University of Phoenix - ACC 349 Final Exam With All Correct Answers(VERIFIED)

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1) What is the best way to handle manufacturing overhead costs in order to get the most timely job cost information? A. The company should add actual manufacturing overhead costs to jobs as soon as ... the overhead costs are incurred. B. The company should determine an allocation rate as soon as the actual costs are known, and then apply manufacturing overhead to jobs. C. The company should apply overhead using an estimated rate throughout the year. D. The company should account for only the direct production costs. 2) At the end of the year, manufacturing overhead has been overapplied. What occurred to create this situation? A. The company incurred more manufacturing overhead costs than the manufacturing overhead assigned to jobs B. The actual manufacturing overhead costs were less than the manufacturing overhead assigned to jobs C. The company incurred more total job costs than the amount budgeted for the job D. Estimated manufacturing overhead was less than actual manufacturing overhead costs 3) Luca Company overapplied manufacturing overhead during 2006. Which one of the following is part of the year end entry to dispose of the overapplied amount assuming the amount is material A. A decrease to work in process inventory B. A decrease to applied overhead C. An increase to finished goods D. An increase to cost of goods sold 4) Which of the following would be accounted for using a job order cost system? A. The production of textbooks B. The production of town homes C. The pasteurization of milk D. The production of cans of spinach 5) Which one of the following is NEVER part of recording the issuance of raw materials in a job order cost system? A. Debit Manufacturing Overhead B. Debit Finished Goods Inventory C. Debit Work in Process Inventory D. Credit Raw Materials Inventory Finished Goods Inventory is debited when goods are transferred from work in process to finished goods, not when raw materials are issued for a job. 6. What is unique about the flow of costs in a job order cost system? A. It involves accumulating material, labor, and manufacturing overhead costs as they are incurred in order to determine the job cost B. Each job is costed separately in a Work in Process subsidiary ledger C. Job costs cannot be measured until all overhead costs are determined D. There are no costs remaining in Work in Process at year end 7) Which one of the following costs would be included in manufacturing overhead of a lawn mower manufacturer? A. The cost of the fuel lines that run from the motor to the gas tank B. The cost of the wheels C. Depreciation on the testing equipment D. The wages earned by motor assemblers Depreciation on testing equipment would be included in manufacturing overhead because it is indirectly associated with the finished product. 8) What broad functions do the management of an organization perform? A. Planning, directing, and controlling B. Directing, manufacturing, and controlling C. Planning, directing, and selling D. Planning, manufacturing, and controlling 9) Which of the following represents the correct order in which inventories are reported on a manufacturer’s balance sheet? A. Work in process, finished goods raw materials B. Raw materials, work in process, finished goods C. Finished goods, work in process, raw materials D. Work in process, raw materials, finished goods 10) In traditional costing systems, overhead is generally applied based on A. machine hours B. direct labor C. direct material dollars [Show More]

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