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A company works on three jobs and incurs the following: Direct materials - $50,000 and Directlabor - $100,000. The company uses a predetermined overhead rate of 60% of direct laborcosts. How much overhead will be allocated to the three Jobs? I; Mobs-n emVYour answer is correct.$75,000V $60,000$50,000$15,000ChaHenge The correct answer Is shown.After adjusting for over- or underapplled overhead. the balance in the Factory Overhead account wlll he 0.The correct answer Is shown.After adjusting for over- or underapplled overhead. the balance in the Factory Overhead account wlll be 0. . . Rhodahunflfllx Sorry, your answer Is Incorrect. I;You wrote X credit Instead of v 0.Challenge "A company works on three jobs and incurs the following: Direct materials - $50,000 and Directlabor - $100,000. The company uses a predetermined overhead rate of 60% of direct laborcosts. How much overhead will be allocated to the three Jobs? . Head abut thinV Yo ur answer Is correct. I;$75,000\I $60,000$50,000$15,000ChaHenge The correct answer Is shown.After adjusting for over- or underapplled overhead. the balance in the Factory Overhead account will he 0.The correct answer is shown.After adjusting for over- or underapplled overhead. the balance in the Factoryr Overhead account will be 0.. . m haw-l-x Sorry, your answer Is Incorrect. I; 1'You wrote X credlt Instead of v 0.Challenge " Journal entries for materials used in production are posted to:{Check all that apply.) M about 'lhllV Your answer is almost correct. I;secondary accounts.contributory recordsI Also correctV subsidiary records.V general ledger accounts.Challenge —Match the following overhead activities to the correct time period. v Your answer is correct. Your answers:Calculate the predetermined overhead rate LTD V At the start of the accounting period. 1 . . .Allocate overhead to jobs H V During the accounting perlod Adjust overhead account for over- or underappliedoverheadChallenge uLIL: V At the end ofthe accounting period List the following documents in the order in which they are used when recording directmaterials costs In job order cost accounting, with the first document on top._ M ammoVYUI" answer IS correct. QChallenge aCompanies use job cost sheets to track the costs of: Q end-bunni- V Your answer is correct. materials. labor, and selling costs of a jobV materials. labor, and overhead costs of ajoblabor. marketing. and operating costs of a Job labor. overhead. and marketing costs of a JobChallenge -Characteristics of cost accounting systems include: (Check all that apply.) _ III-d about IhllV Yo ur a newer :5 correct. I;V help managers' efforts to determine selling prices.{Qare used with perpetual inventory systems.are used to record costs of manufacturing activities.provide general information used by Investors.Challenge — List the following documents in the order in which they are used when recording indirect laborcosts In job order coating. with the first document on top. Hill bulllhlV Your answer is partially correct. I; ' ' [ v 1 Time tickets ]x 3 Allocated to specificjobs through factory overhead[ x 2 Factory overhead ledger JIf the factory overhead is underappll'ed, then the adjusting journal entry to close the factoryoverhead account Includes a: (Check all that apply.) . Mimi"!«Your answer Is correct. EV credit to Factory Overhead.V debit to Cost of Goods Sold.debit to Factory Overhead.credit to Cost of Goods Sold.Thejournal entry to record indirect materials costs used In productlon includes a debit to factory overhead. E Mahmud-VYour answer is correct.Chajlgngé n The Journal entry to record direct labor in production is to: IEV Your answer is correct.debit Work in Process Inventory and credit Factory Overhead.a debit Work in Process Inventory and credit Factory Wages Payable.debit Factory Wages Payable and credit Work in Process Inventory.debit Factory Overhead and credit Work in Process Inventory.Designate the following as elther from job order or process operations. V'Your answer is correct. Job Order operations Process operationsHeterogeneous products ] Repetitive procedures ]I Custom orders ' hom*ogeneous productsChallenge uThejournal entry to record the allocation of factory overhead to work In process is: _ Hold Ibnulihll"Your answer Is correct. '3debit Factory Overhead and credit Work in Process Inventorydebit Cash and credit Factory Overheaddebit Work in Process Inventory and