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# The difference between the sales price and the job cost is: A) cost of goods sold. B) g

The difference between the sales price and the job cost is:

A) cost of goods sold.

B) gross profit.

C) net income.

D) operating income.

12) The cost-plus price is determined as:

A) cost + markup on cost.

B) cost - markup on cost.

C) cost × markup on cost.

D) cost ÷ markup on cost.

13) When using cost-plus pricing, the markup is added to the job cost to help:

A) cover operating expenses.

B) generate a profit.

C) determine the price to charge for the job.

D) do all of the above.

14) Wesley Corporation charged Job 110 with \$12,000 of direct materials and \$13,500 of direct labor. Allocation for manufacturing overhead is 80% of direct labor costs. What is the total cost of Job 110?

A) \$10,800

B) \$42,375

C) \$36,300

D) \$25,500

15) Fulton Corporation uses estimated direct labor hours of 210,000 and estimated manufacturing overhead costs of \$840,000 in establishing manufacturing overhead rates. Actual manufacturing overhead was \$960,000, and allocated manufacturing overhead was \$980,000. What were the number of actual direct hours worked?

A) 214,375

B) 245,000

C) 183,750

D) 210,000

16) Job 241 has an ending balance of \$26,000. It has been charged manufacturing overhead costs of \$6,000. The rate is 75% of direct labor. What was the amount of direct materials charged to the job?

A) \$12,000

B) \$22,000

C) \$24,500

D) \$19,500

17) Sales revenue is \$600,000; actual manufacturing overhead is \$104,000; allocated manufacturing overhead is \$95,000; and cost of goods sold before adjustment is \$375,000. What is the actual gross profit?

A) \$225,000

B) \$234,000

C) \$121,000

D) \$216,000

18) Sykes Company has sales revenue of \$610,000. Cost of goods sold before adjustment is \$350,000. The company&#39;s actual manufacturing overhead is \$93,000, while allocated manufacturing overhead is \$101,500. What is the actual gross profit?

A) \$167,000

B) \$268,500

C) \$251,500

D) \$260,000

19) Manufacturing overhead has an underallocated balance of \$16,000; raw materials inventory balance is \$150,000; work in process inventory is \$130,000; finished goods inventory is \$120,000; and cost of goods sold is \$180,000. After adjusting for the underallocated manufacturing overhead, what is cost of goods sold?

A) \$196,000

B) \$16,000

C) \$180,000

D) \$164,000

20) Manufacturing overhead has an overallocated balance of \$5,000; raw materials inventory balance is \$55,000; work in process inventory is \$32,000; finished goods inventory is \$27,000; and cost of goods sold is \$120,000. After adjusting for the overallocated manufacturing overhead, what is cost of goods sold?

A) \$120,000

B) \$5,000

C) \$115,000

D) \$125,000

Dec 07 2019 View more View Less