Cost Methods

Question 1

the cost accountant records JE to…

Answer 1

adjust the financial acc JEs and move product costs out of expense accounts into inventory accounts

Question 2

the fianancial accountant records..

Answer 2

manufacturing costs as an expense when occured

Question 3

financial accountant DM JE

Answer 3

DM $
AP or cash $

Question 4

the FA reports DL

Answer 4

wage exp $
wages payable $

Question 5

the FA reports MOH

Answer 5

___ exp $
___ exp $
Ap, cash, or AD $

Question 6

the financial accountant reports period costs…

Answer 6

as occured

Question 7

product costs are expenses to CGS when…

Answer 7

sold

Question 8

for the actual method, the CA first does these JEs

Answer 8

WIP $ actual
DM $ actual
WIP $ actual
wage exp $ actual
WIP $ actual
____ exp $
____ exp $

Question 9

the company wants _____ WIP

Answer 9

minimal

Question 10

production is completed when…

Answer 10

products move from production line (WIP) to finished goods warehouse

Question 11

CGM =

Answer 11

beg WIP
+ DM
+ DL
+ MOH
- end WIP

Question 12

CGM is moved from _____ to _____

Answer 12

WIP; FG

Question 13

when goods are sold to customers…

Answer 13

FG are removed from warehouse and shipped to customers and CGS is expensed

Question 14

CGS is expenses when…

Answer 14

the product is sold and shipped

Question 15

CGS =

Answer 15

beg FG
+ CGM
- end FG

Question 16

steps for calculating MOH for NM

Answer 16

1. actual
2. estimated
3. true up

Question 17

estimated moh =

Answer 17

MOH rate x actual activity

Question 18

in the t/up chart, when the subtotal is on the debt side, it is….

Answer 18

underapplied

Question 19

underapplied JE

Answer 19

CGS $
MOH $

Question 20

in the t/up chart, when the subtotal is on the credit side, it is….

Answer 20

over applied

Question 21

overapplied JE

Answer 21

MOH $
CGS. $

Question 22

underapplied means the company must…

Answer 22

add more costs

Question 23

overapplied means the company must….

Answer 23

decrease costs

Question 24

for the standard method, how do you estimate? =

Answer 24

est cost per 1 x actual units made

Question 25

actual method is used when…

Answer 25

the company makes one product or the same products

Question 26

the normal method is used when a company…

Answer 26

has more than one product, tracks actual DM and DL incurred

Question 27

for the normal and standard methods, MOH is applied to…

Answer 27

each product

Question 29

standard method is used by companies…

Answer 29

with lots of products and do not track DM or DL per product

Question 30

in the normal and standard methods, the TOTAL estimated MOH must be adjusted to equal the…

Answer 30

TOTAL actual MOH incurred