accounting 2 exam 1

Question 1

The primary users of financial accounting are

Answer 1

external users

Question 2

The primary users of managerial accounting are

Answer 2

internal users

Question 3

Planning requires managers to

Answer 3

1. look to the future & stablish goals for the business

Question 4

The different types of product costs are

Answer 4

are direct materials, direct labor & manufacturing overhead

Question 5

product costs are treated

Answer 5

1. as assets & expensed when the product is sold.

Question 6

The inventory manufacturer consists of

Answer 6

1. raw materials, work-in process, and finished goods.

Question 7

1. Direct materials can be easily traced to a product and it’s not part of manufacturing overhead

Answer 7

true

Question 8

Manufacturing overhead includes

Answer 8

all indirect manufacturing costs.

Question 9

Direct materials are included

Answer 9

in manufacturing overhead

Question 10

The costs that make up prime costs

Answer 10

direct materials & direct costs

Question 11

Costs included in cost of goods manufactured

Answer 11

1. direct materials, direct labor, manufacturing overhead.

Question 12

Typed of companies that use a job order costing system are

Answer 12

companies that manufactured batches of unique products or provide specialized services

Question 13

When direct materials are received on the production floor

Answer 13

1. they’re recorded on job cost.

Question 14

1. Raw materials inventory account it’s credited when materials are requisitioned

Answer 14

true

Question 15

Manufacturing overhead is a temporary account and it’s used to

Answer 15

1. accumulate indirect production costs during the accounting period.

Question 16

Direct labor costs are assigned to individual jobs and they are recorded with a

Answer 16

debit

Question 17

Manufacturing overhead is affected when incurring indirect labor costs by being

Answer 17

debited

Question 18

Actual manufacturing overhead costs are recorded by

Answer 18

1. debiting the manufacturing overhead account.

Question 19

Manufacturing overhead is allocated by

Answer 19

1. debiting finished goods and crediting work in process.

Question 20

Cost of goods manufactured are recorded by

Answer 20

1. debiting finished goods & crediting work in process.

Question 21

Finished goods are recorded by

Answer 21

1. debiting finished goods and crediting work in process