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    COST 2 Quiz

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    Ahmed Mahmoud

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    COST 2 Quiz

    Uploaded by

    Ahmed Mahmoud
    13 views2 pages

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    © © All Rights Reserved

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    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    13 views2 pages

    COST 2 Quiz

    Uploaded by

    Ahmed Mahmoud

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    Sohag University Cost 2 QUIZ Jan 2024

    Student name: -----------------------------------------,

    Year------------------------------------------------

    Quiz
    Answer the following questions:
    Choose The Correct Answer
    1- Which of the following companies would be likely to use job-order costing
    rather than process costing?
    A) Scott Paper Company for Kleenex.
    B) Lactel Dairy Products
    C) Heinz for ketchup.
    D)Caterer for a wedding reception.

    2-Blackwood Co. uses a predetermined overhead rate based on direct labor


    cost to apply manufacturing overhead to jobs. The predetermined overhead
    rates for the year are 200% for Department A and 50% for Department B. Job
    123, started and completed during the year, was charged with the following
    costs:
    Dept. A Dept. B
    Direct material $25,000 $5,000
    Direct labor. ? $30,000
    Manufacturing overhead. $ 40,000 ?

    The total manufacturing costs associated with Job 123 should be:
    A) $135,000
    B) $180,000
    C) $195,000
    D) $240,000

    3-If the actual manufacturing overhead costs for a period exceed the
    manufacturing overhead costs applied , then overhead would be considered to
    be …
    A) overapplied.
    B) Underapplied
    C) Neither a or b

    4- Dukes Company used a predetermined overhead rate this year of $2 per


    DLH,. Actual costs and activity during the year were
    Actual manufacturing overhead cost incurred. $38,000
    Actual direct labor hours worked. 18,500

    2 Page 1 from
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    The under- or overapplied overhead for the year was:
    A) $1,000 underapplied
    B) $1,000 overapplied
    C) $3,000 underapplied
    D) $3,000 overapplied

    5-If a company closes any under-overapplied overhead to the COGS account


    and manufacturing overhead is overapplied for the period , COGS will be
    A) Debited
    B) credited
    C)No effect
    D)None of the above

    Innovate Appliances produces gadgets for the coveted small appliance


    market. The following data reflect activity for the year 2011:
    Costs incurred:
    Purchases of direct materials (net) on credit $248,00
    Direct manufacturing labor cost 160,000
    Indirect labor 109,000
    Depreciation, factory equipment 60,000
    Depreciation, office equipment 14,000
    Maintenance, factory equipment 40,000
    Miscellaneous factory overhead 19,000
    Rent, factory building 140,000
    Advertising expense 180,000
    Sales commissions 60,000

    Inventories:
    January 1, 2011 December 31, 2011
    Direct materials $ 18,000 $22,000
    Work in process 12,000 42,000
    Finished goods 138,000 48,000
    Production Co. uses a normal costing system and allocates overhead to work
    in process at a rate of $2.50 per direct manufacturing labor dollar. Indirect
    materials are insignificant so there is no inventory account for indirect
    material
    Required
    1.Prepare journal entries to record the transactions for 2011 including an
    entry to close out over- or under allocated overhead to cost of goods sold
    2. Post the journal entries to T-accounts for all of the inventories, Cost of
    Goods Sold, the Manufacturing Overhead Control Account, and the
    Manufacturing Overhead Allocated Account.

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