Exam 4: Product Costing Systems

Which of the following statements is false? i.Job costing accumulates costs by jobs or batches ii.Process costing accumulates costs by departments or processes. iii.Process costing accumulates costs for specific time periods.iv.Job costing accumulates costs by departments.

Which of the following is true regarding job costing?

If the manufacturing overhead account has a credit balance,then:

On completion of products under a job cost system,costs are transferred as follows:

Select the relevant information from the following,and calculate the cost of goods available for sale: Total manufacturing costs were $5390.Cost of goods available for sale is:

When products are completed,their product costs are transferred from work in process inventory to the:

Which of the following costs should managers focus on when making long term strategic pricing decisions?

Manufacturing overheads incurred are debited to the work-in-process inventory account.

If a manufacturing firm ends the year with underapplied overhead,one method of treatment is:

For a particular period,Petersen's opening and closing work in process balances were $20 000 and $14 000 respectively.Direct materials used was $200 000 and overhead applied was $130 000.Cost of goods manufactured was $490 000.What was the amount of direct labour cost incurred for the period?

Cost of Goods Manufactured = Beginning Work in Process + Total Manufacturing Costs - Ending Work in Process.

When overheads are over-allocated,the actual overheads incurred are greater than those allocated.

Manufacturing costs consist of:

Brainpower Pty Ltd is an advertising agency that uses a job costing system.Brainpower applies overhead to jobs based on direct professional labour hours.At the beginning of the year,overhead was estimated to be $75 000,direct professional labour hours were estimated to be 15 000,and direct professional labour cost was projected to be $225 000.During the year,Brainpower incurred actual overhead of $80 000,actual direct labour hours of 14 500 and actual direct labour cost of $222 000.What was Brainpower's overapplied or underapplied overhead during the year?