Questions from College Accounting

Q: What is the relationship between the debit and credit balances in the

What is the relationship between the debit and credit balances in the factory overhead account when the overhead is said to be underapplied? Overapplied?

Q: Why are the balances in the factory overhead account not extended to

Why are the balances in the factory overhead account not extended to the Income Statement and Balance Sheet columns of the work sheet?

Q: What are the three inventories needed in a manufacturing business?

What are the three inventories needed in a manufacturing business?

Q: When the adjustment is made to apply overhead to ending work in

When the adjustment is made to apply overhead to ending work in process, why are no entries made in the job cost ledger?

Q: Is a physical inventory necessary under the perpetual system? Why or

Is a physical inventory necessary under the perpetual system? Why or why not?

Q: Describe the procedures for closing the factory overhead account.

Describe the procedures for closing the factory overhead account.

Q: Which adjusting entries are reversed by ToyJoy?

Which adjusting entries are reversed by ToyJoy?

Q: What two purposes are served by a materials requisition form?

What two purposes are served by a materials requisition form?

Q: What information is provided by the daily time sheet?

What information is provided by the daily time sheet?

Q: Explain how to calculate a predetermined overhead rate.

Explain how to calculate a predetermined overhead rate.