Exam 5: Job-Order Costing

The _____________________ is subsidiary to the work-in-process account and is the primary document for accumulating all costs related to a particular job.

Jocarro Company has a job costing system. The following items appeared in the Work-in-Process account during February of the current year: Jocarro applies overhead to production on the basis of direct labor hours. Job XX, the only job in process on February 28, has been charged $10,600 materials cost and has 100 labor hours of direct labor time assigned to it. Required:

Actual overhead costs are accumulated in the overhead control account.

Wright Corporation had the following information available for December of the current year: Plantwide overhead rate is 150% of direct labor costs. Job cost sheets had the following balances: Jobs Z3 and Z4 were not completed at the end of December. What is the balance in work-in process for Wright at the end of December?

The ___________________________ is calculated at the beginning of the year by dividing the total estimated annual overhead by the total estimated level of cost driver.

The order that cost elements flow through accounts until they are recognized as an expense is

Figure 5-8.John's Water Slides makes custom water slides for hotels. On September 1, there were three jobs in process, Jobs 812, 813, and 814. Two more jobs were started during September, Jobs 815 and 816. By September 30, Jobs 812, 814, and 816 were finished. The following data has been collected: Overhead is applied at the rate of 120% of direct labor cost. Jobs are sold at cost plus 60%. Selling and administrative expenses for September totaled $2,950. By September 30, Jobs 812 were 816 are sold, but the customer who ordered Job 814 decided he did not want the slide so it is still in the warehouse. -Refer to Figure 5-8. What is the cost of goods sold for September?

Match each item with the correct statement below. Answers may be used more than once. -The job order number, or name, head this form.

Match each item with the correct statement below. Answers may be used more than once. -This form asks for the type, quantity, and unit price of direct materials.

Reed Incorporated uses a job-order costing system and a predetermined overhead rate based on machine hours. At the beginning of the year, the company estimated manufacturing overhead for the year would be $240,000 and machine hours would be 8,000. The following information pertains to December of the current year: December production activity: Actual manufacturing overhead cost incurred in December was $61,000. Required:

Figure 5-13. During February, Alexander, Inc., worked on two jobs with the following data: Overhead is assigned on the basis of direct labor hours at a rate of $12. During February, Job 12 was completed and transferred to finished goods. Job 13 is the only unfinished job at the end of the month. -Refer to Figure 5-13. Prepare the journal entries reflecting the completion and sale on account of Job 12. The selling price is 160% of cost.

Figure 5-13. During February, Alexander, Inc., worked on two jobs with the following data: Overhead is assigned on the basis of direct labor hours at a rate of $12. During February, Job 12 was completed and transferred to finished goods. Job 13 is the only unfinished job at the end of the month. -Refer to Figure 5-13.

The key feature of job-order costing is that the cost of one job differs from that of another job and must be kept track of separately.

Which of the following is not on a time ticket?

Figure 5-3.Mitchell's Softball Gloves Company estimated the following at the beginning of the year: Mitchell uses departmental overhead rates. In the assembly department, direct labor hours are used to apply overhead. Machine hours are used to apply overhead in the testing department.Actual data for August is as follows: -Refer to Figure 5-3. Using departmental overhead rates, which of the following is correct?

The difference between actual overhead and applied overhead is called an overhead variance.

Bryant Company designs and builds fancy dining room tables for individual customers. On July 1, there were two jobs in process: Job 391 with a beginning balance of $21,700 and Job 392 with a beginning balance of $8,790. Overhead costs are applied by using a rate of 70% of direct labor costs. Both jobs are unfinished on July 31. Data on July costs for both jobs are as follows: What is the total of the work-in-process account at July 31?

The overhead variance is least likely to be

Figure 5-9.Warwick Company has the following transactions for the month of September: Balances at the beginning of the month were: -Refer to Figure 5-9. What is the ending balance of Finished Goods?

Using normal costing requires that