Exam 1 ACCT 2302 Flashcards
Which of the following is not a manufacturing cost category?
Cost of goods sold
T/F: Managerial accounting information generally pertains to an entity as a whole and is highly aggregated.
F
T/F: Manufacturing costs that cannot be classified as direct materials or direct labor are classified as manufacturing overhead.
T
T/F: Both direct labor cost and indirect labor cost are manufacturing costs.
T
T/F: A job order cost system is most appropriate when a large volume of uniform products are produced.
F
T/F: A job order cost system identifies costs with a particular job rather than with a set time period.
T
T/F: When raw materials are purchased, the Work in Process Inventory account is debited.
F
T/F: Actual manufacturing overhead costs are assigned to each job by tracing each overhead cost to a specific job.
F
T/F: A process cost accounting system is appropriate for similar products that are continuously mass produced.
T
Assume a company allocates overhead costs based on director labor costs. The company expected its annual overhead costs to be $1,500,000 and direct labor costs to be $1,000,000. Actual overhead was $1,450,000, and actual labor costs totaled $1,100,000. How much is the company’s predetermined overhead rate to the nearest cent?
$1.50 (1,500,000 / 1,000,000)
All of the following would be entries in assigning costs to the Work In Process Inventory except:
The purchase of raw materials
