7) The manufacturing overhead control account and the manufacturing overhead allocated account both have zero balances at the end of each year after all adjustments are recorded.
8) Manufacturing Overhead Control and Manufacturing Overhead Allocated in the General Ledger respectively, refer to
A) the record of actual overhead costs, and the record of overhead allocated to specific jobs using budgeted rates × actual base units.
B) the record of total budgeted overhead costs and the record of actual overhead allocated to date.
C) the record of actual overhead costs, and the record of overhead allocated to specific jobs using actual rates × budgeted base units.
D) the record of total budgeted overhead costs, and the record of overhead allocated to specific jobs using budgeted rates × actual base units.
E) the record of actual overhead costs, and the record of overhead allocated to specific jobs using budgeted rates × budgeted base units.
9) To allocate or spread the under/overallocated overhead between Ending Inventory, Cost of Goods Sold, and the Work-in-Process control accounts is called the
A) adjusted allocation-rate approach.
B) proration approach.
C) flexible budget approach.
D) allocation variance approach.
E) inventory adjustment approach.
10) When using the proration approach the final balance in the Manufacturing Overhead Control account can be closed to which account(s) at year-end?
A) Work-in-Process Control
B) Income Summary
C) Finished Goods Inventory
D) Cost of Goods Sold
E) Work-in-Process Control, Finished Goods Inventory or Cost of Goods Sold would normally be used.
11) The Manufacturing Overhead Control account is debited for
A) the actual costs in all the individual overhead categories ( such as indirect materials and electric power).
B) the amount of the under applied overhead.
C) the budgeted costs in all the individual overhead categories ( such as indirect materials and electric power).
D) indirect materials purchased.
E) the overhead allocated to Work-in-Process inventory.
12) Which method for dealing with under/over allocated overhead provides the most accurate inventory and cost of goods sold account balances?
A) proration approach
B) adjusted allocation-rate approach
C) immediate write-off to cost of goods sold
D) either proration or adjusted allocation-rate approach
E) either the proration approach or the immediate write-off to cost of goods sold
13) Which method for dealing with under/over allocated overhead provides the most accurate individual job cost records?
A) proration approach
B) adjusted allocation-rate approach
C) immediate write-off to cost of goods sold
D) either proration or adjusted allocation-rate approach would give same result
E) either the proration approach or the immediate write-off to cost of goods sold
14) What is the appropriate journal entry if $100,000 of materials were purchased on account for the month of August?
A)
Materials Control
100,000
Accounts Payable Control
100,000
B)
Work-in-Process Control
100,000
Accounts Payable Control
100,000
C)
Manufacturing Overhead Control
100,000
Accounts Payable Control
100,000
D)
Manufacturing Overhead Allocated
100,000
Accounts Payable Control
100,000
E)
Materials Control
100,000
Work-in-Process Control
100,000
15) What is the appropriate journal entry if direct materials of $50,000 and indirect materials of $3,000 are sent to the manufacturing plant floor?
A)
Work-in-Process Control
50,000
Materials Control
50,000
B)
Work-in-Process Control
53,000
Materials Control
53,000
C)
Manufacturing Overhead Control
3,000
Materials Control
50,000
Work-in-Process Control
53,000
D)
Work-in-Process Control
50,000
Manufacturing Overhead Control
3,000
Materials Control
53,000
E)
Work-in-Process Control
50,000
Manufacturing Overhead Allocated
3,000
Materials Control
53,000
16) Manufacturing overhead costs incurred for the month are:
Utilities
$15,000
Depreciation on equipment
$25,000
Repairs
$10,000
Which is the correct journal entry assuming utilities and repairs were on account?
A)
Manufacturing Overhead Allocated
50,000
Accounts Payable Control
25,000
Accumulated Depreciation Control
25,000
B)
Work-in-Process Control
50,000
Accounts Payable Control
50,000
C)
Manufacturing Overhead Control
50,000
Work-in-Process Control
50,000
D)
Accumulated Depreciation Control
25,000
Accounts Payable Control
25,000
Manufacturing Overhead Control
50,000
E)
Manufacturing Overhead Control
50,000
Accounts Payable Control
25,000
Accumulated Depreciation Control
25,000
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