Chapter 15 Questions Flashcards
When a customized product is manufactured separately, it is referred to as ____ production
a job order
The three manufacturing costs include:
direct materials, direct labor and overhead Correct
Manufacturing costs flow in which order?
raw materials inventory, work in process inventory, finished goods inventory
All of the following are included on a job cost sheet except?
Customer’s name and address
Customer’s signature when job is complete
Direct materials cost
Direct labor cost
Overhead costs
Customer’s signature when job is complete
What is the chronological order of the material cost flows through the subsidiary records?
Receiving Reports, Materials Ledger Card, Requisitions, Job Cost Sheet
What account is debited when materials are purchased on credit for later use in production?
Raw Materials Inventory
A _____ _____ is used to track each employee’s direct labor time.
time ticket
What account is debited when direct labor is recorded for the month?
Work in Process Inventory
Finished goods inventory is reported on the:
Balance Sheet
The costs assigned to a job that has been sold is reported on the:
Income Statement Correct
Total manufacturing costs include direct materials, direct labor, plus:
Factory overhead applied
The beginning and ending work in process inventory account balances are reported on the balance sheet as shown in the:
Schedule of Cost of Goods Manufactured
Bridge Builders Company examined its Factory Overhead account at the end of the year and discovered a debit balance. What does this indicate?
Overhead has been under-applied
Bridge Builders Company examined its Factory Overhead account at the end of the year and discovered a credit balance of $2,000. The journal entry to close this account includes which of the following?
Credit to Cost of Goods Sold
production of more than one unit of a custom product.
Job lot
