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Flashcards in chapter 3 assignment questions Deck (29)
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1
Q

Fringe benefits and payroll taxes associated with factory workers should be accumulated as a part of manufacturing overhead.

true or false

A

false

2
Q

Job cost sheets are often used as a subsidiary ledger for job costs.

true or false

A

true

3
Q

Total manufacturing costs for a period consists of the costs of direct material used, the cost of direct labour incurred, and the actual manufacturing overhead incurred during the period.

true or false

A

false

its the applied overhead

4
Q

Job shops and process shops are basically the same regarding the extent to which we can trace costs to individual units and jobs.

true or false

A

false

5
Q

In a job shop, because each job is unique, the firm has to track costs separately for individual jobs

true or false

A

true

6
Q

Typical flow of costs in manufacturing includes raw materials, factory labour, and manufacturing overhead

true or false

A

true

7
Q

The balance in Manufacturing Overhead is eliminated by an adjusting entry

true or false

A

true

8
Q

Cost accounting is primarily concerned with allocating overhead

true or false

A

false

9
Q

To calculate a predetermined overhead rate, you must multiply the actual activity level by the estimated annual overhead costs

true or false

A

false

10
Q

A job-order cost system

a) identifies costs with a particular activity within the production process, such as mixing, or cutting.
b) and a process cost system are two alternative cost accounting systems.
c) is appropriate for homogeneous products that are continuously mass produced.
d) is most appropriate when products that are produced do not have their own distinguishing characteristics.

A

b) and a process cost system are two alternative cost accounting systems.

11
Q

Which one of the following is a major purpose of cost accounting?

a) To provide gross profit rates to managers.
b) To allocate overhead costs to jobs.
c) To classify all costs as direct or indirect.
d) To measure, record, and report product costs.

A

d) To measure, record, and report product costs.

12
Q

What are the two major steps in the flow of costs for a job cost system?

a) accumulating and assigning
b) allocating and assigning
c) acquiring and accumulating
d) accumulating and allocating

A

a) accumulating and assigning

13
Q

Which of the following statements regarding the Raw Materials Inventory account is correct?

a) Freight costs related to acquiring materials are credited.
b) Purchase returns and allowances are debited.
c) The invoice cost of purchasing materials is debited.
d) Any purchase discounts taken are debited.

A

c) The invoice cost of purchasing materials is debited

14
Q

Which of the following is true?

a) When direct materials are requisitioned from the storeroom, the cost of the materials should be removed from the Work in Process Inventory account and added to the job cost sheets for the individual jobs on which the material was used.
b) Upon purchase of raw materials there is no attempt to associate the cost of materials with specific jobs or orders.
c) In a job-order cost system, each entry to the Raw Material Inventory account should be accompanied by a posting to one or more job cost sheets.
d) Materials requisition slips indicate the receipt of materials from a supplier.

A

b) Upon purchase of raw materials there is no attempt to associate the cost of materials with specific jobs or orders.

15
Q

In what manner does a company most likely maintain its records of individual items of raw materials?

a) Using a bar coding system.
b) In the Work in Process Inventory control account.
c) In the Raw Materials Inventory account in the general ledger.
d) In each of the separate job cost records.

A

a) Using a bar coding system

16
Q

Which statement is true with regard to factory labour costs?

a) It represents the net amount paid to factory workers for work on jobs.
b) It is added to the Factory Labour account and later assigned to work in process or manufacturing overhead.
c) These costs are accrued before incurred.
d) Amounts incurred during a particular year that have not been allocated to jobs are carried over to the next year.

A

b) It is added to the Factory Labour account and later assigned to work in process or manufacturing overhead.

17
Q

How is the employee time ticket used?

a) It is kept as evidence of payment to employees.
b) It is used only by the production supervisor to track which employees show up for work.
c) It is used as a basis for determining the cost of labour to add to jobs.
d) It is only sent to the accounting department to create pay cheques for employees.

A

c) It is used as a basis for determining the cost of labour to add to jobs.

18
Q

How often are postings to subsidiary accounts in a costing system made?

a) At the end of every accounting period.
b) Monthly.
c) Daily.
d) Weekly.

A

c) Daily.

19
Q

What is the primary role of a job cost sheet?

a) It lists the materials on hand available to be used for jobs.
b) It is the primary accounting record used in assigning costs to jobs.
c) It is used instead of a cost of goods manufactured schedule.
d) It shows the detail of the Manufacturing Overhead Control account

A

b) It is the primary accounting record used in assigning costs to jobs.

20
Q

Which one of the following contains sources of costs that will be added to job cost sheets?

a) invoices, time tickets, and the predetermined overhead rate
b) materials requisition slips, time tickets, and the actual overhead costs
c) materials requisition slips, payroll register, and the predetermined overhead rate
d) materials requisition slips, time tickets, and the predetermined overhead rate

A

d) materials requisition slips, time tickets, and the predetermined overhead rate

21
Q

Which one of the following is a control account?

a) Utilities Expense
b) Factory Wages Payable
c) Manufacturing Overhead
d) Cost of Goods Sold

A

c) Manufacturing Overhead

22
Q

what is a control account?

find this shit

A

yoooooooo

23
Q

At what point in time is the predetermined overhead rate calculated?

a) At the end of the year in which the job is in production.
b) At the time each job is completed.
c) At the beginning of the year.
d) Once actual overhead costs are incurred.

A

c) At the beginning of the year.

24
Q

Which one of the following is a common activity base used to calculate the predetermined overhead rate?

a) Number of months to complete jobs.
b) Indirect labour costs.
c) Direct labour dollars.
d) Number of jobs completed.

A

c) Direct labour dollars.

25
Q

Of the three manufacturing costs, which one is the most difficult to assign to a cost object?

a) Direct materials.
b) Direct labour.
c) Manufacturing overhead.
d) They are all equally difficult to assign.

A

c) Manufacturing overhead

26
Q

If a company has under-applied overhead at the end of the accounting period, how is it accounted for?

a) No entry occurs.
b) It is transferred to Finished Goods with the other job costs.
c) It is debited to Cost of Goods Sold.
d) It is credited to Cost of Goods Sold

A

c) It is debited to Cost of Goods Sold

27
Q

Where might you find under-applied overhead on the monthly financial statements?

a) As part of Manufacturing Overhead Expense in the operating expenses section on the Income Statement.
b) As part of “Other Revenues and Gains” on the Income Statement.
c) Included with Cost of Goods Sold on the Income Statement.
d) As a prepaid expense in the current asset section of the Balance Sheet

A

c) Included with Cost of Goods Sold on the Income Statement

28
Q

Tan Company over-applied manufacturing overhead during 2020. Which one of the following is part of the year-end entry to adjust the over-applied amount assuming the amount is material?

a) A debit to Work in Process Inventory.
b) A debit to Cost of Goods Sold.
c) A debit to Manufacturing Overhead.
d) A credit to Unearned Revenue

A

c) A debit to Manufacturing Overhead

29
Q

what are control accounts?

A

Control accounts (materials, labor and overhead, work-in-process, and finished goods) are inventory accounts