Test Bank for Introduction to Managerial Accounting 6th Edition Brewer, Garrison, Noreen

Test Bank for Introduction to Managerial Accounting 6th Edition Brewer, Garrison, Noreen Chapter 02 Job-Order Costing True / False Questions 1. The use of predetermined overhead rates in a job-order cost system makes it possible to estimate the total cost of a given job as soon as production is completed. True False 2. A job cost sheet is used to accumulate costs charged to a job. True False 3. The following journal entry would be made to apply overhead cost to jobs in a job-order costing system: True False 4. Under a job-order cost system the Work in Process account is debited with the cost of materials purchased. True False 5. The process of assigning overhead cost to jobs is known as overhead application. True False 6. The cost of a completed job in a job-order costing system typically consists of the actual direct materials cost of the job, the actual direct labor cost of the job, and the actual manufacturing overhead cost of the job. True False 7. A debit balance in the Manufacturing Overhead account at the end of the year means that manufacturing overhead is overapplied. True False 8. Period costs are expensed as incurred, rather than going into the Work in Process account. True False 9. Advertising costs should be charged to the Manufacturing Overhead account. True False 10 When a job has been completed, the goods are transferred from the . production department to the finished goods warehouse and the journal entry would include a credit to Work in Process. True False 11 Underapplied or overapplied manufacturing overhead represents the . difference between actual overhead costs and applied overhead costs. True False 12 Top management salaries should not go into the Manufacturing Overhead . account. True False 13 If manufacturing overhead applied exceeds the actual manufacturing . overhead costs of the period, then manufacturing overhead is overapplied. True False Multiple Choice Questions 14 In computing its predetermined overhead rate, Marple Company . inadvertently left its indirect labor costs out of the computation. This oversight will cause: A. Manufacturing Overhead to be overapplied. B. the Cost of Goods Manufactured to be understated. C. the debits to the Manufacturing Overhead account to be understated. D. the ending balance in Work in Process to be overstated.