Cost Accounting Midterm 2021

The information contained in a cost of goods manufactured budget most directly relate to the:

• Materials used, direct labor, overhead applied, and ending work-in-process budgets.

• Materials used, direct labor, overhead applied, and work-in-process inventories budgets.

• Materials used, direct labor, overhead applied, work-in-process inventories, and finished goods inventories budgets.

• Materials used, direct labor, overhead applied, and finished goods inventories budgets.

The wages of the factory janitorial staff should be classified as:

• Factory overhead cost

• Direct labor cost

• Period cost

• Prime cost

Which of the following items is not included in (charged to) factory overhead?

• Factory depreciation and supplies

• Costs of service departments

• Costs of marketing departments

• Costs of maintenance departments

The debits in work-in-process are beginning work-in-process, direct labor, direct materials, and factory overhead. The account should be credited for production that is completed and sent to finished goods in inventory. The balance is:

• Zero

• Ending Work-in-process (credit)

• Ending Work-in-process (debit)

• Total production costs to be accounted for

When the amount of overapplied factory overhead is significant, the entry to close overapplied factory overhead will most likely require:

• A debit to cost of goods sold

• Debits to cost of goods sold, finished goods inventory, and work-in-process inventory

• A credit to cost of goods sold

• Credits to cost of goods sold, finished goods inventory, and work-in-process inventory

Which of the following should not be included as manufacturing overhead in the manufacture of wooden chair?

• Glue in the chair

• The amount paid to the individual who stains the chair

• The workman’s compensation insurance of the supervisor who oversees production

• The factory utilities of the department in which production takes place

As current technology changes manufacturing processes, it is likely that direct…

• Labor will increase

• Labor will decrease

• Materials will increase

• Materials will decrease

Which of the following is the basic document that is used to accumulate the cost of each order in job order costing?

• Invoice

• Purchase order

• Requisition Sheet

• Job cost sheet

Which of the following statements are true?

I. One of the purpose of JIT inventory system is to have goods ready just when the customer needs them.

II. Under JIT, materials are “pushed” from one workstation to another to ensure timely completion of finished products.

III. In a JIT environment, workers are expected to be cross-trained and work as a team.

• I and II only

• II and III only

• I and III only

• All of them

Which of the following statements are true?

I. Product costs are historical figures and therefore are of little use to the manager.

II. A company producing furniture would probably use a job order cost system

III. Both job order and process costing systems utilize averaging concepts in computing unit costs.

• I and II only

• II and III only

• I and III only

• All of them