All questions have to do with cost accounting systems, more in particular, job o
ID: 2419574 • Letter: A
Question
All questions have to do with cost accounting systems, more in particular, job order costing.
Complete each of the following statements/Answer the following questions
1. A custom-furniture designer would probably use which method of cost accounting? 1. ____
2. The cost of finished products on hand that have not been sold is called 2. ____
3-5. Work in process consists of these costs that have entered the manufacturing process on unfinished products:
3. ____
4. ____
5. ____
6. The accounting system that accumulates the product costs originating with inventory and ending with the cost of goods sold is the 6. ____
7. The system best suited to industries that manufacture custom goods to fill special orders is referred to as a 7. ____
8. The system that accumulates costs for each of the departments within the factory is a 8. ____
9. The Receiving Department document that shows the quantity received and its condition is the 9. ____
10. Materials are released from the storeroom to the factory in response to a 10. ____
11. The amount of time spent by an employee in the factory is usually recorded on 11. ____
12. Indirect materials and indirect labor are examples of this manufacturing cost 12. ____
13. The costing method that accumulates and allocates factory overhead costs to products using many overhead rates is 13. ____
14. If estimated total factory overhead costs are $75,000 and direct labor hours are 15,000, the predetermined factory overhead rate is 14. ____
15. The process of assigning factory overhead costs to a cost object is termed 15. ____
16. In highly-automated factory settings, a widely used activity base for predetermining a factory overhead rate is 16. ____
17. The subsidiary ledger that contains cost data for the units manufactured, units sold, and units on hand is 17. ____
18. The direct labor and overhead costs of a service business are accumulated in a 18. ____
19. If the actual factory overhead costs exceed the amount of factory overhead applied, the factory overhead account balance will be a (debit or credit) 19. ____
20. The factory overhead in Question 19 is said to be 20. ____
21. The source of the data for debiting Work in Process for direct materials is a 21. ____
22. The accounting document that is used to accumulate the costs for each client’s job in a service business is a 22. ____
23. The controlling account for the cost ledger is 23. ____
24. The measure used to allocate overhead that reflects its consumption is called 24. ____
Indicate the titles of the accounts to be debited and credited in recording the summarized operations presented below by inserting the letter or letters of the account titles listed in the appropriate columns.
ACCOUNTS
A. Accounts Payable E. Factory Overhead I. Selling and Administrative Expenses
B. Accounts Receivable F. Finished Goods J. Wages Payable
C. Cash G. Materials K. Work in Process
D. Cost of Goods Sold H. Sales
TRANSACTIONS
Debit
Credit
0. Cash paid on account ......................................................................................
A
0. ____
C
0. ____
1-2. Materials requisitioned for use on specific jobs and for general factory use .......................................................................................................................
1. ____
2. ____
3-4. Factory labor incurred on specific jobs and for general factory use .......
3. ____
4. ____
5-6. Applied factory overhead to jobs ...................................................................
5. ____
6. ____
7-8. Paid salary of vice-president of finance .......................................................
7. ____
8. ____
9-10. Cash paid for overhead costs incurred .........................................................
9. ____
10. ____
11-12. Transferred small balance of under-applied overhead ............................
11. ____
12. ____
13-14. Jobs completed .................................................................................................
13. ____
14. ____
TRANSACTIONS
Debit
Credit
0. Cash paid on account ......................................................................................
A
0. ____
C
0. ____
1-2. Materials requisitioned for use on specific jobs and for general factory use .......................................................................................................................
1. ____
2. ____
3-4. Factory labor incurred on specific jobs and for general factory use .......
3. ____
4. ____
5-6. Applied factory overhead to jobs ...................................................................
5. ____
6. ____
7-8. Paid salary of vice-president of finance .......................................................
7. ____
8. ____
9-10. Cash paid for overhead costs incurred .........................................................
9. ____
10. ____
11-12. Transferred small balance of under-applied overhead ............................
11. ____
12. ____
13-14. Jobs completed .................................................................................................
13. ____
14. ____
Explanation / Answer
3-5. Work in process consists of these costs that have entered the manufacturing process on unfinished products:
3. Direct material
4. Direct labour
5. Manufacturing Overhead
6. The accounting system that accumulates the product costs originating with inventory and ending with the cost of goods sold is the 6. Product costing-job costing
7. The system best suited to industries that manufacture custom goods to fill special orders is referred to as a 7. Target Costing
8. The system that accumulates costs for each of the departments within the factory is a 8. Job Costing
Dear user please dont post multiple questions.