chpt 15 accounting quiz

Cost accounting system: Accounting system for manufacturing activities based on the perpetual inventory system.                                      

Overapplied overhead: The Amount by which the overhead applied to production in a period using the predetermined overhead rate exceeds the actual overhead cost incurred in a period.                                                 

Cost of goods sold: Cost of inventory sold to customers during a period; also called cost of sales.               

Predetermined overhead rate: Rate established prior to the beginning of a period that divides estimated overhead cost by an estimated activity base, such as estimated direct labor; used to apply overhead cost to production.                                                        

Process operations: Processing products in a continuous (sequential) flow of steps; also called process manufacturing or process production.

Finished goods inventory: Account that controls the finished goods files, which acts as a subsidiary ledger (of the Inventory account) in which the costs of finished goods that are ready for sale are recorded.                                  

Receiving report :Form used to report that ordered goods were received and to describe their quantity and condition.

Job :Production of a customized product or service.                                                                   

Subsidiary records : In job order costing, the job cost sheets that store job-specific cost data.

­­­­Job cost sheet : Separate record maintained for each job.                                                  

 target costing : Maximum allowable cost for a product or service; defined as expected selling price less the desired profit.

Job order costing system : Cost accounting system to determine the cost of producing each job or job lot.                                    

Time tickets : Source document used to report the time an employee spent working on a job or on overhead activities and then to determine the amount of direct labor to charge to the job or the amount of indirect labor to charge to overhead.

Materials ledger cards :  Perpetual record updated each time materials are purchased or issued for production use.                                          

Underapplied overhead : Amount by which actual overhead cost incurred in a period exceeds the overhead applied to that period’s production using the predetermined overhead rate.

Materials requisition : Source document production managers use to request materials for production; used to assign materials costs to specific jobs or overhead.                                              

Work in process inventory :Account in which costs are accumulated for products that are in the process of being produced but are not yet complete; also called Goods in Process Inventory