Is it a complex process for Washburn Guitars to accumulate the cost of each Maya

Series guitar?

1 2

50%50%1. Yes

2. No

Are there accounting tools to help companies such as Washburn Guitars to compute the cost of

manufacturing a specific product?

1 2

50%50%1. Yes

2. No

Do you think that the management of Washburn Guitars uses cost accounting to help determine if

different types of guitars should be made?

1 2

50%50%1. Yes

2. No

Is it important for the management of Washburn Guitars to understand the concepts of managerial

and cost accounting?

1 2

50%50%1. Yes

2. No

Do all manufacturing companies use an accounting system to accumulate costs for

their products?

1 2

50%50%1. Yes

2. No

Cost accounting is primarily concerned with accumulating manufacturing cost

information for the goods that are produced.

1 2

50%50%1. True

2. False

A job order cost system is most appropriate when a large volume of homogeneous

products are produced.

1 2

50%50%1. True

2. False

The materials account in the general ledger is a controlling account.

1 2

50%50%1. True

2. False

When materials are purchased, the Work-in-process inventory account is debited.

1 2

50%50%1. True

2. False

Actual factory overhead costs should be applied to the Work-in-process inventory

account as they are incurred.

1 2

50%50%1. True

2. False

Underapplied overhead means that actual factory overhead costs were greater than the factory

overhead costs assigned to the jobs.

1 2

50%50%1. True

2. False

One approach for disposing of the balance of factory overhead at the end of the year is to transfer the entire

balance to the cost of goods sold account.

1 2

50%50%1. True

2. False

The two primary cost accounting systems are

1 2 3 4

25% 25%25%25%1. job order and activity

based systems

2. job order and process cost systems

3. job order and batch systems

4. batch and process cost systems

Which of the following represents the journal entry to record the flow of the materials from the

storeroom into production?

1 2 3 4

25% 25%25%25%1. Debit to Materials and credit to Work in Process

2. Debit to Materials and credit to Accounts Payable

3. Debit to Work in Process and credit to Materials

4. Debit to Work in Process and credit to Cash

At the end of each month, direct labor is posted to the job cost sheet and indirect

labor is

1 2 3 4

25% 25%25%25%1. also posted to the

job cost sheet

2. debited to Factory Overhead

3. debited to Work in Process

4. credited to Factory Overhead

The details concerning the costs incurred on each job order are accumulated

1 2 3 4

25% 25%25%25%1. on the cost of goods

manufactured schedule

2. on the income statement

3. on materials requisitions and time tickets

4. on a job cost sheet

A job cost sheet will not show

1 2 3 4

25% 25%25%25%1. cost of goods sold

2. total job cost of the completed job

3. unit cost of the completed job

4. the direct materials, direct labor and factory overhead assigned to the completed job

The predetermined factory overhead rate is based on the relationship between

1 2 3 4

25% 25%25%25%

1. actual amount of factory overhead for the forthcoming year and the estimated activity base

2. estimated amount of factory overhead for the forthcoming year and the actual activity base

3. estimated amount of factory overhead for the forthcoming year and the estimated activity base

4. actual amount of factory overhead for the forthcoming year and the actual activity base

Factory overhead is applied and recorded with a

1 2 3 4

25% 25%25%25%1. credit to Factory

Overhead

2. credit to Work in Process

3. debit to Factory Overhead

4. closing entry to the job cost sheets

At the end of the accounting period when the cost of completed jobs are determined, the entry to be

recorded is

1 2 3 4

25% 25%25%25%1. debit to the job cost sheet and credit to Finished Goods

2. debit to Finished Goods and credit to Work in Process

3. debit to Work in Process and credit to Finished Goods

4. debit to Finished Goods and credit to Cost of Goods Sold

The journal entry to record the sale of finished products will include

1 2 3 4

25% 25%25%25%1. a debit to Sales and a credit to Accounts Receivable

2. a debit to Cost of Goods Sold and a credit to Finished Goods

3. a debit to Finished Goods and a credit to Cost of Goods Sold

4. a debit to Finished Goods and a credit to Work in Process

Period costs would be recorded in a manufacturing company by

1 2 3 4

25% 25%25%25%

1. debiting Factory Overhead and crediting Accounts Payable

2. debiting Accounts Payable and crediting Factory Overhead

3. debiting Work in Process Inventory and crediting Factory Overhead

4. debiting the related expense accounts and crediting the related payable accounts