Question

All questions have to do with cost accounting systems,more in particular, job order costing.

Complete each of the following statements/Answer the followingquestions

1. A custom-furniture designer would probably use which methodof cost accounting? 1. ____

2. The cost of finished products on hand that have not been soldis called 2. ____

3-5. Work in process consists of these costs that have enteredthe manufacturing process on unfinished products:

3. ____

4. ____

5. ____

6. The accounting system that accumulates the product costsoriginating with inventory and ending with the cost of goods soldis the 6. ____

7. The system best suited to industries that manufacture customgoods to fill special orders is referred to as a 7. ____

8. The system that accumulates costs for each of the departmentswithin the factory is a 8. ____

9. The Receiving Department document that shows the quantityreceived and its condition is the 9. ____

10. Materials are released from the storeroom to the factory inresponse to a 10. ____

11. The amount of time spent by an employee in the factory isusually recorded on 11. ____

12. Indirect materials and indirect labor are examples of thismanufacturing cost 12. ____

13. The costing method that accumulates and allocates factoryoverhead costs to products using many overhead rates is 13.____

14. If estimated total factory overhead costs are $75,000 anddirect labor hours are 15,000, the predetermined factory overheadrate is 14. ____

15. The process of assigning factory overhead costs to a costobject is termed 15. ____

16. In highly-automated factory settings, a widely used activitybase for predetermining a factory overhead rate is 16. ____

17. The subsidiary ledger that contains cost data for the unitsmanufactured, units sold, and units on hand is 17. ____

18. The direct labor and overhead costs of a service businessare accumulated in a 18. ____

19. If the actual factory overhead costs exceed the amount offactory overhead applied, the factory overhead account balance willbe 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 fordirect materials is a 21. ____

22. The accounting document that is used to accumulate the costsfor each client’s 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 itsconsumption is called 24. ____

Indicate the titles of the accounts to be debited andcredited in recording the summarized operations presented below byinserting the letter or letters of the account titles listed in theappropriate columns.

ACCOUNTS

A. Accounts Payable E. FactoryOverhead I. Selling and AdministrativeExpenses

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

C. Cash G. MaterialsK. Work in Process

D. Cost of Goods Sold H.Sales

TRANSACTIONS	Debit		Credit
0. Cash paid on account......................................................................................	A	0. ____	C	0. ____
1-2. Materials requisitioned for use on specific jobsand for general factory use.......................................................................................................................		1. ____		2. ____
3-4. Factory labor incurred on specific jobs and forgeneral 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. Cashpaid for overhead costs incurred.........................................................		9. ____		10. ____
11-12. Transferred smallbalance of under-applied overhead ............................		11. ____		12. ____
13-14. Jobs completed.................................................................................................		13. ____		14. ____