Chapter 17–Job Order Costing

81. At the end of the fiscal year, the balance in Factory Overhead is small. This balance would normally be:
A. transferred to Work in Process
B. transferred to Cost of Goods Sold
C. transferred to Finished Goods
D. allocated between Work in Process and Finished Goods

82. The details concerning the costs incurred on each job order are accumulated in a work in process account, which is supported by a:
A. stock ledger
B. materials ledger
C. cost ledger
D. creditors ledger

83. Each account in the cost ledger is called a:
A. finished goods sheet
B. stock record
C. materials requisition
D. job cost sheet

84. Selected accounts with some debits and credits omitted are presented as follows:

Work in Process

Aug. 1

Balance

275,000

Aug. 31

Goods finished

1,030,000

31

Direct materials

X

31

Direct labor

450,000

31

Factory overhead

X

Factory Overhead

Aug. 1-31

Costs incurred

145,000

Aug. 1

Balance

15,000

31

Applied

(30% of direct
labor cost)

X

If the balance of Work in Process at August 31 is $220,000, what was the amount debited to Work in Process for direct materials in August?
A. $390,000
B. $170,000
C. $525,000
D. $580,000

85. Selected accounts with some debits and credits omitted are presented as follows:

Work in Process

Aug. 1

Balance

275,000

Aug. 31

Goods finished

1,030,000

31

Direct materials

X

31

Direct labor

450,000

31

Factory overhead

X

Factory Overhead

Aug. 1-31

Costs incurred

145,000

Aug. 1

Balance

15,000

31

Applied

X

If the balance of Work in Process at August 31 is $220,000, what was the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs?
A. $135,000
B. $10,000
C. $120,000
D. $70,000

86. Selected accounts with some debits and credits omitted are presented as follows:

Work in Process

Oct. 1

Balance

20,000

Oct. 31

Goods finished

X

31

Direct materials

96,700

31

Direct labor

201,000

31

Factory overhead

X

Finished Goods

Oct. 1

Balance

52,000

31

Goods finished

360,000

If the balance of Work in Process at October 31 is $21,000, what was the amount of factory overhead applied in October?
A. $63,300
B. $21,300
C. $42,300
D. $11,300

87. Selected accounts with a credit amount omitted are presented as follows:

Work in Process

Apr. 1

Balance

7,000

Apr. 30

Goods finished

X

30

Direct materials

78,400

30

Direct labor

195,000

30

Factory overhead

136,500

Finished Goods

Apr. 1

Balance

42,000

30

Goods finished

387,000

What was the balance of Work in Process as of April 30?
A. $8,100
B. $35,000
C. $29,900
D. $22,900

88. If the amount of factory overhead cost incurred exceeds the amount applied, the factory overhead account will have a:
A. debit balance and be underapplied
B. credit balance and be underapplied
C. credit balance and be overapplied
D. debit balance and be overapplied

89. The recording of the factory labor incurred for general factory use would include a debit to:
A. Factory Overhead
B. Wages Payable
C. Wages Expense
D. Cost of Goods Sold

90. The recording of the application of factory overhead costs to jobs would include a credit to:
A. Factory Overhead
B. Wages Payable
C. Work in Process
D. Cost of Goods Sold