9th Edition A Managerial Accounting(Cost) Warren/Reeve Chapter Test 2A Score % Name Ericka E. Castillo Course BSAIS Section NOTE: Each of the 40 correct answers is 2A assigned a weight of 2 1/2%. TEST 2A (Concluded) FILL-IN-THE-BLANK—PRINCIPLES AND TERMINOLOGY—60% INSTRUCTIONS: Complete each of the following statements by writing the appropriate words in the Answers column. Answers 0. The cost accounting system used by companies who make large quantities of items that are not distinguishable from each other is ........ process cost system For Scoring 0. ____ 1. A custom-furniture designer would probably use which method of cost accounting?.............................................................................................. 2. The cost of finished products on hand that have not been sold is called 1. ____ Finished goods 2. ____ 3. ____ 3-5. Work in process consists of these costs that have entered the manufacturing process on unfinished products: 3. ................................................................................................................ Direct materials 4. ................................................................................................................ Direct labor 5. ................................................................................................................ Factory overhead 6. The accounting system that accumulates the product costs originating 5. ____ TEST 2A (Concluded) with inventory and ending with the cost of goods sold is the ................. 7. The system best suited to industries that manufacture custom goods to fill special orders is referred to as a ........................................................ 6. ____ Process costing 7. ____ 8. The system that accumulates costs for each of the departments within the factory is a ........................................................................................ Process costing 9. The Receiving Department document that shows the quantity received and its condition is the ............................................................................ Receiving report 10. Materials are released from the storeroom to the factory in response 8. ____ 9. ____ Material Acquisition 10. ____ to a .......................................................................................................... 11. The amount of time spent by an employee in the factory is usually Time cards recorded on ............................................................................................. 12. Indirect materials and indirect labor are examples of this manufacturing cost .......................................................................................................... 11. ____ Manufacturing overhead costs 12. ____ 13. The costing method that accumulates and allocates factory overhead costs to products using many overhead rates is .................................... 13. ____ 14. If estimated total factory overhead costs are $75,000 and direct labor hours are 15,000, the predetermined factory overhead rate is .............. 14. ____ 15. The process of assigning factory overhead costs to a cost object is termed ..................................................................................................... 15. ____ 16. In highly-automated factory settings, a widely used activity base for TEST 2A (Concluded) predetermining a factory overhead rate is .............................................. 16. ____ continued Answers 17. The subsidiary ledger that contains cost data for the units manufactured, units sold, and units on hand is ...................................... Finished goods ledger 18. The direct labor and overhead costs of a service business are accumulated in a ..................................................................................... Work in Process 19. If the actual factory overhead costs exceed the amount of factory overhead applied, the factory overhead account balance will be a (debit or credit) .................................................................................................. For Scoring 17. ____ 18. ____ 19. ____ TEST20. 2A (Concluded) The factory overhead in Question 19 is said to be ................................. 21. The source of the data for debiting Work in Process for direct materials 20. ____ Materials requisition 21. ____ is a ........................................................................................................... 22. The accounting document that is used to accumulate the costs for each client’s job in a service business is a ...................................................... 22. ____ 23. The controlling account for the cost ledger is ......................................... Work in Process 24. The measure used to allocate overhead that reflects its consumption is called ....................................................................................................... Activity base or driver 23. ____ 24. ____ PROBLEM 1—ANALYSIS OF TRANSACTIONS—40% INSTRUCTIONS: Indicate the titles of the accounts to be debited and credited in recording the summarized operations presented below by inserting the letter or letters of the account titles listed in the appropriate columns. A. B. C. D. Accounts Payable Accounts Receivable Cash Cost of Goods Sold E. F. G. H. ACCOUNTS Factory Overhead Finished Goods Materials Sales TRANSACTIONS 0. Cash paid on account .............................................................................. I. Selling and Administrative Expenses J. Wages Payable K. Work in Process Debit A For Scoring 0. ____ Credit C For Scoring 0. ____ TEST 2AMaterials (Concluded) 1-2. requisitioned for use on specific jobs and for general factory use ............................................................................................................ K 3-4. Factory labor incurred on specific jobs and for general factory use ....... E 3. ____ J 4. ____ 5-6. Applied factory overhead to jobs ............................................................. K 5. ____ E 6. ____ 7-8. Paid salary of vice-president of finance ................................................... I 7. ____ C 8. ____ 9-10. Cash paid for overhead costs incurred .................................................... E 9. ____ C 10. ____ 11-12. Transferred small balance of under-applied overhead ............................ E 11. ____ D 12. ____ 13-14. Jobs completed ........................................................................................ F 13. ____ K 14. ____ G 1. ____ 2. ____
