CH 15A Review

_____ involves measuring, recording, and reporting product and service costs.

• Job costing

• Process costing

• Cost accounting

• Financial reporting.

Under a _____, the company assigns costs to each distinct job or to each batch of goods.

• Cost Accounting System

• Process cost system

• Job order cost system

• Allocation System

The _____ indicates the employee, the hours worked, the account, the job to be charged and the total labor cost.

• Log Book

• Work Order Sheet

• Time Ticket

• Blue Sheet

The equation for Predetermined overhead rate is…

• Actual annual overhead costs / estimated annual operating activity = POH

• Estimated annual overhead costs / estimated annual operating activity = POH

• Estimated annual overhead costs x Actual annual operating activity = POH

• Actual annual overhead costs x Actual annual operating activity = POH

What is the formula for Manufacturing Overhead Applied?

• Predetermined Overhead Rate x Estimated Operating Activity

• Predetermined Overhead Rate x Actual Manufacturing Overhead

• Predetermined Overhead Rate x Estimated Manufacturing Overhead

• Predetermined Overhead Rate x Actual Operating Activity

True or False: When a Job is sold, Finished Goods Inventory is Decreased and Cost of Goods Sold Expense is Increased

• True

• False

Job order cost sheets can also be considered the subsidiary ledger of the Work in Process Inventory account.

• True

• False

When raw materials are received, at this point, no effort is made to associate cost of materials with specific jobs.

• True

• False

Raw Materials Inventory, Factory Labor, and Manufacturing Overhead are all control accounts in a job order cost system.

• True

• False