Homework Answers
1. True . In a process cost system, product costs are accumulated by processing departments rather than by job. In job costing system, cost is accumulated for a particular job based on direct material or direct labour used in that job.
2. False. If factory overhead applied exceeds the actual cost, then factory overheads is said to be overapplied
3. True. Manufacturer may employ job order cost system for some of its product and process cost system for others.
4. Period costs are always found on income statement for the period in which they are incurred.
5. Managerial accounting reports are always not prepared with GAAP. Managerial accounting information need not conform with GAAP.
6. True. Direct labor is a period cost. Shown in income statement of the year in which it is incurred.
7. False. A manufacturing business reports three types of inventory in balance sheet. Raw material inventory, work-in - progress inventory and finished goods inventory.
8. False. Use of Job order costing system is not limited to the companies manufacturing products. Accounting firms can also use job costing system.
9. True. Cost of a product generally consist of direct material, direct labor and factory overheads.
10. True. Companies which produce similar and identical products use process costing system. Given industries produce similar and identical products.
11. True. High quality, low cost and instant availability are essential features of the companies using just in time processing philosophy.
12. True. Equivalent units of production are the number of units that could have been manufactured from start to finish during an accounting period.
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Name TRUE/FALSE 1. In a process cost system, product costs are accumulated by processing department rather...
please help with these please i am so confused. please do all them. thank you. Multiple...
please help with these please i am so confused. please do all
them. thank you.
Multiple Choice Idently the choice that best completes the statement or answer the question 1. What is the primary criterion for the preparation of managerial accounting reports? a. Relevance of the reports b. Meet the manager needs c. Timing of the reports d. Cost of the reports 2. Which of the following is considered a part of factory overhead cost? a. Sales commissions b. Depreciation...
2. On the balance sheet for a manufacturing business, the cost of direct materials, direct labor,...
2. On the balance sheet for a manufacturing business, the cost of direct materials, direct labor, and factory overhead are categorized as either materials inventory, work in process inventory, or finished goods inventory. a. True b. False The statement of cost of goods manufactured is an extension of the income statement for a manufacturing company. a. True b. False 4. Managers use managerial information to evaluate performance of a company's operation. a. True b. False 5. Managerial information is for...
Part 1: Circle the correct term for completing each of the following sentences. 1. Accounting information...
Part 1: Circle the correct term for completing each of the following sentences. 1. Accounting information that is prepared in accordance with generally accepted accounting principles (GAAP) is called (financial managerial) aceounting. 2. Short-term actions for managing the day-to-day operations of the company are called operational strategic) planning. 3. The wages of assembly-line workers are considered a (product, period) cost. 4. Direct materials costs combined with direct labor costs are called (prime conversion) costs. 5. An example of a factory...
Chapter 18 Introduction to Managerial Accounting Directed Reading Guide Why is managerial accounting important? Identify as...
Chapter 18 Introduction to Managerial Accounting Directed Reading Guide Why is managerial accounting important? Identify as a focus of Managerial (M) or Financial (F) accounting: Primarily for internal users ______ Primarily for external users ______ Follows GAAP rules ______ Summary reports of the entire company ______ Concerned about how reports will affect employee behavior ______ Managers need information for? How are costs classified? Manufacturing (product) costs categories are: materials labor overhead __________________ combines direct materials and direct labor. __________________ combines...
Match the term with the correct definition. Finished goods inventory Direct costs Work in process inventory...
Match the term with the correct definition. Finished goods inventory Direct costs Work in process inventory Product costs Statement of Cost of Goods Manufactured Period Cost A operating costs that are shown on the income statement in the period in which they are incurred B. Costs that are an integral part of the finished product and a significant portion of the total cost of the product C. Direct materials, direct labor and factory overhead D. Reports cost of goods manufactured...
23. A product cost is expensed in the period in which it is manufactured shown with...
23. A product cost is expensed in the period in which it is manufactured shown with current liabilities on the balance sheet shown with operating expenses on the income statement d expensed in the period the product is sold Conversion costs are a direct materials and direct labor b. direct materials and factory overhead e factory overhead and direct labor d. direct materials and indirect labor 25. Given the following data: Beginning raw materials inventory Materials purchased Ending raw materials...
1. Three costs in every product are direct materials, direct labor, and period costs direct materials,...
1. Three costs in every product are direct materials, direct labor, and period costs direct materials, work in process, and manufacturing overhead direct materials, direct labor, and manufacturing overhead direct materials, work in progress, and finished goods 2. What is the journal entry for under applied overhead? Manufacturing overhead Finished Goods Inventory Finished Goods Inventory Manufacturing Overhead Manufacturing overhead Cost of goods sold Cost of goods sold Manufacturing overhead 3. Use a piece of scrap paper...
