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Exam 10: Accounting Systems for Manufacturing Businesses

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Question 31

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Factory overhead is applied to production using a predetermined overhead rate.

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Question 32

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In a job order cost accounting system,when goods that have been ordered are received,the receiving department personnel count,inspect the goods,and complete a

A) purchase order.
B) sales invoice.
C) receiving report.
D) purchase requisition.

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Question 33

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Just-in-time manufacturing practices include all of the following EXCEPT

If the cost of materials is NOT a significant portion of the total product cost,the materials may be classified as part of factory overhead cost.

For a manufacturing business,inventory that is in the process of being manufactured Is referred to as

The recording of the factory labor incurred for general factory use would increase

Costs that are treated as assets until the product is sold are called

The current year's advertising costs are normally considered product costs.

The cost of a manufactured product generally consists of direct materials cost,direct labor cost,and factory overhead cost.

Job order cost systems can be used to compare unit costs of similar jobs to determine if costs are staying within expected ranges.

Which of the following would most likely use a job order costing system?

At the end of the fiscal year,the balance in Factory Overhead is small.This balance would normally be

The Cranford Company forecasts that total overhead for the current year will be $15,000,000 and that total machine hours will be 200,000 hours.Year to date,the actual overhead is $8,000,000 and the actual machine hours are 100,000 hours.If the Crawford Company uses A predetermined overhead rate based on machine hours for applying overhead,what is that overhead rate?

Service companies can effectively use activity-based costing to compute product (service)costs.

A job order cost accounting system provides for a separate record of the cost of each particular quantity of product that passes through the factory.

In a job order cost accounting system used by a service business,which of the following items would normally NOT be included as part of overhead?

If factory overhead applied is less than the actual costs,overhead is said to be underapplied.

The direct labor and overhead costs of providing services to clients are accumulated in

Perpetual inventory controlling accounts and subsidiary ledgers are maintained for materials,work in process,and finished goods in cost accounting systems.

For which of the following businesses would the job order cost system be appropriate?