/hich of the following statements pertaining to job-order costing are TRUE? The issuance of indirect materials from the storeroom is recorded on job cost sheets. Overapplied factory overhead can be properly disposed off with a debit to cost of goods sold nd a credit to factory overhead. i. Both an overstated forecast of overhead and an understated forecast of units of the verhead base can cause overhead to be overapplied. - a. i only b. ii only c. i only d. ii and iii only

/hich of the following statements pertaining to job-order costing are TRUE? The issuance of indirect materials from the storeroom is recorded on job cost sheets. Overapplied factory overhead can be properly disposed off with a debit to cost of goods sold nd a credit to factory overhead. i. Both an overstated forecast of overhead and an understated forecast of units of the verhead base can cause overhead to be overapplied. - a. i only b. ii only c. i only d. ii and iii only

Name: Which of the following statements pertaining to job-order costing are
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Description: Which of the following statements pertaining to job-order costing are TRUE?i. The issuance of indirect materials from the storeroom is recorded on job cost sheets.ii. Overapplied factory overhead can be properly disposed off with a debit to cost of

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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Allocated manufacturing overhead is always recorded with a debit to work-in-process inventory. with a credit to manufacturing overhead. with a debit to raw materials inventory. Both A & B are correct.
The journal entry for adjustment of underallocated manufacturing overhead includes a: A) credit to Finished Goods Inventory. B) credit to Manufacturing Overhead. C) debit to Work-in-Process Inventory. D) credit to Cost of Goods Sold.
Assign indirect labor cost is recorded with a Select one: O a. debit to Labor Cost. O b. debit to Work in Process Inventory. O C. debit to job cost sheets. d. debit to Manufacturing Overhead.
In a job-order costing system, manufacturing overhead applied is recorded as a credit to: O a. None of the given answer is correct O b. Manufacturing Overhead. Work in Process inventory. O d. Finished Goods inventory. Fi е. Cost of Goods Sold.
Which of the following is correct with respect to closing out underapplied manufacturing overhead to Cost of Goods Sold versus closing it out to Work -in-Process Inventory , Finished Goods Inventory , and Cost of Goods Sold? a . The balance in the Work-in - Process account after allocation will be the same under either method . b . The balance in the Work-inProcess account after allocation will be higher if the underapplied overhead is closed out by allocating it to all appropriate accounts . c. None of given answer is correct . d. Operating income will be higher if all of the underapplied overhead is closed out to Cost of Goods Sold . e. Cost of Goods Sold will be higher if the underapplied overhead is closed out by allocating it to the inventory accounts as well as to Cost of Goods Sold
Which of the following is correct with respect to closing out underapplied manufacturing overhead to Cost of Goods Sold versus closing it out to Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold? Select one: O a. The balance in the Work-in-Process account after allocation will be higher if the underapplied overhead is closed out by allocating it to all appropriate accounts. O b. Cost of Goods Sold will be higher if the underapplied overhead is closed out by allocating it to the inventory accounts as well as to Cost of Goods Sold. Oc. None of given ANSWER is correct. O d. Operating income will be higher if all of the underapplied overhead is closed out to Cost of Goods Sold. O e. The balance in the Work-in-Process account after allocation will be the same under either method.
Determining the basis for applying manufacturing overhead costs involves OA. primarily the accumulation of direct labor hours since virtually all overhead costs are driven by direct labor hours. B. primarily the maintaining of accurate records of production volume since virtually all overhead costs are driven by the number of units proc OC. the determination of a measure of activity that is a causal factor in the incurrence of overhead cost. OD. actual rather than budgeted levels of activity. Reset Selection
Which of the following is correct with respect to closing out overapplied manufacturing overhead to Cost of Goods Sold versus closing it out to Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold? The balance in the Work-in-Process account after allocation will be higher if the overapplied overhead is closed out by allocating it to all appropriate accounts. a. b. None of given answer is correct. С. Cost of Goods Sold will be lower if the overapplied overhead is closed out by allocating it to the inventory accounts as well as to Cost of Goods Sold. d. Operating income will be higher if all of the overapplied overhead is closed out to Cost of Goods Sold. e. The balance in the Work-in-Process account after allocation will be the same under either method. Clear my choice
Which one of the following represents a period cost? 1) The VP of Sales' salary and benefits 2) Overhead allocated to the manufacturing operations 3) Labor costs associated with quality control 4) Fringe benefits associated with factory workers
Job order costing and process costing: a. differently assign direct materials cost, direct labor costand manufacturing overhead costs to products . b. both allocate applied manufacturing overhead cost to product cost. do not use the same manufacturing accounts, including Manufacturing Overhead Raw Materials, Work in Process, and Finished Goods. the given answers are NOT correct. e. compute product cost per unit differently.
For ABC Company, the most common treatment of under- or overapplied factory overhead is to close it to; a.Work in process. b.Cost of goods sold. c.Finished goods. d.Retained Earnings
I. In job-order costing, when the predetermined overhead rate is based on direct labor-hours, the amount of overhead applied to a job is proportional to the amount of actual direct labor-hours incurred on the job. II. In job-order costing, the work in process inventory account contains the actual costs of direct labor, direct materials, and manufacturing overhead incurred on partially completed jobs. A. Both statement are false b. Both statement are true c. Only statement I is true d. Only statement II is trye