Exam 5: Job Costing

Direct materials in job costing:

Job costing can be used in both manufacturing and service organizations.

Process costing is used when products are:

Managers reconcile actual and allocated overhead when they use this job costing system:

Some organizations use scrap in creative ways to benefit employees and others. Such uses can: I. Improve employee satisfaction II. Enhance the firm's reputation III. Provide social value

Both actual costing and normal costing systems use the actual quantity of the allocation base to assign overhead costs to jobs.

Tern's Toys incurred $1,500 in production costs for the week. Work in process decreased by $100, and finished goods inventory increased by $500. What was the cost of goods sold?

Bits of direct material left over from normal manufacturing processes are called:

Spoiled units that are repaired and sold as if they were originally produced correctly are called:

Allocated overhead generally does not accurately measure a job's overhead resources.

One of the primary differences between actual and normal costing systems is their treatment of direct material and direct labour costs.

In an actual costing system, the overhead allocation rate is calculated as:

The quarterly income statement for Largent is as follows: Sales \1 ,600 Less variable expenses: Direct materials \ 280 Direct labour 300 Manufacturing overhead 60 Administrative expenses 30 Selling expenses 70 740 Contribution margin 860 Less fixed expenses: Manufacturing overhead \ 180 Administrative expenses 440 Selling expenses 100 720,000 Income before taxes \1 40 What total amount represents the period costs?

Kelita's Kar Company projects the following costs: Direct material \ 300,000 Direct labour 500,000 Indirect labour wages 50,000 Sales commissions 30,000 Production foremen salaries 75,000 Production equipment leases 125,000 Production amortization 60,000 Property taxes-plant 25,000 If overhead is allocated on the basis of direct labour hours and 25,000 direct labour hours are budgeted for next year, the estimated overhead allocation rate will be

Allen, Inc. has budgeted $120,000 in variable overhead and $72,000 in fixed overhead for the current month. 8,000 custom units were expected to be produced using 60,000 machine hours. During the month, Allen actually used 68,096 machine hours and produced 8,960 units. Actual overhead costs were: $132,000 variable and $73,600 fixed. Assume Allen uses a normal costing system. The variable overhead allocated would be:

Barron's Corp. manufactures custom made wire baskets used to hold computer components in computer manufacturing operations. Wages: Machine operators \ 400,000 Maintenance workers 45,000 Factory supervisors 90,000 Materials used : Metal wire \ 600,000 Lubricant for oiling machines 5,000 Clear plastic coating 420,000 Barron's direct material costs amounted to:

Kelita's Kar Kare Kompany had the following cost and inventory data for the month: Costs incurred for the month: Direct labour \ 6,900 Indirect labour 1,500 Direct materials purchased 4,500 Factory utilities 2,200 Factory amortization 3,000 Factory supervision 1,200 Inventories: Ending Beginning Direct materials \ 1,500 \ 1,800 Work in process 4,500 4,050 Finished goods 6,000 5,250 Assume that the total production costs incurred for the month were $15,000. What was the cost of jobs completed?

Job order costing is used when products are:

Sludge, Inc. has an ending work in process inventory of $180 and an ending finished goods inventory of $300. Cost of goods manufactured was $630, and cost of goods sold $540. Production costs incurred during the period were $620. What are the beginning inventories for work in process and finished goods, respectively?

With respect to the uses and limitations of job costing information, accountants' responsibilities include: