Managerial accounting chapter 15

Producing products that are individually designed to meet the needs of a specific customer where each customized product is manufactured separately is the definition of: Multiple choice question. service production process production mass production job order production

job order production

Companies use job cost sheets to track the costs of: Multiple choice question. labor, overhead, and marketing costs of a job labor, marketing, and operating costs of a job materials, labor, and overhead costs of a job materials, labor, and selling prices of a job

materials, labor, and overhead costs of a job

Companies use job cost sheets to track the costs of: Multiple choice question. materials, labor, and overhead costs of a job labor, overhead, and marketing costs of a job materials, labor, and selling prices of a job labor, marketing, and operating costs of a job

materials, labor, and overhead costs of a job

All of the following are manufacturing costs except: Multiple choice question. office salaries direct labor direct materials overhead costs

office salaries

The predetermined overhead rate is based on total costs and activity base.

overhead

After adjusting for over- or underapplied overhead, the balance in the Factory Overhead account will be $______?

$0

Manufacturing of products in a repetitive manner is referred to as (process/job order) operations while manufacturing custom products is referred to as (process/job order) operations.

process, job order

A company has a predetermined overhead rate of 50% of direct labor costs. Job 62 incurs $560 in labor costs. Overhead allocated to Job 62 will be $

$280

A company works on three jobs and incurs the following: Direct materials - $50,000 and Direct labor - $100,000. The company uses a predetermined overhead rate of 60% of direct labor costs. How much overhead will be allocated to the three jobs? Multiple choice question. $50,000 $15,000 $75,000 $60,000

$60,000

A company uses direct labor costs as its allocation base. Management estimates the company will incur $150,000 of direct labor cost during the year and total overhead costs of $200,000. What is their predetermined overhead rate? Multiple choice question. 1.33% 50% 75% 133%

133%

The Factory Overhead account is (debited/credited) __________ for applied overhead costs.

Credited

Job cost sheets can be used to: (Check all that apply.) Multiple select question. provide a subsidiary ledger for the Raw Materials Inventory account. provide a record for the Cost of Goods Sold account. provide a subsidiary ledger for the Finished Goods Inventory account. monitor costs incurred and to predict costs for each job.

provide a record for the Cost of Goods Sold account. provide a subsidiary ledger for the Finished Goods Inventory account. monitor costs incurred and to predict costs for each job.

Job cost sheets can be used to: (Check all that apply.) Multiple select question. provide a subsidiary ledger for the Finished Goods Inventory account. provide a record for the Cost of Goods Sold account. provide a subsidiary ledger for the Raw Materials Inventory account. monitor costs incurred and to predict costs for each job.

provide a subsidiary ledger for the Finished Goods Inventory account. monitor costs incurred and to predict costs for each job. provide a record for the Cost of Goods Sold account.

One important difference between service companies and manufacturing companies is that: Multiple choice question. service companies do not have direct labor service companies do not have raw materials inventory service companies do not have overhead

service companies do not have raw materials inventory

One important difference between service companies and manufacturing companies is that: Multiple choice question. service companies do not have overhead service companies do not have raw materials inventory service companies do not have direct labor

service companies do not have raw materials inventory

If the factory overhead is overapplied, then: (Check all that apply.) Multiple select question. actual overhead cost > applied overhead costs. the Factory Overhead account has a credit balance. the Factory Overhead account has a debit balance. applied overhead costs > actual overhead costs.

the Factory Overhead account has a credit balance. applied overhead costs > actual overhead costs.

he correct order of cost flows in a job order costing system is: Multiple choice question. cost of goods sold, finished goods, work in process work in process; finished goods, cost of goods sold finished goods, work in process; cost of goods sold cost of goods sold, work in process, finished goods

work in process; finished goods, cost of goods sold

The journal entry to record the allocation of factory overhead is: Multiple choice question. Debit Factory Overhead and credit Work in Process Inventory Debit Raw Materials Inventory and credit Factory Overhead Debit Work in Process Inventory and credit Factory Overhead Debit Finished Goods and credit Factory Overhead

Debit Work in Process Inventory and credit Factory Overhead

The journal entry to record indirect labor costs used in production includes a debit to Factory___________?

Overhead

The journal entry to record indirect materials costs used in production includes a debit to factory_____________?

Overhead

rue or false: The principle of customization is applicable to both service and manufacturing companies. True false

True

Manufacturing costs include direct materials, direct labor, and Multiple choice question. applied overhead costs. identified overhead costs. actual overhead costs. accumulated overhead costs.

applied overhead costs.

