Chapter 1 and 2 Quiz ACCT 102

Compute cost of goods sold for a retailer using the following information:
 

Merchandise inventory, beginning $ 24,850 Merchandise inventory, ending 37,304 Cost of merchandise purchased 170,934

• $158,480.

• $183,388.

• $146,084.

• $133,630.

• $12,454

Which of the following should not be included in direct materials costs for a bike manufacturer?

• Tires.

• Machine lubrication oil.

• Seats.

• Pedals.

• Handlebars.

A manufacturing company has a beginning finished goods inventory of $28,300, cost of goods manufactured of $58,500, and an ending finished goods inventory of $27,600. The cost of goods sold for this company is:

• $86,800.

• $57,800.

• $2,600.

• $86,100.

• $59,200.

• $955,000.

• $892,000.

• $1,565,000.

• $408,000.

• $1,081,000.

• $44,800.

• $37,000.

• $30,400.

• $75,200.

• $7,800.

Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation used $2,500 of direct materials and used $4,000 of direct labor. The job was not finished in September. An additional $3,000 of direct materials and $6,500 of direct labor were needed to finish the job in October. The company applies overhead at the end of each month at a rate of 200% of the direct labor cost incurred. What is the balance in the Work in Process account at the end of September relative to Job A3B?

• $5,500

• $11,500

• $6,500

• $9,500

• $14,500

Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation used $2,500 of direct materials and used $4,000 of direct labor. The job was not finished in September. An additional $3,000 of direct materials and $6,500 of direct labor were needed to finish the job in October. The company applies overhead at the end of each month at a rate of 200% of the direct labor cost incurred. What is the total cost of the job when it is completed in October?

• $16,000

• $22,500

• $37,000

• $26,500

• $32,000

Job order costing would be used for all of the following except:

• Construction of a custom home.

• Production of standard running shoes.

• Production of a Pixar movie.

• Production of custom wedding invitations.

• Conducting an audit.

Copy Center pays an average wage of $12 per hour to employees for printing and copying jobs and allocates $18 of overhead for each employee hour worked. Direct materials are assigned to each job according to actual cost. If Job M-47 used $350 of direct materials and took 20 direct labor hours of labor to complete, what is the total cost that should be assigned to the job?

• $590

• $600

• $380

• $950

• $710

Minstrel Manufacturing uses a job order costing system. During the month, Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect. Minstrel incurred a factory payroll of $150,000, of which $40,000 was indirect labor. Minstrel uses a predetermined overhead application rate of 150% of direct labor cost. If Minstrel incurred total overhead costs of $167,800 during the month, compute the amount of under- or overapplied overhead:

• $2,800 overapplied.

• $17,800 underapplied.

• $2,800 underapplied.

• $17,800 overapplied.

• $57,200 overapplied.