Service firms unlike manufacturing firms should only

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Finite Mathematics for the Managerial, Life, and Social Sciences: An Applied Approach
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Chapter 1 / Exercise 83
Finite Mathematics for the Managerial, Life, and Social Sciences: An Applied Approach
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17.Service firms, unlike manufacturing firms, should only use actual costs when determining a selling price for their services. True False
18.Job order costing is applicable to manufacturing firms only and not service firms.
19.The cost of all direct materials used on a job is debited to the Finished Goods Inventory account.
20.A materials requisition is a source document used by production managers to request materials for production and also used to assign materials costs to specific jobs or to overhead.
21.When materials are used as indirect materials, their cost is debited to the Factory Overhead account. True False
22.A materials requisition is a source document used by materials managers of a manufacturing company to order raw materials from suppliers; it serves the same purpose as a purchase order in a merchandising company.
23.Materials requisitions and time tickets are cost accounting source documents.
24.A time ticket is a source document used by an employee to record the number of hours worked on a particular job during the work day.
25.A clock card is a source document that an employee uses to report how much time was spent working on a job or on overhead and that is used to determine the amount of direct labor to charge to the job or to determine the amount of indirect labor to charge to factory overhead. True False
26.A time ticket is a source document an employee uses to record the number of hours at work and that is used each pay period to determine the total labor cost.
27.A clock card is a source document used by an employee to record the total number of hours worked during the pay period.
28.When time ticket information is entered into the accounting system, the journal entry is a debit to Factory Payroll and a credit to Goods in Process Inventory.
29.The predetermined overhead allocation rate is used to apply overhead cost to products. True False
30.Factory overhead is often collected and summarized in a factory overhead ledger.
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The document you are viewing contains questions related to this textbook.
Finite Mathematics for the Managerial, Life, and Social Sciences: An Applied Approach
The document you are viewing contains questions related to this textbook.
Chapter 1 / Exercise 83
Finite Mathematics for the Managerial, Life, and Social Sciences: An Applied Approach
Tan
Expert Verified
31.Predetermined overhead rates are necessary because cost accountants use periodic inventory systems.
32.The predetermined overhead allocation rate based on direct labor cost is the ratio of estimated overhead cost for the period to estimated direct labor cost for the period.

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