front 1 what is a cost accounting system? | back 1 way of measuring, recording, and reporting product costs |
front 2 identify: | back 2 specific to business applicable to the business measurable |
front 3 record: | back 3 raw materials inventory, finished goods inventory, work in progress inventory, factory labor, manufacturing overhead, |
front 4 communicate: | back 4 cost of goods manufactured income statement balance sheet |
front 5 types of cost accounting systems: | back 5 job order and process |
front 6 job order costing | back 6 company assigns cost to each job or batch of goods specialized, made to order |
front 7 process costing | back 7 company manufactures large volumes of similar products continuous and homogenous |
front 8 raw materials inventory | back 8 assign costs: Indirect materials to manufacturing overhead direct materials to WIP inventory |
front 9 factory labor | back 9 assign costs: indirect labor to MO direct labor to WIP inventory |
front 10 manufacturing overhead | back 10 application of costs via computation to WIP inventory |
front 11 predetermined overhead rate equation | back 11 estimated annual overhead cost / estimated annual operating activity |
front 12 positive MOH balance: | back 12 under applied. debit COGS and credit MOH |
front 13 negative MOH balance: | back 13 over applied. credit COGS and debit MOH |
front 14 how are total cost of jobs determined? | back 14 total job cost (COGM) removed from WIP and transferred into finished goods |
front 15 cost of goods sold for the month: | back 15 beginning finished goods + cost of goods manufactured - ending finished goods = cost of goods sold |
front 16 job cost sheets constitute the subsidiary ledger for the: | back 16 work in process inventory account |
front 17 all of the following would be entries in assigning accumulated costs to the work in process inventory: | back 17 raw materials used overhead is applied factory labor is used |
front 18 the predetermined overhead rate is based on the relationship between the | back 18 estimated annual costs and expected annual activity |
front 19 over applied MO exists when | back 19 actual MO is less than applied MO |
front 20 the journal entry to record the application of MO to WIP includes a | back 20 credit to MO |
front 21 the materials requisition slip shows that the direct materials requisitioned were $66 and indirect materials requisitioned were $9. The entryto record the transfer of materials from the storeroom is: | back 21 WIP inventory: $66 MO: $9 Raw materials inventory: $75 |
front 22 Estimated production 60,000 labor hours Actual production 56,000 labor hours Estimated overhead $1,800,000 Actual overhead$1,740,000 | back 22 $30 per hour (1,800,000 / 60,000) |
front 23 A job order cost system and a process cost system are two alternative methods for accumulating product costs. | back 23 true |
front 24 When raw materials are purchased, the Work in Process Inventory account is debited. | back 24 false |
front 25 Accumulating and assigning manufacturing costs are two important activities in a job order cost system. | back 25 true |
front 26 three ways to allocated overhead costs | back 26 plantwide, departmental, activity based |
front 27 plantwide has | back 27 one overhead rate |
front 28 plantwide based on | back 28 direct labor hours machine hours |
front 29 departmental rate has | back 29 two or more overhead |
front 30 departmental based on | back 30 direct labor hours machine hours |
front 31 activity based costing has | back 31 many overhead rates |
front 32 activity based costing activities that drive costs: | back 32 cost per machine set up cost per material order cost per design change cost per labor hour |
front 33 assumptions of plantwide method | back 33 overhead costs change with the allocation base all products use overhead in the same proportions |
front 34 departmental method assumptions | back 34 different products are similar in volume, complexity, and production quantities department overhead costs are proportional to the departmental allocation based on the |