Managerial Accounting: multiple choice, classifying costs work sheet
1. Cost accounting involves the measuring, recording, and reporting of (a) product costs (b) future costs. (e) manufacturing processes. (4) managerial accounting decisions 2. In accumulating raw materials costs, the cost of raw materials purchased in a perpetual system is debited to (a) Raw Materials Purchases. (b) Raw Materials Inventory (c) Purchases. (d) Work in Process. 3. When incurred, factory labor costs are debited to: (a) Work in Process. (b) Factory Wages Expense (c) Factory Labor. (d) Factory Wages Payable. 4. The source documents for assigning costs to job cost sheets are: (a) invoices, time tickets, and the predetermined overhead rate. (b) materials requisition slips, time tickets, and the actual overhead costs (e) materials requisition slips, payroll register, and the predetermined overhead rate (d) materials requisition slips, time tickets, and the predetermined overhead rate. 5. In recording the issuance of raw materials in a job order cost system, it would be incorrect to: (a) debit Work in Process Inventory (b) debit Finished Goods Inventory (c) debit Manufacturing Overhead. (d) credit Raw Materials Inventory 6 The entry when direct factory labor is assigned to jobs is a debit to: (a) Work in Process Inventory and a credit to Factory Labor (b) Manufacturing Overhead and a credit to Factory Labor (c) Factory Labor and a credit to Manufacturing Overbead (d) Factory Labor and a credit to Work in Process Inventory 7. The formula for computing the predetermined manufacturing overhead rate is estimated annual overhead costs divided by an expected annua operating activity, expressed as: (a) direct labor cost. (b) direct labor hours (c) machine hours (d) any of the above. 8. In Cra ford Company, the predetermine d overhead rate is 80% of direct labor cost. During the month, Szio 0 0 of factory labor costs are incurred, of which $180,000 is direct labor and $30,000 is indirect labor. Actual overbcad iIncurred was $200,000. The amount of overhead debited to Work in Process Inventory should be: (a) $120,000. (b) $144,000. (c) $168,000. (d) $160,000. 9. In Mynex Company, Job No. 26 is completed at a cost of $4,500 and later sold for $7,000 cash. A correct entry is: (a) Debit Finished Goods Inventory $7,000 and credit Work in Process Inventory $7,000. (b) Debit Cost of Goods Sold $7,000 and credit Finished Goods Inventory $7,000. (c) Debit Finished Goods Inventory $4,500 and credit Work in Process Inventory $4,500. (d) Debit Accounts Receivable $7,000 and credit Sales $7,000 10. Manufacturing overhead is underapplied if (a) actual overhead is less than applied. (b) actual overhead is greater than applied (c) the predetermined rate equals the actual rate
