Managerial Accounting Exam 1 (Ch. 1,2,3) A+ Guaranteed.

Indirect Labor is a part of? A. Prime Cost / B. Conversion Cost / C. Period Cost / D. Nonmanufacturing Cost correct answers B. Conversion Cost The difference between the overhead cost applied to Work in Process and the actual overhead costs of a period is termed ? correct answers underapplied or overapplied overhead. POHR= ? divided by Estimated Total Units in the allocation base for coming period correct answers POHR = Estimated Total Amount of M.O.H. Cost for the Current Period / divided by/ Estimated total Units in the allocation base for the coming period The _________ side of the Manufacturing Overhead account is always used to record the actual manufacturing overhead costs, such as indirect materials, that are incurred during the period. The _________ side of this account is always used to record the manufacturing overhead applied to work in process. correct answers debit, credit Raw materials include any ______________ which go into the final _________. correct answers materials, product What does work-in-process consist of? correct answers consists of units of product that are only partially complete and will require further work before they are ready for sale to the customer. To transform direct materials into completed jobs, you must? correct answers direct labor cost is added to Work in Process and manufacturing overhead cost is applied to Work in Process by multiplying the predetermined overhead rate by the actual quantity of the allocation base consumed by each job When jobs are completed, their costs are transferred ? correct answers From WIP to Finished Goods . Finished goods consist of ? correct answers completed units of product that have not yet been sold to customers. all actual manufacturing overhead costs are debited to what account? correct answers the Manufacturing Overhead account as they are incurred.