Questions:

22. If there's a debit balance in the Factory Overhead account at the end of the period, was overhead Overapplied or underapplied? If there's a credit balance? 23. Assume that any over or underapplied overhead is charged to COGS at the end of the period. Will the entry to clear the overhead account increase or decrease net income if overhead was: a. Overapplied b. Underapplied 24. What is the difference between "job order" and "process" costing? 25. What do we generally mean when we talk about spoiled goods? 26. In job order costing, how would the revenue from spoiled goods be accounted for a. b. If spoilage was caused by tech specs of the job? If spoilage was not related to a particular job? 27. In process costing, how would the cost of spoiled goods be accounted for a. b. If spoilage was normal? If spoilage was abnormal? i. How is "abnormal" determined? 28. What's the difference between spoiled goods and rework goods? 29. What costs are considered (in process costing) when determining cost per equivalent unit of production? (FIFO 30. In process costing, what are "transferred-in" costs? 31. Define "equivalent units" and "equivalent units of production" 32. If FIFO method of process costing is used, how are equivalent units of production determined (assume there was no spoilage)? 33. If FIFO method of process costing is used, how is the cost of goods transferred out determined? (assume no spoilage) 34. How are service departments allocated under: a. Direct method b. Step method c. Reciprocal method 35. How are joint process costs allocated under: a. Physical method b. c. Sales value at split-off method Net realizable value method 36. What's the difference between a by-product and a primary product? 37. How are the following determined: a. Breakeven point b. c. Target profit point (pre-tax) Target profit point (after tax)