ACG 2071 Chapter 3 Exam Questions with Correct Answers

ACG 2071 Chapter 3 Exam Questions with Correct Answers


Question 1:
When a job is completed, the job costs are transferred OUT OF
Answer:
. Work In Process


Question 2:
Manufacturing overhead costs include (things like)
Answer:
The factory supervisor's salary
Factory insurance


Question 3:
Completed units that have not yet been sold are found in
Answer:
inventory. Finished Goods


Question 4:
When Actual Overhead is incurred, MOH is debited.
Answer:
Process of Accounting for Manufacturing Overhead


Question 5:
When Overhead is applied to WIP, MOH is credited. When the period ends, MOH is closed.
Unadjusted Cost of Goods Sold
Answer:
= Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods
Inventory


Question 6:
Cost of Goods Manufactured
Answer:
- Includes the manufacturing costs of goods finished during the period.
= Beginning Work in Process Inventory + Total Manufacturing Costs added to production -
Ending Work in Process Inventory

, Question 7:
Total manufacturing costs added to production
Answer:
= Direct Materials used in production + Direct Labor + MOH applied to Work In Process


Question 8:
Units of product that are only partially complete are contain in the
Answer:
inventory. Work In Process


Question 9:
What methods can be used to dispose of underapplied or overapplied manufacturing
overhead?
Answer:
- Close it Cost of Goods Sold
Allocate it to Work in Process, Finished Goods, and Cost of Goods Sold


Question 10:
These costs are charged directly to the income statement:
Answer:
- Selling Costs Administrative Costs
Any purchased materials that will go into the finished product are first recorded in


Question 11:
inventory account.
Answer:
Raw Materials


Question 12:
Cost of Direct Materials Used
Answer:
= Beginning Inventory + Purchases - Indirect Materials - Ending Inventory