credit CashV debit Work in PI'OGESS Inventory and "Ed". Factory OverheadCh 3' I e nge — At the end of the accounting period, a company's overhead was underapplied by $150. If notadjusted, how does this affect net Income?. and about thllV Your answer I5 correct. aNet income will not be affected.V Net income will be overstated by $150. Net income will be understated by $150.Challenge aAt the end of the accounting period, a company's overhead was underapplied by $150. If notadjusted, how does this affect net Income?. and about thllV Your answer I5 correct. aNet income will not be affected.V Net income will be overstated by $150.Net income will be understated by $150.Match the following overhead costs with their source documents. vYour answer is correct. Your answers:l[Indirect materials Eli! V Material requisition forms 'l[Indirectlabor I'll-fl V Timetickets ' Factory utilities Eli! V Vouchers authorizing paymentDepreciation on factory equipment H V Adjusting entriesChallenge n The journal entry to record depreciation on factory equipment is to: _ Himml-V YOur anewer :5 correct. IEV debit Factory Overhead and credit Accumulated Depreciation — Equipmentdebit I3ash and credit Accumulated Depreciation - Equipmentdebit Depreciation Expense and credit Accumulated Depreciation - EquipmentThe three types of manufacturing costs in ajob order costing system include: . Hold IbnuHhIIVYOUF answer I5 correct. awork in processV overheadV direct materials V direct lab-orfinished goodsAfierjobs are completed and delivered to customers, the job cost sheet is used to provide apermanent record for: . Road about ltlllVYour answer Is correct. '9Raw Materials InventoryrFinished Goods InventoryV Cost of Goods Sold Goods in Process Inventory The correct cost flow In ajob order costing system is: _ Hold IbnunhllVYour answer Is correct. I;cost of goods sold, finished goods. work in processV work in prooess; finished goods, cost of goods soldfinished goods. work in process; oost of goods soldcost of goods sold. work In prooess. finished goodsTime tickets are used lnjob order costing to: _ MlhnullhllVYOUI' answer l5 COI'I'ECt. @V report hours worked on specific jobs during the payroll periodoombine hours worked on soveral differentjobs during the payroll periodDuring production, Job cost sheets are used to:_ Hold IbnutlhllVYour answer rs correct. Elprovide a permanent record for the Cost of Goods Sold account.V monitor costs incurred to date and to predict and control costs for each job.provide a subsidiary Iedgerfor the finished Goods Inventory sooount.V provide a subsidiary ledger for the Work in Process Inventory account.Challenge — After jobs are complete, the jot: cost sheet is used to provide a subsidiary ledger for whichaccount?. M alum 'lflllVYour answer Is COHBCt. EV Finished Goods Inventory Raw Materials InventoryCost of Goods SoldGoods in Process InventoryA Schedule of Cost of Goods Manufactured includes all of the following costs except:_ hall about thllVYour answer I5 correct. Edirect labor usedwork in prooessdirect materials usedfactory overhead appliedV cost of goods sold Managers use a predetermined overhead rate for which of the following reasons? ((that apply.)V' Your answer is correct.a To assist in setting prices for jobsEMManagers use a predetermined overhead rate for which of the following reasons? (tthat apply.)'1' Your answer is correct.a To assist in setting prices for jobsEM Managers use a predetermined overhead rate for which of the following reasons? ((that apply.)EMV' Your answer is correct.To assist in setting prices for jobsManagers use a predetermined overhead rate for which of the following reasons? (Check allthat apply.). m abut fl'lliV'r'our answer IS correct. EV To assist in setting prices forjobs Totaljob costs are not needed until the end of the accounting period. so predetermined rates arenot needed.V To estimate total job costs before thejob is completedPredetermined 00313 are more accurate than using actual 00313Managers use a predetermined overhead rate for which of the following reasons? (I:that apply.)'1' Your answer is correct.To assist in setting prices for jobs A company works on three jobs and incurs the following: Direct materials - $50,000 and Directlabor - $100,000. The company uses a predetennlned overhead rate of 60% of direct laborcosts. How much overhead will be allocated to the three jobs?. lied about thinV'r'our answer IS correct. @$75,000$50,000$15,000Challenge a
