Ac 505 Quiz and Solution
AC505 Practice Quiz #1
1. For which of the businesses would the job order cost system be appropriate?
a. Auto repair shop
b. Crude Oil refinery.
c. Drug Manufacturer.
d. Root beer producer.
2. Which of the following companies would most likely use job costing?
a. Paper manufacturer.
b. Paint Producer.
c. Breakfast cereal maker.
d. Advertising agency.
3. An equivalent unit of conversion costs is equal to the amount of conversion costs required to:
a. Start a unit.
b. Start and complete a unit.
c. Transfer a unit in.
d. Transfer a unit out.
4. Job 655 was recently completed. The following data has been recorded on its job cost sheet:
Direct materials $ 78,000
Direct labor costs 45,000
Number of units completed 4,000
The company applies manufacturing overhead on the basis of direct labor costs. The predetermined overhead rate is 75% of direct labor costs.
Required:
Compute the unit product cost that would appear on the job cost sheet for this job:
5. Prepare the necessary journal entries from the following information for Kingston Company:
a. Purchased raw materials on account, $ 45,000.
b. Raw materials requisitioned for use in production. Direct Materials $ 23,000; Indirect materials, $ 12,000.
c. Salaries and wages cost incurred:
Direct Labor cost, $ 47,000; Indirect Labor Cost, $ 15,000.
d. Depreciation on Factory Equipment, $ 12,000.
e. Depreciation on Office Equipment, $ 5,000.
f. Manufacturing Overhead was applied at a rate of 80% of direct labor costs.
g. Goods costing $ 75,000 were completed during the period.
h. Goods costing $ 36,000 were sold on account for $ 48,000.
6. Ulmer Company uses the weighted-average method in its process-costing system. The Framing Department of Ulmer Company reported the following information for the month of September: Percentage
1. For which of the businesses would the job order cost system be appropriate?
a. Auto repair shop
b. Crude Oil refinery.
c. Drug Manufacturer.
d. Root beer producer.
2. Which of the following companies would most likely use job costing?
a. Paper manufacturer.
b. Paint Producer.
c. Breakfast cereal maker.
d. Advertising agency.
3. An equivalent unit of conversion costs is equal to the amount of conversion costs required to:
a. Start a unit.
b. Start and complete a unit.
c. Transfer a unit in.
d. Transfer a unit out.
4. Job 655 was recently completed. The following data has been recorded on its job cost sheet:
Direct materials $ 78,000
Direct labor costs 45,000
Number of units completed 4,000
The company applies manufacturing overhead on the basis of direct labor costs. The predetermined overhead rate is 75% of direct labor costs.
Required:
Compute the unit product cost that would appear on the job cost sheet for this job:
5. Prepare the necessary journal entries from the following information for Kingston Company:
a. Purchased raw materials on account, $ 45,000.
b. Raw materials requisitioned for use in production. Direct Materials $ 23,000; Indirect materials, $ 12,000.
c. Salaries and wages cost incurred:
Direct Labor cost, $ 47,000; Indirect Labor Cost, $ 15,000.
d. Depreciation on Factory Equipment, $ 12,000.
e. Depreciation on Office Equipment, $ 5,000.
f. Manufacturing Overhead was applied at a rate of 80% of direct labor costs.
g. Goods costing $ 75,000 were completed during the period.
h. Goods costing $ 36,000 were sold on account for $ 48,000.
6. Ulmer Company uses the weighted-average method in its process-costing system. The Framing Department of Ulmer Company reported the following information for the month of September: Percentage