
9) Which of the following would usually be found on a job cost sheet under a normal cost system? Actual direct material cost Actual manufacturing overhead cost Yes A) C) D) No ich of the following statements about using a plantwide overhead rate based on direet labor is correct? A) Using a plantwide overhead rate based on direct labor-bours will ensure that direct labor costs are cotret traced to jobs. sing a plantwide overhead rate based on direct labor costs will enssure that direct labor costs will be correctly traced to jobs. C) It is often overly simplistic and incorrect to assume that direct labor-bours is a company’s only manufacturing overhead cost driver. D) The labor theory of value ensures that using a plantwide overhead rate based on direct labor will do a 31.) In a job-order costing system, indirect labor cost is usually recorded as a debit to: A) Manufacturing Overhead B) Finished Goods C) Work in Process D) Cost of Goods Sold 32.) In a job-order costing system, manufacturing overhead applied is recorded as a debit to: A) Raw Materials B) Finished Goods Inventory C) Work in Process Inventory D) Cost of Goods Sold 33.) The journal entry to record applying overhead during the production process is: Manufacturing Overhead xoxx Work In Process A) Finished Goods XXx Manufacturing Overhead B) Manufacturing Overhead Finished Goods C) oxx Nork In Process Manufacturing Overhead D)
Answer
29 The correct option is B Under normal costing, actual direct material cost and applied manufacturing overhead cost are used to prepare the job cost sheet. 30 The correct option is ‘C. It is often overly simplistic and incorrect to assume that direct labor-hours is a company’s only manufacturing overhead cost driver Except from direct labor there are other cost drivers as well that can be used to accurately allocate the overhead cost. 31 The correct option is ‘A. Manufacturing overhead Indirect labor cost is recorded by debiting manufacturing overhead and crediting factory payroll or cash. 32. The correct option is C. Work in process inventory Manufacturing overhead applied are recorded by debiting work in process inventory and crediting manufacturing overhead. The correct option is D Manufacturing overhead applied are recorded by debiting work in process inventory and crediting manufacturing overhead.