I Hate This Flashcards
The cost per equivalent unit production uses the results of equivalent units of production schedule
True or false
True
The total equivalent units of production must equal the total cost
True or false
False
The total cost of allocation schedule must equal the total of ending WIP cost and cost of goods transferred out
True or false
True
The journal entry for goods transferred out of production includes a credit to the next departments WIP account
True or false
False
All credit sales are collected in the month of sale.
True or false
False
You must add anticipated credit sale collections to monthly cash sales to get the anticipated total cash receipts.
True or false
True
Which cash schedule should be calculated first?
Cash Collections
Cash Payments
Summary of Cash Activity
The order is irrelevant.
Cash collections
Which budgets are considered when calculating the budgeted amount of cash payments?
Operating
Financing
Capital Expenditures
All of the above
All above
Which budget must be prepared before the direct labor and materials budgets?
Selling and Administrative Costs
Production
Manufacturing Overhead
Cost of Goods Sold
Production
Which budget is used to determine if the selling price is sufficient?
Manufacturing Overhead
Selling and Administrative Cost
Cost of Goods Sold
Sales
Cost of goods sold
If the Projected Income Statement yields a Net Loss, the company should not pursue a project.
False
True
Not necessarily
Not necessarily
Which budgets are used to calculate the predetermined MOH in the videos?
MOH and COGS
Sales and MOH
Direct Labor and MOH
Direct Material and MOH
Direct labor and moh
Which budget is the cornerstone of the budgeting process?
Projected Income Statement
Cost of Goods Sold
Sales
Production
Sales
