Exam 16: Job Order Costing

Period costs are

Journalize the entry to record the use of materials and labor, based on the following: Raw materials issued: Job 609, $850; for general use in factory, $600 Labor time tickets: Job 609, $1,600; $400 for supervision

Match each of the following costs with the appropriate classification (a-e).​ -Oil lubricants for factory plant and equipment 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

The journal entry to record the transfer of 1,600 units of Part No. 1177, with a value of $2.50 each, to work in process is

The materials requisition is used to

Activity-based costing is a method of accumulating and allocating costs by department.

On November 14, the Milling Department accepted Job 111407A for 1,000 pounds of cereal mix. Overhead is applied at $5.75 per pound completed. The recipe produced 1,025 pounds of cereal mix. a.Journalize the entry to record the transfer of raw materials to Job 111407A. b.Journalize the entry to record the direct labor incurred for Job 111407A. c.Journalize the entry to record the manufacturing overhead applied to Job 111407A. d.Journalize the entry to record the transfer of Job 111407A to Finished Goods on November 14.

Match each of the following costs with the appropriate classification (a-e).​ -Steel for a construction contractor 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

Cost accounting systems measure, record, and report product costs.

List the accounts used in the cost flow for (a) a manufacturer and (b) a service provider.

The current year's advertising costs are normally considered period costs.

In a job order cost accounting system, the journal entry to record the flow of direct labor costs into production consists of a

Crain Company budgeted 35,000 direct labor hours and incurred 40,000 of actual direct labor hours. It estimated overhead of $735,000 and incurred $780,000 of actual overhead.​ What is Crain's predetermined overhead rate? Was overhead overapplied or underapplied for the year? By how much?

In a job order cost accounting system used by a service business, which of the following items would normally not be included as part of overhead?

National Survey Company uses a job order cost system. a.Indicate the source of the data for debiting Work in Process for each of the following: 1.Direct materials requisitioned 2.Direct labor used b.Indicate the source of the data for crediting Work in Process for jobs completed. c.Present a list of the three controlling accounts used in the general ledger to record the inventories and, in each case, indicate the related subsidiary ledger.​ a.Indicate the source of the data for debiting Work in Process for each of the following:

The process cost system is appropriate where few products are manufactured and each product is made to customers' specifications.

Cavy Company estimates that the factory overhead for the following year will be $1,470,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 40,000 hours. Compute the predetermined overhead rate to apply factory overhead.

Costs that are incurred in generating revenues during the period, but are not involved in the manufacturing process are referred to as

Match each of the following costs with the appropriate classification (a-e).​ -Training for accounting personnel on use of microcomputer 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

The inventory accounts generally maintained by a manufacturing firm are only finished goods and materials.