Ac202 Principles Of Accounting Ii

AC202 Principles of Accounting II Name______________________
Park University Version D
Third Hour Exam-Chapters 19-21
Multiple Choice Questions ( 2 points each ) Select the ONE, BEST Answer.
1. A job order cost accounting system would best fit the needs of a company that makes:
A. Shoes and apparel.
B. Paint.
C. Cement.
D. Custom machinery.
E. Pencils and erasers. 2. The Goods in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $4,400 debit balance after all posting is completed. The cost sheet of the one job still in process shows direct material cost of $2,000 and direct labor cost of $800. Therefore, the company's overhead application rate is:
A. 40%.
B. 50%.
C. 80%.
D. 200%.
E. 220%. 3. After posting all actual factory overhead and applying factory overhead to production departments in a process costing system,
A. There will never be underapplied overhead.
B. There will never be overapplied overhead.
C. There will always be underapplied overhead.
D. There will always be overapplied overhead.
E. There may be over or underapplied overhead. 4. Costs that the manager has the power to determine or at least strongly influence are called:
A. Uncontrollable costs.
B. Controllable costs.
C. Joint costs.
D. Direct costs.
E. Indirect costs. 5. A difficult problem in calculating the total costs and expenses of a department is:
A. Determining the gross profit ratio.
B. Assigning direct costs to the department.
C. Assigning indirect expenses to the department.
D. Determining the amount of sales of the department.
E. Determining the direct expenses of the department.

Problem #1 ( 30 points )
BC Company uses a job order cost accounting system. During the month of April, the following events occurred:
(a) Purchased raw materials on credit, $32,000.