30 . True - it records actual over head and applied overhead
31. False - Three inventory accounts are - raw material Work in process and finished goods
32 False - Raw material inventory account is debited and Cash or creditor is credited
33 True
34 True
35 True - Factory overhead is a managerial account not a financial account so any under or over application is adjusted to COGS at the end of fianancial period.
36 False - It is adjusted in COGS only
37 False - Both over applied and Under applied overheads are material and should be treated accordingly.
38 False - Accounting method is Standard costing
39 False - Activity based costing puts costs in cost pools based on activity drivers and then reassign to units
40 False - Cost pools are used in Activity based costing. In process costing, process specific costs are allocated
41 True
85 True
86 True
87 True - it helps in estimating costs in each process undertaken to produce a unit
88 True as there are no transferred in inputs and opening inventories
89 True to the judgment of production manager and supervisors
90 True Closing WIP inventory valuation will be impacted in current period thereby also affecting next period's opening WIP
30. The overhead control account records the actual overhead costs incurred and the overhead cost...
True/False 85. When there are differences between estimates and actual amounts, one outcome is under or over applied overhead. 86. Job costing provides a cost estimate for individual jobs while process costing provides an average cost estimate for an individual unit of product 87. Process costing makes assumptions about exactly when and how costs are incurred during the production process. 88. Mismeasurement of inputs into the costing system is likely to be lower in companies that have just commenced operations....
to w 30) Payment of the factory rent would required A) Debit Manufacturing Overhead Control account Credit Cash 3) Debit Work-in-Process Control account Credit Cash C) Debit: Factory Depreciation account Credit Accumulated Depreciation Control D) Debit: Cost of Goods Sold account Credit: Prepaid Rent Explanation: A) 3) The ending balance in the Work-in-Pro Control account represents the cost of all jobs that A) have been completed and sold to customers 1) are reported on the income statement C) have been...
When normal costing is used, actual overhead costs are a.recorded in the overhead control account. b.recorded in the work-in-process account. c.not recorded. d.recorded in the finished goods account.
2. MD Manufacturing has the following beginning and ending account balances Beginning Balance Ending. Balanse Raw Materials $26.000 $33,000 Work-in-Process 564,000 $71.000 Finished Goods Inventory $48.000 $45.000 MD uses normal costing, MD allocates overhead based on machine hours. At the beginning of the year, MD estimated overhead for the year to be $200,000 and machine hours to be 2,500 hours. Actual machine hours during the year was 2.700 and actual overhead incurred was $230,000. Purchases of raw materials for the...
FORUM DESCRIPTION Product costing involves charging the cost of Direct Materials, Direct Labor and Overhead to products. Any product that you have ever seen or service that you have ever paid for, must have incorporated at least one these three elements of cost le. DM, DL, and OH. In both Job Order costing and Process Costing, the cost of Direct Materials and the cost of Direct Labor are both easily traceable to the products. Cost of Direct Materials are traced...
Che Job costing A job-costing syste ing system has a separate job-cost record for each job. A summary of the job-cost card is typically found in a subsidiary ledger. The general ledger Rocount Work-in-Process Control control presents the total of these separate job cost records pertaining to all unfinished jobs. The job-cost records and Work-in-Process Control account track ob costs from when ob start until they are complete. When jobs are completed or sold, they are recorded in the finished-goods...
Manufacturing overhead costs incurred: Indirect materials $15,000 Indirect labor 130,000 Property taxes, factory 8,000 Utilities, factory 70,000 Depreciation, factory 240,000 Insurance, factory 10,000 Total actual manufacturing overhead costs incurred $473,000 Other costs incurred: Purchases of raw materials (both direct and indirect) $400,000 Direct labor cost $60,000 Inventories: Raw materials, beginning $20,000 Raw materials, ending $30,000 Work in process, beginning $20,000 Work in process, ending $70,000 The company uses a predetermined overhead rate of $25 per machine-hour to apply overhead...
Show posted T-Accounts for all inventories, Cost of Goods Sold, Manufacturing overhead control, and manufacturing overhead allocated. SRS COST DATA Direct materials and supplies purchased on credit: $800 Direct materials used: $710 Indirect materials issued to various production departments: $100 Direct manufacturing labor: S1,300 Indirect manufacturing labor incurred by various production departments: $900 Depreciation on building and manufacturing equipment: $400 Miscellaneous manufacturing overhead incurred by various production departments: $550 o (Ordinarily, this would be detailed as repairs, photocopying, utilities, etc.)...
Show posted T-Accounts for all inventories, Cost of Goods Sold, Manufacturing overhead control, and manufacturing overhead allocated. SRS COST DATA Direct materials and supplies purchased on credit: $800 Direct materials used: $710 Indirect materials issued to various production departments: $100 Direct manufacturing labor: $1.300 Indirect manufacturing labor incurred by various production departments: S900 Depreciation on building and manufacturing equipment: $400 Miscellaneous manufacturing overhead incurred by various production departments: $550 o (Ordinarily, this would be detailed as repairs, photocopying, utilities, etc.)...
Big Bang Inc. produces custom model kits and uses normal costing in its job-costing system. Selected financial information for the year just ended is as follows: Raw Materials Control Finished Goods Control Beg.Bal. $ 4,000 14,000 Beg.Bal. $ 10,000 60,000 13,000 70,000 End.Bal. $3,000 End.Bal. $ 20,000 Work-in-Process Control Beg.Bal. $ 8,000 Direct labour 28,000 Other Information: Actual manufacturing overhead was $42,000 for the year. The direct labour hourly wage was $16 per hour. Manufacturing overhead was allocated using an allocation rate of $20 per Direct Labour...