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Questions and Answers
What is the purpose of a control account?
What is the purpose of a control account?
- To record direct materials used in assembling jobs
- To identify and secure components required for a job
- To invoice the client once the order is accepted
- To summarize a set of subsidiary ledger accounts (correct)
Which inventory account records supplies and materials not directly charged to jobs?
Which inventory account records supplies and materials not directly charged to jobs?
- Material Inventory account
- Direct materials inventory (correct)
- Finished goods inventory
- Work-in-process inventory
In a job shop's production process, what is the first step after assigning a job number?
In a job shop's production process, what is the first step after assigning a job number?
- Assemble components by employees using tools
- Move items to finished goods inventory
- Inspect items for completion and quality
- Identify and secure components required for the job (correct)
What type of costs should follow the physical flows of resources in the cost accounting system?
What type of costs should follow the physical flows of resources in the cost accounting system?
Which account is NOT one of the three inventory accounts for a manufacturing firm?
Which account is NOT one of the three inventory accounts for a manufacturing firm?
When does the job in a job shop production process become considered sold?
When does the job in a job shop production process become considered sold?
What is the main difference between a job and a job shop?
What is the main difference between a job and a job shop?
Why are separate documents kept for recording the costs of individual jobs?
Why are separate documents kept for recording the costs of individual jobs?
What purpose does the job cost sheet serve in a cost accounting system?
What purpose does the job cost sheet serve in a cost accounting system?
Why is it common in job shops that the product or service price is related to the recorded cost of the job?
Why is it common in job shops that the product or service price is related to the recorded cost of the job?
In what way does a job differ from a project?
In what way does a job differ from a project?
What does a subsidiary ledger account do in a cost accounting system?
What does a subsidiary ledger account do in a cost accounting system?
What is the difference called when the actual overhead costs incurred are in excess of the applied overhead costs?
What is the difference called when the actual overhead costs incurred are in excess of the applied overhead costs?
Which account is credited when overhead is applied to jobs based on the predetermined overhead rate?
Which account is credited when overhead is applied to jobs based on the predetermined overhead rate?
What approach involves writing off over- or underapplied overhead to the cost of goods sold account?
What approach involves writing off over- or underapplied overhead to the cost of goods sold account?
What happens to the balances in the Manufacturing overhead control and Applied manufacturing overhead accounts?
What happens to the balances in the Manufacturing overhead control and Applied manufacturing overhead accounts?
In which case is the difference called overapplied overhead?
In which case is the difference called overapplied overhead?
What does underapplied overhead refer to?
What does underapplied overhead refer to?
Why does the unit cost fluctuate from month to month for essentially the same product?
Why does the unit cost fluctuate from month to month for essentially the same product?
What problem arises if the company waits till the end of the year to calculate an overhead rate?
What problem arises if the company waits till the end of the year to calculate an overhead rate?
What does the company decide to do eventually to solve the pricing problem for their products?
What does the company decide to do eventually to solve the pricing problem for their products?
How are manufacturing overhead costs assigned to jobs in the described procedure?
How are manufacturing overhead costs assigned to jobs in the described procedure?
What does the year-end single overhead rate do to the unit cost fluctuations?
What does the year-end single overhead rate do to the unit cost fluctuations?
What is the formula to calculate the predetermined overhead rate?
What is the formula to calculate the predetermined overhead rate?
What is the hourly rate paid for direct labor at Jacob Welding, Inc.?
What is the hourly rate paid for direct labor at Jacob Welding, Inc.?
How are manufacturing overhead costs applied to jobs at Jacob Welding?
How are manufacturing overhead costs applied to jobs at Jacob Welding?
What is the total manufacturing overhead cost incurred in May at Jacob Welding?
What is the total manufacturing overhead cost incurred in May at Jacob Welding?
How many of the jobs completed in May were delivered to customers?
How many of the jobs completed in May were delivered to customers?
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