Chapter 17--Job Order Costing

111. The period costs of a textbook publisher would include:
A. wages of a press operator
B. factory utility costs
C. advertising expenses
D. paper costs

112. Which types of inventories does a manufacturing business report on the balance sheet?
A. Finished goods inventory and work in process inventory
B. Direct materials inventory and work in process inventory
C. Direct materials inventory, work in process inventory, and finished goods inventory
D. Direct materials inventory and finished goods inventory

113. For the manufacturing business, inventory which is in the process of being manufactured is referred to as:
A. supplies inventory
B. work in process inventory
C. finished goods inventory
D. direct materials inventory

114. The proper journal entry to record the purchase of $30,000 of raw materials on account would be:
A. Raw Material Inventory 30,000
Accounts Receivable 30,000
B. Raw Material Inventory 30,000
Accounts Payable 30,000
C. Inventory 30,000
Accounts Receivable 30,000
D. Inventory 30,000
Cash 30,000

115. Select the proper journal entry to record the movement of 1,700 units of part number 116B to work in process when each unit of 116B has a value of $2.00.
A. Raw Material Inventory 3,400
Work in Process 3,400
B. Work in Process 3,400
Factory Overhead 3,400
C. Work in Process 3,400
Raw Material Inventory 3,400
D. Work in Process 3,400
Cash 3,400

116. Which of the following represents the factory overhead applied to a product?
A. Predetermined factory overhead rate times estimated activity base.
B. Actual factory overhead rate times estimated activity base.
C. Predetermined factory overhead rate times actual activity base.
D. Actual factory overhead rate times actual activity base.

117. Which of the following is the correct formula to calculate the predetermined factory overhead rate?
A. Estimated total factory overhead costs divided by estimated activity base.
B. Actual total factory overhead costs divided by estimated activity base.
C. Estimated total factory overhead costs divided by actual activity base.
D. Actual total factory overhead costs divided by actual activity base.

118. The following budget data are available for Oldest Company:

If factory overhead is to be applied based on direct labor hours, the predetermined overhead rate is
A. $7.50
B. $.13
C. $.061
D. $16.50

119. A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 30,000. Actual factory overhead costs incurred were $377,200, and actual direct labor hours were 36,000. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year?
A. $6,000 overapplied.
B. $6,000 underapplied.
C. $54,800 overapplied.
D. $54,800 underapplied.

120. A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $360,000 and direct labor hours would be 30,000. Actual manufacturing overhead costs incurred were $377,200, and actual direct labor hours were 36,000. What is the predetermined overhead rate per direct labor hour?
A. $12.00
B. $10.00
C. $12.57
D. $10.48