Exam 5: Product and Service Costing: Job-Order System

Manufacturing firms produce intangible products that cannot be inventoried.

The collection of all job cost sheets defines a

The job-order cost sheet accumulates the cost of all the jobs produced.

The cost of direct materials is assigned to a job by the use of a source document known as a

The principal difficulty with normal costing is that

When normal costing is used, actual overhead costs are

The source document known as a time ticket assigns the direct overhead to each particular job.

Lamour Corporation is a job order costing company that uses activity-based costing to apply overhead to jobs. The following overhead activities were budgeted for the year. Activity Cost Driver Amount of driver setups \ 240,000 number of setups 6,000 purchasing 160,000 number of parts 20,000 other overhead 300,000 direct labor hours 80,000 The following information about the jobs was given for April. Job 101 Job 102 Job 103 Job 104 Balance 4/1 \ 64,900 \ 40,770 \ 30,500 0 direct materials 54,000 37,900 25,000 11,000 direct labor 80,000 38,500 43,000 21,000 number of setups 40 10 30 200 number of parts 300 80 400 500 direct labor hours 5,000 2,400 5,200 1,200 By April 30, Jobs 102 and 103 were completed and sold. The remaining jobs were still in process. The cost of goods sold would consist of the costs of what jobs?

Why are unit costs important? Why do full-cost unit costs change from accounting period to accounting period.

Determining the dollar amounts of direct materials, direct labor, and overhead used in production involves __________ .

Grey, Inc., uses a predetermined rate to apply overhead. At the beginning of the year, Grey estimated its overhead costs at $220,000, direct labor hours at 55,000, and machine hours at 20,000. Actual overhead costs incurred were $233,250, actual direct labor hours were 62,000, and actual machine hours were 15,000. If the predetermined overhead rate is based on machine hours, what is the total amount credited to the factory overhead account for the year for Grey?

The production level the firm expects to attain for the coming year is called:

Companies operating in job-order industries produce a wide variety of products or jobs that are quite different from each other.

Unit cost is important information for which of the following?

Which of the following costs is NOT included on a job-order cost sheet?

The total applied overhead at a given point in time is given by the credit balance in the __________ control account.

Determining the dollar amounts of direct materials, direct labor, and overhead used in production involves:

Which of the following is a pure service?

__________ is the recognition and recording of costs.

Cost accumulation is the determination of the dollar amounts of direct materials, direct labor and overhead costs, and cost measurement is the recognition and recording of costs.