At the end of the fiscal year. the balance in factory overhead is small. the balance would be


38. At the end of the manufacturing fiscal year, the balance in the factory overhead account is small. This balance would normally be a. transferred to Work in Process b. transferred to Cost of Goods Sold c. transferred to Finished Goods d. allocated between Work in Process and Finished Goods e. allocated between Accounts Receivable and Sales 39. At the end of July, the first month of the current fiscal year, the factory overhead account had a debit balance. Which of the following categories would apply to this condition and how would it be reported on the interim balance sheet? overapplied, deferred credit uned) c. underapplied, deferred credit d. overapplied, deferred debit (charge e. underapplied, Unrealized Holding Gains and Losses-Equity a. 40. Each account in the cost ledger (the subsidiary ledger to the Work in Process general ledger) is called a a. finished goods sheet b. stock record sheet c. materials requisition sheet d. job cost sheet e. cost of goods sold sheet 41. Which of the following is not a reason standard costs are separated into two a. The price and quantity variances need to be identified b. Identifying variances determines which manager must find a solution to c. If an unfavorable variance is over-shadowed by a favorable variance, separately to corree the actual major differences major discrepancies. managers may overlook potential corrections. attention to discrepancies in the budget and requires ers to revise budgets closer to actual amounts materials and direct labor are In process cost accounting, the costs of direct charged (debited) directly to 42.
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Answer

38         At the end of the manufacturing fiscal year, the balance in Factory Overhead is small. This balance would normally be transferred to cost of goods sold Hence answer is (b) transferred to cost of goods sold 39             If the amount of factory overhead cost incurred exceeds the amount applied, the factory overhead account will have a debit balance and be underapplied . hence the answer is under applied will shown as deferred debit charge in interim balance sheet Hence answer is (b) underapplied , deferred debit(charge) 40 ) Cost ledgers maintain details on the costs of each individual job. A individual cost ledger account is called a job cost sheet. Hence answer is (D) job cost sheet 41) Standard cost are divided into components which are price standard and quality standard . all variances on these components which can be favorable or unfavorable is calculated to take corrective steps by managers The answer is (D) variances brings attention to discrepancies in the budget and requires managers to revise budgets closer to actual. which is not a reason for which standard cost is not divided price standard and quality standard . 42 ) In the process cost accounting, the costs of direct materials and direct labor are charged directly to Processing Department

Hence answer is (b)

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