Question : 53.Actual labor and manufacturing overhead costs for Smith Manufacturing were : 1169247

 

 

53.Actual labor and manufacturing overhead costs for Smith Manufacturing were $65,000 and $123,500 respectively. The estimated costs for the year were $75,000 labor and $150,000. The over (under) applied overhead for the year was:   

A. $6,500 underapplied.

 

B. $6,500 overapplied.

 

C. $26,500 underapplied.

 

D. $26,500 overapplied.

 

 

 

54.Jacson Corp. was undecided whether to use labor hours or labor cost in establishing the annual overhead rate. Labor costs are prone to fluctuate based on new hires, raises, retirements, and personnel leaving. They decided to compute both rates. The overhead costs for the year were estimated at $525,000 with expected direct labor hours of 35,000 and indirect hours of 15,000. Direct and indirect labor costs are estimated to be $420,000 and $210,000 respectively. The overhead application rate using either base (labor hours, labor cost) would be:   

A. $15 per hour; 125% of labor cost.

 

B. $10.50 per hour; 83.3% of labor cost.

 

C. $12 per hour; 80% of labor cost.

 

D. $12.60 per hour; 120% of labor cost.

 

 

 

55.At the end of the fiscal year, any immaterial overapplied or underapplied overhead is   

A. closed to the Cost of Goods Sold account.

 

B. shown on the balance sheet as either a deferred charge or a deferred credit.

 

C. allocated to Cost of Goods Sold, Finished Goods Inventory, and Work in Process Inventory.

 

D. closed to the Cost of Goods Manufactured account.

 

 

 

 

56.Job order cost accounting is appropriate   

A. when there are continuous operations on standard types of products.

 

B. when a company produces more than one product in batches rather than on a continuous basis.

 

C. only for goods produced on special order.

 

D. for all manufacturing companies.

 

 

 

 

57.When a perpetual inventory system is used, sales revenue is recorded as products are sold,   

A. but the cost of the goods sold is not recorded.

 

B. and the cost of the goods sold is transferred from the Finished Goods Inventory account to the Cost of Goods Sold account.

 

C. and the cost of the goods sold is transferred from the Work in Process Inventory account to the Cost of Goods Sold account.

 

D. and the cost of goods sold is transferred from the Cost of Goods Manufactured to the Cost of Goods Sold account.

 

 

 

 

58.When materials that will become part of a finished product are removed from the storeroom and placed in production,   

A. Work in Process Inventory is debited.

 

B. Manufacturing Overhead is debited.

 

C. Raw Materials Inventory is debited.

 

D. Work in Process Inventory is credited.

 

 

 

 

59.A job order cost sheet summarizes   

A. the direct labor, direct materials used, and actual overhead costs incurred on a specific job.

 

B. the direct labor, direct materials used, and applied overhead association with a specific job.

 

C. the estimated costs that will be required to complete a specific job.

 

D. the direct labor and direct materials used only.

 

 

 

 

60.A firm purchased 25 units of materials with a unit price of $2.00 on May 5. On May 15, the firm purchased 25 units with a unit price of $2.10. If the firm uses the FIFO method of inventory pricing, the total cost of 30 units issued on May 20 would be   

A. $62.50.

 

B. $60.00.

 

C. $63.00.

 

D. $60.50.

 

 

 

61.A firm purchased 25 units of materials with a unit price of $2.00 on May 5. On May 15, the firm purchased 25 units with a unit price of $2.10. If the firm uses the LIFO method of inventory pricing, the total cost of 30 units issued on May 20 would be   

A. $62.50.

 

B. $60.00.

 

C. $63.00.

 

D. $60.50.

 

 

 

62.A firm purchased 50 units of materials with a unit price of $1.30 on June 1. On June 15, the firm purchased 50 units with a unit price of $1.20. If the firm uses the LIFO method of inventory pricing, the total cost of 65 units issued on June 20 would be   

A. $83.00.

 

B. $79.50.

 

C. $78.00.

 

D. $84.50.