Exam 2: Job Order Costing

Job cost sheets can provide information to managers on unit cost trends, the cost impact of continuous improvement in the manufacturing process, the cost impact of materials changes, and the cost impact of direct materials price or direct labor rate changes over time.

Aspen Technologies has the following budget data: If factory overhead is to be applied based on direct labor hours, the predetermined overhead rate is

Sanders Inc. has applied $567,988 of overhead to jobs in the cost ledger.  Actual overhead at the end of the year is $575,000.  The adjustment for over- or underapplied overhead is

Selected accounts with some amounts omitted are as follows If the balance of Work in Process on August 31 is $220,000, what was the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs?

Which of the following is not a characteristic of a job order costing system?

A summary of the materials requisitions completed during a period serves as the basis for transferring the cost of the materials from the controlling account in the general ledger to the controlling accounts for

Define and discuss the two main types of cost accounting systems for manufacturing operations. What are their similarities and differences?

If factory overhead applied exceeds the actual costs, overhead is said to be underapplied.

The direct labor and overhead costs of providing services to clients are accumulated in

The materials requisition is used to

Job order cost accounting systems may be used to evaluate a company's efficiency.

During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 for general factory use. Factory overhead applied to production was $23,000. The entry to record the factory overhead applied to production is

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) Record the journal entry to transfer raw materials to Job 111407A. (b) Record the journal entry for direct labor incurred for Job 111407A. (c) Record the journal entry to apply manufacturing overhead to Job 111407A. (d) Record the journal entry to transfer Job 111407A to Finished Goods on November 14.

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) Present the journal 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.

The 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.

Cavy Company estimates that total factory overhead costs will be $660,000 for the year. Direct labor hours are estimated to be 100,000. Determine: (a) the predetermined factory overhead rate (b) the amount of factory overhead applied to Job 345 if the amount of direct labor hours is 560 and Job 777 if the amount of direct labor hours is 800 (c) prepare the journal entry to apply factory overhead for April according to the predetermined overhead rate

Which of the following represents the factory overhead applied to a product?

Materials purchased on account during the month totaled $190,000. Materials requisitioned and placed in production totaled $165,000. The journal entry to record the material purchase on account is