Question 1

A document in a job order cost accounting system that is used to record the costs of producing a job is a(n):

Accepted Answer

A) Job cost sheet. 
B) Job lot. 
C) Finished goods summary. 
D) Process cost system. 
E) Units-of-production sheet. 
A) Job cost sheet. 
B) Job lot. 
C) Finished goods summary. 
D) Process cost system. 
E) Units-of-production sheet.

Question 2

Target cost is calculated as

Accepted Answer

A) direct costs + desired profit 
B) direct costs - desired profit 
C) expected selling price - direct costs 
D) expected selling price - desired profit 
E) expected selling price + desired profit 
A) direct costs + desired profit 
B) direct costs - desired profit 
C) expected selling price - direct costs 
D) expected selling price - desired profit 
E) expected selling price + desired profit

Question 3

If it is a material amount,overapplied or underapplied overhead should be disposed of by allocating it to:

Accepted Answer

A) Cost of goods sold and finished goods inventory. 
B) Finished goods inventory and goods in process inventory. 
C) Goods in process inventory, finished goods inventory, and cost of goods sold. 
D) Goods in process inventory. 
E) Raw materials inventory, goods in process inventory, and finished goods inventory. 
A) Cost of goods sold and finished goods inventory. 
B) Finished goods inventory and goods in process inventory. 
C) Goods in process inventory, finished goods inventory, and cost of goods sold. 
D) Goods in process inventory. 
E) Raw materials inventory, goods in process inventory, and finished goods inventory.

Question 4

The collection of cost sheets for unfinished jobs makes up a subsidiary ledger controlled by the Goods in Process Inventory account in the general ledger.

Accepted Answer

A) True 
 B)False

Question 5

Job order production is also known as:

Accepted Answer

A) Mass production. 
B) Process production. 
C) Unit production. 
D) Customized production. 
E) Standard costing. 
A) Mass production. 
B) Process production. 
C) Unit production. 
D) Customized production. 
E) Standard costing.

Question 6

The direct materials section of a job cost sheet shows the materials costs assigned to a job,but the direct labor section only shows the total hours of labor allocated to the job.

Accepted Answer

A) True 
 B)False

Question 7

The cost of all materials issued to production is debited to Goods in Process Inventory.

Accepted Answer

A) True 
 B)False

Question 8

_______________________,or customized production,produces products in response to customer orders.

Accepted Answer

Job order

Question 9

The overhead allocation rate in Frantz Company's job order cost accounting system applies overhead based on direct labor costs.The company's manufacturing costs for the current year were:
 direct materials,$108,000; direct labor,$144,000; and factory overhead,$18,000.At year-end,the total cost of goods in process is $36,000,which includes $12,000 of direct labor cost.What amount of direct material cost is included in the ending goods in process inventory?

Accepted Answer

The answer of The overhead allocation rate in Frantz Company's...

Question 10

In a job order cost accounting system,indirect labor costs are debited to the Factory Overhead account.

Accepted Answer

A) True 
 B)False

Question 11

The Factory Overhead account will have a credit balance at the end of a period if overhead applied during the period is greater than the overhead incurred.

Accepted Answer

A) True 
 B)False

Question 12

A company's file of job cost sheets for finished but unsold jobs equals the balance in the Finished Goods Inventory account.

Accepted Answer

A) True 
 B)False

Question 13

The predetermined overhead allocation rate for Forsythe,Inc.,is based on estimated direct labor costs of $400,000 and estimated factory overhead of $500,000.Actual costs incurred were:
   (a)Calculate the predetermined overhead rate and calculate the overhead applied during the year.
(b)Determine the amount of over- or underapplied overhead and prepare the journal entry to eliminate the over- or underapplied overhead assuming that it is not material in amount.

Accepted Answer

(a)Predetermined overhead rate

Question 14

Penn Company uses a job order cost accounting system.In the last month,the system accumulated labor time tickets totaling $24,600 for direct labor and $4,300 for indirect labor.These costs were accumulated in Factory Payroll as they were paid.Which entry should Penn make to assign the Factory Payroll?

Accepted Answer

A) Debit Payroll Expense $28,900; credit Cash $28,900. 
B) Debit Payroll Expense $24,600; debit Factory Overhead $4,300; credit Factory Payroll $28,900. 
C) Debit Goods in Process Inventory $24,600; debit Factory Overhead $4,300; credit Factory Payroll $28,900. 
D) Debit Goods in Process Inventory $24,600; debit Factory Overhead $4,300; credit Wages Payable $28,900. 
E) Debit Goods in Process Inventory $28,900; credit Factory Payroll $28,900. 
A) Debit Payroll Expense $28,900; credit Cash $28,900. 
B) Debit Payroll Expense $24,600; debit Factory Overhead $4,300; credit Factory Payroll $28,900. 
C) Debit Goods in Process Inventory $24,600; debit Factory Overhead $4,300; credit Factory Payroll $28,900. 
D) Debit Goods in Process Inventory $24,600; debit Factory Overhead $4,300; credit Wages Payable $28,900. 
E) Debit Goods in Process Inventory $28,900; credit Factory Payroll $28,900.

