Finals 4 - Theories and Problems

1aActual costing system values manufactured products with the actual material costs, actual direct labor costs, and actual manufacturing overhead costs bNormal costing system values manufactured products with the actual material costs, actual direct labor costs and manufacturing overhead based on a predetermined manufacturing overhead rate with the possible over/ under application of factory overhead to be closed to cost of goods sold only if insignificant or to be closed prorated to cost of goods sold, work in process and finished goods inventory, if significant cStandard costing system values manufactured goods with predetermined material cost, predetermined direct labor cost, and a predetermined manufacturing overhead costs with the possible over/under application of factory overhead to be closed to cost of goods sold only if insignificant or to be closed prorated to cost of goods sold, work in process and finished goods inventory if significant dall of the above C2aIncrease in the finished goods during the period bDecrease in the direct labor cost from prior year cIncrease in the work in process inventory during the period dDecrease in the raw materials inventory during the period C3When shall the job order costing be used instead of process costing? aWhen the production process performs standardized or uniform procedures bWhen the company performs a very long production runs cWhen the company intends to use it for billing customers dWhen the company produces low-value and homogenous products D4aAcquisition price of the main material of the product bDepreciation of the machinery used to manufacture the product cSalary of the factory supervision, factory janitor and factory security guard dEmployee benefits of the factory machine operator A5aAcquisition price of the main material of the product bDepreciation of the machinery used to manufacture the product cSalary of the factory supervision, factory janitor and factory security guard dEmployee benefits of the factory machine operator B6aAcquisition price of the main material of the product bDepreciation of the machinery used to manufacture the product cSalary of the factory supervision, factory janitor and factory security guard dEmployee benefits of the factory machine operator C7aSalary of the inventory accountant bFreight out, warranty cost and sales commission cStorage cost of work-in-process inventory dCosts of abnormal waste A8a.Finance cost on inventory loan and foreign exchange differences arising from purchases bFreight-in and insurance while in transit of the raw materials c.Non-creditable import duties and irrecoverable value-added tax dCost of indirect material used and indirect labor incurred D9aif the normal rework cost is attributable to a specific job, it shall be capitalized to that particular job bif the normal rework cost is common to all jobs, it shall be debited to manufacturing overhead control account c.If the rework is abnormal, it shall be recorded as period cost or expense dAll of the above D10aIf the scrap is insignificant, the realizable value of scrap is recognized as revenue at the time it is sold bIf the scrap is insignificant, but traceable to the job that yielded the scrap, the net realizable value of scrap shall be recorded as a deduction from cost of that specific product cIf the scrap is insignificant, but common to all jobs, the net realizable value of scrap shall be credited to manufacturing overhead control dIf the scrap is significant, the net realizable value shall be capitalized as inventory of scrap with the credit going to specific job if traceable to a specific job or manufacturing overhead control of common to all jobs e.All of the above 10/10Which of the following statement concerning the comparison amongactual costing, normal costing and standard costingiscorrect?