Chapter #3
When is the adjusting of cost of goods sold for the underallocation or overallocation of manufacturing overhead generally done?
At the end of the period.
How do you calculate allocated manufacturing overhead to a certain job?
By multiplying the predetermined manufacturing overhead rate by the actual allocation based used by the job.
In the basic flow of inventory through a manufacturing system, which of the following occurs LAST in the job costing system?
Cost of goods sold
The job cost record summarizes which of the following sets of information for each job?
Direct materials, direct labor and manufacturing overhead.
In the basic flow of inventory through a manufacturing system, which of the following occurs THIRD in the job costing system.
Finished goods inventory
In the basic flow of inventory through a manufacturing system, which of the following occurs FIRST in a job costing system.
Raw material inventory
If the manufacturing overhead has been over allocated during the period, then
The jobs produced during the period have been overcosted.
In the basic flow of inventory through a manufacturing system, which of the following occurs SECOND in the job costing system.
Work in Process Inventory
underallocated manufacturing overhead results when
actual overhead is greater than allocated overhead.
Over-allocated manufacturing overhead results when...
actual overhead is less than allocated overhead.
Process costing would be most likely used by a -cereal company -soft drink manufacturer -salsa company -all of the above
all of the above
Manufacturers follow four steps to implement a manufacturing overhead allocation system. The last step is
allocate some manufacturing overhead to each individual job.
How do you calculate the predetermined manufacturing overhead rate used to allocate manufacturing overhead costs?
by dividing the total estimated manufacturing overhead costs by the total estimated amount of the allocation base.
the two basic types of costing systems are
job costing and process costing
a bill of materials indicates
what materials are needed to complete the job.
When direct materials are requisitioned, they flow directly into
work in process inventory