Question 15

A job cost sheet includes:

Accepted Answer

A) Direct materials, direct labor, operating costs. 
B) Direct materials, overhead, administrative costs. 
C) Direct labor, overhead, selling costs. 
D) Direct material, direct labor, overhead. 
E) Direct materials, direct labor, selling costs. 
A) Direct materials, direct labor, operating costs. 
B) Direct materials, overhead, administrative costs. 
C) Direct labor, overhead, selling costs. 
D) Direct material, direct labor, overhead. 
E) Direct materials, direct labor, selling costs.

Question 16

The job order cost sheets used by Garza Company revealed the following:
  Job No.125 was completed during May and Jobs No.124 and 125 were shipped to customers in May.What was the company's cost of goods sold for May and the goods in process inventory on May 31?

Accepted Answer

A) $3,200; $ 900. 
B) $2,900; $1,200. 
C) $1,200; $2,900. 
D) $1,700; $1,200. 
E) $4,100; $ 0. 
A) $3,200; $ 900. 
B) $2,900; $1,200. 
C) $1,200; $2,900. 
D) $1,700; $1,200. 
E) $4,100; $ 0.

Question 17

A materials requisition is a source document used by materials managers of a manufacturing company to order raw materials from suppliers; it serves the same purpose as a purchase order in a merchandising company.

Accepted Answer

A) True 
 B)False

Question 18

The R&R Company's production costs for August are: direct labor,$13,000; indirect labor,$6,500; direct materials,$15,000; property taxes on production equipment,$800; heat,lights and power,$1,000; and insurance on plant and equipment,$200.R&R Company's factory overhead incurred for August is:

Accepted Answer

A) $ 2,000. 
B) $ 6,500. 
C) $ 8,500. 
D) $21,500. 
E) $36,500. 
A) $ 2,000. 
B) $ 6,500. 
C) $ 8,500. 
D) $21,500. 
E) $36,500.

Question 19

Labor costs in production can be:

Accepted Answer

A) Direct or indirect. 
B) Indirect or sunk. 
C) Direct or payroll. 
D) Indirect or payroll. 
E) Direct or sunk. 
A) Direct or indirect. 
B) Indirect or sunk. 
C) Direct or payroll. 
D) Indirect or payroll. 
E) Direct or sunk.

Question 20

Docksider Boats uses a job order cost accounting system.During one month Docksider purchased $153,000 of raw materials on credit; issued materials to production of $164,000 of which $24,000 were indirect.Docksider incurred a factory payroll of $95,000,paid in cash,of which $25,000 is classified as indirect labor.Docksider uses a predetermined overhead application rate of 170% of direct labor cost.The journal entry to record the allocation of factory payroll to production is:

Accepted Answer

A) Debit Goods in Process Inventory $95,000; credit Factory Payroll $95,000. 
B) Debit Goods in Process Inventory $95,000; credit Cash $95,000. 
C) Debit Factory Payroll $95,000; credit Cash $95,000. 
D) Debit Goods in Process Inventory $70,000; debit Factory Overhead $25,000; credit Factory Payroll $95,000. 
E) Debit Goods in Process Inventory $70,000; debit Factory Overhead $25,000; credit Cash $95,000. 
A) Debit Goods in Process Inventory $95,000; credit Factory Payroll $95,000. 
B) Debit Goods in Process Inventory $95,000; credit Cash $95,000. 
C) Debit Factory Payroll $95,000; credit Cash $95,000. 
D) Debit Goods in Process Inventory $70,000; debit Factory Overhead $25,000; credit Factory Payroll $95,000. 
E) Debit Goods in Process Inventory $70,000; debit Factory Overhead $25,000; credit Cash $95,000.

Exam 19: Job Order Costing

A document in a job order cost accounting system that is used to record the costs of producing a job is a(n):

Target cost is calculated as

If it is a material amount,overapplied or underapplied overhead should be disposed of by allocating it to:

The collection of cost sheets for unfinished jobs makes up a subsidiary ledger controlled by the Goods in Process Inventory account in the general ledger.

Job order production is also known as:

The direct materials section of a job cost sheet shows the materials costs assigned to a job,but the direct labor section only shows the total hours of labor allocated to the job.

The cost of all materials issued to production is debited to Goods in Process Inventory.

_______________________,or customized production,produces products in response to customer orders.

In a job order cost accounting system,indirect labor costs are debited to the Factory Overhead account.

The Factory Overhead account will have a credit balance at the end of a period if overhead applied during the period is greater than the overhead incurred.

A company's file of job cost sheets for finished but unsold jobs equals the balance in the Finished Goods Inventory account.

A job cost sheet includes:

The job order cost sheets used by Garza Company revealed the following: Job No.125 was completed during May and Jobs No.124 and 125 were shipped to customers in May.What was the company's cost of goods sold for May and the goods in process inventory on May 31?

A materials requisition is a source document used by materials managers of a manufacturing company to order raw materials from suppliers; it serves the same purpose as a purchase order in a merchandising company.

The R&R Company's production costs for August are: direct labor,$13,000; indirect labor,$6,500; direct materials,$15,000; property taxes on production equipment,$800; heat,lights and power,$1,000; and insurance on plant and equipment,$200.R&R Company's factory overhead incurred for August is:

Labor costs in production can be:

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets, natural Resources, and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments and International Operations

Reporting the Statement of Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Process Costing

Cost-Volume-Profit Analysis

Master Budgets and Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Capital Budgeting and Managerial Decisions

Time Value of Money B

Activity-Based Costing C

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