Accounting 2 review

A unit product cost includes: A unit product cost includes: Multiple Choice

Actual direct labor cost used by the job. Actual direct material cost used by the job.

If a properly completed cost reconciliation report for a particular department says that the "total cost to be accounted for" is $100,000 and the cost of beginning work in process inventory is $12,000, then the "total cost accounted for" must be:

100000

Which of the following statements is false with respect to job-order costing and process costing?

Both systems are used in situations where identical units of a single product are produced on a continuous basis.

Which of the following statements is false?

Prime costs include manufacturing overhead.

Which of the following statements is true regarding the formula used in normal costing for applying overhead cost to a specific job?

The predetermined overhead rate is multiplied by the actual amount of the allocation base used by the job.

Which of the following statements is false?

Work in process inventory includes actual manufacturing overhead costs assigned to jobs worked on during the period.

If a company has overapplied overhead, then the journal entry to dispose of it could possibly include:

a credit to Cost of Goods Sold. a debit to MOH

The journal entry to record the cost of goods sold during the period includes:

a credit to Finished Goods.

The journal entry to record the requisition of indirect materials for use in production includes:

a debit to Manufacturing Overhead.

The cost of goods manufactured includes:

applied manufacturing overhead, but not actual manufacturing overhead.

Which of the following is not a product cost?

sales commissions

A predetermined overhead rate includes:

the estimated total amount of the allocation base in the denominator

Overhead application refers to applying:

Manufacturing overhead costs to jobs

Which of the following statements is true regarding job-order costing?

It is used in situations where many different products, each with unique features, are produced each period

Which of the following statements is true with respect to the cost of goods sold equation?

Cost of goods sold = beginning merchandise inventory + purchases − ending merchandise inventory

The total manufacturing costs added to production within a schedule of cost of goods manufactured is calculated using which of the following equations?

Direct materials used in production + Direct labor + Manufacturing overhead applied to work in process

Which of the following is not one of the three inventory accounts reported on the balance sheet?

cost of goods sold

The cost of goods manufactured is

the amount transferred from Work in Process to Finished Goods.