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Ch 16 quiz study

When raw materials are purchased, the Work in Process Inventory
account is debited
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False
Under an effective system of internal control, the authorization for issuing
materials is made on a prenumbered materials requisition slip
There should be a separate job cost sheet for each job
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False
The predetermined overhead rate is based on the relationship between
estimated annual overhead costs and expected annual operating activity
expressed in terms of a common activity base
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True
Kinney Company applies overhead on the basis of 150% of direct labor
cost
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176 is charged with $100,000 of direct materials costs and
$120,000 of manufacturing overhead
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176 is $300,000
If the entry to assign factory labor showed only a debit to Work In
Process Inventory, then all labor costs were direct labor

Cost accounting is primarily concerned with accumulating information
about product costs
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True
In a job order cost accounting system, the Raw Materials Inventory
account is a control account
The following information is available for completed Job No
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The cost of the finished goods on hand from this job is $52,000
A job order cost system identifies costs with a particular job rather than
with a set time period
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T

Which of the following is one of the components of cost accounting? It
involves measuring product costs
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In a job order cost system, each entry to the Work In Process Inventory
account should be accompanied by a posting to one or more job cost
sheets
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Barnes Company applies overhead on the basis of machine hours
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The Raw Materials Inventory account is debited for invoice costs and
freight costs chargeable to the purchaser
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The two major steps in the flow of costs are accumulating and
assigning
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F
Which one of the following should be equal to the balance of the Work In
Process Inventory account at the end of the period? The sum of the

costs shown on the job cost sheets of unfinished jobs
The cost of raw materials purchased is credited to Raw Materials
Inventory when materials are received
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Manufacturing overhead applied is added to direct labor incurred and to
what other item to equal total manufacturing costs for the period? Direct
materials used




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