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