Adv Accounting Chapter 17

Debits to Finished Goods represent the

• Cost of goods sold

• over applied factory overhead

• undersupplied factory overhead

• cost of completed goods

The estimated amount that appears on the cost sheet is

• the number of units

• direct materials

• direct labor

• factory overhead

On a manufacturing income statement, the cost of goods manufactured replaces

• the cost of goods sold

• gross profit on operations

• purchases

• sales

In the accounting records, debits to Materials represent purchases of materials. Credits to Materials represent

• sales of materials

• returns of materials

• issuances of materials for the factory

• finished goods

Direct materials and direct labor are included in factory overhead.

• True

• False

At the end of each day, job-time records are summarized and direct labor costs are recorded on each job’s cost sheet.

• True

• False

At the end of a fiscal period, cost sheets for work in process are totaled to determine theending inventory for the general ledger account Work in Process.

• True

• False

The total of all finished goods ledger cards equals the Work in Process inventory account balance.

• True

• False

Once standards are established, they can be compared to actual results to evaluate the efficiency of the manufacturing process.

• True

• False

A favorable labor price variance means that the price actually paid for labor was less than the labor price standard.

• True

• False