Exam 5: Job Order Costing

Discuss the basic forms used in a job-order costing system.

Abnormal spoilage is

Spoilage occurring on specific jobs should be considered in computing predetermined factory overhead rates.

Can standard costing be used in job-order costing? If so,what conditions must exist? If not,explain why.

Wyman Company is a graphic design shop that produces jobs to customer specifications.During January,Job #3051 was worked on and the following information is available: Directmeterial uged                    $\$ 2,500$ Directlabor hors worked                  15 Mectrine time used                             6 Direct labor rate per hour                   $7 Overhead application rate per hour of machine time                  $18 What was the total cost of Job #3051 for January?

When manufacturing overhead is charged to a job,the work in process account is credited.

A company that manufactures small quantities of identifiable products will normally use a ____________________ costing system.

A company that manufactures small quantities of identifiable products will use a job-order costing system.

In a standard job-order costing system,factory overhead is applied using predetermined rates times standard input.

In an actual job-order costing system,factory overhead is assigned to a job continuously during the production process.

When indirect labor is applied to a job in process,the manufacturing overhead account is debited.

Shrinkage should be treated as

The Robbins Company manufactures special purpose machines to order.On January 1,there were two jobs in process,#705 and #706.The following costs were applied to these jobs in the prior year:

	Job No. 705	Job No. 706
Direct material	$ 5,000	$ 8,000
Direct labor	4,000	3,000
Overhead	4,400	3,300
Total	$13,400	$14,300

During January,the following transactions took place: *Raw material costing $\$ 40,000$ was purchased on account. *Jobs $\# 707, \# 708$ , and $\# 709$ were started and the following costswere applied to them

	JOB
	707	708	709
Direct materials	$3,000	$10,000	$7,000
Direct labor	5,000	6,000	4,000

*Job $\# 705$ and Job $\# 706$ were completed after incuring additional dire ct labor costs of $\$ 2,000$ and $\$ 4,000$ , respectivel *Wages paid to production employees churing J anuary tot ale $\mathrm{d} \$ 25,000$ . *Depreciation for the month of Jamuary totaled $\$ 10,000$ . *Utilities bills in the amount of $\$ 10,000$ were paidfor operations during December. *Utilities bills totaling $\$ 12,000$ were received for Januay operations. *Supplies costing $\$ 2,000$ were used. *Miscellaneous overhead expenses totaled $\$ 24,000$ for January Actual overhead is applied to individual jobs at the end of each month using a rate based on actual direct labor costs. Required: a. $\text { Determine the J anuary overhead rate }$ b. $\text { Determine the cost of eachjob }$ c. $\text { Prepare a statement of cost of goods manufactured }$

A company that produces sugar will use a job-order costing system to track production costs.

A credit to the Manufacturing Overhead control account represents the

If a substandard product can be reworked,it is known as a __________.

A company that manufactures large quantities of homogeneous goods will normally use a ____________________ costing system.

In a normal job-order costing system,factory overhead is applied using predetermined rates times actual input.

Underapplied factory overhead that is immaterial in amount is closed to _____________ at year end.

In a perpetual inventory system,a transaction that requires two journal entries (or one compound entry)is needed when