Online Bookkeeping Test

Online Bookkeeping Test

 

Johnson Manufacturing Ltd. use the job order cost system. Overhead is applied at the rate of $20 per direct labor hour. Job #777 includes $2,000 of direct labor cost and 150 direct labor hours. $1,500 of indirect labor cost was actually incurred. The proper journal entry to record the wage related cost is:

a. Debit Work in Process, $3,500; credit Wages Payable, $3,500.
b. Debit Wage Expense, $3,500; credit Wages Payable, $3,500.
c. Debit Work in Process, $2,000; debit Factory Overhead, $1,500; credit Wages Payable, $3,500.
d. Debit Work in Process, $3,500; credit Factory Overhead, $1,500; credit Wage Expense, $2,000.


This question is based upon the figure shown below

Refer to the given image:

On March 1, Zekew & Co. purchased $1,000 worth of merchandise, terms 1%10 net 30 days. They use the net method of recording purchases. Payment of the accounts payable was made on March 4. Which of the following journal entries would be appropriate for the March 4 transaction?

a. 1
b. 2
c. 3
d. 4


The Factory Overhead account in a job costing system is credited for the:

a. excess of applied overhead over actual overhead.
b. actual overhead.
c. applied overhead.
d. indirect materials and indirect labor.


If a customer pays an invoice twice, the best way to handle the error is:

a. Apply the payment to a holding account and don’t let the client know unless they ask
b. Apply the payment to their account and hold it back in case they decide not to pay future invoices
c. Receive the cash and immediately issue a check back to them
d. Call the customer and ask them what they would prefer


The entry to record the declaration of dividends is:

a. debit Cash, credit Dividend Expense
b. debit Dividend Expense, credit Cash
c. debit Dividends, credit Dividend Payable
d. debit Retained Earnings, credit Dividend Payable


Which of the following best describes the meaning of ‘Purchases’?

a. Goods paid for
b. Goods bought for resale
c. Items bought
d. Goods bought on credit


This question is based upon the figure shown below

Refer to the given image:

The proper journal entry to record Ransom & Co.’s billing of clients for $500 of services rendered is:

a. 1
b. 2
c. 3
d. 4


If a customer is not paying their invoices, the best first step to encourage them to pay is:

a. Send them to collections immediately
b. Write them a letter and threaten to cut off their line of credit
c. Begin charging interest on their open balance
d. Send a statement with copies of the open invoices


Prev1 of 6

Share This Post