Page 1 Quiz – Chapter 03 1. The manufacturing operation that would be most likely to use a job-order costing system is: A) toy manufacturing. B) candy manufacturing. C) crude oil refining. D) shipbuilding. 2. A proper journal entry to close over-applied overhead to Cost of Goods Sold would be: A) D. Cost of Goods Sold XXX Cr. Work In Progress XXX B) D. Cost of Goods Sold XXX Cr. Manufacturing Overhead XXX C) D. Cost of Goods Sold XXX Cr. Finished Goods XXX D) D. Manufacturing Overhead XXX Cr. Cost of Goods Sold XXX 3. A proper journal entry to record issuing raw materials to be used on a job would be: A) D. Finished Goods XXX Cr. Materials Inventory XXX B) D. Materials Inventory XXX Cr. Work In Process XXX C) D. Work In Process XXX Cr. Raw Materials XXX D) D. Materials Inventory XXX Cr. Finished Goods XXX 4. Nil Co. uses a Predetermined Overhead Rate based on Direct Labor Cost to apply Manufacturing Overhead to jobs. For the year ended December 31, Nil's estimated Manufacturing Overhead was $600,000, based on an estimated volume of 50,000 Direct Labor Hours, at a Direct Labor Rate of $6.00 per hour. Actual Manufacturing Overhead amounted to $620,000, with actual Direct Labor Cost of $325,000. For the year, Manufacturing Overhead was: A) over-applied by $20,000. B) under-applied by $22,000. C) over-applied by $30,000. D) under-applied by $30,000.Page 2 5. Johansen Company uses a Predetermined Overhead Rate based on Direct Labor Hours to apply Manufacturing Overhead to jobs. The company has provided the following estimated costs for the next year: Direct materials...................................... $ 6,000Direct labor ............................................ 20,000Rent on factory building ........................ 15,000Sales salaries .......................................... 25,000Depreciation on factory equipment........ 8,000Indirect labor.......................................... 12,000Production supervisor's salary................ 15,000 Johansen estimates that 20,000 Direct Labor Hours will be worked during the year. The Predetermined Overhead Rate per hour will be: A) $2.50. B) $3.50. C) $3.75. D) $5.05. Use the following to answer questions 6-8: Munos Publishing Company uses a Job-Order Costing system to collect costs related to the manufacture of specialty publications for corporate training. 6. What journal entry would Munos make to record the application of $1,200 of Manufacturing Overhead to Job KN672? A) D. Work in Process $1,200 Cr. Manufacturing Overhead $1,200 B) D. Cost of Goods Manufactured $1,200 Cr. Manufacturing Overhead $1,200 C) D. Manufacturing Overhead $1,200 Cr. Work in Process $1,200 D) D. Cost of Goods Manufactured $1,200 Cr. Work in Process $1,200Page 3 7. What journal entry would Munos make to record the completion of Job KN668 at a total cost of $7,600? A) D. Work in Process $7,600 Cr. Finished Goods $7,600 B) D. Cost of Goods Manufactured $7,600 Cr. Work In Process $7,600 C) D. Finished Goods $7,600 Cr. Work In Process $7,600 D) D. Cost of Goods Manufactured $7,600 Cr. Finished Goods $7,600 8. What journal entry would Munos make to record $9,500 of depreciation on its printing presses? A) D. Work in Process $9,500 Cr. Manufacturing Overhead $9,500 B) D. Depreciation Expense $9,500 Cr. Accumulated Depreciation $9,500 C) D. Manufacturing Overhead $9,500 Cr. Accumulated Depreciation $9,500 D) D. Manufacturing Overhead $9,500 Cr. Depreciation Expense $9,500 Use the following to answer questions 9-10: Leija Manufacturing Company uses a Job-Order Costing system and started the month of March with one job in process (Job #359). This job had $500 of cost assigned to it at this time. During March, Leija assigned production costs as follows to the jobs worked on during the month: Job #359 Job #360 Job #361Total cost assigned to jobs during March $6,000 $8,100 $2,400 During March, Leija completed and sold Job #359. Job #360 was also completed but was not sold by month end. Job #361 was not completed by the end of March. 9. What is Leija's cost of goods manufactured for March? A) $ 6,500 B) $14,100 C) $14,600 D) $16,500Page 4 10. What is Leija's work in process inventory balance at the end of March? A) $ 1,900 B) $ 2,400 C) $ 2,900 D) $10,000Page 5 Answer Key – Quiz Chapter 5 1. D 2. D 3. C 4. C 5. A 6. A 7. C 8. C 9. C 10.
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