Cornerstones of Managerial Accounting Study Set 5

Business

Quiz 5 :

Job-Order Costing

Quiz 5 :

Job-Order Costing

Question Type
search
arrow
is overapplied overhead? When Cost of Goods Sold is adjusted for overapplied over-head, will the cost increase or decrease? Why?
Free
Essay
Answer:

Answer:

There are two types of overhead:
Actual overhead : Costs are tracked throughout the year in the overhead account.
Applied overhead: Costs are computed throughout the year and added to actual direct materials and actual direct labor to get total product cost
If actual overhead is less than applied overhead, then the variance is called over-applied overhead.
When Cost of Goods Sold is adjusted for over-applied overhead, the cost will decrease because the over-applied overhead is subtracted from Cost of Goods Sold.
img The over-applied overhead is deducted from the cost of Goods sold because the applied overhead, which was predetermined, was more than the actual overhead. However, at year-end, cost reported on the financial statements must be actual amounts. Thus, the over-applied overhead is deducted from Cost of Goods Sold.

Tags
Choose question tag
close menu
arrow
job-order cost sheet is a subsidiary account to
Free
Multiple Choice
Answer:

Answer:

Answer: b. work in process
Explanation:
• All costs associated with a job is summarised in job-order cost sheet.
• The job-order cost sheet is a subsidiary account to work-in-progress account and is considered as a primary document for accumulating all the costs that are related to a specific job.
• Hence, option b is correct out of all given options.

Tags
Choose question tag
close menu
arrow
a normal costing system, the cost of a job includes
Free
Multiple Choice
Answer:

Answer:

A normal cost system determines unit cost by adding actual direct materials, actual direct labor, and estimated overhead. At the beginning of the year overheads are estimated by approximating the year's actual overhead. Unit cost is obtained by using a predetermined rate throughout the year.
a. Actual direct materials, actual direct labor, and estimated (applied) overhead.

Tags
Choose question tag
close menu
arrow
some examples of service firms that might use job-order costing, and explain why it is used in those firms.
Essay
Answer:
Tags
Choose question tag
close menu
arrow
overhead variance is overapplied if
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
are job-order costing and process costing? What types of firms use job-order costing? Process costing?
Essay
Answer:
Tags
Choose question tag
close menu
arrow
Which of the following is typically a job-order costing firm?
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
is underapplied overhead? When Cost of Goods Sold is adjusted for underapplied overhead, will the cost increase or decrease? Why?
Essay
Answer:
Tags
Choose question tag
close menu
arrow
Which of the following is typically a process-costing firm?
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
Applied overhead is
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
predetermined overhead rate equals
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
Which of the following statements is true?
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
are actual overhead rates seldom used in practice?
Essay
Answer:
Tags
Choose question tag
close menu
arrow
Suppose that you and a friend decide to set up a lawn mowing service next summer. Describe the source documents that you would need to account for your activities.
Essay
Answer:
Tags
Choose question tag
close menu
arrow
is normal costing? How does it differ from actual costing?
Essay
Answer:
Tags
Choose question tag
close menu
arrow
materials are requisitioned for use in production in a job-order costing firm, the cost of materials is added to the
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
ending balance of which of the following accounts is calculated by summing the totals of the open (unfinished) job-order cost sheets?
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
might a company decide to use departmental overhead rates instead of a plantwide overhead rate?
Essay
Answer:
Tags
Choose question tag
close menu
arrow
Explain how overhead is assigned to production when a predetermined overhead rate is used.
Essay
Answer:
Tags
Choose question tag
close menu
arrow
is the role of materials requisition forms in a job-order costing system? Time tickets? Predetermined overhead rates?
Essay
Answer:
Tags
Choose question tag
close menu
Showing 1 - 20 of 79