Exam 16: Job Order Costing

A job order cost accounting system provides for a separate record of the cost of each particular quantity of product that passes through the factory.

A job order cost system would be appropriate for a crude oil refining business.

Materials are transferred from the storeroom to the factory in response to materials requisitions.

Match each of the following phrases with the term (a-g) that it most closely describes.​ -A system that uses a different overhead rate for each activity 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

Perpetual inventory controlling accounts and subsidiary ledgers are maintained for materials, work in process, and finished goods in job order costing systems.

Match each of the following phrases with the term (a-e) that most closely describes it. Each term will be used only once.​ -Process by which factory overhead is assigned to a cost object A)Job cost sheets B)Materials requisitions C)Receiving report D)Time tickets E)Cost allocation

The journal entry to record the purchase of $45,000 of raw materials is

Winston Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 50,000 hours. The total machine hours for the year were 54,300. The actual factory overhead for the year was $1,348,800.​ a. Determine the total factory overhead amount applied. b. Compute the over- or underapplied amount for the year. c. Journalize the entry to transfer the over- or underapplied factory overhead to cost of goods sold.

The job order costing system is not used by service organizations.

Journalize the entries to record the following transactions: 1.Mar. 10: 500 units of raw materials were purchased on account at $4.00 per unit. 2.Mar. 15: 250 units of raw materials were requisitioned at $4.50 per unit for production, Job 872. 3.Mar. 25: 215 units of raw materials were requisitioned at $5.00 per unit for production, Job 879.

During August, the receipts and distributions of Material No. B4G9 are as follows: a.Determine the cost of each of the three issues under a perpetual system, using the first-in, first-out method. b.Journalize a summary entry to record the issuance of the materials for the month, assuming that the cost of issuances is determined by the first-in, first-out method.

A process cost accounting system provides for a separate record of the cost of each particular quantity of product that passes through the factory.

Match each of the following costs with the appropriate classification (a-e).​ -Electricity used to operate factory machinery 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

At the end of the year, overhead applied was $42,000,000. Actual overhead was $40,300,000. Closing over/underapplied overhead into Cost of Goods Sold would cause net income to

When a job is completed in a service organization, the job costs are transferred to the

Which of the following products would most likely be manufactured using a job order costing system?

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

If factory overhead applied exceeds the actual costs, the factory overhead account will have a credit balance.

Cavy Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 40,000 hours. The machine hours for the month of April for all of the jobs were 4,780. If the actual factory overhead totaled $141,800, determine the over- or underapplied amount for the month.

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. -A separate account for each material is found in a