Management Accounting Ch02
Quizzes and Definitions
Quizzes and Definitions
Set of flashcards Details
| Flashcards | 26 |
|---|---|
| Language | English |
| Category | Finance |
| Level | University |
| Created / Updated | 24.05.2021 / 29.01.2023 |
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Under a job order system, the company assigns costs to each job, or each batch of goods, to fill a specific customer order or replenish inventory.
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Manufacturing costs incurred in a job order system are accumulated by debits to Purchases, Factory Labor, and Manufacturing Overhead.
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Each debit to Work in Process Inventory must be accompanied by a corresponding posting to one or more job cost sheets.
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Manufacturing overhead costs cannot be traced directly to a specific job.
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The requisition of factory supplies to production requires a debit to the Manufacturing Overhead account.
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Actual overhead costs are debited to the Manufacturing Overhead account.
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The entry to record the cost of goods sold includes a debit to Finished Goods Inventory.
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A debit balance in the Manufacturing Overhead Account at the end of the period indicates that overhead has been overapplied.
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In preparing the costs of goods manufactured schedule in job order costing, manufacturing costs include direct materials used, direct labor used, and manufacturing overhead applied.
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A job cost sheet is a form used to record the costs chargeable to a specific job and to determine the total and unit cost of the completed job.
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A job order cost sheet includes
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Companies assign raw materials costs to jobs
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In a job order cost system, debits to Work in Process Inventory originate from all of the following except
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The predetermined overhead rate is computed by dividing estimated
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If annual overhead costs are expected to be $1,000,000 and 200,000 total labor hours are anticipated (80% direct, 20% indirect), the overhead rate based on direct labor hours is
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Cost accounting
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An area of accounting that involves measuring, recording, and reporting product costs.
Cost accounting system
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Manufacturing-cost accounts that are fully integrated into the general ledger of a company.
Job cost sheet
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A form used to record the costs chargeable to a specific job and to determine the total and unit costs of the completed job.
Job order cost system
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A cost accounting system in which costs are assigned to each job or batch.
Materials requisition slip
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A document authorizing the issuance of raw materials from the storeroom to production.
Overapplied overhead
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A situation in which overhead assigned to work in process is greater than the overhead incurred.
Predetermined overhead rate
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A rate based on the relationship between estimated annual overhead costs and expected annual operating activity, expressed in terms of a common activity base.
Process cost system
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A cost accounting system used when a company manufactures a large volume of similar products.
Time ticket
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A document that indicates the employee, the hours worked, the account and job to be charged, and the total labor cost.
Underapplied overhead
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A situation in which overhead assigned to work in process is less than the overhead incurred.
Dazhong Dynamics completes Job No. 26 at a cost of HK$ 45'000 and later sells it for HK$ 70'000 cash. A correct entry is:
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