Question 1

The total cost on job cost sheets for all jobs in process equals the amount in the ________ Inventory account.

Accepted Answer

The answer of The total cost on job cost sheets...

Question 2

Heintz Company's job order costing 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,$36,000.At year-end,the total cost of Work in Process is $38,000,which includes $12,000 of direct labor cost.What amount of direct material cost is included in the ending Work in Process inventory?

Accepted Answer

The answer of Heintz Company's job order costing system applies...

Question 3

A company that uses a cost accounting system normally has only two inventory accounts: Finished Goods Inventory and Work in Process Inventory.

Accepted Answer

A) True 
 B)False

Question 4

Overapplied overhead is the amount by which actual overhead cost exceeds the overhead applied to products during the period.

Accepted Answer

A) True 
 B)False

Question 5

When direct labor costs are recorded in a job costing:

Accepted Answer

A) Factory Wages Payable is debited and Work in Process Inventory is credited. 
B) Work in Process Inventory is debited and Factory Wages Payable is credited. 
C) Cost of Goods Manufactured is debited and Direct Labor is credited. 
D) Direct Labor and Indirect Labor are debited and Factory Wages Payable is credited. 
E) Work in Process Inventory is debited and Factory Overhead is credited. 
A) Factory Wages Payable is debited and Work in Process Inventory is credited. 
B) Work in Process Inventory is debited and Factory Wages Payable is credited. 
C) Cost of Goods Manufactured is debited and Direct Labor is credited. 
D) Direct Labor and Indirect Labor are debited and Factory Wages Payable is credited. 
E) Work in Process Inventory is debited and Factory Overhead is credited.

Question 6

When the actual overhead incurred during an accounting period is more than the overhead applied to jobs,the overhead is said to be ________.

Accepted Answer

The answer of When the actual overhead incurred during an...

Question 7

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 8

The predetermined overhead rate is revised many times during the period to compensate for inaccurate estimates previously made.

Accepted Answer

A) True 
 B)False

Question 9

When direct labor costs are recorded,the journal entry is a debit to Factory Wages Payable and a credit to Work in Process Inventory.

Accepted Answer

A) True 
 B)False

Question 10

Booth Manufacturing uses a job order costing system that charges overhead to jobs on the basis of direct material cost.At year-end,the Work in Process Inventory account shows the following.
   a.Determine the predetermined overhead rate used.
b.Only one job remained in process at December 31.Its direct materials cost is $60,000.How much direct labor cost and overhead cost are assigned to it?

Accepted Answer

a.Rate = $

Question 11

If overhead is underapplied,it means that individual jobs have not been charged enough during the year and the cost of goods sold reported is too low.

Accepted Answer

A) True 
 B)False

Question 12

Lowden Company has a predetermined overhead rate of 160% and allocates overhead based on direct material cost.During the current period,direct labor cost is $50,000 and direct materials cost is $80,000.How much overhead cost should Lowden Company should apply in the current period?

Accepted Answer

A) $31,250. 
B) $50,000. 
C) $80,000. 
D) $128,000. 
E) $208,000. 
A) $31,250. 
B) $50,000. 
C) $80,000. 
D) $128,000. 
E) $208,000.

Question 13

When actual overhead cost exceeds the overhead applied,overhead is said to be underapplied.

Accepted Answer

A) True 
 B)False

Question 14

A company that makes which of the following types of products would best be suited for a job costing system?

Accepted Answer

A) Fruit juice 
B) Swimming suits 
C) Snack chips 
D) Phone chargers 
E) Custom jewelry 
A) Fruit juice 
B) Swimming suits 
C) Snack chips 
D) Phone chargers 
E) Custom jewelry

Question 15

Minstrel Manufacturing uses a job order costing system.During one month,Minstrel purchased $198,000 of raw materials on credit; issued materials to production of $195,000 of which $30,000 were indirect.Minstrel incurred a factory payroll of $150,000,of which $40,000 was indirect labor.Minstrel uses a predetermined overhead rate of 150% of direct labor cost.
-The journal entry to record the issuance of materials to production is:

