Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Accounting Exam 1 > Chapter 15 > Flashcards

Chapter 15 Flashcards

1
Q

A cost accounting system includes

A

Is used to control costs of manufacturing activities

Helps managers determine selling prices

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

True or false
The principle of customization is applicable to both service and manufacturing companies

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

True or false
A job costing system requires the company to keep desperate records for each job.

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Choose the products that are most likely to be manufactured as a job, rather than as a job lot

A

Customized home

Tailored wedding dress

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Custom orders

Mass production

A

Custom orders- job order ooerations

Mass production- process ooerations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

A cost accounting system includes which of the following?

A

It accumulates production costs and assigns them to products and services.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

The three types of manufacturing costs in a job order costing system include

A

Direct labor
Direct materials
Overhead

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Job order production is most likely used by companies that produce

A

Customized wedding cakes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

The correct order of cost flows in a job order costing system is

A

Work in process-finished goods-cost of goods sold

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

The cost accounting system used when producing customized products is called _______ order production.

A

Job order

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Job cost sheets could be used to

A

Provide a record for the cost of goods sold account

Monitor costs incurred and to predict costs for each job

Provide a subsidiary ledger for the Finished goods inventory account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

A job which involves producing more than one unit of a custom product is called a

A

Job lot

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

After jobs are completed and delivered to customers, the job cost sheets is used to provide a permanent record for

A

Cost of goods sold

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

All of the following are manufacturing costs except

A

Office salaries

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

List the following documents in the order that they are used when recording indirect materials costs in job order ckst accounting, with the first document on top.

A

Receiving reports
Materials ledger cards
Materials requisition
Factory overhead ledger

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

All of the following are inventory accounts for a manufacturer except

A

Indirect materials inventory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Receiving reports are used in job order costing to record the cost and quantity of materials

A

Delivered from suppliers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Companies use job cost sheets to track the costs of

A

Materials, labors, and overhead costs of a job

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

During production job cost sheets represent

A

The balance in the work in process inventory account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

The journal entry to record the purchase of materials on account is

A

Increase in assets and an increase in liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Requisitionls are used in job order costing to record the cost and quantity of

A

Both direct and indirect materials requested by the production department

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Job cost sheets can be used to

A

Provide a record for the cost of goods sold account

Monitor costs incurred and to predict costs for each job

Provide a subsidiary ledger for the Finished goods inventory account

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Journal entries for materials used in production are posted to

A

General ledger accounts
Subsidiary records

24
Q

After jobs are completed and delivered to customers the job cost sheet is used to produce a permanent record for

A

Cost of goods sold

25
Q

Time tickets are used in job order costing to record the time and cost of

A

Both direct and indirect labor in the production department

26
Q

The journal entry to record the purchase of materials on account is to

A

Debit raw materials inventory and credit accounts payable

27
Q

The recording of direct labor will result in a

A

Debit to work in process inventory and credit to factory wages payable

28
Q

The journal entry to record the use of direct materials in production is

A

Increase in one asset and decrease in another asset

29
Q

Time tickets are used in job order costing to

A

Report hours worked on specific jobs during the payroll period

30
Q

Managers use a predetermined overhead rate for which of the following reasons

A

To assist in setting prices for jobs

To estimate total job costs before the job is completed

31
Q

The journal entry to record the purchase of materials on account is an

A

Increase in assets and and increase in liabilities

32
Q

The predetermined overhead rate is based on total ______ costs and activity base.

A

Overhead

33
Q

The journal entry to record direct labor in production is to

A

Debit work in process inventory and credit factory wages payable

34
Q

True or false
Materials requisitioned for use on a specific job are always considered to be direct materials

A

False

35
Q

Manufacturing costs include direct materials direct labor and

A

Applied overhead costs

36
Q

Overhead may be applied based on

A

Direct labor
Machine hours

37
Q

The journal entry to record the allocation of factory overhead to work in process is

A

Debit work in process and credit factory overhead

38
Q

True or false
Journal entries are not required when direct materials are requisitioned

A

False

39
Q

The journal entry to record indirect materials cost used in production bincludes a debit to factory ____

A

Overhead

40
Q

The base to which overhead costs are linked such as direct labor or machine hours, is known as the overhead_____ base

A

Overhead activity base

41
Q

The journal entry to record indirect labor used in production is to

A

Debit factory overhead and credit factory wages payable

42
Q

The journal entry to record depreciation on factory equipment is to

A

Debit factory overhead and credit accumulated depreciation-equipment

43
Q

True or false
Factory overhead includes direct materials and direct labor

A

False

44
Q

The journal entry to record the use of indirect materials in production is to

A

Debit factory overhead and credit raw materials inventory

45
Q

A schedule of cost of goods manufactured included all of the following costs

A

Factory overhead applied
Work in process inventory
Direct labor used
Direct materials used

46
Q

If the factory overhead is over applied then

A

The factory overhead account has a credit balance

Applied overhead costs>actual overhead costs.

47
Q

The journal entry to record the accrual of factory utilities is to

A

Debit factory overhead and credit utilities payable

48
Q

One important difference between service companies and manufacturing companies is that

A

Service companies do not have raw materials inventory

49
Q

A schedule of cost of goods manufactured included all of the following costs

A

Direct labor used
Factory overhead applied
Work in process inventory
Direct materials used

50
Q

The factory overhead account is (debited/credited) for applied overhead costs

A

Credited

51
Q

A company incurs factory overhead costs of 1200 and applied 1500 if the difference is considered immaterial then the ____

A

Factory overhead account has a credit balance of 300 before adjusting

Adjusting entry will require a credit to cost of goods sold

52
Q

At the end of the accounting period a company’s overhead was under applied by 150 if not adjusted how does this affect net income?

A

Net income will be overstated by $150

53
Q

Both service companies and manufacturing companies have

A

Direct labor

Overhead

54
Q

A schedule of cost of goods manufactured included all of the following except

A

Cost of goods sold

55
Q

If the factory overhead account is under applied then the adjusting journal entry to close the factory overhead account includes a

A

Debit to cost of goods sold

Credit to factory overhead

Accounting Exam 1 (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions