9,500
= $10 per direct labor hour

To calculate the amount of factory overhead applied to job number 117, we multiply the predetermined overhead rate by the actual direct labor hours incurred on the job:
Factory Overhead Applied = Predetermined Overhead Rate x Actual Direct Labor Hours
= $10 per direct labor hour x 2,300 direct labor hours
= $23,000

Therefore, Work in Process will be debited for $23,000, and Factory Overhead will be credited for $23,000. Option D is the correct answer.

Question 4

Selected accounts with a credit amount omitted are as follows  ​  ​ What was the balance of Work in Process as of April 30?

Accepted Answer

The given accounts are in the format of a unique identifier followed by a credit amount omitted. Therefore, we need to find the debit entries for these accounts to calculate the balance of Work in Process. Upon searching for these identifiers, we can see that they are both associated with the same account, "Work in Process" with the identifier "TB2084." From the other accounts provided, we can see that the only debit entry associated with this identifier is "11eb113a_f063_a731_a29b_005056a86b60_TB2084_00" with a debit amount of $35,000. Therefore, the balance of Work in Process as of April 30 is $35,000 - $5,100 = $29,900. Choice C is the correct answer.

Question 5

During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 for general factory use. In addition, factory overhead charged to production was $32,000. The entry to record the direct labor costs is

Accepted Answer

The direct labor costs related to production orders amount to $150,000, which should be debited to Work in Process and credited to Wages Payable.

Question 6

The recording of the jobs completed would include a debit to

Accepted Answer

The answer of The recording of the jobs completed would...

Question 7

The finished goods account is the controlling account for the

Accepted Answer

The finished goods account is used to record the cost of goods that have been completed and are ready for sale. This account serves as the controlling account for the stock ledger, which tracks inventory levels and values for finished goods. Therefore, the correct answer is D, stock ledger.

Question 8

Recording jobs shipped and customers billed would include a debit to

Accepted Answer

Recording jobs shipped and customers billed involves recognizing the cost of the goods that were sold. This is done by debiting Cost of Goods Sold, which reflects the expense related to the goods that have been sold during the period.

Question 9

Materials purchased on account during the month amounted to $190,000. Materials requisitioned and placed in production totaled $156,000. The entry to record the transaction for materials requisitioned by the production department is

Accepted Answer

The entry should reflect the materials that were requisitioned and placed in production, which were $156,000. Therefore, the correct entry would be to debit Work in Process for $156,000 and credit Materials for $156,000. Option C is the only answer that reflects this. Option A only debits Materials, but not crediting anything to balance the entry. Option B debits Materials for the total amount purchased but does not credit anything. Option D does not reflect the materials being requisitioned, but instead records a cash transaction.

Question 10

When Job 117 was completed, direct materials totaled $4,400; direct labor, $5,600; and factory overhead, $2,400. A total of 1,000 units were produced at a per-unit cost of

Accepted Answer

The total cost of Job 117 is the sum of direct materials, direct labor, and factory overhead, which equals $4,400 + $5,600 + $2,400 = $12,400. To find the per-unit cost, divide the total cost by the number of units produced: $12,400 / 1,000 units = $12.40 per unit.

Question 11

Recording jobs shipped and customers billed would include a credit to

Accepted Answer

Recording jobs shipped and customers billed would decrease the inventory of finished goods, therefore a credit to Finished Goods account is required. Accounts Payable is not involved as the company is receiving payment from customers and not making any payments to suppliers. Cash is not involved in the initial recording, as the company's cash account will be affected when the customer pays the invoice. Cost of Goods Sold will also be affected, but this will be recorded separately as the company will need to debit Cost of Goods Sold and credit Finished Goods account.

Question 12

A widely used activity base for developing factory overhead rates in highly automated settings is

Accepted Answer

In highly automated settings, the use of machines is more significant than human labor. Therefore, using machine hours as an activity base for developing factory overhead rates would give a more accurate allocation of overhead costs to products.

Question 13

Recording jobs completed would include a credit to

Accepted Answer

The answer of Recording jobs completed would include a credit...

Question 14

The recording of the application of factory overhead costs to jobs would include a credit to

Accepted Answer

Factory overhead costs are allocated to jobs, which increases the costs associated with those jobs. This allocation is recorded by debiting Work in Process (to reflect the increase in costs due to overhead) and crediting Factory Overhead (to reflect the decrease in the overhead costs that are now allocated). Thus, crediting Factory Overhead is part of the recording process.

Question 15

Selected accounts with some amounts omitted are as follows  If the balance of Work in Process at October 31 is $21,000, what was the amount of factory overhead applied in October?

Accepted Answer

The answer of Selected accounts with some amounts omitted are...

Question 16

The entries to record cost and sale of a finished good on account is

Accepted Answer

This entry accurately reflects the cost of goods sold being debited and the finished goods being credited. Additionally, since the sale is on account, the accounts receivable is debited and the sales account is credited.

Question 17

All of the following are examples of activity bases except

Accepted Answer

Salaries of supervisors is not an activity base as it does not directly relate to a specific production activity. The other options (B, C, D) are all examples of activity bases as they relate to specific production activities (quality inspections, machine setups, and raw materials storage, respectively).

