ACC210 Ch4 Set 3

Question 1

Bill of materials

Answer 1

Lists all the materials needed for the job

Question 2

Purchase of material example

Answer 2

Pg153

Question 3

Material requisition form

Answer 3

Authorises the movement of raw materials from the warehouse to the production department

Question 4

Source document

Answer 4

The basic document used to initiate an accounting entry

Question 5

Material acquisition forms

Answer 5

Ex4.11pg154

Question 6

Journal entry - the release of the raw materials to production

Answer 6

Dr - manufacturing overhead

Cr - manufacturing supplies inventory

Question 7

Time sheet

Answer 7

A form used to record the amount of labour time spent on each job or activity

Question 8

Fig pg155

Answer 8

Pg155

Question 9

Journal entry

Answer 9

Pg155

Question 10

Journal entry - made to add indirect labour costs to manufacturing overhead

Answer 10

Dr - manufacturing overhead

Cr - wages payable

Question 11

Time sheet

Answer 11

Ex4.12 pg155

Question 12

Manufacturing overhead costs example

Answer 12

Pg156

Question 13

Predetermined overhead rate =

Answer 13

Budgeted total manufacturing overhead for coming year / budgeted total direct labour hours for coming year
= $1,000,000 / 50,000 direct labour hours
= $20 per direct labour hour

Question 14

Manufacturing overhead applied example

Answer 14

Pg157

Question 15

Journal entry - to add applied manufacturing overhead to work in process inventory

Answer 15

Dr - work in process inventory

Cr - manufacturing overhead

Question 16

Journal entry - transfer of these jobs from work in process to finished goods inventory

Answer 16

Pg157

Question 17

Underapplied overhead =

Answer 17

Actual manufacturing overhead - applied manufacturing overhead

Question 18

Journal entry - closes its underapplied or overapplied overhead into costs of goods sold

Answer 18

Dr - cost of goods sold

Cr - manufacturing overhead

Question 19

Summary of event sequence in a job costing system

Answer 19

Ex4.14 pg160

Question 20

Schedule of cost of goods manufactured

Answer 20

Schedule detailing the cost of direct materials, direct labour & manufacturing overhead applied to work in process during the period, & showing the changes to the in process inventory