Question 1. An accounting system that allocates costs only after production is completed is sometimes known as backflush costing.
a. True
b. False
Question 2. During the month of May Antonio Company allocated overhead to Job 316 at a rate of $1.20 per direct labor hour with a total of 6500 direct labor hours used on Job 316.
At the end of the month the cost accountant reported actual overhead incurred for Job 316 was $5,000 made up of actual utility costs and indirect labor.
The result of the comparison between allocated overhead and actual would be.
a. Underapplied overhead of $5,000
b. Overapplied overhead of $7,800
c. Overapplied overhead of $2,800
d. Overapplied overhead of $12,800
e. None of the other answers
Question 3. The cost of coods completed and ready for sale are normally transferred from work in process to _______________.
a. Cost of Goods Sold
b. Raw Materials Inventory
c. Finished Goods Inventory
d. None of the other answers
Question 4. Which of the following indicates the typical flow of costs in either a job or process costing system?
a. Raw materials inventory;cost of goods sold; work in process inventory; finished goods inventory
b. Cost of goods sold; raw materials invnetory; work in process inventory; finished goods inventory
c. Raw materials inventory; work in process inventory; finished goods inventory; cost of goods sold
d. Raw materials inventory; work in process inventory; cost of goods sold; finished goods inventory
e. None of the other answers
Question 5. Information from process cost summaries are hardly ever used in financial reporting.
a. True
b. False