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