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Unformatted text preview: 1 Faculty of Management Technology Managerial Accounting II Spring 2011 Quiz # 1-C Question 1: Short Essay: 1. Describe three different debit entries to the Work-in-Process Control T-account under normal costing & The work in process Control T-account is debited (increased) by: a. The Actual direct material used in production. b. The Actual cost of direct labor used (wages of direct labor). c. The allocated Manufacturing overhead-MOH. Question 2: True/false: 1. Indirect costs are allocated to the cost object using a cost-allocation method. Answer : True 2. Normal costing assigns indirect costs based on a budgeted indirect-cost rate. Answer : True 3. The ending balance in Work-in-Process Control represents the total costs of all jobs that have been completed. Answer : False 4. Actual costing is a method of job costing that allocates an indirect cost based on the actual indirect-cost rate times the actual quantity of the cost-allocation base. Answer : True 5. One reason indirect costs may be under-allocated is if actual indirect costs exceed budgeted indirect costs. Answer: True 2 Question 3: Multiple Choice: 1. In a normal costing system, the Manufacturing Overhead Control account: a. is increased by allocated manufacturing overhead b. is debited with actual overhead costs c. is credited with amounts transferred to Work-in-Process d. is decreased by allocated manufacturing overhead 2. __________ is the process of distributing indirect costs to products. a. Cost allocation b. Job cost recording c. Cost pooling d. Cost tracing 3. The Materials Control account is increased when: a. direct materials are purchased b. indirect materials are purchased c. Both a and b are correct d. materials are requisitioned for production 4. The ending balance in the Finished Goods Control account represents the costs of all jobs that:...
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This note was uploaded on 04/08/2011 for the course MGMT 401 taught by Professor Mohamed during the Spring '11 term at Manor.
- Spring '11