Accounting Exam 1 CONCEPTS
cost of goods manufactured is calculated as follows -beg WIP + DM used + DL + MOVH + ending WIP -DM used + DL + MOVH - beginning WIP + ending WIP -Beg WIP + DM used + Dl + MOVH - ending wip -DM used + DL + MOVH - ending WIP - beg WIP
beg wip + DM used + DL + MOVH - ending wip
an activity that has a direct cause-effect relationship with the resources consumed is a(n) cost driver overhead rate cost pool product activity
cost driver
which of the following is *not* a manufacturing cost category? cost of goods sold direct materials direct labor manufacturing overhead
cost of goods sold
overhead application is recorded with a credit to WIP inventory credit to MOVH debit to MOVH credit to job cost sheets
credit to MOVH
a manufacturing process requires small amounts of glue. the glue used in the production process is classified as a(n) direct material period cost indirect material miscellaneous expense
indirect material
a primary driver of overhead costs in continuous manufacturing operations is: direct labor dollars direct labor hours machine hours machine maintenance dollars
machine hours
which would be an appropriate cost driver for the machining activity cost pool? machine setups purchase orders machine hours inspections
machine hours
in determining total manufacturing costs on the cost of goods manufactured schedule, a beginning work in process inventory should have a zero balance actual manufacturing overhead costs appear as a deduction manufacturing overhead applied is added to direct materials and direct labor ending WIP inventory is deducted from beginning work in process inventory
manufacturing overhead applied is added to direct materials and direct labor
which of the following is true of activity-based costing? more cost pools same base as a traditional costing less costly to use eliminates arbitrary allocations
more cost pools
a process cost system would be used for all the following products except chemicals computer chips motion pictures soft drinks
motion pictures
an "ordering and receiving" cost pool would most likely have as a cost driver: machine hours number of setups number of purchase orders number of inspection tests
number of purchase orders
in process cost accounting, manufacturing costs are summarized on a job order cost sheet process order cost sheet production cost report manufacturing cost sheet
production cost report
which of the following are period costs? raw materials direct materials and direct labor direct labor and manufacturing overhead selling expenses
selling expenses
job cost sheets constitute the subsidiary ledger for the finished goods inventory account cost of goods sold account work in process inventory account cost of goods manufactured account
work in process inventory account
which of the following manufacturing cost elements occurs in a process cost system? direct materials direct labor manufacturing overhead all of these
all of these
if the entry to assign factory labor showed only a debit to work in process inventory, then all labor costs were direct labor indirect labor overtime related regular hours
direct labor
manufacturing costs include direct materials and direct labor only direct materials and manufacturing overhead only direct labor and manufacturing overhead only direct labor and manufacturing overhead only direct materials, direct labor, and manufacturing overhead
direct materials, direct labor, and manufacturing overhead
the predetermined overhead rate is based on the relationship between estimated annual costs and actual activity estimated annual costs and expected annual activity actual monthly costs and actual annual activity estimated monthly costs and actual monthly activity
estimated annual costs and expected annual activity