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

Heterogeneity means that services cannot be inventoried and must be consumed when performed.

Which of the following firms would make extensive use of service costing?

The absolute maximum production activity of a manufacturing firm is called:

The defective units due to the exacting nature of a particular job is called __________ .

Which of the following source documents is used to assign direct labor cost to each particular job?

The Cameron Corporation manufactures custom-made purses. The following data pertains to Job XY5: Direct materials placed into production \ 4,000 Direct labor hours worked 50 hours Direct labor rate per hour \ 15 Machine hours worked 100 hours Factory overhead is applied using a plant-wide rate based on direct labor hours. Factory overhead was budgeted at $80,000 for the year and the direct labor hours were estimated to be 20,000. Job XY5 consists of 50 units. What is the labor cost per unit for Job XY5?

Which of the following products would NOT use job-order costing?

In the Monroe Company, the following Job cards were totaled at the end of the month: Job 243 $5,750 Job 244 $4,980 Job 245 $3,675 Job 246 $4,250 Job 247 $5,100 Job 248 $3,800 Jobs 243 and 244 were in Finished Goods Inventory at the beginning of the month. Jobs 245 and 246 were in Work-in-process at the beginning of the month. Jobs 247 and 248 were started during the month. At the end of the month, Jobs 243 and 247 were sent to customers; jobs 245, 247, and 248 were completed and sent to finished goods. What is the ending work-in-process inventory for the month?

Which of the following is true of normal spoilage?

Cost flow follows costs from the point they are incurred to the point they are recognized as an expense on the income statement.

The __________ form indicates the type and quantity of each material issued to the factory.

Which of the following is true of heterogeneity?

The costs of a completed job are transferred from the work-in-process inventory account to the finished goods inventory account.

Cost accumulation refers to the:

Which of the following costs is usually NOT easily traceable to finished units of product?

The defective units expected due to the nature of the typical production process are called __________ .

The Omega Company manufactures customized motors on a job-order basis. Job 492 is an order for 100 units. It requires the following: direct materials \ 3,000 direct labor (\ 10/hr) 1,000 overhead (150\% DL \ ) 1,500 After inspection, 2 units required rework which required 8 additional direct labor hours and $60 of materials. If the rework is considered normal spoilage, what is the journal entry for overhead control? $\text { a. no journal entry is needed }$ b. materials \ 60 payroll \ 80 overhead control \ 140 c. overhead control \ 140 materials \ 60 payroll \ 80 $\text { d. none of the above }$

The maximum output that can be realized if everything operates efficiently is referred to as:

__________ means that services cannot be inventoried but must be consumed when performed.

Which of the following transactions in a job-order costing system requires the procedure of merely moving a job-order cost sheet from one file to another?