Exam 3: Product Costing and Cost Accumulation in a Batch Production Environment

When underapplied or overapplied manufacturing overhead is prorated, amounts can be assigned to which of the following accounts?

The term "normal costing" refers to the use of job-costing systems.

As production takes place, all manufacturing costs are added to the:

Huxtable charges manufacturing overhead to products by using a predetermined application rate, computed on the basis of machine hours. The following data pertain to the current year: Budgeted manufacturing overhead: $480,000 Actual manufacturing overhead: $440,000 Budgeted machine hours: 20,000 Actual machine hours: 16,000 Overhead applied to production totaled:

Armada Company applies manufacturing overhead by using a predetermined rate of 150% of direct labor cost. The data that follow pertain to job no. 831: Direct material cost \ 72,000 Direct labor cost 38,000 If Armada adds a 30% markup on total cost to generate a profit, which of the following choices depicts a portion of the accounting needed to record the credit sale of job no. 831?

Manufacturing overhead is a pool of indirect production costs that must somehow be attached to each unit manufactured.

In the two-stage cost allocation process, costs are assigned:

The final step in recognizing the completion of production requires a company to:

Tiffany charges manufacturing overhead to products by using a predetermined application rate, computed on the basis of labor hours. The following data pertain to the current year: Which of the following choices is the correct status of manufacturing overhead at year-end?

If a company sells goods that cost $80,000 for $92,000, the firm will:

Which of the following types of companies would most likely use process costing?

Summers Corporation recently used $75,000 of direct materials and $9,000 of indirect materials in production activities. The journal entries reflecting these transactions would include:

A review of a company's Work-in-Process Inventory account found a debit for materials of $67,000. If all procedures were performed in the correct manner, this means that the firm:

When using normal costing, the total production cost of a job is composed of:

Discuss the reason for (1) allocating overhead to the cost of production jobs, and (2) applying overhead using a predetermined rate instead of an actual overhead rate.

Which of the following statements is true?

Under- or overapplied manufacturing overhead at year-end is most commonly charged or credited to Work-in-Process Inventory.

Which of the following statements about manufacturing cost flows is false?

An accountant recently debited Work-in-Process Inventory and credited Manufacturing Overhead at a company that uses normal costing. The accountant was:

Briefly describe the stages used in the two-stage allocation process for assigning overhead costs.