Each of the following statements may (or may not) describe these technical terms. For each state- ment, indicate the term described, or answer "None" if the statement does not correctly describe any of the terms. An activity base that can be traced directly to units produced and can be used as a denominator in computing an overhead application rate. b. The total of all direct labor, direct materials, and manufacturing overhead transferred from work in process to finished goods. A means of assigning indirect product costs to work in process during the period. A debit balance remaining in the Manufacturing Overhead account at the end of the period. e. The type of cost accounting system likely to be used by a construction company. f. The type of cost accounting method likely to be used for overhead costs. а. с. d.

Each of the following statements may (or may not) describe these technical terms. For each state- ment, indicate the term described, or answer "None" if the statement does not correctly describe any of the terms. An activity base that can be traced directly to units produced and can be used as a denominator in computing an overhead application rate. b. The total of all direct labor, direct materials, and manufacturing overhead transferred from work in process to finished goods. A means of assigning indirect product costs to work in process during the period. A debit balance remaining in the Manufacturing Overhead account at the end of the period. e. The type of cost accounting system likely to be used by a construction company. f. The type of cost accounting method likely to be used for overhead costs. а. с. d.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter4: Job Order Costing

Section: Chapter Questions

Problem 13MC: In a job order cost system, overhead applied is debited to which account? A. work in process...

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During production, to what are the costs in job order costing applied? A. manufacturing overhead B. cost of goods sold C. each individual product D. each individual department
Assigning indirect costs to departments is completed by __________________________. applying the predetermined overhead rate debiting the manufacturing costs incurred applying the costs to manufacturing overhead applying the costs to work in process inventory
Assigning indirect costs to specific jobs is completed by which of the following? applying the costs to manufacturing overhead using the predetermined overhead rate using the manufacturing costs incurred applying the indirect labor to the work in process inventory
Carltons Kitchens three cost pools and overhead estimates are as follows: Compare the overhead allocation using: A. The traditional allocation method B. The activity-based costing method (Hint: the traditional method uses machine hours as the allocation base.)
During production, how are the costs in process costing accumulated? A. to cost of goods sold B. to each individual product C. to manufacturing overhead D. to each individual department
When using job order costing for a professional service business, the primary product (service) costs are: A.Direct Materials and Overhead B.Direct Materials and Direct Labor C.Direct Materials. Direct Labor, and Overhead D. Direct Labor and Overhead
Freeman Furnishings has summarized its data as shown. Direct labor hours will be used as the activity base to allocate overhead: Compute the cost of goods manufactured.
Which of the following product situations is better suited to job order costing than to process costing? A. Each product batch is exactly the same as the prior batch. B. The costs are easily traced to a specific product. C. Costs are accumulated by department. D. The value of work in process is based on assigning standard costs.
Journal Entries, Basic Cost Flows In December, Davis Company had the following cost flows: Required: 1. Prepare the journal entries to transfer costs from (a) Molding to Grinding, (b) Grinding to Finishing, and (c) Finishing to Finished Goods. 2. CONCEPTUAL CONNECTION Explain how the journal entries differ from a job-order cost system.
In a process costing system, which account shows the overhead assigned to the department? A. cost of goods sold B. finished goods inventory C. raw material inventory D. work in process inventory
Which is not a step In activity-based costing? A. identify the activities performed by the organization B. identify the cost driver(s) associated with each activity C. compute a cost rate per production D. assign costs to products by multiplying the cost driver rate by the volume of the cost driver units consumed by the product
In a job order cost system, overhead applied is debited to which account? A. work in process inventory B. finished goods inventory C. manufacturing overhead D. cost of goods sold