Question

Match each term with the explanation.

Question 1 options:

Debited for the amount of indirect materials requisitioned for jobs Total estimated manufacturing overhead costs divided by total estimated amount of allocation base Materials used in the manufacturing plant that cannot be traced to individual jobs Account credited when finished goods are sold Used to accumulate direct materials, direct labor and manufacturing overhead allocated to a job Account credited when recording the use of direct labor on jobs Manufacturing overhead allocated is less than the actual manufacturing overhead Cost + Markup on cost Account debited when raw materials are purchased Records the time spent by each employee on each job he or she worked on throughout the day Debited for the amount of direct materials requisitioned for a job Process of dividing the total manufacturing overhead among the jobs produced during the year Account debited when finished goods are sold Averages manufacturing costs across all units produced so that each identical unit bears the same cost Used by companies that produce unique, custom ordered products, or small batches of different products Total job cost divided by the number of units Predetermined manufacturing overhead rate multiplied by actual amount of allocation base used by job Actual manufacturing overhead is less than the amount of manufacturing overhead allocated to jobs

1. Process costing 2. Job costing 3. Job cost record 4. Labor time record 5. Allocation of manufacturing overhead 6. Predetermined overhead rate 7. Calculation of Manufacturing overhead allocated to a job 8. Cost-plus pricing 9. Over-allocated manufacturing overhead 10. Under-allocated manufacturing overhead 11. Indirect materials 12. Manufacturing Overhead account 13. Work in Process Inventory account 14. Cost of each unit for a job 15. Cost of Goods Sold 16. Finished goods inventory 17. Wages Payable 18. Raw materials inventory

Answer 1

EXPLANATION	TERM
Debited for the amount of indirect materials requisitioned for jobs	12	Manufacturing Overhead account
Total estimated manufacturing overhead costs divided by total estimated amount of allocation base	6	Predetermined overhead rate
Materials used in the manufacturing plant that cannot be traced to individual jobs	11	Indirect materials
Account credited when finished goods are sold	16	Finished goods inventory
Used to accumulate direct materials, direct labor and manufacturing overhead allocated to a job	3	Job cost record
Account credited when recording the use of direct labor on jobs	17	Wages Payable
Manufacturing overhead allocated is less than the actual manufacturing overhead	10	Under-allocated manufacturing overhead
Cost + Markup on cost	8	Cost-plus pricing
Account debited when raw materials are purchased	18	Raw materials inventory
Records the time spent by each employee on each job he or she worked on throughout the day	4	Labor time record
Debited for the amount of direct materials requisitioned for a job	13	Work in Process Inventory account
Process of dividing the total manufacturing overhead among the jobs produced during the year	5	Allocation of manufacturing overhead
Account debited when finished goods are sold	15	Cost of Goods Sold
Averages manufacturing costs across all units produced so that each identical unit bears the same cost	1	Process costing
Used by companies that produce unique, custom ordered products, or small batches of different products	2	Job costing
Total job cost divided by the number of units	14	Cost of each unit for a job
Predetermined manufacturing overhead rate multiplied by actual amount of allocation base used by job	7	Calculation of Manufacturing overhead allocated to a job
Actual manufacturing overhead is less than the amount of manufacturing overhead allocated to jobs	9	Over-allocated manufacturing overhead