Seriousler
Which types of inventories does a manufacturing business report on the balance sheet?
All of em
Materials used (formula)
Beginning+purchased-ending
Nails and screws used in the production of the bar stools
Direct
The recording of the application of factory overhead costs to jobs would include a credit to
Factory Overhead
All of the following would be reported on the balance sheet as a current asset except
Factory overhead
A manufacturing business reports just two types of inventory on its balance sheet: work in process inventory and finished goods inventory.
False
A report analyzing how many products need to be sold to cover operating costs is not typically a managerial accounting report.
False
Generally accepted accounting principles require companies to use only one factory overhead rate for product costing.
False
In the job order costing system, the finished goods account is the controlling account for the factory overhead ledger.
False
Period costs are costs that are incurred for the production requirements of a certain period
False
Period costs can be found on both the balance sheet and the income statement.
False
The costs of materials and labor that do not enter directly into the finished product are classified as cost of goods sold.
False
The materials requisition serves as the source document for debiting the accounts in the materials ledger.
False
The payment of dividends is an example of a cost.
False
The vice presidents of production and sales and the controller hold line positions in most large organizations.
False
Recording jobs shipped and customers billed would include a credit to
Finished Goods
Lubricants used on the bar stool manufacturing equipment
Indirect
Only the value of the inventory that is sold will appear on the income statement.
True
Perpetual inventory controlling accounts and subsidiary ledgers are maintained for materials, work in process, and finished goods in job order costing systems.
True
The debit to factory overhead for the cost of indirect materials is obtained from the summary of the materials requisitions.
True
The direct labor and overhead costs of providing services to clients are accumulated in a work in process account.
True
The statement of cost of goods manufactured is an extension of the income statement for a manufacturing company.
True
Finished goods inventory is reported on the
balance sheet as a current asset
Which of the following are reported on the income statement as part of cost of goods?
cost of goods manufactured
The entries to record cost and sale of a finished good on account is
debit Cost of Goods Sold, credit Finished Goods, debit Accounts Receivable, credit Sales
In a job order cost accounting system, the entry to record the flow of direct materials into production is to
debit Work in Process, credit Materials
The entry to record the flow of direct labor costs into production in a job order cost accounting system is to
debit Work in Process, credit Wages Payable
In a job order cost accounting system used by a service business, which of the following items would normally not be included as part of overhead?
direct labor
plastic parts
direct materials
the stock ledger
finished goods ledger
Each document in the cost ledger is called a
job cost sheet
a subsidiary ledger that maintains a separate account for each type of material
materials ledger
The source document for the data for debiting Work in Process for direct materials is a
materials requisition
Costs that are treated as assets until the product is sold are
product costs
Bar code scanners are now being used to track *incoming* materials and to electronically transmit this data. Scanners have replaced which of the following?
receiving report
All of the following are examples of activity bases except
salaries of supervisors
The finished goods account is the controlling account for the
stock ledger
What is the purpose of the statement of cost of goods manufactured?
to determine the amounts transferred to finished goods
At the end of the fiscal year, the balance in Factory Overhead is small. The balance would be
transferred to Cost of Goods Sold
All of the following employees hold line positions in Facebook except
vice president of finance
Materials are transferred from the storeroom to the factory in response to materials requisitions.
True
Which of the following accounts will be found on the income statement?
Cost of Goods Sold
Costs on the income statement for both a merchandiser and a manufacturer would be
Operating expenses
Interim financial statements for a manufacturing business would report overapplied factory overhead as a deferred item on the balance sheet.
True
A cost can be a payment of cash for the purpose of generating revenues.
True
A report analyzing the dollar savings of purchasing new equipment to speed up the production process is a managerial accounting report.
True
As product costs are incurred in the manufacturing process, they are accounted for as assets and reported on the balance sheet as inventory.
True
Each account in the work in process subsidiary ledger in a job order costing system is called a job cost sheet.
True
If the underapplied factory overhead amount is immaterial, it is transferred to Cost of Goods Sold at the end of the fiscal year.
True
The controlling account for the cost ledger is
Work in Process