QUESTION:1. IN THE COST RECONCILIATION REPORTUNDER THE FIFO METHOD, THE COSTS TO BEACCOUNTED FOR EQUALS THE COST OFBEGINNING WORK IN PROCESS INVENTORYPLUS THE COST OF UNITS TRANSFERRED OUT.TRUE OR FALSE. PLEASE EXPLAIN.2. WHEN THE PREDETERMINED OVERHEADRATE IS BASED ON DIRECT LABOR-HOURS,THE AMOUNT OF OVERHEAD APPLIED TO AJOB IS PROPORTIONAL TO THE ESTIMATEDAMOUNT OF DIRECT LABOR-HOURS FOR THEJOB.TRUE OF FALSE.

1) False2) TrueInstead, the costs to be accounted for under the FIFO method in the cost…

Answered: QUESTION: 1. IN THE COST RECONCILIATION…

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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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
When using a normal costing system direct material and direct labor are recorded at standard cost and overhead is treated as a period cost. direct material and direct labor are recorded at actual cost and overhead is treated as a period cost. direct material and direct labor are recorded at standard cost and overhead is applied to products using a predetermined overhead rate. direct material and direct labor are recorded at actual cost and overhead is applied to products using a predetermined overhead rate.
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
Total manufacturing cost in a job-sheet for job-order costing, includes: a. Actual direct materials costs b. None of the given costs in the answers. С. Actual direct labor costs d. All of the given costs in the answers. e. Applied manufacturing overhead costs
Which of the following statement(s) islare correct? I. Manufacturing overhead includes all manufacturing costs except direct labor and direct materials II. Prime costs consist of direct material and direct labor. Conversion cost is essentially direct labor O A. I only O B. Il only O C. Both I & II D. Neither I nor II
In traditional approach, overheads are absorbed based on: a. Machine hours b. Direct labour c. All the options listed d. Direct wages
1. Overhead is most often applied to production on the basis ofa. direct labor hours.b. machine hours.c. raw material usage.d. number of units made.e. direct labor costs.
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
Question 1?

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