Chapter 2 Quiz

School: Eastern Gateway Community College - Course: ACCOUNTING ACC121 - Subject: Accounting

Chapter 2 Quiz 1.A ___ is used to track and apply all costs that apply to a specific job, or order. a.Job cost sheet 2.The appropriate flow of cost of goods sold through the production cycle would: a.Follow the physical movement of the materials through different stages of processing. 3.At the end of the second week in March, Job No. 710 has an accumulated total cost of $37,800. In the third week, $9,000 of direct materials were used on Job No. 710, 300 hours of direct labor were charged to the job at $40 per hour, and manufacturing overhead was applied based on $40 per machine-hour for overhead. Job No. 710 was the only job worked on in the third week. It was also completed in the third week. Job NO. 710 used 160 machine-hours during the third week in March. Complete the journal entries required to record completion and transfer to finished goods. Please enter all answers with lower case letters ONLY. DO NOT enter answers with capitalization or punctuation, etc. or it will be counted wrong. All blanks must be correct to receive points for this question. DebitCredit Record direct materials used Work in Process Inventory9,000 A. _____9,000 Record direct labor B. _____12,000 Factory Payroll12,000 Record overhead applied Work in Process Inventory6,400 C. _____6,400 Record transfer to finished goods D. _____65,200 E. _____65,200 a.raw materials inventory b.work in process inventory c.factory overhead d.finished goods inventory e.work in process inventory 4.Predetermined overhead rates are determined by a.Dividing estimated overhead cost by the estimated base (cost driver) 5.Which of the following accurately completes this journal entry representing the acquisition of goods for use in production? a.(a) raw materials, (b) accounts payable 6.Which actual costs arenotavailable, what is used to apply overhead costs to different jobs when using the job costing method? a.Predetermined overhead rates 7.Once actual overhead is calculated, and it is determined that overhead was over-applied, how is this accounted for? a.Overhead is debited, and cost of goods sold is credited. 8.Once actual overhead is calculated, and it is determined that overhead was under-applied, how is the accounted for? a.Cost of goods sold is debited, and overhead is credited. 9.A cost driver is/could be a.Any of the above 10. At the end of the second week in March, Job No. 710 has an accumulated total cost of $37,800. In the third week, $9,000 of direct materials were used on Job No. 710, 300 hours of direct labor were charged to the job at $40 per hour, and manufacturing overhead was applied on the basis of $40 per machine- hour for overhead. Job No. 710 was the only job worked on in third week. It was also completed in the third week. Job No. 710 used 160 machine-hours during the third week in March. Compute the cost of Job No. 710. Please enter all answer with numbers ONLY. DO NOT enter answers with spaces, decimals, $ signs, etc. or it will be counted wrong. All blanks must be correct to receive points for this question.