Midterm 1 2016 part i Flashcards
A manufacturing process requires small amounts of glue. The glue used in the production process is classified as a(n)
a. period cost
b. indirect material
c. direct material
d. miscellaneous expense
b. indirect material
Kushman combines, inc. has $20,000 of ending finished goods inventory as of December 31, 2013. If beginning finished goods inventory was $10,000 and cost of goods sold was $50,000, how much would Kushman report for cost of goods manufactured?
a. $70,000
b. $10,000
c. $60,000
d. $40,000
c. $60,000
Costas Company has beginning and ending raw materials inventories of $64,000 and $80,000, respectively. If direct materials used were $310,000, what was the cost of raw materials purchased?
a. $310,000
b. $330,000
c. $294,000
d. $326,000
d. $326,000
Worth Company reported the following year-end information: beginning work in process inventory, $180,000; cost of goods manufactured, $866,000; beginning finished goods inventory, $252,000; ending work in process inventory, $220,000; and ending finished goods inventory, $264,000. Worth Company’s cost of goods sold for the year is:
a. $854,000
b. $878,000
c. $826,000
d. $602,000
a. $854,000
An important feature of a job order cost system is that each job
a. Must be similar to previous jobs completed
b. has its own distinguishing characteristics
c. must be completed before a new job is accepted
d. consists of one unit of output
b. has its own distinguishing characteristics
The flow of costs in a job order cost system
a. involves accumulating manufacturing costs incurred and assigning the accumulated costs to work done.
b. cannot be measured until all jobs are complete
c. measures product costs for a set time period
d. generally follows a LIFO cost flow assumption.
a. involves accumulating manufacturing costs
When a job is completed and all costs have been accumulated on a job cost sheet, the journal entry that should be made is
a. Finished Goods Inventory
Direct Materials
Direct Labor
Manufacturing Overhead
b. Work In Process Inventory
Direct Materials
Direct Labor
Manufacturing Overhead
c. Raw Materials Inventory
Work In Process Inventory
d. Finished Goods Inventory
Work In Process Inventory
d. Finished Goods Inventory
Work In Process Inventory
A company assigned overhead to work in process. At year end, what does that amount of overapplied overhead mean?
a. The overhead assigned to work in process is greater than the estimated overhead costs.
b. The overhead assigned to work in process is less than the estimated overhead cost
c. The overhead assigned to work in process is less than the actual overhead
d. The overhead assigned to work in process is greater than the overhead incurred
d. The overhead assigned to work in process is greater than the overhead incurred
In a process cost system,
a. a Work in Process account is maintained for each product.
b. a materials reequisition must identify the job on which the materials will be used
c. a Work in Process account is maintained for each process
d. one Work in Process account is maintained for all the processes, similar to a job order cost system.
c. a Work in Process account is maintained for each process
In process cost accounting, manufacturing costs are summarized on a
a. job order cost sheet
b. process order cost sheet
c. production cost report
d. manufacturing cost sheet
c. production cost report
