ACC 212 Exam #1 Study Guide Questions with Correct Answers Latest Update 2025/2026

ACC 212 Exam #1 Study Guide Questions with Correct Answers Latest Update 2025/2026 Financial Accounting - Answers The field of accounting that focuses on providing information for external decision makers. Manegerial Accounting - Answers Provides economic and financial information for managers and other internal users. Manufacturing Costs - Answers consists of activities and processes that convert raw materials into finished goods Direct Materials - Answers Raw materials that can be physically and directly associated with manufacturing the finished product. Raw Materials - Answers the basic material from which a product is made. Indirect Materials - Answers Not physically part of the finished product or they are an insignificant part of finished product in terms of cost. Considered part of manufacturing overhead. Direct Labor - Answers the work of factory employees that can be physically and directly associated with converting raw materials into finished goods Indirect Labor - Answers Work of factory employees that has no physical association with the finished product or for which it is impractical to trace the costs to the goods produced. Manufacturing Overhead - Answers consists of costs that are indirectly associated with the manufacture of the finished product Product Costs - Answers direct materials, direct labor, manufacturing overhead Period Costs - Answers non-manufacturing costs; includes all selling and administrative expenses charged to expense as incurred Total Work in porcess - Answers 1. cost of beginning work in process 2. total costs manufacturing overhead in current year Total Manufacturing Costs - Answers The sum of direct materials, direct labor, and manufacturing overhead incurred in the current period. Cost of Goods Manufactured - Answers + Beg WIP + DM used (Bed RM + RM Purchase - End RM) + DL + MO - End WIP Cost of Goods Sold - Answers Beg Finished Goods + COGM - Ending Finished Goods Product - Answers B/S COGM Period - Answers I/S COGS Equation - Answers Assets = Liabilities + Equity cost accounting - Answers involves measuring, recording, and reporting product costs job order cost system - Answers - Costs are assigned to each job or batch - Key feature: each job or batch has its own distinguishing characteristics - Objective: compute cost per job - Measures costs for each job completed process cost system - Answers - Used when a large volume of similar products are manufactured - cost of completed jobs is transferred Predetermined Overhead Rate - Answers based on the relationship between estimated annual overhead costs and expected annual operating activity Predetermined Overhead Rate Equation - Answers estimated annual overhead costs / expected annual operating activity Debit Balance in MO - Answers overhead is underapplied Credit balance in MO - Answers overhead in overapplied Under-applied - Answers debited to COGS Over-applied - Answers credited to COGS Property taxes on factory building - Answers manufacturing overhead Production superintendents' salaries. - Answers manufacturing overhead Memory boards and chips used in assembling computers. - Answers Direct Materials Depreciation on factory equipment - Answers manufacturing overhead