Managerial Accounting LearnSmart Questions

Managerial Accounting Chapter 2 LearnSmart Questions 1. Costs assigned to units of product in absorption costing include ___ manufacturing costs: both variable and fixed 2. Which of the following costs can be directly traced to a particular product?: Direct materials and direct labor 3. Categories of manufacturing costs include: direct materials, direct labor, MOH 4. The document that records the materials, labor, and manufacturing overhead costs charged to a job is the: job cost sheet 5. The predetermined overhead rate is multiplied by the actual allocation base incurred by a job to find: overhead applied to the job 6. To calculate a predetermined overhead rate, divide estimated manufacturing overhead by: estimated allocation base 7. Widely used allocation bases in manufacturing are: direct labor cost, direct labor hours, units of product, machine hours 8. A measure such as direct labor-hours or machine hours used to assign overhead cost to produce and services is called a cost driver or: allocation base 9. Estimated MOH $500,000 Estimated direct labor cost $250,000 Actual MOH $720,000 Actual direct labor cost $300,000 Based on this info, the predetermined overhead rate per direct labor dollar is: $2.00 500,000/250,000=2 10. Overhead is applied to products based on the: actual allocation base incurred 11. Items in order in which they appear on the schedule of cost of goods sold: Finished goods inventory, beginning Add: cost of goods manufactured Cost of goods available for sale Deduct: finished goods inventory, ending Unadjusted cost of goods sold 12. Manufacturing overhead: Contains fixed costs Is and indirect cost Consists of many different items 13. Labor costs that are easily traced to a job are called ___ labor costs: direct 14. Match each event in the process of accounting for manufacturing overhead with the appropriate entry: Actual overhead is incurred MOH is debited Overhead is applied to work in process MOH is credited The period ends MOH is closed 15. Which of the following costs would be classified as MOH? Factory utilities, factory rent, supervisor salary 16. The journal to record the issuance of direct materials into production debits: Work in progress 17. Which statements are true? When materials are purchased they are recorded in the Raw material inventory account Raw materials used in production are transferred to Work in process as direct materials 18. Units of product that are only partially complete are contained in __ inventory: work in progress 19. Completed units that have not yet been sold are found in: finished goods 20. When a job is completed, the job costs are transferred OUT OF: works in progress 21. Selling and administrative costs first appear on the: income statement 22. A journal entry that debits Depreciation expense and credits Accumulated expense: depreciation on office equipment 23. The journal entry to record shipping goods to customers includes a credit to: finished goods 24. A journal entry debiting COG sold and crediting Finished goods is made when: goods are sold 25. When a job is completed, which account is credited?: work in progress 26. The schedule of cost of goods ___ summarizes costs that remain in work in process inventory and that have been transferred to finished goods inventory: manufactured 27. Any purchased materials that will go into the finished product are first recorded in the ___ ___ inventory account: raw materials 28. A journal entry debiting salaries expense and crediting salaries and wages payable could record: administrative salary costs 29. The journal entry to record general selling and administrative costs debits: an expense account and credit cash or a liability 30. The difference between the entries to record depreciation on office equipment and depreciation on factory equipment is that one: debits depreciation expense, while the other debits MOH 31. A journal entry debiting salaries expense and crediting salaries and wages payable could record: 32. MOH is a ___ cost: indirect 33. Typical cost drivers include: flight hours, computer time, machine hours 34. Factory labor charges that cannot be easily traced to a job are treated as: MOH 35. Smith, Inc. uses a job order costing system with the predetermined overhead rate of $12 per machine hour. The job cost sheet for Job #42A listed $12,000 in direct labor cost, $18,000 in direct materials cost, 1200 direct labor hours and 1100 machine hours. The total cost of Job #42A is __ : $43, 200 $18,000+$12,000+($12 per machine hr x 1,100 machine hrs) 36. Items in the income statement in the order they appear: sales, COG sold, gross margin, selling/administrative expenses, net operating income 37. A company purchased $70,000 of materials on account. $40,000 were direct materials and $30,000 were indirect materials. The journal entry to record this transaction would be to: debit Raw Materials $70,000 and credit Accounts Payable $70,000 38. The journal entry to record labor costs credits: salaries and wages payable 39. Fillia, Inc. worked on three jobs this period: Job 14C, which cost $15,000; Job 23A, which cost $28,000, and Job 45B, which cost $23,000. At the end of the period, only Job 14C was still in process (unfinished). The COG manufactured this is period is: $51,000 $28,000 + $23,000 40. Murphy company has three departments, and uses a multiple predetermined overhead rate system. Department A manufactures parts in highly automated process, then Department B assembles the parts by hand. Department C places completed units in a heat chamber to sterilize them before they are shipped out. Match each department with an appropriated overhead allocation rate: Department AMachine hours Department BDirect labor hours Department CBatches 41. Steps for calculating direct material on the schedule of COG manufactured in order: Raw materials inventory, beginning Add: purchases of raw materials Total raw materials available Deduct: raw materials inventory, ending Raw materials used in production Deduct: indirect materials included in MOH 42. Which costs would be classified as MOH?: supervisor salary, factory utilities, factory rent 43. Which of the following are used to calculate COG available for sale on the schedule of COG sold?: COG manufactured, beginning finished goods inventory 44. A journal entry that debits MOH and credits accumulated depreciation records: depreciation on factory equipment 45. A total of $10,000 in MOH was applied to Job #40. The journal entry to record this would: debit work in process $10,000 and credit MOH $10,000 46. Items in which they appear on the schedule of COG sold: 47. To calculate total manufacturing costs on the schedule of COG manufactured: add direct materials, direct labor, and applied MOH 48. A journal entry that debits MOH and credits accounts payable could record be made to record: rent expense on factory equipment, factory utilities expense 49. The journal entry to record accrued property taxes for a factory building debits: MOH and credits property taxes payable 50. When preparing financial statements in a job order costing system, finished goods flow first to the ___ ___ and then to the ___ ___ : balance sheet, income statement 50. Steps in requisitioning and issuing materials in order: A production order is issued The production department prepares a materials requisition form The materials requisition form is presented to storeroom clerk The storeroom clerk issue materials 51. When overhead is underapplied, a __ must be made to the MOH account to close it out: credit 52. A debit balance in MOH means overhead was: underapplied 53. Steps from the schedule of cost of goods manufactured in the order in which they appear: Total manufacturing costs Add: beginning work in process inventory Deduct: ending work in process inventory COG manufactured 54. Underapplied or overapplied overhead is the: difference b/w overhead applied to work in process and actual overhead 55. The unit product cost is the same as the: total job cost divided by number of units; average product cost per unit