Exam 16: Job Order Costing

Which of the following systems provides for a separate record of the cost of each particular quantity of product that passes through the factory?

Adams Company is a manufacturing company that has worked on several production jobs during the first quarter of the year. Below is a list of all the jobs for the quarter: Jobs 356, 357, 358, and 359 were completed. Jobs 356 and 357 were sold at a profit of $500 on each job. -What is the ending balance of Finished Goods for Adams Company at the end of the first quarter?

At the end of the period, Carson Company had the following balances in selected accounts: a. The factory overhead balance is relatively small; prepare the journal entry to close the factory overhead account assuming a debit balance. What does a debit balance mean? b. The factory overhead balance is relatively small; prepare the journal entry to close the factory overhead account assuming a credit balance. What does a credit balance mean?

Match each of the following phrases with the term (a-e) that most closely describes it. Each term will be used only once.​ -Prepared when materials that have been ordered are received and inspected A)Job cost sheets B)Materials requisitions C)Receiving report D)Time tickets E)Cost allocation

Jase Company allocates overhead based on a predetermined overhead rate of $9 per direct labor hour. Job J904 required 8 tons of direct material at a cost of $600 per ton and took employees who earn $21 per hour a total of 80 hours to complete. What is the total cost of Job J904?

Match each of the following costs with the appropriate classification (a-e).​ -Salary of secretary to vice president of marketing A)Product cost - direct materials B)Product cost - direct labor C)Product cost - factory overhead D)Period cost - selling expense E)Period cost - administrative expense

Journalize the entries to record the following summarized operations related to production for a company using a job order cost system:

Cavy Company estimates that the factory overhead for the following year will be $1,250,000. The company has determined that the basis for applying factory overhead will be machine hours, which is estimated to be 40,000 hours. There are 4,780 machine hours for all of the jobs in the month of April. What amount will be applied to all of the jobs for the month of April?

Match the costs that follow to the type of product cost (a-c) or designate as not a product cost (d). -Maintenance supplies A)Direct labor B)Direct materials C)Factory overhead D)Not a product cost

Match each of the following costs with the appropriate classification (a-e).​ -Cost of company holiday party A)Product cost - direct materials B)Product cost - direct labor C)Product cost - factory overhead D)Period cost - selling expense E)Period cost - administrative expense

Match each of the following phrases with the term (a-e) that most closely describes it. Each term will be used only once.​ -Serves as the basis for recording direct labor on a job cost sheet A)Job cost sheets B)Materials requisitions C)Receiving report D)Time tickets E)Cost allocation

At the end of July, the first month of the current fiscal year, the factory overhead account had a debit balance. Which of the following describes the nature of this balance and how it would be reported on the interim balance sheet?

Match each of the following phrases with the term (a-g) that it most closely describes.​ -Stock ledger A)Job order cost system B)Process cost system C)Activity-based costing D)Underapplied overhead E)Overapplied overhead F)Finished goods ledger G)Materials ledger

When the goods are sold, their costs are transferred from Work in Process to Finished Goods.

Match each of the following phrases with the term (a-g) that it most closely describes.​ -Applied overhead is more than actual overhead incurred A)Job order cost system B)Process cost system C)Activity-based costing D)Underapplied overhead E)Overapplied overhead F)Finished goods ledger G)Materials ledger

For which of the following businesses would the job order cost system be appropriate?

Adams Company is a manufacturing company that has worked on several production jobs during the first quarter of the year. Below is a list of all the jobs for the quarter: Jobs 356, 357, 358, and 359 were completed. Jobs 356 and 357 were sold at a profit of $500 on each job. -What is the ending balance of Work in Process for Adams Company at the end of the first quarter?

Match each of the following costs with the appropriate classification (a-e).​ -Wages of checkout clerk in company-owned retail outlet A)Product cost - direct materials B)Product cost - direct labor C)Product cost - factory overhead D)Period cost - selling expense E)Period cost - administrative expense

Flagler Company allocates overhead based on machine hours. It estimated overhead costs for the year to be $420,000. Estimated machine hours were 50,000. Actual hours and costs for the year were 46,000 machine hours and $380,000 of overhead.​ a. Compute the overhead rate for the year. b. What is the amount of applied overhead for the year? c. What is the amount of under- or overapplied overhead for the year?

Match each of the following costs with the appropriate classification (a-e).​ -State unemployment compensation taxes for factory workers A)Product cost - direct materials B)Product cost - direct labor C)Product cost - factory overhead D)Period cost - selling expense E)Period cost - administrative expense