Welcome to our Week 2 Discussions!

You can take the self-study quizzes before or after going through the material. These quizzes exist to test your knowledge of the material and are part of your grade.  You can take each quiz multiple times. Once you have completed the quiz you can show your results in two ways:

1. Copy and paste it on to a word document and attach it to the discussion post below or

2. By making use of snipping tool or PrtScn (Print Screen) take the image of the result part showing that you have got 100% correct answers and paste that image in the discussion post below

In order to get full credit for this activity you need to score 100% on the quiz from every Chapter. 

To access the quiz please use the links given below or you can also access them through the Assignments tab – Week 2 Additional Resources:

Chapter 3 MCQS

Which of the following statements is correct?

A) 

A company that produces products with individual and unique features most likely would use a job-order costing system.

B) 

Job-order costing systems cannot be used by service firms.

C) 

Costs are traced to departments and then allocated to units of product when job-order costing is used.

D) 

All of the above.

 

 

 

2  

McCormack Company has the following estimated costs for next year: 

 

The company estimates that 16,000 direct labor and 106,000 machine hours will be worked during the year. If overhead is applied on the basis of direct labor hours, what is the company's predetermined overhead rate?

A) 

$7.00

B) 

$13.88

C) 

$15.26

D) 

$17.12

 

 

 

3  

Kasper Company uses predetermined overhead rates to apply manufacturing overhead to jobs. The predetermined overhead rate is based on machine hours in the Machining Department and direct labor cost in the Assembly Department. At the beginning of the year, the company made the following estimates: 

 

What predetermined overhead rates would be used in the Machining and Assembly Departments, respectively?

A) 

110% and $15

B) 

$5.00 and 50%

C) 

$8.00 and 50%

D) 

$5.00 and 200%

 

 

 

4  

Dane Company's predetermined overhead rate is based on direct labor hours (DLHs). At the beginning of the current year, the company estimated that its manufacturing overhead would total $220,000 during the year. During the year, the company incurred $200,000 in actual manufacturing overhead costs. The Manufacturing Overhead account showed that overhead was underapplied by $8,000 during the year. If the predetermined overhead rate was $40.00 per DLH, how many DLHs were worked during the year?

A) 

5,500 hours

B) 

5,200 hours

C) 

5,000 hours

D) 

4,800 hours

 

 

 

5  

Leigh Company's predetermined overhead rate is based on direct labor costs. The company's Work in Process account has a balance of $2,400, which relates to the one job that was in process at the end of an accounting period. The related job cost sheet includes total charges of $400 for direct materials and $1,000 for direct labor. If overhead is applied on the basis of direct labor costs, what is the company's predetermined overhead rate?

A) 

100%

B) 

50%

C) 

40%

D) 

17%

 

 

 

6  

Costanzo Company manufactures a specialty line of silk-screened blouses. The company uses a job-order costing system. During the month, the following costs were incurred on Job 1041: direct materials $54,800 and direct labor $19,200. In addition, selling and shipping costs of $28,000 were incurred on the job. Manufacturing overhead was applied at the rate of $25 per machine-hour (MH) and Job 1041 required 320 MHs. If Job 1041 consisted of 5,000 blouses (or units), what is the cost of goods sold per unit?

A) 

$50.00

B) 

$22.00

C) 

$16.40

D) 

$14.80

 

 

 

7  

In a job order cost system, what account is debited when direct materials are requisitioned for use in production?

A) 

Finished Goods

B) 

Manufacturing Overhead

C) 

Raw Materials

D) 

Work in Process

 

 

 

8  

In a job-order cost system, what account is debited when indirect materials are requisitioned for use in production?

A) 

Finished Goods

B) 

Manufacturing Overhead

C) 

Raw Materials

D) 

Work in Process

 

 

 

9  

Macht Company uses a predetermined overhead rate based on direct labor hours (DLHs) to apply manufacturing overhead to jobs. At the beginning of the year, the company estimated manufacturing overhead would be $200,000 and DLHs would be 20,000. The actual figures for the year were $215,000 for manufacturing overhead and 21,000 DLHs. What is the amount of over- or underapplied overhead for the year?

A) 

Overapplied overhead of $5,000

B) 

Underapplied overhead of $5,000

C) 

Overapplied overhead of $10,000

D) 

Underapplied overhead of $10,000

 

 

 

10  

Perabo Company uses a job-order costing system. Manufacturing overhead is applied to Work in Process using a predetermined overhead rate. During the current month, the company's transactions included the following:

 

The company had no beginning or ending inventories in the current month. What was the cost of goods manufactured?

A) 

$1,320,000

B) 

$1,288,000

C) 

$1,240,000

D) 

$1,208,000

 

 

Chapter 4 Question

Process Costing 

 

 

 

After studying Chapter 4, you should be able to:

LO 4-1 Record the flow of materials, labor, and overhead through a process costing system.

LO 4-2 Compute the equivalent units of production using the weighted-average method.

LO 4-3 Compute the cost per equivalent unit using the weighted-average method.

LO 4-4 Assign costs to units using the weighted-average method.

LO 4-5 Prepare a cost reconciliation report.

LO 4-6 (Appendix 4A) Compute the equivalent units of production using the FIFO method.

LO 4-7 (Appendix 4A) Compute the cost per equivalent unit using the FIFO method.

LO 4-8 (Appendix 4A) Assign costs to units using the FIFO method.

LO 4-9 (Appendix 4A) Prepare a cost reconciliation report using the FIFO method.

LO 4-10 (Appendix 4B) Allocate service department costs to operating departments using the direct method.

LO 4-11 (Appendix 4B) Allocate service department costs to operating departments using the step-down method.