Question :
61) Assume that you working a normal job costing system : 1196238
61) Assume that you are working on a normal job costing system similar to the one shown in exhibit 4-5. One of the junior accountants has uncovered errors in that the following amounts were mistakenly omitted and not recorded.
Direct labour hours
1,000
Direct materials cost
$12,000
Marketing costs
$17,000
Administration costs
$ 9,000
Note: direct labour rate is $47 per hour
What amount should be added to work-in-process control? 61) ______ A) $76,000 B) $47,000 C) $59,000 D) $85,000 E) $12,000
62) Manufacturing Overhead Control and Manufacturing Overhead Allocated in the General Ledger respectively, refer to 62) ______ A) the record of actual overhead costs, and the record of overhead allocated to specific jobs using budgeted rates x budgeted base units. B) the record of actual overhead costs, and the record of overhead allocated to specific jobs using budgeted rates x actual base units. C) the record of actual overhead costs, and the record of overhead allocated to specific jobs using actual rates x budgeted base units. D) the record of total budgeted overhead costs and the record of actual overhead allocated to date. E) the record of total budgeted overhead costs, and the record of overhead allocated to specific jobs using budgeted rates x actual base units.
63) To allocate or spread the under/over-allocated overhead between ending inventory, Cost of Goods Sold, and the work-in-process control accounts is called the 63) ______ A) inventory adjustment approach. B) adjusted rate approach. C) allocation variance approach. D) flexible budget approach. E) proration approach.
64) The final balance in the manufacturing overhead control account is closed to which account(s) at year-end? 64) ______ A) work-in-process control B) finished goods inventory C) income summary D) cost of goods sold E) Any of work-in-process control, income summary, or finished goods inventory would be acceptable.
65) The final balance in the manufacturing overhead allocated account is closed to which account(s) at year-end? 65) ______ A) work-in-process control B) finished goods inventory C) income summary D) cost of goods sold E) Any of work-in-process control, income summary, or finished goods inventory would be acceptable.
66) Which method for dealing with under/over allocated overhead provides the most accurate inventory and cost of goods sold figures? 66) ______ A) either proration or adjusted rate approach would give same result B) immediate write-off to cost of goods sold C) adjusted rate approach D) proration approach E) All of the above approaches are equivalent.
67) Which method for dealing with under/over allocated overhead provides the most accurate individual job cost records? 67) ______ A) adjusted rate approach B) either proration or adjusted rate approach would give same result C) immediate write-off to cost of goods sold D) proration approach E) All of the above approaches are equivalent.
68) In the service sector, 68) ______ A) normal costing may not be used. B) overhead is generally applied using an actual cost-allocation rate. C) a budgeted direct-labour cost rate may be used to apply direct labour to jobs. D) direct labour costs are always easy to trace to jobs.
69) Sara employs 25 professional cleaners. Budgeted costs total $900,000 of which $525,000 are direct costs. Budgeted indirect costs are $375,000 and actual indirect costs were $396,900. Budgeted professional labour-hours are 500,000 and actual hours were 504,000. What is the budgeted direct cost-allocation rate? 69) ______ A) $0.75 per hour B) $1.7857 per hour C) $1.80 per hour D) $1.05 per hour
