Maintaining internal control over labor costs is necessary for a cost accounting system to function effectively. What are the internal control procedures regarding the charge to the work in process account and the credit to the payroll account in the general ledger?

Maintaining internal control over labor costs is necessary for a cost accounting system to function effectively. What are the internal control procedures regarding the charge to the work in process account and the credit to the payroll account in the general ledger?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter3: Accounting For Labor

Section: Chapter Questions

Problem 13Q

See similar textbooks

Related questions

Q: Which document is used by cost accounting to allocate direct labor charges to work-in-process?

Q: What is the role of materials requisition forms in a job-order costing system? Time tickets?…

A: A job costing system must be capable of determining the amount of direct supplies, direct labor, and…

Q: In a job order cost system, a credit to Work in Process Inventory will be accompanied by a debit to:…

A: The job order cost system is used to calculate the cost involved in the specific jobs.

Q: What tasks does a payroll clerk perform upon receipt of hours-worked data from the production…

A: Payroll Clerk: Payroll clerk is a person who calculates the payroll of employees by using personnel…

Q: Compare the characteristics of job costing and process costing. Consider how each method impacts the…

A: Job order costing: Job order costing a method of costing used by a company t determine the cost…

Q: Which of the following best describes the activities of the production function?a. maintenance,…

Q: rpose of the following control procedures (i.e., what threats is it designed to mitigate)? b.…

A: Following are the Purpose of Control Procedures of Reconciliation of labor costs (based on job-time…

Q: The process of assigning overhead costs to the jobs that are worked on is commonly called: a.…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The accounting firm which audits the financial statements of a company uses a: a. Process costing…

A: Job costing means where actual direct cost is included in specific cost and overhead is applied on…

Q: The journal entry to record actual manufacturing overhead for indirect labor debits Manufacturing…

A: Work in progress Inventory: It refers to the organisation's goods which are not completely finished…

Q: When raw materials are purchased, the cost is debited to an inventory account called ________.

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: Discuss the importance to the cost accounting departmen

A: Cost Accounting System: Cost accounting system can be defined as a framework designed by the…

Q: The purchase of raw materials on account in a process costing system is recorded with a: O Debit to…

A: Process costing system: It is used to compute the cost per unit from the production at each stage.…

Q: Which characteristic is the same in both job order costing systems and process costing systems?…

A: Job order costing: Job order costing is one of the methods of cost accounting under which cost is…

Q: What is the most important purpose of the cost of production report

A: Given: The importance and use of cost of production report.

Q: Compare management accounting with financial accounting Understand the important roles and…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: Which of the following is the correct journal entry to record manufacturing overhead incurred?…

A: All the manufacturing overheads are recorded through the manufacturing overhead control account.

Q: Which of the following is true of a production report prepared under a process-costing system? a. It…

A: Process costing is a cost accounting system in which production is carried out at multiple stages…

Q: Show the solution in excel Required: - Schedule of labor hours and schedule of labor costs (Factory…

A: Payroll Payroll is considered to be one of the important functions / segment in the organisation.…

Q: When a single, volume-based cost driver (or activity base) is used to apply manufacturing overhead,…

A: Cost: It is the economic value of resources incurred by a firm to manufacture a product or render…

Q: How do accounting books handle overhead overabsorption and underabsorption?

A: Overheads are the basic cost component of any product or service. It basically comprises of the…

Q: how to allocate manufacturing overhead by department?

A: Manufacturing overhead costs: The costs, which do not relate openly with the manufacturing of…

Q: When and how to calculate the predetermined overhead rate?

A: The manufacturing overhead are applied to production on the basis of estimated activity rates.

Q: In a job order costing system, what records serve as a subsidiary ledger for Work in Process…

Q: Identify the following features as applying more to job order operations (J), process operations…

A: Job order operations: These processes are used to allocate prime costs to each unit…

Q: Compute the Manufacturing Overhead Applied to Jobs;

A: Overhead cost allocation: It is the process of allocating the estimated overhead of a company to its…

Q: What documents are needed for cost accounting clerks to update the work-in-process accounts with…

A: Cost Accounting System: Cost accounting system can be defined as a framework designed by the…

Q: In a job-order costing system, the incurrence of indirect labor costs would usually be recorded as a…

A: Job order costing: The job order costing is a method of cost used by companies who produce unique…

Q: How are cost of production reports used for controlling and improving operations?

A: Production cost report: A production cost report is a comprehensive report prepared for each…

Q: Explain the characteristics and purposes of cost accounting and explain the nature and importance of…

A: Cost Accounting is a branch of accountancy which focuses on cost and derives all other facets by…

Q: In a process costing system, which account shows the overhead assigned to the department?A. cost of…

A: Process costing appears to be an accounting approach often used by organizations that mass produce…

Q: Supervisors in the work centers oversee the usage of raw material in production; explain why the…

Q: Which of the following is the main objectives of cost accounting? a. Maintenance of machinery b.…

A: Cost accounting means where every cost of doing business is recorded in necessary account and cost…

Q: Which of the following statements concerning general ledger accounts is true? The general…

A: Explanation: General ledger is used in the financial accounting to record the financial…

Q: What events cause debits to be recorded in the Factory Overhead account? What events cause credits…

Q: Which one of the following is considered a basic similarity between job order cost and process cost…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Which one of the following accounts is debited when direct labor is issued for production? Cash Work…

A: Labor is applied on the work in process units to convert the raw material into the finished goods.

Q: Explain the similarities between a job order and a process cost system and features of process cost…

A: The concept of process cost accounting involves accounting of costs of an enterprise based on the…

Q: How do accounting books handle over and under absorption of overheads?

A: Under absorption takes place when the amount is absorbed lower than the actual whereas,…

Q: In a process costing system, manufacturing overhead applied is usually recorded as a debit to______?

A: Process costing system is a system of costing which shows the cost incurred in each process with…

Q: Describe how the over or under application of overhead should be corrected in the accounting…

A: Over application of overhead: A corporation is said to have overapplied overhead when the actual…

Q: What does the credit side of manufacturing overhead control account has?

A: Solution: Manufacturing overhead control account is used to record indirect manufacturing cost…

Q: True or False. Over/under applied overhead must be closed and allocated to Cost of Goods Sold,…

A: Overheads are a part of the cost incurred during the manufacturing process, which are estimated in…

Q: What are the difference between raw material, work in process, and finished goods inventories?

A: Inventory represents finished goods or goods in different stages of production. The 3 Types of…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

If a job order cost system tracks the direct materials and direct labor, why doesn't It track the actual overhead used for a specific job?
How do the job cost sheets act as a subsidiary ledger for the work in process inventory if journal entries are not made to the job cost sheets?
What are the sources for posting indirect labor cost to the indirect labor account in the factory overhead ledger?
Why is the manufacturing overhead account debited as expenses are recognized and then credited when overhead is applied?
How is manufacturing overhead handled in a process cost system?
Normally, a manufacturer maintains an accounting system that includes a materials ledger and a general ledger account for Materials. What is the relationship between the materials ledger and the materials account in the general ledger?
What does the credit side of manufacturing overhead control account has?
What is the purpose of the following control procedures (i.e., what threats is it designed to mitigate)? b. Reconciliation of labor costs (based on job-time ticket data) with payroll (based on time card data).
How do accounting books handle over and under absorption of overheads?
The basis used for allocating manufacturing overhead (such as machine hours or direct labor hours) should closely align with O a. estimation techniques used in other areas of financial reporting. O b. the GAAP rules for allocating overhead. O C. the incurrence of overhead costs. d. the way that competitors allocate overhead.
Describe how the over or under application of overhead should be corrected in the accounting records.