Accounting Questions?
Accounting Questions?
The manufacturing operation that would be most likely to use a job-order costing system is:
a. toy manufacturing
b. candy manufacturing
c. crude oil refining
d. shipbuilding
In a job-order cost system, the application of manufacturing overhead usually would be recorded as a debit to:
a. cost of goods sold
b. work in process inventory
c. manufacturing overhead
d. finished goods inventory
In a job order cost system using predetermined manufacturing overhead rates, indirect materials issued into production usually are recorded as an increase in:
a. work in process inventory
b. finished goods inventory
c. raw materials inventory
d. manufacturing overhead
Which of the following would probably be the least appropriate allocation base for allocating overhead in a highly automated manufacturer of specialty valves?
a. machine-hours
b. power consumption
c. direct labor-hours
d. machine setups
Machining a part for a car axle is an example of a:
a. unit level
b. batch
c. product
d. facility
thanks
Answers:
Chosen Answer
Scott K: d, a, d, c, c
2008-03-21 19:36:51
adiwsusanto: d. Shipbuilding, as normally ships are build individually not MASS produced (compared to the other 3 choices which are process driven, therefore MASS produced).
b. WIP is the accounts where the Raw Material, Direct Labour and MFG OH (MO) being accumulated to process to FG.
d. Predetermined MO rates is applied to WIP (debited & credited into Actual MO a/c), actuals Indirect labout is recorded/ debited into Actual MO a/c to be comapred against the applied MO to determine over/ under applied MO.
d. Machine setups. In a highly automated manufacturer, the process is pretty much process driven rather than jobs driven. Machine setups only happens when a different model is put under the production lines, therefore it's not appropriate to use as the base of the application because it doesn't represents the activity being done by the indirect MFG cost.
a.Unit level. It's not a batch because the activity is done once; it's not product because it's part of the finished product; it's not facility because it may not be done for all product types. I might be wrong on this one as I'm not sure....I didn' have book reference on this one (Forgot). I think this is a definition & you may be able to find them in your study book
2008-03-23 02:30:51