Question :
41. The entry to record the completion of a job in : 1208075
41. The entry to record the completion of a job in a job costing system would cause:
A. An increase to the cost of goods manufactured account.
B. A decrease to the work in process inventory account.
C. An increase to the cost of goods sold account.
D. An increase in net income.
42. Reed Company experienced an event that affected its financial statements as indicated below:
Which of the following accounting events caused the indicated effects on the company’s accounting equation?
A. Actual overhead cost was incurred
B. Estimated overhead was charged to production
C. Underapplied overhead was written off
D. None of the other answers are correct.
43. Jazz Company experienced an event that affected its financial statements as indicated below:
Which of the following transactions caused the indicated effects?
A. Units were completed and moved to finished goods.
B. Completed units were sold.
C. The cost of units sold was recorded.
D. None of the other answers are correct.
44. Longfellow Company experienced an accounting event that affected its financial statements as indicated below:
Which of the following transactions could have caused the indicated effects on the company’s accounting equation?
A. Goods transferred from work in process to finished goods.
B. Allocation of overapplied overhead to cost of goods sold.
C. Collection of account receivable.
D. Allocation of underapplied overhead to cost of goods sold.
45. Congress Manufacturing is currently working on two jobs. The job order cost sheets for Job 101 and Job 102 showed the following information:
If overhead is applied to jobs at $.80 per direct labor dollar, the total manufacturing cost for the two jobs would be:
A. $96,000.
B. $151,200.
C. $55,200.
D. $162,000.
46. The work in process account for Chavez Company contained the following entries:
Debit of $40,000 for direct raw materials
Debit of $60,000 for direct labor
Debit of $30,000 for manufacturing overhead
Ending balance, $42,000, associated with Job #2
The company uses a job-order cost system. Work was only performed on two jobs during the period. The beginning balance in work in process was zero. What was the cost of Job # 1, which was started and completed during the period?
A. $88,000
B. $74,000
C. $66,000
D. $90,000
47. During September Job B was completed, and it was sold in October. At the end of September the total cost in work in process was:
Refer To: 12-47
A. $18,480.
B. $13,200.
C. $11,120.
D. None of the other answers are correct.
48. The total cost of Job A at the end of September was:
Refer To: 12-47
A. $5,140.
B. $3,140.
C. $8,140.
D. $5,860.
49. If Job B was sold for $8,000, what was the amount of gross margin for this job? (Ignore any consideration of over- or underapplied overhead.)
Refer To: 12-47
A. $640
B. $2,940
C. $3,400
D. $7,360
50. Presto Manufacturing is working on two housing projects. Overhead is applied on the basis of direct labor hours. At the beginning of the year, the company estimated that overhead would be $32,000 and 10,000 direct labor hours would be worked. Both projects were started and completed in the current accounting period. The following transactions were completed during the period:
(a) Used $5,000 of direct material on Project I and $3,400 of direct material on Project II.
(b) Labor costs for the two jobs amounted to the following: Project I, $12,000 (2,000 hours); Project II, $22,000 (6,000 hours).
(c) Project II was sold during the period for $60,000.
The amount of estimated overhead applied to work in process inventory for the period equals:
A. $22,000.
B. $32,000.
C. $27,200.
D. $25,600.
