When manufacturing overhead is applied to production, it is added to: *

1 point

The cost of goods sold account.

The raw material account.

The finished goods inventory account.

The work in process account.

A process cost system is employed in those situations where: *

1 point

full or absorption cost approach is not employed.

many different products, jobs, or batches of production are being produced each period

a service is performed such as in a law firm or an accounting firm.

where manufacturing involves a single,, homogeneous product that flows evenly through the production process on a continuous basis.

Costs in an operation costing system are accumulated: *

1 point

by department.

by individual job.

by both job and department.

by neither job nor department.

If a company applies overhead to production on the basis of a predetermined rate, a debit balance in the Manufacturing Overhead account at the end of the period means that: *

2 points

more overhead cost has been charged to production than has been charged to finished goods during the period.

actual overhead cost was less than the amount of direct labor cost.

actual overhead cost was greater than the amount charged to production.

actual overhead cost was less than the amount charged to production.

On the Schedule of Cost of Goods Manufactured, the final Cost of Goods Manufactured figure represents: *

1 point

the amount of cost of goods completed during the current year whether they were started before or during the current year.

the amount of cost placed into production during the period.

the amount of cost charged to work in process during the period.

the amount of cost transferred from Finished Goods to Cost of Goods Sold during the period.

Which of the following statements about process costing system is incorrect? *

1 point

In a process costing system, materials costs are traced to units of products.

In a process costing system, overhead can be under or overapplied just as in job order costing.

In a process costing system, equivalent units are separately computed for materials and for conversion cost.

In a process costing system, each processing department has a work in process account.

The Assembly Department started the month with 78,000 units in its beginning work in process inventory. An additional 254,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 21,000 units in the ending work in process inventory of the Assembly Department.How many units were transferred to the next processing department during the month? *

2 points

311,000

197,000

332,000

353,000

Dukes Company used a predetermined overhead rate this year of $2 per direct labor hour, based on an estimate of 20,000 direct labor hours to be worked during the year. Actual manufacturing overhead cost incurred was $38,000 and the actual direct labor hours worked 18,500. The under- or overapplied overhead for the year was: *

2 points

$1,000 overapplied

$3,000 overapplied

$3,000 underapplied

$1,000 underapplied