Question 1

A job order cost sheet summarizes:

Accepted Answer

A) the direct labor, direct materials used, and actual overhead costs incurred on a specific job. 
B) the estimated costs that will be required to complete a specific job. 
C) the direct labor, direct materials used, and applied overhead association with a specific job. 
D) the direct labor and direct materials used only. 
A) the direct labor, direct materials used, and actual overhead costs incurred on a specific job. 
B) the estimated costs that will be required to complete a specific job. 
C) the direct labor, direct materials used, and applied overhead association with a specific job. 
D) the direct labor and direct materials used only.

Question 2

What form is used to keep track of inventory of raw materials? What additional information does the form provide if a perpetual inventory system is utilized?

Accepted Answer

The form is the Raw Materials Ledger Car

Question 3

Match between columns
                        Premises: The rate at which the estimated cost of overhead is charged to each job
Acquiring necessary resources for the manufacturing process.
A form that describes the item and quantity needed and shows the job or purpose
A record of all manufacturing costs charged to a specific job
Form used to record hours worked and jobs performed
The result of actual overhead costs exceeding applied overhead
A measure of what costs should be in an efficient operation
Using material, labor, and services on the factory floor
A record showing details of receipts and issues for a type of raw material
A cost accounting system whereby unit costs of manufactured items are determined by totaling unit costs in each production department
A ledger containing the raw materials ledger cards
A specific order for a specific batch of manufactured items
A subsidiary ledger that contains a record for each overhead item
An inventory system that tracks the inventories on hand at all times
A cost accounting system that determines the unit cost of manufactured items for each separate production order
The result of applied overhead exceeding the actual overhead costs
A ledger containing a record for each of the different types of finished products
An inventory system in which raw materials are ordered so they arrive just in time to be placed into production
Production order
A ledger containing the job order cost sheets

Accepted Answer

The Answer of Finished goods subsidiary ledger and Overhead application is...

Question 4

Jacson Corp. was undecided whether to use labor hours or labor cost in establishing the annual overhead rate. Labor costs are prone to fluctuate based on new hires, raises, retirements, and resignations. They decided to compute both rates for comparison. The overhead costs for the year were estimated at $525,000 with expected direct labor hours of 35,000 and indirect labor hours of 15,000. Direct and indirect labor costs are estimated to be $420,000 and $210,000 respectively. The overhead application rate for both bases (labor hours, labor cost)would be:

Accepted Answer

A) $12 per hour; 80% of labor cost. 
B) $10.50 per hour; 83.3% of labor cost. 
C) $15 per hour; 125% of labor cost. 
D) $12.60 per hour; 120% of labor cost. 
A) $12 per hour; 80% of labor cost. 
B) $10.50 per hour; 83.3% of labor cost. 
C) $15 per hour; 125% of labor cost. 
D) $12.60 per hour; 120% of labor cost.

Question 5

Ridley Company estimates that overhead costs for the next year will be $6,870,000 for indirect labor and $450,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. If 160,000 direct labor hours are budgeted for next year, what is the company's overhead rate per direct labor hour?

Accepted Answer

A) $45.75 
B) $42.94 
C) $2.82 
D) $0.022. 
A) $45.75 
B) $42.94 
C) $2.82 
D) $0.022.

Question 6

Wilson Enterprises applies overhead based on direct labor cost. The company estimates that their overhead for the year will be $240,000, and direct labor cost to be $300,000. Actual direct labor cost for Martinez Manufacturing was $316,000 and actual overhead costs were $254,000. At the end of the year, manufacturing overhead was:

Accepted Answer

A) Overapplied by $1,400. 
B) Underapplied by $1,400. 
C) Overapplied by $1,200. 
D) Underapplied by $1,200. 
A) Overapplied by $1,400. 
B) Underapplied by $1,400. 
C) Overapplied by $1,200. 
D) Underapplied by $1,200.

Question 7

List the four manufacturing operations and define each. For the second operation, Production, summarize the flow of costs through a job order cost accounting system.

Accepted Answer

The four manufacturing operations are:
P

Question 8

--------and--------- are the two principal cost accounting systems for capturing and reporting manufacturing costs.

Accepted Answer

Job order

Question 9

In a perpetual inventory system, each inventory account is supported by a(n)----------ledger.

Accepted Answer

The answer of In a perpetual inventory system, each inventory...

Question 10

Based on the information given, complete the Job Order Cost Sheet for Job A1-13.

Accepted Answer

The answer of Based on the information given, complete the...

Question 11

On June 1, a firm purchased 40 units of materials at a unit price of $1.42. On June 15, the firm purchased 45 units with a unit price of $1.18. If the firm uses the LIFO method of inventory pricing, the total cost of 65 units issued on June 20 would be:

Accepted Answer

A) $92.30. 
B) $86.30. 
C) $84.50. 
D) $81.50. 
A) $92.30. 
B) $86.30. 
C) $84.50. 
D) $81.50.

Question 12

At the end of each year, the underapplied or overapplied overhead is closed out to the Cost of Goods Sold account.

Accepted Answer

A) True 
 B)False

Question 13

Utilizing standard costing systems enables management to evaluate manufacturing efficiencies.

