Manufacturing overhead and costs per-unit and debits to account
Not what you're looking for?
1. In the year-end financial statements, the Manufacturing Overhead
account should have:
a. A debit balance, representing overhead on hand and available
for use.
b. A credit balance, representing accumulated depreciation and
amounts owed to suppliers of overhead items.
c. Either a debit or a credit balance, depending upon whether the
overhead application rate used throughout the year was higher
or lower than 100%.
d. A zero balance, since all overhead costs incurred during the
period should be assigned to the production of the period.
2. Since manufacturing costs (direct materials, direct labor, and
overhead) are incurred in the process of manufacturing units of
product, these costs are debited to:
a. The Direct Materials Inventory, Direct Labor, and
Manufacturing Overhead accounts.
b. Expense accounts.
c. The Work in Process Inventory account.
d. The Cost of Goods Sold account.
3*. Per-unit costs:
a. Are relevant only when a company is engaged in manufacturing
activities.
b. Are determined in job order cost systems but cannot be
computed when a process cost system is in use.
c. Are relevant in manufacturing, merchandising, and service
industries, regardless of the type of cost accounting system in
use.
d. Are determined by relating manufacturing costs to the number
of units sold.
4*. Debits to the Manufacturing Overhead account record:
a. The actual amounts of overhead costs incurred during a period.
b. The amount of overhead applied to production during a period.
c. The amount of overhead incurred on a specific job.
d. All conversion costs of a period.
Purchase this Solution
Solution Summary
You will find the answer to these puzzling questions inside.
Solution Preview
1) d. It is an expense account and should have zero balance at the end of the financial period.
2) ...
Purchase this Solution
Free BrainMass Quizzes
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Introduction to Finance
This quiz test introductory finance topics.
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.