Ch 19 ACC

Recording jobs completed would include a credit to

Work in Process

A summary of the materials requisitions completed during a period serves as the basis for transferring the cost of the materials from the materials controlling account in the general ledger to the controlling accounts for

Work in Process and Factory Overhead

Which of the following is the correct flow of manufacturing costs?

raw materials, work in process, finished goods, cost of goods sold

Which of the following is a period cost?

salary of telephone receptionist in the sales office

Which of the following would most likely use a job order cost system?

swimming pool installer

On which of the following would the labor costs for an individual job be recorded?

time tickets

The basis for recording direct labor costs incurred is a summary of the period's

time tickets

Which of the following is not a reason a firm would use a job order cost system?

to determine department costs within the firm

At the end of the fiscal year, the balance in Factory Overhead is small. The balance would be

transferred to Cost of Goods Sold

Which of the following is not a characteristic of a job order cost system?

It accumulates cost for each department within the factory.

Which of the following are the two main types of cost accounting systems for manufacturing operations?

job order cost and process cost systems

Which of the following systems provides for a separate record of the cost of each particular quantity of product that passes through the factory?

job order cost system

A widely used activity base for developing factory overhead rates in highly automated settings is

machine hours

Which of the following products would be manufactured using a job order cost system?

graduation invitation

For which of the following businesses would the job order cost system be appropriate?

hospital

At the end of the year, overhead applied was $42,000,000. Actual overhead was $40,300,000. Closing over/underapplied overhead into Cost of Goods Sold would cause net income to

increase by $1,700,000

Thomlin Company forecasts that total factory overhead for the current year will be $15,000,000 with 300,000 total machine hours. Year to date, the actual overhead is $16,000,000, and the actual machine hours are 330,000 hours. If Thomlin Company uses a predetermined factory overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is

$500,000 overapplied

Selected accounts with some amounts omitted are as follows: Work in ProcessOct. 1Balance20,000 Oct. 31Goods finishedX 31Direct materials96,700 31Direct labor201,000 31Factory overheadX Finished GoodsOct. 1Balance52,000 31Goods finished360,000 If the balance of Work in Process on October 31 is $21,000, what was the amount of factory overhead applied in October?

$63,300

Thomlin Company forecasts that total factory overhead for the current year will be $11,736,000 with 163,000 total machine hours. Year to date, the actual overhead is $6,440,000, and the actual machine hours are 92,000 hours. The predetermined factory overhead rate based on machine hours is

$72 per machine hour

Recording jobs shipped and customers billed would include a debit to

Cost of Goods Sold

The recording of the application of factory overhead costs to jobs would include a credit to

Factory Overhead

Recording jobs completed would include a debit to

Finished Goods

The details concerning the costs incurred on each job order are accumulated in a work in process account and supported by a

cost ledger

The journal entry for the flow of direct labor costs into production in a job order cost accounting system is to

debit Work in Process, credit Wages Payable

Which of the following is a product cost?

drill bits for a drill press used in the plant assembly area