Which of the following statements is false? a. Actual overhead costs always enter the Work-in-Process account. b. The cost of a job includes direct materials, direct labor, and applied overhead. The use of normal costing means that overhead is applied to each job using a predetermined rate. C. d. Indirect labor is assigned as a part of overhead. e. None of these are correct. Select one: O b O e O a

Which of the following statements is false? a. Actual overhead costs always enter the Work-in-Process account. b. The cost of a job includes direct materials, direct labor, and applied overhead. The use of normal costing means that overhead is applied to each job using a predetermined rate. C. d. Indirect labor is assigned as a part of overhead. e. None of these are correct. Select one: O b O e O a

Name: Which of the following statements is false?a.Actual overhead costs al
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Which of the following statements is false?a.Actual overhead costs always enter the Work-in-Processaccount.inb.The cost of a job includes direct materials, direct labor, andapplied overhead.The use of normal costing means that overhead is applied to

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Job order costing and process costing : a. both allocate applied manufacturing overhead cost to product cost . b. compute product cost per unit differently . c. All the given answers are NOT correct . d. differently assign direct materials cost direct labor cost, and manufacturing overhead costs to products. e. do not use the same manufacturing accounts , including Manufacturing Overhead , Raw Materials , Work in Process , and Finished Goods
Which of the following statements is true? (You may select more than one answer.)a. The Manufacturing Overhead account is debited when manufacturing overhead isapplied to Work in Process.b. Job cost sheets accumulate the actual overhead costs incurred to complete a job.c. When products are transferred from work in process to finished goods it results ina debit to Finished Goods and a credit to Work in Process.d. Selling expenses are applied to production using a predetermined overhead ratethat is computed at the beginning of the period.
18) In traditional approach, overheads are absorbed based on: a. All the options listed b. Direct labour c. Direct wages d. Machine hours
N1. Account
When materials are used as indirect materials, their cost is debited to Facotry or Manufacturing overhead account. TRUE FALSE
provide correct option with explanation
f) ‘Process costing is a term used in cost accounting to describe one method for collecting and assigning manufacturing costs to the units produced.’ There are some statements about the process costing: An abnormal loss occurs when expected output exceeds actual output. The scrap value of an abnormal loss is credited to the process account. The allocated cost of an abnormal gain is credited to the process account. The inputs to a process less the normal loss is the expected output. The normal loss in a process is allocated a cost in order to reconcile the costs of inputs and outputs. The FIFO method assumes opening WIP is the first group of units to be completed. Therefore, opening WIP is charged separately to completed production and CPU is based on current period costs. Required: Please identify which of the above statements are false and explain the reasons.
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
Manufacturing costs that cannot be dassifled as either direct materials or direct labor are known as O nonmanufacturing costs. O selling and administrative expenses. O manufacturing overhead. O period costs.
:Total manufacturing cost in a job-sheet for job-order costing, includes All of the given costs in the answers .a None of the given costs in the answers .b Actual direct materials costs .C Applied manufacturing overhead costs d Actual direct labor costs .e Under which costing system fixed manufacturing overhead costs will not be ?included in calculating product costs None of the given answers .a O Absorption costing and Variable costing systems b Activity based costing system only .c Absorption costing systemonly dO .Variable costing system only.e O
1.) WHICH ONE OF THE FOLLOWING WOULD NOT BE CLASSIFIED AS MANUFACTURING OVERHEAD? (A) INDIRECT LABOR (B) DIRECT MATERIALS (C) INSURANCE ON FACTORY BUILDING (D) INDIRECT MATERIALS 2.) THE PRODUCT COST THAT IS MOST DIFFICULT TO ASSOCIATE WITH A PRODUCT IS (A) DIRECT MATERIALS. (B) DIRECT LABOR. (C) MANUFACTURING OVERHEAD. (D) ADVERTISING.
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.