A manufacturing firm produces goods in accordance with customer specifications, commencing production upon receipt of a purchase order. To accumulate the cost of each order, the company would use a Al job-cost recond. ) cost allocation matrix. O manufacturing cost record. D) overhead sheet. production log

A manufacturing firm produces goods in accordance with customer specifications, commencing production upon receipt of a purchase order. To accumulate the cost of each order, the company would use a Al job-cost recond. ) cost allocation matrix. O manufacturing cost record. D) overhead sheet. production log

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which document lists the total direct materials used in a specific job?A. job cost sheetB. purchase orderC. materials requisition formD. receiving document
When direct labor cost are incurred, (but not yet paid) in manufacturing: _______ is debited and _____ is credited -wages payable -Cost of good sold -Work in process inventory -Finish goods inventory -Cash -manufacturing overhead control When units are sold: Cost associated with units are debited to which account? -Wages payable -Finish goods inventory -Manufacturing overhead control -Completed units payable -Work in process inventory -Cost of sold Call associated with units are credited to which account? -Manufacturing overhead control -Finish goods inventory -Cost of good sold -Cash -Work and process inventory -Completed units payable
Classify each of the following costs as either unit-level, batch-level, product-level, or facility-level. a. Engineering costs for a new product b. Order processing c. Depreciation on factory d. Direct labor e. Shipment of an order to a customer f. Product line manager salary g. Machine setup costs that are incurred whenever a new production order is started h. Patent for new product ore help Product-level Batch-level or Unit-level or Facility-level Facility-level Unit-level Unit-level Batch-level Batch-level or Facility-level Batch-level or Unit-level Batch-level or Unit-level or Facility-level Facility-level Facility-level or Product-level Facility-level or Unit-level Product-level Unit-level all
Question: The question is in the diagram below: Which one of the following is used by the production department supervisor to request the materials for production? Select one: O a. Material requisition. O b. Purchase order. O c. Bill of materials. O d. Job cost record. As goods are sold, the cost of the goods is transferred from: Select one: O a. finished goods to cost of goods sold O b. work in process to cost of goods sold O c. overhead to finished goods O d. work in process to finished goods
Which of the following are the two main types of cost accounting systems for manufacturing operations? Oa. a. job order cost and process cost systems Ob. process cost and general accounting systems Oc. process cost and replacement cost systems Od. job order and general accounting systems
Describe and illustrate a job order cost accounting system for a manufacturing business.
In a job order cost accounting system, the journal entry to record the flow of direct materials into production consists of a a. debit to Work in Process and a credit to Materials Ob. debit to Factory Overhead and a credit to Materials Oc. debit to Work in Process and a credit to Supplies d. debit to Materials and a credit to Work in Process
In Process Costing, before you can calculate the cost to produce a product. you must determine what the: A) units that we a company produces during an accounting period. B) units that have been finished and placed in finished goods inventory. C) a method that assigns all cost to produce a product to a job during the accounting period. D) equivalent units of production.
Place the following steps required to prepare a process costing production report into their correct order. I. Reconcile the total cost of work in process inventory. II. Apply manufacturing overhead to specific jobs. III. Calculate cost per equivalent unit. IV. Record costs incurred for each job on a separate job cost sheet. V. Convert physical units into equivalent units. VI. Reconcile the number of physical units. VII. Prepare a production report. 1. 2. 3. 4. 5 List separately any step that should not be included in the process. (You may select more than one answer. Single click the box with a check mark for correct answers and double click to empty the box for the wrong answers.) ■ I ✔ || IV VI iv MI V il V VI VII
A manufacturer reports three activities: assembling components into products; product design; and sales order processing. Determine whether each of the following cost drivers relates to assembly, design, or order processing. Cost Driver 1. Direct labor hours to assemble components 2. Number of design changes 3. Number of components assembled 4. Number of design hours 5. Number of shipments made 6. Number of sales orders processed Activity
In a job order cost accounting system, the journal entry to record the flow of direct labor costs into production consists of a Oa. debit to Factory Overhead and a credit to Wages Payable Ob. debit to Factory Overhead and a credit to Work in Process Oc. debit to Work in Process and a credit to Wages Payable Od. debit to Finished Goods and a credit to Wages Payable
After several months of planning, Jasmine Worthy started a haircutting business called Expressions. Thefollowing events occurred during its first month of business.a. Aug. 1 Worthy invested $3,000 cash and $15,000 of equipment in Expressions.b. 2 Expressions paid $600 cash for furniture for the shop.c. 3 Expressions paid $500 cash to rent space in a strip mall for August.d. 4 Purchased $1,200 of equipment on credit for the shop (recorded as accounts payable).e. 15 Expressions opened for business on August 5. Cash received from haircutting services in thefirst week and a half of business (ended August 15) was $825.f. 16 Expressions provided $100 of haircutting services on credit.g. 17 Expressions received a $100 check for services previously rendered on credit.h. 18 Expressions paid $125 cash to an assistant for hours worked for the grand opening.i. 31 Cash received from services provided during the second half of August was $930.j. 31 Expressions paid $400 cash toward the accounts…