Accepted Answer

A) Debit Raw Materials Inventory $195,000; credit Accounts Payable $195,000. 
B) Debit Work in Process Inventory $195,000; credit Raw Materials Inventory $195,000. 
C) Debit Raw Materials Inventory $195,000; credit Work in Process Inventory $195,000. 
D) Debit Work in Process Inventory $165,000; debit Factory Overhead $30,000; credit Raw Materials Inventory $195,000. 
E) Debit Finished Goods Inventory $195,000; credit Raw Materials Inventory $195,000. 
A) Debit Raw Materials Inventory $195,000; credit Accounts Payable $195,000. 
B) Debit Work in Process Inventory $195,000; credit Raw Materials Inventory $195,000. 
C) Debit Raw Materials Inventory $195,000; credit Work in Process Inventory $195,000. 
D) Debit Work in Process Inventory $165,000; debit Factory Overhead $30,000; credit Raw Materials Inventory $195,000. 
E) Debit Finished Goods Inventory $195,000; credit Raw Materials Inventory $195,000.

Question 16

There are two basic types of cost accounting systems: job order costing and periodic costing.

Accepted Answer

A) True 
 B)False

Question 17

A ________ is a separate record maintained for each job.

Accepted Answer

The answer of A ________ is a separate record maintained...

Question 18

Job A3B was ordered by a customer on September 25.During the month of September,Jaycee Corporation requisitioned $2,500 of direct materials and used $4,000 of direct labor.The job was not finished by the end of September,but needed an additional $3,000 of direct materials and additional direct labor of $6,500 to finish the job in October.The company applies overhead at the end of each month at a rate of 200% of the direct labor cost incurred.
-What is the balance in the Work in Process account at the end of September relative to Job A3B?

Accepted Answer

A) $5,500 
B) $11,500 
C) $6,500 
D) $9,500 
E) $14,500 
A) $5,500 
B) $11,500 
C) $6,500 
D) $9,500 
E) $14,500

Question 19

A company that produces products individually designed to meet the needs of a specific customer,would normally use a job order costing system.

Accepted Answer

A) True 
 B)False

Question 20

A materials requisition is a source document used by production managers to request materials for production and also used to assign materials costs to specific jobs or to overhead.

Accepted Answer

A) True 
 B)False

Exam 15: Job Order Costing and Analysis

The total cost on job cost sheets for all jobs in process equals the amount in the ________ Inventory account.

A company that uses a cost accounting system normally has only two inventory accounts: Finished Goods Inventory and Work in Process Inventory.

Overapplied overhead is the amount by which actual overhead cost exceeds the overhead applied to products during the period.

When direct labor costs are recorded in a job costing:

When the actual overhead incurred during an accounting period is more than the overhead applied to jobs,the overhead is said to be ________.

Job order production is also known as:

The predetermined overhead rate is revised many times during the period to compensate for inaccurate estimates previously made.

When direct labor costs are recorded,the journal entry is a debit to Factory Wages Payable and a credit to Work in Process Inventory.

If overhead is underapplied,it means that individual jobs have not been charged enough during the year and the cost of goods sold reported is too low.

Lowden Company has a predetermined overhead rate of 160% and allocates overhead based on direct material cost.During the current period,direct labor cost is $50,000 and direct materials cost is $80,000.How much overhead cost should Lowden Company should apply in the current period?

When actual overhead cost exceeds the overhead applied,overhead is said to be underapplied.

A company that makes which of the following types of products would best be suited for a job costing system?

There are two basic types of cost accounting systems: job order costing and periodic costing.

A ________ is a separate record maintained for each job.

A company that produces products individually designed to meet the needs of a specific customer,would normally use a job order costing system.

A materials requisition is a source document used by production managers to request materials for production and also used to assign materials costs to specific jobs or to overhead.

Accounting in Business

Accounting for Business Transactions

Adjusting Accounts for Financial Statements

Accounting for Merchandising Operations

Inventories and Cost of Sales

Cash,fraud,and Internal Controls

Accounting for Receivables

Accounting for Long-Term Assets

Accounting for Current Liabilities

Accounting for Long-Term Liabilities

Corporate Reporting and Analysis

Reporting Cash Flows

Analysis of Financial Statements

Managerial Accounting Concepts and Principles

Process Costing and Analysis

Activity-Based Costing and Analysis

Cost Behavior and Cost-Volume-Profit Analysis

Variable Costing and Analysis

Master Budgets and Performance Planning

Flexible Budgets and Standard Costs

Performance Measurement and Responsibility Accounting

Relevant Costing for Managerial Decisions

Capital Budgeting and Investment Analysis

Time Value of Money

Investments

Lean Principles and Accounting

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