A Schedule of Cost of Goods Manufactured includes all of the following costs except: Multiple choice question. direct labor factory overhead applied work in process direct materials used cost of goods sold

cost of goods sold

A Schedule of Cost of Goods Manufactured includes all of the following costs except: Multiple choice question. direct materials used cost of goods sold factory overhead applied direct labor work in process

cost of goods sold

The journal entry to record depreciation on factory equipment is to: Multiple choice question. debit Cash and credit Accumulated Depreciation - Equipment debit Depreciation Expense and credit Accumulated Depreciation - Equipment debit Factory Overhead and credit Accumulated Depreciation - Equipment

debit Factory Overhead and credit Accumulated Depreciation - Equipment

The journal entry to record indirect labor used in production is to: Multiple choice question. debit Factory Wages Payable and credit Work in Process Inventory debit Factory Overhead and credit Factory Wages Payable debit Work in Process Inventory and credit Factory Overhead debit Work in Process Inventory and credit Factory Wages Payable

debit Factory Overhead and credit Factory Wages Payable

The journal entry to record indirect materials in production is to: Multiple choice question. debit Raw Materials Inventory and credit Work in Process Inventory debit Factory Overhead and credit Raw Materials Inventory debit Work in Process Inventory and credit Raw Materials Inventory debit Work in Process Inventory and credit Factory Overhead

debit Factory Overhead and credit Raw Materials Inventory

The journal entry to record the accrual of factory utilities is to: Multiple choice question. debit Factory Overhead and credit Cash debit Cash and credit Factory Overhead debit Utilities Payable and credit Factory Overhead debit Factory Overhead and credit Utilities Payable

debit Factory Overhead and credit Utilities Payable

The journal entry to record the accrual of factory utilities is to: Multiple choice question. debit Factory Overhead and credit Cash debit Factory Overhead and credit Utilities Payable debit Utilities Payable and credit Factory Overhead debit Cash and credit Factory Overhead

debit Factory Overhead and credit Utilities Payable

The journal entry to record the accrual of factory utilities is to: Multiple choice question. debit Utilities Payable and credit Factory Overhead debit Factory Overhead and credit Utilities Payable debit Factory Overhead and credit Cash debit Cash and credit Factory Overhead

debit Factory Overhead and credit Utilities Payable

The journal entry to record the purchase of materials on account is to: Multiple choice question. debit Raw Materials Inventory and credit Accounts Payable debit Accounts Payable and credit Production Materials debit Accounts Payable and credit Raw Materials Inventory debit Production Materials and credit Accounts Payable

debit Raw Materials Inventory and credit Accounts Payable

The journal entry to record the allocation of factory overhead to work in process is: Multiple choice question. debit Cash and credit Factory Overhead debit Factory Overhead and credit Work in Process Inventory debit Work in Process Inventory and credit Cash debit Work in Process Inventory and credit Factory Overhead

debit Work in Process Inventory and credit Factory Overhead

The journal entry to record the allocation of factory overhead to work in process is: Multiple choice question. debit Work in Process Inventory and credit Cash debit Cash and credit Factory Overhead debit Work in Process Inventory and credit Factory Overhead debit Factory Overhead and credit Work in Process Inventory

debit Work in Process Inventory and credit Factory Overhead

The journal entry to record the allocation of factory overhead to work in process is: Multiple choice question. debit Work in Process Inventory and credit Factory Overhead debit Work in Process Inventory and credit Cash debit Factory Overhead and credit Work in Process Inventory debit Cash and credit Factory Overhead

debit Work in Process Inventory and credit Factory Overhead

If the factory overhead is underapplied, then the adjusting journal entry to close the factory overhead account includes a: (Check all that apply.) Multiple select question. credit to Cost of Goods Sold. debit to Cost of Goods Sold. credit to Factory Overhead. debit to Factory Overhead.

debit to Cost of Goods Sold. credit to Factory Overhead.

A Schedule of Cost of Goods Manufactured includes all of the following costs: Multiple select question. direct labor used finished goods inventory actual factory overhead work in process inventory factory overhead applied direct materials used

direct labor used work in process inventory factory overhead applied direct materials used

The three types of manufacturing costs in a job order costing system include: Multiple select question. work in process direct materials overhead direct labor finished goods

direct materials overhead direct labor

List the following documents in the order in which they are used when recording indirect labor costs in job order costing, with the first document on top. Time Tickets Factory Overhead ledger Allocated to specific jobs through factory overhead

Time Tickets Factory Overhead ledger Allocated to specific jobs through factory overhead

Select all that apply Managers use a predetermined overhead rate for which of the following reasons? (Check all that apply.) Multiple select question. To estimate total job costs before the job is completed Predetermined costs are more accurate than using actual costs To assist in setting prices for jobs Total job costs are not needed until the end of the accounting period, so predetermined rates are not needed.

To estimate total job costs before the job is completed To assist in setting prices for jobs

A cost accounting system includes which of the following? Multiple choice question. a. It accumulates production costs and assigns them to products and services. b. It is used to record costs of selling activities. c. It is used with periodic inventory systems.

a. It accumulates production costs and assigns them to products and services.

A cost accounting system: (Check all that apply.) Multiple select question. helps managers' determine selling prices. provides general information used by investors. is used only with a perpetual inventory system. is used to control costs of manufacturing activities.

helps managers' determine selling prices. is used to control costs of manufacturing activities

he journal entry to record the purchase of materials on account is a(n): Multiple choice question. increase in assets and a decrease in liabilities increase in one asset and a decrease in another decrease in assets and a decrease in liabilities he journal entry to record the purchase of materials on account is a(n): Multiple choice question. increase in assets and a decrease in liabilities increase in one asset and a decrease in another decrease in assets and a decrease in liabilities increase in assets and an increase in liabilities

increase in assets and an increase in liabilities

All of the following are inventory accounts for a manufacturer except: Multiple choice question. raw materials inventory work in process inventory finished goods inventory indirect materials inventory

indirect materials inventory