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At a manufacturing company, inventory flows from work in process inventory, to raw materials inventory, to finished goods inventory

Accounting

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1. At a manufacturing company, inventory flows from work in process inventory, to raw materials inventory, to finished goods inventory. (True/False)
2. Ryan's Paints allocates overhead based on machine hours. Selected data for the most recent year follow.
   Estimated manufacturing overhead cost $235,000
   Actual manufacturing overhead cost $244,000
   Estimated machine hours 20,000
   Actual machine hours 22,500
   The estimates were made as of the beginning of the year, while the actual results were for the entire year.
   The predetermined manufacturing overhead rate per machine hour is closest to
   $10.44.
   $10.84.
   $11.75.
   $12.20.
3. If manufacturing overhead has been over-allocated during the period, then
   the jobs produced during the period have been costed correctly,
   the jobs produced during the period have been overcosted.
   the jobs produced during the period have been undercosted.
   none of the above.
4. Management can use job cost information for each of the following except
   bidding on custom jobs.
   determining the profitability of different jobs.
   determining cost of goods sold.
   all of the listed choices are possible uses of job cost information.
5. Ryan's Paints allocates overhead based on machine hours. Selected data for the most recent year follow.
   Estimated manufacturing overhead cost $235,000
   Actual manufacturing overhead cost $244,000
   Estimated machine hours 20,000
   Actual machine hours 22,500
   The estimates were made as of the beginning of the year, while the actual results were for the entire year.
   The amount of manufacturing overhead allocated for the year based on machine hours would have been
   $235,000.
   $264,375.
   $244,000
   $239,500.
6. In a job costing system, all of the following statements about materials are correct except for which of the following:
   All materials are always classified as direct materials.
   Materials that cannot be traced to a particular job are treated as manufacturing overhead.
   A materials requisition is used to request materials needed from the storeroom.
   The job cost record for a job will contain all direct material used for that particular job.
7. Cost of goods sold is debited and finished goods inventory is credited for
   transfer of goods to the finished goods storeroom.
   purchase of goods on account.
   the sale of goods to a customer.
   transfer of materials into work in process inventory.
8. Manufacturers follow four steps to implement a manufacturing overhead allocation system. Which step is not performed before the year begins?
   Select an allocation base and estimate the total amount that will be used during the year.
   Allocate some manufacturing overhead to each individual job.
   Estimate total manufacturing overhead costs for the coming year.
   Calculate a predetermined manufacturing overhead rate.
9. Which of the following companies would be most likely to use a job costing system rather than a process costing system?
   Steel manufacturer
   CPA firm
   Beverage bottler
   Paint manufacturer
10. What is a document that accumulates job costs called?
    Production schedule
    Bill of materials
    A job cost record
    Labor time record