Exam 8: Accounting for Manufacturing

If total fixed costs are $25 000 what is the per unit overhead cost for R Co if 50 000 units are produced? Assume units of production are used as the basis for applying overhead to product.

A fixed cost is one that:

An overhead application rate is developed by dividing the estimated o_______________ costs by the basis used to measure estimated productive capacity.

What type of business would calculate cost of sales in the income statement as stock of finished goods at start + purchases - stock of finished goods at end?

Costs which are not directly required to produce a product but are expensed in the income statement in the period in which they are incurred are called:

Deficiencies of using a periodic inventory system for a manufacturer increase with the number of products and production departments,consequently such a system can only be used satisfactorily by a s_______ manufacturing entity.

If projected factory overhead is $150 000 p.a.and projected direct labour hours are 30 000 hours p.a.,the overhead application rate is:

The correct statement is:

Which of these is an example of a period cost?

If expected factory overhead costs are $400 000 and expected direct labour hours are 40 000,what is the overhead application rate per direct labour hour?

The correct statement is:

Direct material costs plus direct labour costs are known as:

The factory office and the quality control departments are known as s_____________ departments and are considered to be part of the manufacturing process.

P_______________ costs are expensed in the income statement in the period when they are incurred.

Product costs are integral to the production of a product and are expensed in the period in which:

Mc Manufacturing reports the following information for a recent year.Determine the cost of 1. finished goods manufactured. \ Work in process 1 January 7000 Work in process 31 December 10000 Finished goods inventory 1 January 5000 Finished goods inventory 31 December 6000 Direct materials used 3000 Direct labour 2000 Factory overhead 2000 Selling expenses 3000 General and administrative expenses 4000 a.$ 4000 b.$ 3000 c.$ 5000 d.$ 6000

In the general ledger the accounts used to determine the cost of goods manufactured are closed to the manufacturing summary account which is then closed to the:

The cost of a finished product consists of three basic elements: raw materials,d______________ l______________,and factory overhead.

When preparing a Cost of Goods Manufactured Statement from the following information the total cost of goods manufactured is: Direct materials \ 8 Advertising expenses 3 Indirect labour 1 Indirect materials 5 Direct labour 2 Other manufacturing overhead 4 a.$ 23 b. $ 20 c. $ 17 d. $ 16

For a manufacturing firm,at the end of the accounting period,all manufacturing costs are closed to the M________________ S_____________ ledger account.