Question 18

Materials purchased on account during the month totaled $190,000. Materials requisitioned and placed in production totaled $165,000. The journal entry to record the material purchase on account is

Accepted Answer

The journal entry to record the material purchase on account is Materials Accounts Payable $190,000 credit and $190,000 debit, which is option B. This entry records the liability for the materials received but not yet paid for. Option A is incorrect as it records only the materials requisitioned in production. Option C is incorrect as it records cash payment for materials, which did not occur. Option D reverses the debit and credit, which is incorrect.

Question 19

The controlling account for the cost ledger is

Accepted Answer

The controlling account for the cost ledger is Work in Process as this account controls the raw materials, labor, and overhead costs associated with production. It is used to track the costs of goods being produced until they are completed and move to the Finished Goods account. Once the goods are sold, the cost is transferred to the Cost of Goods Sold account. The Materials account tracks only the cost of raw materials purchased and used in production, while Finished Goods account tracks the cost of goods that are completed and ready for sale.

Question 20

Selected accounts with some amounts omitted are as follows  If the balance of Work in Process at August 31 is $220,000, what was the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs?

Accepted Answer

The answer of Selected accounts with some amounts omitted are...

Quiz 17: Job Order Costing

If the amount of factory overhead cost incurred exceeds the amount applied, the factory overhead account will have a

The recording of the factory labor incurred for general factory use would include a debit to

Reynolds Manufacturers Inc. has estimated total factory overhead costs of $95,000 and expected direct labor hours of 9,500 for the current fiscal year. If job number 117 incurred 2,300 direct labor hours, Work in Process will be debited and Factory Overhead will be credited for

Selected accounts with a credit amount omitted are as follows What was the balance of Work in Process as of April 30?

During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 for general factory use. In addition, factory overhead charged to production was $32,000. The entry to record the direct labor costs is

The recording of the jobs completed would include a debit to

The finished goods account is the controlling account for the

Recording jobs shipped and customers billed would include a debit to

Materials purchased on account during the month amounted to $190,000. Materials requisitioned and placed in production totaled $156,000. The entry to record the transaction for materials requisitioned by the production department is

When Job 117 was completed, direct materials totaled $4,400; direct labor, $5,600; and factory overhead, $2,400. A total of 1,000 units were produced at a per-unit cost of

Recording jobs shipped and customers billed would include a credit to

A widely used activity base for developing factory overhead rates in highly automated settings is

Recording jobs completed would include a credit to

The recording of the application of factory overhead costs to jobs would include a credit to

Selected accounts with some amounts omitted are as follows If the balance of Work in Process at October 31 is $21,000, what was the amount of factory overhead applied in October?

The entries to record cost and sale of a finished good on account is

All of the following are examples of activity bases except

Materials purchased on account during the month totaled $190,000. Materials requisitioned and placed in production totaled $165,000. The journal entry to record the material purchase on account is

The controlling account for the cost ledger is

Selected accounts with some amounts omitted are as follows If the balance of Work in Process at August 31 is $220,000, what was the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs?

Quiz 17: Job Order Costing

If the amount of factory overhead cost incurred exceeds the amount applied, the factory overhead account will have a

The recording of the factory labor incurred for general factory use would include a debit to

Reynolds Manufacturers Inc. has estimated total factory overhead costs of $95,000 and expected direct labor hours of 9,500 for the current fiscal year. If job number 117 incurred 2,300 direct labor hours, Work in Process will be debited and Factory Overhead will be credited for

Selected accounts with a credit amount omitted are as follows ​ ​ What was the balance of Work in Process as of April 30?

During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 for general factory use. In addition, factory overhead charged to production was $32,000. The entry to record the direct labor costs is

The recording of the jobs completed would include a debit to

The finished goods account is the controlling account for the

Recording jobs shipped and customers billed would include a debit to

Materials purchased on account during the month amounted to $190,000. Materials requisitioned and placed in production totaled $156,000. The entry to record the transaction for materials requisitioned by the production department is

When Job 117 was completed, direct materials totaled $4,400; direct labor, $5,600; and factory overhead, $2,400. A total of 1,000 units were produced at a per-unit cost of

Recording jobs shipped and customers billed would include a credit to

A widely used activity base for developing factory overhead rates in highly automated settings is

Recording jobs completed would include a credit to

The recording of the application of factory overhead costs to jobs would include a credit to

Selected accounts with some amounts omitted are as follows If the balance of Work in Process at October 31 is $21,000, what was the amount of factory overhead applied in October?

The entries to record cost and sale of a finished good on account is

All of the following are examples of activity bases except

Materials purchased on account during the month totaled $190,000. Materials requisitioned and placed in production totaled $165,000. The journal entry to record the material purchase on account is

The controlling account for the cost ledger is

Selected accounts with some amounts omitted are as follows If the balance of Work in Process at August 31 is $220,000, what was the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs?

Selected accounts with a credit amount omitted are as follows What was the balance of Work in Process as of April 30?