INSTRUCTIONS: Complete each of the following statements by writing the appropriate words in the Answers column.

		For
	Answers	Scoring
0. The cost accounting system used by companies who make large quantities of items that are not distinguishable from each other is .......	process cost	0. ____
1. A custom-furniture designer would probably use which method of cost accounting?.......................................................................................................		1. ____
2. The cost of finished products on hand that have not been sold is called ..............................................................................................................................		2. ____
3-5. Work in process consists of these costs that have entered the manufacturing process on unfinished products:
3. .............................................................................................................................		3. ____
4. .............................................................................................................................		4. ____
5. .............................................................................................................................		5. ____
6. The accounting system that accumulates the product costs originating with inventory and ending with the cost of goods sold is the ..................		6. ____
7. The system best suited to industries that manufacture custom goods to fill special orders is referred to as a .............................................................		7. ____
8. The system that accumulates costs for each of the departments within the factory is a .................................................................................................		8. ____
9. The Receiving Department document that shows the quantity received and its condition is the ....................................................................................		9. ____
10. Materials are released from the storeroom to the factory in response to a ......................................................................................................................		10. ____
11. The amount of time spent by an employee in the factory is usually recorded on .......................................................................................................		11. ____
12. Indirect materials and indirect labor are examples of this manufacturing cost .....................................................................................................................		12. ____
13. The costing method that accumulates and allocates factory overhead costs to products using many overhead rates is ........................................		13. ____
14. If estimated total factory overhead costs are $75,000 and direct labor hours are 15,000, the predetermined factory overhead rate is ..............		14. ____
15. The process of assigning factory overhead costs to a cost object is termed ................................................................................................................		15. ____
16. In highly-automated factory settings, a widely used activity base for predetermining a factory overhead rate is ..................................................		16. ____
	continued

		For
	Answers	Scoring
17. The subsidiary ledger that contains cost data for the units manufactured, units sold, and units on hand is .........................................		17. ____
18. The direct labor and overhead costs of a service business are accumulated in a .............................................................................................		18. ____
19. If the actual factory overhead costs exceed the amount of factory overhead applied, the factory overhead account balance will be a (debit or credit) .............................................................................................................		19. ____
20. The factory overhead in Question 19 is said to be ....................................		20. ____
21. The source of the data for debiting Work in Process for direct materials is a ......................................................................................................................		21. ____
22. The accounting document that is used to accumulate the costs for each clients job in a service business is a ...........................................................		22. ____
23. The controlling account for the cost ledger is .............................................		23. ____
24. The measure used to allocate overhead that reflects its consumption is called ..................................................................................................................		24. ____

INSTRUCTIONS: Indicate the titles of the accounts to be debited and credited in recording the summarized operations presented below by inserting the letter or letters of the account titles listed in the appropriate columns.

ACCOUNTS

A. Accounts Payable E. Factory Overhead I. Selling and Administrative Expenses

B. Accounts Receivable F. Finished Goods J. Wages Payable

C. Cash G. Materials K. Work in Process

D. Cost of Goods Sold H. Sales

		For		For
TRANSACTIONS	Debit	Scoring	Credit	Scoring
0. Cash paid on account ......................................................................................	A	0. ____	C	0. ____
1-2. Materials requisitioned for use on specific jobs and for general factory use .......................................................................................................................		1. ____		2. ____
3-4. Factory labor incurred on specific jobs and for general factory use .......		3. ____		4. ____
5-6. Applied factory overhead to jobs ...................................................................		5. ____		6. ____
7-8. Paid salary of vice-president of finance .......................................................		7. ____		8. ____
9-10. Cash paid for overhead costs incurred .........................................................		9. ____		10. ____
11-12. Transferred small balance of under-applied overhead ............................		11. ____		12. ____
13-14. Jobs completed .................................................................................................		13. ____		14. ____