Question

Match the following terms to the statements shown below. Use capital letters for your answers. Each term can only be used once.

Activity-based costing F. Manufacturing costs

Cost driver G. Overapplied overhead

Direct labor H. Period costs

Full cost I. Process costing system

Job cost sheet J. Selling costs

______ 1. The costs associated with securing and filling customers orders.

______ 2. Required under GAAP for valuing inventory on the balance sheet.

______ 3. Assigns overhead costs to products using a number of different allocation bases.

______ 4. Actual overhead costs are less than applied overhead.

______ 5. A form used to accumulate the product costs of each job.

______ 6. Used by companies that produce large quantities of identical items.

______ 7. The activity used as the basis for developing an overhead rate.

______ 8. Consists of direct material, direct labor, and overhead.

______ 9. Represents cost of workers directly involved in the production of a job.

______ 10. Costs that are expensed as incurred.

Multiple choice:

Which of the following is not a period cost?

Overtime premium

Commissions

Advertising costs

General office salaries

The schedule of cost of goods manufactured is an analysis of which account? 1.Finished goods

Cost of goods sold

Work in process

Direct materials

Which of the following companies would use a job-order costing system?

Construction

Metal producer

Chemical producer

Plastic producer

The overhead allocation rate is calculated by dividing:

actual overhead costs by the actual quantity of the allocation base.

the actual overhead costs by the estimated quantity of the allocation base.

the estimated overhead costs by the actual quantity of the allocation base.

the estimated overhead costs by the estimated quantity of the allocation base.

Applied overhead is debited to which account?

Manufacturing Overhead

Work in Process

Cost of Goods Sold

Finished Goods

Answer 1

Match the following terms to the statements shown below. Use capital letters for your answers. Each term can only be used once.

__ selling costs____ 1 the costs associated with securing and filling customers’ orders

___ Full cost___ 2 Required under GAAP for valuing inventory on the balance sheet

_ Activity-based costing _ ____ 3 assigns overhead costs to products using a number of different allocation bases.

_ over applied overhead _____ 4 Actual overhead costs are less than applied overhead

__ Job cost sheet ____ 5 A forms used to accumulate the product costs of each job

__ Process costing system____ 6 Used by companies that produce large quantities of identical items

__ Cost driver ____ 7 the activity used as the basis for developing an overhead rate

__ Manufacturing costs ____ 8 Consists of direct material, direct labor, and overhead

__ Direct labor ____ 9 Represents cost of workers directly involved in the production of a job

____ Period costs __ 10Costs that are expensed as incurred

Multiple choices:

Which of the following is not a period cost?

Overtime premium

Commissions

Advertising costs

General office salaries

The schedule of cost of goods manufactured is an analysis of which account?

Finished goods

Cost of goods sold

Work in process

Direct materials

Which of the following companies would use a job-order costing system?

Construction

Metal producer

Chemical producer

Plastic producer

The overhead allocation rate is calculated by dividing:

Actual overhead costs by the actual quantity of the allocation base.

The actual overhead costs by the estimated quantity of the allocation base.

The estimated overhead costs by the actual quantity of the allocation base.

The estimated overhead costs by the estimated quantity of the allocation base.

Applied overhead is debited to which account?

Manufacturing Overhead

Work in Process

Cost of Goods Sold

Finished Goods