Question : 31.The entry to record the completion of a job in : 1257059

 

 

31.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. An increase in net income.

 

C. An increase to the cost of goods sold account.

 

D. A decrease to the work in process inventory account.

 

 

32.Ringgold 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. Underapplied overhead was written off

 

C. Estimated overhead was charged to production

 

D. None of these.

 

 

33.Frank Company experienced an event that affected its financial statements as indicated below:  Which of the following transactions caused the indicated effects?   

A. Completed units were sold.

 

B. Units were completed and moved to finished goods.

 

C. The cost of units sold was recorded.

 

D. None of these.

 

 

34.Langdon 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 underapplied overhead to cost of goods sold.

 

C. Collection of account receivable.

 

D. Allocation of overapplied overhead to cost of goods sold.

 

 

35.Cooper 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. $55,200.

 

C. $151,200.

 

D. $162,000.

 

 

36.The work in process account for Chambers Company contained the following entries:Debit of $80,000 for direct raw materialsDebit of $120,000 for direct laborDebit of $60,000 for manufacturing overheadEnding balance, $84,000, associated with Job #2The 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. $180,000

 

B. $148,000

 

C. $132,000

 

D. $176,000

 

 

37.Needham Company uses a job order cost system. During the month of September, the company worked on three jobs. The job order cost sheets for the three jobs contained the following information at the end of September:  The company applies overhead at 120% of direct labor cost.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:   

A. $36,960.

 

B. $22,240.

 

C. $26,400.

 

D. None of these.

 

 

38.Needham Company uses a job order cost system. During the month of September, the company worked on three jobs. The job order cost sheets for the three jobs contained the following information at the end of September:  The company applies overhead at 120% of direct labor cost.The total cost of Job A at the end of September was:   

A. $6,280.

 

B. $10,280.

 

C. $16,280.

 

D. $11,720.

 

 

39.Needham Company uses a job order cost system. During the month of September, the company worked on three jobs. The job order cost sheets for the three jobs contained the following information at the end of September:  The company applies overhead at 120% of direct labor cost.If Job B was sold for $16,000, what was the amount of gross margin for this job? (Ignore any consideration of over- or underapplied overhead.)   

A. $6,800

 

B. $5,880

 

C. $1,280

 

D. $14,720

 

 

40.Preston 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 $64,000 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 $10,000 of direct material on Project I and $6,800 of direct material on Project II.(b) Labor costs for the two jobs amounted to the following: Project I, $24,000 (2,000 hours); Project II, $44,000 (6,000 hours).(c) Project II was sold during the period for $120,000.The amount of estimated overhead applied to work in process inventory for the period equals (Do not round your intermediate calculation):   

A. $51,200.

 

B. $64,000.

 

C. $54,400.

 

D. $44,000.