31) Asteroid Industries accumulated the following cost information for the year: Direct materials Indirect materials Indirect...
31) Asteroid Industries accumulated the following cost information for the year: Direct materials Indirect materials Indirect labor Factory depreciation $16,000 4,000 8,500 12,800 37,000 Direct labor Using the above information, total factory A) $53,000. B) $25,300. e above information total factory overhead costs would be: C) $78,300. D) $16,800. E) $12,800 ne overhead cost applied to a job during a period is recorded with a credit to Factory Overhead and a debit to: A) Work in Process Inventory. B) Cost...
16. The cost of a manufactured product generally consists of which of the following costs? a...
16. The cost of a manufactured product generally consists of which of the following costs? a direct materials cost and factory overhead cost only b. direct labor cost and factory overhead cost only c. direct labor cost, direct materials cost, and factory overhead cost d. direct materials cost and direct labor cost only 17. Materials must have which two qualities in order to be classified as direct materials? a. They must be classified as both prime costs and conversion costs. b....
True or False TF 1. Managerial accounting focuses on the accounting tools managers use to run...
True or False
TF 1. Managerial accounting focuses on the accounting tools managers use to run a business. TF 2. The part of the management process that analyzes actual performance versus planned performance is called decision making. TF 3. Assembling components is not part of the operating process. TF 4. Direct costs can be traced directly to the manufactured product. 5. Insurance on property is part of factory overhead. TF TF 6. Conversion costs consist of direct materials and direct...
please help with these please i am so confused. please do all
them. thank you.
Multiple Choice Idently the choice that best completes the statement or answer the question 1. What is the primary criterion for the preparation of managerial accounting reports? a. Relevance of the reports b. Meet the manager needs c. Timing of the reports d. Cost of the reports 2. Which of the following is considered a part of factory overhead cost? a. Sales commissions b. Depreciation...
2. On the balance sheet for a manufacturing business, the cost of direct materials, direct labor, and factory overhead are categorized as either materials inventory, work in process inventory, or finished goods inventory. a. True b. False The statement of cost of goods manufactured is an extension of the income statement for a manufacturing company. a. True b. False 4. Managers use managerial information to evaluate performance of a company's operation. a. True b. False 5. Managerial information is for...
Part 1: Circle the correct term for completing each of the following sentences. 1. Accounting information that is prepared in accordance with generally accepted accounting principles (GAAP) is called (financial managerial) aceounting. 2. Short-term actions for managing the day-to-day operations of the company are called operational strategic) planning. 3. The wages of assembly-line workers are considered a (product, period) cost. 4. Direct materials costs combined with direct labor costs are called (prime conversion) costs. 5. An example of a factory...
Match the term with the correct definition. Finished goods inventory Direct costs Work in process inventory Product costs Statement of Cost of Goods Manufactured Period Cost A operating costs that are shown on the income statement in the period in which they are incurred B. Costs that are an integral part of the finished product and a significant portion of the total cost of the product C. Direct materials, direct labor and factory overhead D. Reports cost of goods manufactured...
23. A product cost is expensed in the period in which it is manufactured shown with current liabilities on the balance sheet shown with operating expenses on the income statement d expensed in the period the product is sold Conversion costs are a direct materials and direct labor b. direct materials and factory overhead e factory overhead and direct labor d. direct materials and indirect labor 25. Given the following data: Beginning raw materials inventory Materials purchased Ending raw materials...
31) Asteroid Industries accumulated the following cost information for the year: Direct materials Indirect materials Indirect labor Factory depreciation $16,000 4,000 8,500 12,800 37,000 Direct labor Using the above information, total factory A) $53,000. B) $25,300. e above information total factory overhead costs would be: C) $78,300. D) $16,800. E) $12,800 ne overhead cost applied to a job during a period is recorded with a credit to Factory Overhead and a debit to: A) Work in Process Inventory. B) Cost...
16. The cost of a manufactured product generally consists of which of the following costs? a direct materials cost and factory overhead cost only b. direct labor cost and factory overhead cost only c. direct labor cost, direct materials cost, and factory overhead cost d. direct materials cost and direct labor cost only 17. Materials must have which two qualities in order to be classified as direct materials? a. They must be classified as both prime costs and conversion costs. b....
True or False
TF 1. Managerial accounting focuses on the accounting tools managers use to run a business. TF 2. The part of the management process that analyzes actual performance versus planned performance is called decision making. TF 3. Assembling components is not part of the operating process. TF 4. Direct costs can be traced directly to the manufactured product. 5. Insurance on property is part of factory overhead. TF TF 6. Conversion costs consist of direct materials and direct...
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