1.The characteristics of a firms production process determine the features of its cost accounting system. However, every process converts inputs to outputs.

Required:

Enter the identifying letters in the blanks below to indicate the term that best matches each description.

A.	Applied overhead	F.	Operations costing
B.	Cost accounting	G.	Over-applied overhead
C.	Fixed manufacturing overhead	H.	Predetermined overhead rate
D.	Job shops	I.	Process shops
E.	Normal costing	J.	Under-applied overhead

1.		Settings that involve continuous production of homogeneous products.
2.		Indirect manufacturing costs that do not vary with production volume.
3.		Amount of overhead allocated to products using a predetermined overhead rate.
4.		Arises when actual overhead is larger than applied overhead.
5.		Accounting systems for calculating values of ending inventories and cost of goods sold.
6.		Rate computed using expected overhead costs and volumes at the start of a period.
7.		Settings that involve discrete production of unique products.
8.		Arises when actual overhead is smaller than applied overhead.
9.		Product-costing system that uses predetermined rates to apply overhead to products.
10.		A combination of job costing and process costing.

2.Gustav Machinery Works uses a job cost system. The company provides the following information related to the Work in Process account for the current month.

Beginning balance	$25,000
Direct material used	$28,000
Direct labor incurred	$20,000
Manufacturing overhead applied	$35,000

Gustav applies manufacturing overhead based on direct labor cost. Job No. 22, started during the current period, was the only job still in process at the end of the period, containing $4,000 in materials and $2,600 in labor.

Required:

Determine the Cost of Goods Manufactured during January.

Answer rating: 100% (QA)

PART 1 1 Settings that involve continuous production of homogeneous products I 2 Indirect manufactur... View the full answer