ACC 208 - Chapter 4 LS
Meep industries had unadjusted costs of goods sold of $300,000. Overhead was overapplied by $20,000. Adjusted costs of goods sold is...
$280,000 ($300,000-$20,000)
A company requisitioned $40,000 in direct materials and $30,000 in indirect materials from the storeroom to be used in production. This transaction would result in a...
$40,000 increase on job cost sheet(s) and a $30,000 increase to manufacturing overhead incurred
Cost of goods manufactured equals $410,000; finished goods inventory was $110,000 at the beginning of the period and $125,000 at the end of the period. Overhead was underapplied by $12,000 adjusted cost of goods sold is...
$407,000 ($110,000+$410,000-$125,000+$12,000)
What methods can be used to dispose of underapplied or overapplied manufacturing overhead?
-Allocating it among work in process, finished goods, and COGS -Closing it out to COGS
Which of the following costs can be directly traced to a particular product?
-Direct labor -Direct materials
Categories of manufacturing costs include _____
-Direct materials -Direct labor -Manufacturing overhead
The US requires absorption costing for...
-External financial reports -Tax reports
Job-order costing
-Is a widely used costing method -May be use in almost any type of organization
A job cost sheet contains...
-Manufacturing overhead costs charged to the job -Labor costs charged to the job -Materials costs charged to the job
In order to adjust Cost of Goods sold to reflect actual rather than estimated overhead costs...
-Underapplied overhead is added to COGS -Overapplied overhead is deducted from COGS
A normal cost system assigns overhead to jobs using...
A predetermined overhead rate
All manufacturing costs, both fixed and variable, are assigned to products when using _____ costing.
Absorption
Which of the following would not be a good allocation base for manufacturing overhead?
Accounting hours
A measure such as direct labor-hours or machine hours used to assign overhead costs to products and services is called a cost driver or a(n) _____
Allocation base
Indirect labor costs
Are charged to the manufacturing overhead incurred account
Actual manufacturing overhead costs are recorded in the Manufacturing Overhead account...
As they are incurred
Overhead application is the process of...
Assigning manufacturing overhead cost to jobs
The predetermined overhead rate is calculated...
Before the period begins
A factor that causes overhead costs is called a...
Cost driver
Labor costs that are easily traced to a job are called _____ labor costs.
Direct
The formula for a predetermined overhead rate is...
Estimated manufacturing overhead costs / Estimated allocation base
T/F: Both direct and indirect labor can be easily traced to a job.
False
Completed units that have not been sold are found in _____ _____ inventory
Finished goods
Manufacturing overhead consists of all...
Manufacturing costs other than direct labor and direct materials
The manufacturing overhead account contains...
Many different kinds of indirect costs
Which of the following would be considered direct materials in a service firm that uses job-order costing?
Paperwork at a law firm
Income sheet order
Sales COGS Gross margin Selling and administrative expenses Net operating income
Cost of goods manufactured
Total manufacturing costs charged to jobs + beginning work in process inventory - ending work in process inventory
When only a portion of the units involved in a job are sold, the...
Unit product cost is used to calculate the amount transferred from finished goods to COGS
