managerial accounting quiz

Project Description:

1. a payroll register is used to determine the actual amount of direct labor to record on the job cost sheet. (points : 5)

2. if manufacturing overhead applied exceeds the actual manufacturing overhead cost of the period, then manufacturing overhead is overapplied. (points : 5)

3. wilson corporation uses a job order costing system. the following data are for last year:
estimated direct labor hours …………12,000
estimated manufacturing overhead costs…..$39,000
actual direct labor hours………………………11,000
actual manufacturing overhead costs……$37,000

wilson applies overhead using a predetermined rate based on direct labor hours. what predetermined overhead rate was used last year? (points : 5)
$3.55 per direct labor hour
$3.25 per direct labor hour
$3.08 per direct labor hour
$3.36 per direct labor hour

if units transferred out = $700,000 for materials and conversion and ending inventory = $200,000, what would be the total equivalent units for materials (100% completed) and conversion (60% completed)?
(points : 5)
$900,000 and $820,000
$700,000 and $820,000
$900,000 and $700,000
$700,000 and $200,000

5. a company sold 12,000 bottles of soft drinks to a retail store for $4.00 per bottle. the cost of goods sold for the 12,000 bottles had a cost of $2.00 per bottle. which of the following would be appropriate journal entries for the transactions? (points : 5)
debit sales $48,000 and credit accounts receivable $48,000.
debit cogs $24,000 and credit finished goods $24,000.
debit accounts receivable $48,000 and credit sales $48,000.
both b and c.
none of the above.

6. cooks corporation uses a predetermined overhead rate of $23.20. this predetermined rate was based on 11,200 estimated direct labor hours and $259,840 of estimated total manufacturing overhead. at the end of the year, actual direct labor hours for the year were 10,800 hours and actual total manufacturing overhead costs were $254,840. what was the amount of over-applied or under-applied overhead for the period? (points : 5)
$4,280 overapplied
$4,280 underapplied
$9,280 overapplied
$9,280 underapplied

7. top management salaries should not go into the manufacturing overhead account. (points : 5)

8. a process costing system: (points : 5)
uses a separate work in process account for each processing department
uses a single work in process account for the entire company.
uses a separate work in process account for each type of product produced.
does not use a work in process account in any form.

9. which of the following accounts is debited when direct labor is recorded? (points : 5)
work in process
salaries and wages expense
salaries and wages payable
manufacturing overhead

if work in process at the beginning of the period is $23,600 and costs of $14,000 were added during the period, what would be the cost per equivalent unit if the equivalent units of production =1100?
(points : 5)
none of the above

11. when assigning costs to partially completed units in the ending work in process inventory, it is not necessary to consider the percentage completion of the units under the weighted average method (points : 5)

12. underapplied or overapplied manufacturing overhead represents the difference between actual overhead costs and applied overhead costs. (points : 5)

13. overapplied manufacturing overhead occurs when acutal overhead exceeds estimated overhead. (points : 5)

14. process costing would be used by companies producing bricks, bolts, natural gas, and electricity (points : 5)

15. a company should use process costing rather than job order costing, if the product is composed of mass-produced homogeneous units. (points : 5)

16. in process costing, costs are accumulated in processing departments, rather than by job. (points : 5)

17. a proper journal entry to close overapplied manufacturing overhead to cost of goods sold would be: (points : 5)
manufacturing overhead xxxxx
cost of goods sold xxxxx
b) cost of goods sold xxxxx
manufacturing overhead xxxxx
cost of goods sold xxxxx
work in process xxxxx
cost of goods sold xxxxxx
finished goods xxxxx

18. the following journal entry would be made in a processing costing system when units that have been completed with respect to the work done in processing department z are transferred from processing department z to processing department y:

work in process, department y (debited)
work in process, department z (credited (points : 5)

19. under a job-order cost system the work in process account is debited for the cost of materials purchased (points : 5)

20. the following journal entry would be made to apply overhead cost to jobs in a job order costing system:

debit manufacturing overhead xxxx
credit work in process xxxx (points : 5)
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