True False
Cross-training is one benefit of the just-in-time processingsystem. True or False
When materials are purchased, the materials account is debited.True or False
When materials are requisitioned from the storeroom, work inprocess is debited. True or False
Indirect materials is an example of factory overhead.True
In the just-in-time system, the product is often placed on amovable carrier that is centrally located in the work center.True
When using the process costing method there is only one work inprocess account for the item that is manufactured. Trueor False
The just-in-time processing method is a type of traditionalproduction method. True or False
The use of the Just in time system reduces the amount of laborcosts for a company. True orFalse
Multiple Choice
_________________ is primarily used for bulk items that areindistinguishable.
Job Order Costing
Process Order Costing
Financial Accounting
None of the above
All of the following are benefits of just in time processingEXCEPT:
Increase in efficiency
Eliminates Poor Quality
Has the potential to overwork employees
All of the above are benefits
The ___________________ emphasizes continually improving themanufacturing process and product quality.
Job Order Cost System
Process Cost System
Just-in-time system
None of the above
Activities supporting the manufacturing process arecalled______________.
Service activities
Manufacturing Cell Activities
Work Center Activities
None of the Above
Exercises/Other
Alice Farms purchased materials milk, sugar, cream, andpackaging items on account for $5,550. Using the process costsystem, answer the following questions.
What account should be debited to record the receipt of theseitems?
___________________________________
What account should be credited to record the receipt of theseitems?
___________________________________
The Mixing Department requisitioned milk, cream, and sugartotaling $9,658. Using the process cost system, answer thefollowing questions.
What account should be debited to record the receipt of theseitems?
___________________________________
What account should be credited to record the receipt of theseitems?
___________________________________
A company purchased raw materials totaling $35,000. Answer thefollowing questions using the process cost method.
Which account would the companydebit? ____________________
Which account would the companycredit? ____________________
A sewing department requisitions $4,000 of buttons and $3,250 ofthread from the storeroom. Record the journal entry for thistransaction.
True False
Cross-training is one benefit of the just-in-time processingsystem. True or False
When materials are purchased, the materials account is debited.True or False
When materials are requisitioned from the storeroom, work inprocess is debited. True or False
Indirect materials is an example of factory overhead.True
In the just-in-time system, the product is often placed on amovable carrier that is centrally located in the work center.True
When using the process costing method there is only one work inprocess account for the item that is manufactured. Trueor False
The just-in-time processing method is a type of traditionalproduction method. True or False
The use of the Just in time system reduces the amount of laborcosts for a company. True orFalse
Multiple Choice
_________________ is primarily used for bulk items that areindistinguishable.
Job Order Costing
Process Order Costing
Financial Accounting
None of the above
All of the following are benefits of just in time processingEXCEPT:
Increase in efficiency
Eliminates Poor Quality
Has the potential to overwork employees
All of the above are benefits
The ___________________ emphasizes continually improving themanufacturing process and product quality.
Job Order Cost System
Process Cost System
Just-in-time system
None of the above
Activities supporting the manufacturing process arecalled______________.
Service activities
Manufacturing Cell Activities
Work Center Activities
None of the Above
Exercises/Other
Alice Farms purchased materials milk, sugar, cream, andpackaging items on account for $5,550. Using the process costsystem, answer the following questions.
What account should be debited to record the receipt of theseitems?
___________________________________
What account should be credited to record the receipt of theseitems?
___________________________________
The Mixing Department requisitioned milk, cream, and sugartotaling $9,658. Using the process cost system, answer thefollowing questions.
What account should be debited to record the receipt of theseitems?
___________________________________
What account should be credited to record the receipt of theseitems?
___________________________________
A company purchased raw materials totaling $35,000. Answer thefollowing questions using the process cost method.
Which account would the companydebit? ____________________
Which account would the companycredit? ____________________
A sewing department requisitions $4,000 of buttons and $3,250 ofthread from the storeroom. Record the journal entry for thistransaction.
Related questions
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 clientâs 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....................................................................................................................... |
|
| ||
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. ____ |
