Question :
136.If manufacturing overhead has been underapplied during the year, the : 1311618
136.If manufacturing overhead has been underapplied during the year, the adjusting entry at the end of the year will show a
a.debit to Manufacturing Overhead.
b.credit to Cost of Goods Sold.
c.debit to Work in Process Inventory.
d.debit to Cost of Goods Sold.
137.If manufacturing overhead has been overapplied during the year, the adjusting entry at the end of the year will show a
a.debit to Manufacturing Overhead.
b.credit to Finished Goods Inventory
c.debit to Cost of Goods Sold.
d.credit to Work in Process Inventory.
138.The existence of under- or overapplied overhead at the end of the year:
a.requires an adjustment to Cost of Goods Sold.
b.indicates that an error has been made.
c.requires a retroactive adjustment to the cost of all jobs completed.
d.is written off as a bad estimate expense.
139.Conceptually, any under- or overapplied overhead at the end of the year should be allocated among all of the following except
a.cost of goods sold.
b.ending work in process inventory.
c.ending raw materials inventory.
d.ending finished goods inventory.
140.If, at the end of the year, Manufacturing Overhead has been overapplied, it means that
a.actual overhead costs were greater than the overhead assigned to jobs.
b.actual overhead costs were less than the overhead assigned to jobs.
c.overhead has not been applied to jobs still in process.
d.cost of goods will have to be increased by the amount of the overapplied overhead.
141.A process cost system would be used for all of the following except the
a.manufacture of cereal.
b.refining of petroleum.
c.printing of wedding invitations.
d.production of automobiles.
142. In a job order cost system, it would be correct in recording the purchase of raw materials to debit
a.Work in Process Inventory.
b.Work in Process and Manufacturing Overhead.
c.Raw Materials Inventory.
d.Finished Goods Inventory.
143. In a manufacturing company, the cost of factory labor consists of all of the following except
a.employer payroll taxes.
b.fringe benefits incurred by the employer.
c.net earnings of factory workers.
d.gross earnings of factory workers.
144. Which of the following is not a control account?
a.Raw Materials Inventory
b.Factory Labor
c.Manufacturing Overhead
d.All of these are control accounts.
145. When the company assigns factory labor costs to jobs, the direct labor cost is debited to
a.Direct Labor.
b.Factory Labor.
c.Manufacturing Overhead.
d.Work in Process Inventory.
146. Jinnah Company applies overhead on the basis of 200% of direct labor cost. Job No. 501 is charged with $180,000 of direct materials costs and $240,000 of manufacturing overhead. The total manufacturing costs for Job No. 501 is
a.$420,000.
b.$660,000.
c.$540,000.
d.$600,000.
147.Companies assign manufacturing overhead to work in process on an estimated basis through the use of a(n)
a.actual overhead rate.
b.estimated overhead rate.
c.assigned overhead rate.
d.predetermined overhead rate.
148. Overapplied manufacturing overhead exists when overhead assigned to work in process is
a.more than overhead incurred and there is a debit balance in Manufacturing Overhead at the end of a period.
b.less than overhead incurred and there is a debit balance in Manufacturing Overhead at the end of a period.
c.more than overhead incurred and there is a credit balance in Manufacturing Overhead at the end of a period.
d.less than overhead incurred and there is a credit balance in Manufacturing Overhead at the end of a period.
149.Usually, under- or overapplied overhead is considered to be an adjustment to
a.work in process.
b.finished goods.
c.finished goods and cost of goods sold.
d.cost of goods sold.
150. Which of the following statements about under- or overapplied manufacturing overhead is correct?
a.After the entry to transfer over- or underapplied overhead to Cost of Goods Sold is posted, Manufacturing Overhead will have a zero balance.
b.When Manufacturing Overhead has a credit balance, overhead is said to be under-applied.
c.At the end of the year, under- or overapplied overhead is eliminated by a closing entry.
d.When annual financial statements are prepared, overapplied overhead is reported in current liabilities.
