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TCHE303 Managerial Accounting Manufacturer Customized Trường Đại học Ngoại thương

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Trường Đại học Ngoại thương

TCHE303 Managerial Accounting Manufacturer Customized Trường Đại học Ngoại thương

True/False Questions
Job-order costing is used in manufacturing companies and process costing is used in service companies.
2.A flour manufacturer is more likely to use process costing than job-order costingwhereas a manufacturer of customized leather jackets is more likely to use job-ordercosting than process costing.
Normally a job cost sheet is not prepared for a job until after the job has been completed.
Job cost sheets contain entries for actual direct material, actual direct labor, and actual manufacturing overhead cost incurred in completing a job.
Multiple departmental overhead rates generally provide more accurate product costs than a single plant-wide overhead rate.
6.If direct labor-hours is used as the allocation base in a job-order costing system, butoverhead costs are not caused by direct-labor-hours, then jobs with high direct laborrequirements will tend to be overcosted relative to jobs with low direct laborrequirements.
The journal entry for cost of goods manufactured includes only the costs of units that are finished.
The following entry would be used to record depreciation on manufacturing equipment:                                    Including manufacturing overhead costs in product costs ensures that each product will earn a profit.
A debit balance in the Manufacturing Overhead account at year end means that overhead was underapplied.
Nonmanufacturing costs are expensed as incurred, rather than going into the Work in Process account.
Indirect materials are not charged to a specific job but rather are included in manufacturing overhead.
Overhead is underapplied if actual overhead costs for a period are greater than the amount of overhead cost which has been charged to Work in Process.
Two of the reasons why overhead may be underapplied are: (1) the estimated overhead cost may be too low, and (2) the estimated base may be too high.
15.If the predetermined overhead rate is based on the estimated total amount of theallocation base at capacity, it is more likely that overhead will be underapplied thanoverapplied.

Multiple Choice Questions
Which of the following statements is correct concerning job-order costing?
ob-order costing would be appropriate for a textbook publisher.
ll the costs appearing on a job cost sheet are actual costs.
ndirect materials are charged to a specific job.
ob-order costing is mainly used in firms with homogeneous products such as oil refineries.
Which of the following types of firms typically would use process costing rather than job-order costing?
small appliance repair shop.
manufacturer of commercial passenger aircraft.
specialty equipment manufacturer.
breakfast cereal manufacturer.

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TCHE303 Managerial Accounting Manufacturer Customized Trường Đại học Ngoại thương

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