Accepted Answer

A) True 
 B)False

Question 14

Job Z2 requires $1,350 of material, $100 of which is indirect material. If manufacturing overhead is applied at a rate of 150% of direct labor cost and there were 232 labor hours charged to Job Z2 at $13 an hour, the total cost of Job Z2 would be:

Accepted Answer

A) $8,890. 
B) $8,790. 
C) $4,366. 
D) $6,549. 
A) $8,890. 
B) $8,790. 
C) $4,366. 
D) $6,549.

Question 15

How often are direct labor costs entered on the Job Order Cost Sheets?

Accepted Answer

A) Daily 
B) Weekly 
C) Monthly 
D) Immediately-as time cards are completed 
A) Daily 
B) Weekly 
C) Monthly 
D) Immediately-as time cards are completed

Question 16

The cost of a unit produced in a process cost system is the sum of the costs incurred in each department divided by the number of units manufactured.

Accepted Answer

A) True 
 B)False

Question 17

On June 1, a firm purchased 40 units of materials at a unit price of $1.42. On June 15, the firm purchased 45 units with a unit price of $1.18. If the firm uses the FIFO method of inventory pricing, the total cost of 65 units issued on June 20 would be:

Accepted Answer

A) $92.30. 
B) $86.30. 
C) $84.50. 
D) $81.50. 
A) $92.30. 
B) $86.30. 
C) $84.50. 
D) $81.50.

Question 18

The Manufacturing Overhead Applied account for Djos Domal Company had activity of $567 in indirect materials and supplies, $785 in indirect labor, and $3,455 in other overhead costs recorded in the account at August 31 of the current year. The Manufacturing Overhead Applied account had a total of $4,600 in overhead applied during August. What was the amount of overapplied or underapplied overhead for the month of August? Prepare the journal entry to close the related overhead accounts.

Accepted Answer

The undera

Question 19

The------------- is a record of all manufacturing costs charged to a specific job.

Accepted Answer

A) Cost of Goods Sold 
B) Standard Costs Card 
C) Job Order Cost Sheet 
D) Work in Process Inventory 
A) Cost of Goods Sold 
B) Standard Costs Card 
C) Job Order Cost Sheet 
D) Work in Process Inventory

Question 20

A(n)----------accounting system allows a firm to compare its budgeted costs with its actual costs in order to evaluate efficiency.

Accepted Answer

The answer of A(n)----------accounting system allows a firm to compare...

Exam 27: Job Order Cost Accounting

A job order cost sheet summarizes:

What form is used to keep track of inventory of raw materials? What additional information does the form provide if a perpetual inventory system is utilized?

List the four manufacturing operations and define each. For the second operation, Production, summarize the flow of costs through a job order cost accounting system.

--------and--------- are the two principal cost accounting systems for capturing and reporting manufacturing costs.

In a perpetual inventory system, each inventory account is supported by a(n)----------ledger.

Based on the information given, complete the Job Order Cost Sheet for Job A1-13.

On June 1, a firm purchased 40 units of materials at a unit price of $1.42. On June 15, the firm purchased 45 units with a unit price of $1.18. If the firm uses the LIFO method of inventory pricing, the total cost of 65 units issued on June 20 would be:

At the end of each year, the underapplied or overapplied overhead is closed out to the Cost of Goods Sold account.

Utilizing standard costing systems enables management to evaluate manufacturing efficiencies.

Job Z2 requires $1,350 of material, $100 of which is indirect material. If manufacturing overhead is applied at a rate of 150% of direct labor cost and there were 232 labor hours charged to Job Z2 at $13 an hour, the total cost of Job Z2 would be:

How often are direct labor costs entered on the Job Order Cost Sheets?

The cost of a unit produced in a process cost system is the sum of the costs incurred in each department divided by the number of units manufactured.

On June 1, a firm purchased 40 units of materials at a unit price of $1.42. On June 15, the firm purchased 45 units with a unit price of $1.18. If the firm uses the FIFO method of inventory pricing, the total cost of 65 units issued on June 20 would be:

The------------- is a record of all manufacturing costs charged to a specific job.

A(n)----------accounting system allows a firm to compare its budgeted costs with its actual costs in order to evaluate efficiency.

Accounting: The Language of Business

Analyzing Business Transactions

Analyzing Business Transactions Using T Accounts

The General Journal and the General Ledger

Adjustments and the Worksheet

Closing Entries and Teh Postclosing Trial Balance

Accounting for Sales and Accounts Receivable

Accounting for Purchases and Accounts Payable

Cash Receipts, Cash Payments, and Banking Procedures

Payroll Computations, Records, and Payment

Payroll Taxes, Deposits, and Reports

Accruals, Deferrals, and the Worksheet

Financial Statements and Closing Procedures

Accounting Principles and Reporting Standards

Accounts Receivable and Uncollectible Accounts

Notes Payable and Notes Receivable

Merchandise Inventory

Property, Plant, and Equipment

Accounting for Partnerships

Corporations: Formation and Capital Stock Transactions

Corporate Earnings and Capital Transactions

Long-Term Bonds

Financial Statement Analysis

The Statement of Cash Flows

Departmentalized Profit and Cost Centers

Accounting for Manufacturing Activities

Process Cost Accounting

Controlling Manufacturing Costs: Standard Costs

Cost-Revenue Analysis for Decision Making

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