How can we help?

You can also find more resources in our Help Center.

managerial chapter 2 t/f

STUDY
PLAY
1.
The use of predetermined overhead rates in a job-order cost system makes it possible to estimate the total cost of a given job as soon as production is completed.
true
A job cost sheet is used to accumulate costs charged to a job.
true
4.
Under a job-order cost system the Work in Process account is debited with the cost of materials purchased.
false
The process of assigning overhead cost to jobs is known as overhead application.
true
The cost of a completed job in a job-order costing system typically consists of the actual direct materials cost of the job, the actual direct labor cost of the job, and the actual manufacturing overhead cost of the job.
false
A debit balance in the Manufacturing Overhead account at the end of the year means that manufacturing overhead is overapplied.
false
Period costs are expensed as incurred, rather than going into the Work in Process account.
true
Advertising costs should be charged to the Manufacturing Overhead account.
FALSE
When a job has been completed, the goods are transferred from the production department to the finished goods warehouse and the journal entry would include a credit to Work in Process.
true
Underapplied or overapplied manufacturing overhead represents the difference between actual overhead costs and applied overhead costs.
true
Top management salaries should not go into the Manufacturing Overhead account.
true
If manufacturing overhead applied exceeds the actual manufacturing overhead costs of the period, then manufacturing overhead is overapplied.
true