Exam 19: Job Order Cost Accounting

Marshall Enterprises charged the following amounts of overhead to jobs during the year: $20,000 to jobs still in process,$60,000 to jobs completed but not sold,and $120,000 to jobs finished and sold.At year-end,Marshall Enterprise's Factory Overhead account has a credit balance of $5,000,which is not a material amount.What entry should Marshall make at year-end?

The amount by which the overhead applied to jobs during a period exceeds the overhead incurred during the period is known as:

Copy Center pays an average wage of $12 per hour to employees for printing and copying jobs,and allocates $18 of overhead for each employee hour worked.Materials are assigned to each job according to actual cost.If Job M-47 used $350 of materials and took 20 hours of labor to complete,what is the total cost that should be assigned to the job?

A job cost sheet includes:

Oxford Company uses a job order costing system.In the last month,the system accumulated labor time tickets total $24,600 for direct labor and $4,300 for indirect labor.These costs were accumulated in Factory Payroll as they were paid.Which entry should Oxford make to assign the Factory Payroll?

Direct materials and direct labor are examples of costs that are debited to the Factory Overhead account in a job costing system.

An example of direct labor cost is:

Period costs for a manufacturing company,such as selling and administrative expenses,are recorded directly to Work In Process Inventory when they are incurred.

A company that uses a job order costing system would make the following entry to record the flow of direct materials into production:

If overhead is underapplied,it means that individual jobs have not been charged enough during the year and the cost of goods sold reported is too low.

Heintz Company's job order costing system applies overhead based on direct labor costs.The company's manufacturing costs for the current year were: direct materials,$108,000;direct labor,$144,000;and factory overhead,$36,000.At year-end,the total cost of Work in Process is $38,000,which includes $12,000 of direct labor cost.What amount of direct material cost is included in the ending Work in Process inventory?

Portside Watercraft uses a job order costing system.During one month Portside purchased $153,000 of raw materials on credit;issued materials to production of $164,000 of which $24,000 were indirect.Portside incurred a factory payroll of $95,000,paid in cash,of which $25,000 was indirect labor.Portside uses a predetermined overhead rate of 170% of direct labor cost.The journal entry to record the application of factory overhead to production is:

Service firms,unlike manufacturing firms,should only use actual costs when determining a selling price for their services.

A time ticket is a source document used by an employee to record the number of hours worked on a particular job during the work day.

KL Company uses a job order costing system.During the month of July,the following events occurred: (a)Purchased raw materials on credit,$32,000. (b)Raw materials requisitioned: $25,800 as direct materials and $10,500 indirect materials. (c)Assigned the factory payroll totaling $37,700,which includes $8,200 indirect labor,to jobs and overhead. Make the necessary journal entries to record the above transactions and events.

A source document that an employee uses to report how much time was spent working on a job or on overhead activities and that is used to determine the amount of direct labor to charge to the job or to determine the amount of indirect labor to charge to factory overhead is called a:

The cost of all direct materials issued to production is debited to Work in Process Inventory.

Minstrel Manufacturing uses a job order costing system.During one month Minstrel purchased $198,000 of raw materials on credit;issued materials to production of $195,000 of which $30,000 were indirect.Minstrel incurred a factory payroll of $150,000,paid in cash,of which $40,000 was indirect labor.Minstrel uses a predetermined overhead rate of 150% of direct labor cost.The journal entry to record the application of factory overhead to production is:

EXP,Inc.had the following activities during its most recent period of operations: (a)Purchased raw materials on account for $140,000 (both direct and indirect materials are recorded in the Raw Materials Inventory account). (b)Issued raw materials to production of $130,000 (80% direct and 20% indirect). (c)Incurred factory labor costs of $250,000;allocated the factory labor costs to production (70% direct and 30% indirect). (d)Incurred factory utilities costs of $20,000;this amount is still payable. (e)Applied overhead at 80% of direct labor costs. (f)Recorded factory depreciation,$22,000. Prepare journal entries to record the above transactions.

Features of a job costing system include all but which of the following: