horngren exam 2 questions & answers 2024

horngren exam 2 questions & answers 2024 Which product costing system would be better for custom-order products? - ANSWER-Job-costing system Which of these documents authorizes the purchase of specific raw materials from a specific supplier? - ANSWER-Purchase order A _____________ is used to accumulate the costs of a job - ANSWER-Job cost record The assignment of direct and indirect materials to a cost object reduces the _________ - ANSWER-Raw materials inventory account A _______________ is the primary factor that causes a cost to be incurred - ANSWER-Cost driver A ______________ is an estimated manufacturing overhead rate computed at the beginning of the year - ANSWER-Predetermined manufacturing overhead rate Squire corporation charged Job 110 with $14,000 of direct materials and $12,600 of direct labor. Allocation for manufacturing overhead is 70% of direct labor costs. What is the total cost of Job 110? - ANSWER-(0.7 * 12,600) + 12,600 + 14,000 = $35,420 Maple Company uses a job costing system. Maple Company's schedule of cost of goods manufactured showed the following amounts for the month ended August 31. Cost of DM used: $42,800 COGM: $124,900 Cost of DL ($26/hr): 76,700 WIP August 1: 15,500