Which of the following statement is CORRECT regarding Job order cost accounting system? O Under the proration approach, if manufacturing overhead had been overallocated, the Work-in-Process Control, Finished Goods Control, and Cost of Goods Sold accounts would be increased. O Under the proration approach, if manufacturing overhead had been overallocated, the Work-in-Process Control, Finished Goods Control, and Cost of Goods Sold accounts would be decreased O Under the adjusted allocation rate approach, the total under- or overallocated manufacturing overhead is included in this year's Cost of Goods Sold. O Under the direct write-off method, total under- or overallocated manufacturing overhead is always added to the Cost of Goods Sold.

Which of the following statement is CORRECT regarding Job order cost accounting system? O Under the proration approach, if manufacturing overhead had been overallocated, the Work-in-Process Control, Finished Goods Control, and Cost of Goods Sold accounts would be increased. O Under the proration approach, if manufacturing overhead had been overallocated, the Work-in-Process Control, Finished Goods Control, and Cost of Goods Sold accounts would be decreased O Under the adjusted allocation rate approach, the total under- or overallocated manufacturing overhead is included in this year's Cost of Goods Sold. O Under the direct write-off method, total under- or overallocated manufacturing overhead is always added to the Cost of Goods Sold.

Name: Question 12Which of the following statement is CORRECT regarding Job
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Question 12Which of the following statement is CORRECT regarding Job order cost accounting system?O Under the proration approach, if manufacturing overhead had been overallocated, the Work-in-Process Control, Finished Goods Control, and Cost of Good

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Job order costing and process costing : a. both allocate applied manufacturing overhead cost to product cost . b. compute product cost per unit differently . c. All the given answers are NOT correct . d. differently assign direct materials cost direct labor cost, and manufacturing overhead costs to products. e. do not use the same manufacturing accounts , including Manufacturing Overhead , Raw Materials , Work in Process , and Finished Goods
Under a job order costing system, individual jobs are charged with actual overhead costs when they are transferred to finished goods. TRUE FALSE
Identify the following features as applying more to job order operations (J), process operations (P),or both job order and process operations (B). Measures unit costs only at period-end.
The cost method that is input - oriented and considers costs largely uncontrollable at the planning stage is called the a) standard costing b) Job costing c) Engineered cost method. d) ABC costing
Why is the determination of unit cost information using job order costing important in the management process?
Job order costing and process costing both: O a. All the given answers are correct. O b. assign direct materials cost, direct labor cost, and manufacturing overhead costs to products. O c. compute product cost per unit in the same manner. O d. use the same manufacturing accounts, including Manufacturing Overhead, Raw Materials, Work in Process, and Finished Goods. e. both allocate applied manufacturing overhead cost to product cost.
Which of the following statements is true? O The first step in activity-based costing is to assign overhead costs to products using cost drivers ABC usually results in less appropriate management decisions Activity-based costing allocates overhead to multiple activity cost pools and assigns the cost pools to products using cost drivers O Traditional costing systems use multiple predetermined overhead rates
A job cost accounting system is suitable for similar products that are mass produced. True False
Question: In cost accounting, what is the primary purpose of calculating the predetermined overhead rate? A) To allocate indirect costs to products based on a predetermined formula.B) To determine the actual overhead costs incurred during a specific production period.C) To calculate variable costs associated with each unit of production.D) To assess fixed costs that remain constant regardless of production levels.
Which one is a controllable cost? Select one: O a. Office salary Ob. Rent Factory Oc Office Rent O d. Cost of Raw material
In a job-order costing system, manufacturing overhead applied is recorded as a credit to: O a. None of the given answer is correct O b. Manufacturing Overhead. Work in Process inventory. O d. Finished Goods inventory. Fi е. Cost of Goods Sold.
Which of the following is correct with respect to closing out underapplied manufacturing overhead to Cost of Goods Sold versus closing it out to Work -in-Process Inventory , Finished Goods Inventory , and Cost of Goods Sold? a . The balance in the Work-in - Process account after allocation will be the same under either method . b . The balance in the Work-inProcess account after allocation will be higher if the underapplied overhead is closed out by allocating it to all appropriate accounts . c. None of given answer is correct . d. Operating income will be higher if all of the underapplied overhead is closed out to Cost of Goods Sold . e. Cost of Goods Sold will be higher if the underapplied overhead is closed out by allocating it to the inventory accounts as well as to Cost of Goods Sold