Exam 5: Job Order Costing

Prepare the necessary journal entries from the following information for Alltizer Company,which uses a perpetual inventory system. a. Purchased raw material on acc ount $\$ 56,700 .$ b. Requisitioned raw material for prochuction as follows: direct material-80 percent of purchases; indirect material-15 percent of purchases. c. Direct labor wages of $\$ 33,100$ are accrued as are indirect labor wages of $\$ 12,500$ . d. Overhe ad incurred and paid for is $\$ 66,900$ . e. Overhead is applied to production based on 110 percent of direct labor cost. f. Goods costing $\$ 97,600$ were completed during the period. g. Goods costing $\$ 51,320$ were sold on account for $\$ 77,600$ .

Which of the following statements about job-order cost sheets is true?

In a job-order costing system,

When job-order costing is used,the primary focal point of cost accumulation is the

In a job-order costing system,the net cost of normal spoilage is equal to

Which of the following journal entries records the accrual of the cost of indirect labor used in production?

In an actual job-order costing system,factory overhead is assigned to a job on a periodic basis.

When manufacturing overhead is applied to a job in process,the _______________ account is credited.

Robertson Company. Robertson Company uses a job-order costing system and the following information is available from its records.The company has three jobs in process: #8,#12,and #15. Raw matenial used                                                            $130,000 Direct lab or per hour                                                        $\$ 9.50$ Overhead applied bared on direct lab or cost                     $125 \%$ Direct material was requisitioned as follows for each job respectively: 25 percent,30 percent,and 30 percent;the balance of the requisitions was considered indirect.Direct labor hours per job are 2,800;3,300;and 4,000;respectively.Indirect labor is $45,000.Other actual overhead costs totaled $50,000. Refer to Robertson Company.What is the total amount of overhead applied to Job #12?

When indirect labor is recorded for a job in process,the work in process account is debited.

A unit that is rejected at a quality control inspection point,but that can be reworked and sold,is referred to as a

Moore Company. Moore Company uses a job-order costing system and the following information is available from its records.The company has three jobs in process: #6,#9,and #13. Raw matenial used                                                            $120,000 Direct lab or per hour                                                        $\$ 8.50$ Overhead applied bared on direct lab or cost                     $120 \%$ Direct material was requisitioned as follows for each job respectively: 30 percent,25 percent,and 25 percent;the balance of the requisitions was considered indirect.Direct labor hours per job are 2,500;3,100;and 4,200;respectively.Indirect labor is $33,000.Other actual overhead costs totaled $36,000. Refer to Moore Company.How much overhead is applied to Work in Process?

The journal entry to record normal spoilage specifically identified with a particular job includes a debit to Work in Process.

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

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

What is the best cost accumulation procedure to use when many batches,each differing as to product specifications,are produced?

Which of the following costing methods of valuation are acceptable in a job-order costing system? Actulal     Standard       Actual         Predetermine Material      Material      Labor        Overhead $\text {\underline{ Cost} }$        $\text {\underline{ Cost} }$       $\text {\underline{ Cost} }$         $\text {\underline{ Cost} }$

Abnormal spoilage is considered a period cost.

Charleston Company uses a job-order costing system.During April,the following costs appeared in the Work in Process Inventory account: Eepinting balunter                  $24,000 Directmeterial used                 70,000 Directlabar inchred                  60,000 Applied overhead                        48,000 Cost of goods matufactured.        185,000 Charleston Company applies overhead on the basis of direct labor cost.There was only one job left in Work in Process at the end of April which contained $5,600 of overhead.What amount of direct material was included in this job?

When manufacturing overhead is charged to a job,the manufacturing overhead account is debited.