Chapter 19

Question 1

A source document that records the number of hours each employee works during a pay period; also called a time card

Answer 1

Clock Card

Question 2

Accounting system for manufacturing activities based on the perpetual inventory system.

Answer 2

Cost accounting system

Question 3

system that keeps track of inventory on a periodic basis. This was most often used in manufacturing companies.

Answer 3

General Accounting System

Question 4

Production of a customized product or service.

Answer 4

Job

Question 5

Separate record maintained for each job.

Answer 5

Job cost sheet

Question 6

Production of more than one unit of a customized product or service.

Answer 6

Job lot

Question 7

System that uses job cost sheets, material cost flow documents, labor cost flow documents, and overhead cost flow documents to track the production expenses of producing a job or job lot; tracks each and every expenditure the company makes in order to produce a product.

Answer 7

Job Order Cost Accounting System

Question 8

The process of manufacturing custom or unique products for specific customers; each order or job is a customize order placed by the customer

Answer 8

Job Order Manufacturing

Question 9

Perpetual record updated each time materials are purchased or issued for production use.

Answer 9

Materials ledger card

Question 10

Source document production managers use to request materials for production; used to assign materials costs to specific jobs or overhead.

Answer 10

Materials requisition

Question 11

Amount by which the overhead applied to production in a period using the predetermined overhead rate exceeds the actual overhead incurred in a period.

Answer 11

Overapplied overhead

Question 12

Rate established prior to the beginning of a period that relates estimated overhead to another variable, such as estimated direct labor, and is used to assign overhead cost to production.

Answer 12

Predetermined overhead rate

Question 13

Source document used to report the time an employee spent working on a job or on overhead activities and then to determine the amount of direct labor to charge to the job or the amount of indirect labor to charge to overhead.

Answer 13

Time ticket

Question 14

Amount by which overhead incurred in a period exceeds the overhead applied to that period’s production using the predetermined overhead rate.

Answer 14

Underapplied overhead