Question :
61.O’Hare Company, a manufacturing firm that uses a job-order cost : 1257062
61.O’Hare Company, is a manufacturing firm that uses a job-order cost system to determine the costs of its products. During 2014, O’Hare paid $2,100 to production employees who worked on job #132. The entry to record these wages would include an increase to:
A. Cost of goods sold.
B. Work in process inventory.
C. Finished goods inventory.
D. Wage expense.
62.O’Hare Company, is a manufacturing firm that uses a job-order cost system to determine the costs of its products. During 2014, O’Hare applied estimated manufacturing overhead costs of $1,550 to job #132. Which of the following statements regarding this transaction is correct?
A. Work in process inventory decreases.
B. Net income decreases.
C. Manufacturing overhead decreases.
D. Total equity increases.
63.O’Hare Company, is a manufacturing firm that uses a job-order cost system to determine the costs of its products. During 2014, O’Hare transferred total product costs for job #132, to finished goods inventory. The recognition of this event would:
A. Increase total assets.
B. Decrease total assets.
C. Reduce net income.
D. Have no impact on total assets.
64.In 2014, O’Hare paid $2,300 for selling and administrative expenses. Payment of cash for selling and administrative expenses is:
A. An asset exchange transaction.
B. An asset source transaction.
C. An asset use transaction.
D. A claims exchange transaction.
65.O’Hare Company, is a manufacturing firm that uses a job-order cost system to determine the costs of its products. During 2014, O’Hare paid $700 for equipment rental and other indirect costs. The recognition of this event would:
A. Decrease total assets.
B. Increase total assets.
C. Reduce net income.
D. Have no impact on total assets.
66.O’Hare Company, is a manufacturing firm that uses a job-order cost system to determine the costs of its products. During 2014, O’Hare recognized depreciation of $600 on manufacturing equipment. Which of the following describes the effect of this event on the accounting equation?
A. Total assets and total equity are unaffected.
B. Both total assets and total equities increase.
C. Total assets and net income decrease.
D. Total assets increase and net income increase.
67.O’Hare Company, is a manufacturing firm that uses a job-order cost system to determine the costs of its products. O’Hare Company counted the production supplies on hand at year-end and determined that the amount used was $125. The recognition of this event on the financial statements would include an increase to:
A. Supply expense.
B. Work in process.
C. Manufacturing overhead.
D. Finished goods.
68.O’Hare Company, is a manufacturing firm that uses a job-order cost system to determine the costs of its products. O’Hare Company sold job #132, that cost $5,900 to manufacture, for $8,200 cash. The recognition of this event on the financial statements would include a(n):
A. Decrease to Total assets and total equity.
B. Decrease to Total Liabilities.
C. Increase to Total assets, total equity and net income.
D. Decrease to net income.
69.O’Hare Company, is a manufacturing firm that uses a job-order cost system to determine the costs of its products. During 2014, O’Hare recognized cost of goods sold of $4,850 for job #132. The recognition of this event will include a decrease to:
A. Cost of goods sold.
B. Production supplies.
C. Work in process inventory.
D. Finished goods inventory.
70.During 2014, O’Hare applied $14,500 of estimated overhead cost to production. Actual overhead costs were $14,325. The recognition of these transactions will:
A. Decrease cost of goods sold and increase stockholder’s equity.
B. Increase cost of goods sold.
C. Decrease stockholder’s equity.
D. Decrease total assets and total liabilities.
