The job order cost sheets used by Greene Company revealed the following: $\begin{array} { c c c } \text { Job. No. } & \text { Bal., May 1 } & \text { May Production Costs } \\ 134 & \$ 1,700 & \$0 \\ 135 & 1,200 & 300 \\ 136 &0 &900 \\ & & \end{array}$ Job No. 135 was completed during May and Jobs No. 134 and 135 were shipped to customers in May. What was the company's cost of goods sold for May and the Work in Process inventory on May 31?

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

Chung Corporation uses a job order costing system. Five jobs were worked on during the current year. The predetermined overhead rate is 20% of direct labor costs. The following cost information is available (all materials and time ticket information applies to direct costs): \[\begin{array} { l | l | l } \text { Job } & \text { Materials Requistions } & \text { Time Tickets } \\ \hline 101 & \$ 66,000 & \$ 32,000 \\ \hline 102 & \$ 63,000 & \$ 74,000 \\ \hline 103 & \$ 39,000 & \$ 50,000 \\ \hline 104 & \$ 32,000 & \$ 36,000 \\ \hline 105 & \$ 53,000 & \$ 68,000 \end{array}\] Part 1-Complete the job cost sheets for each job. \[\begin{array} { l | l | l | l | l | l } \text { Job No. 101 } & & \text { Job No. 102 } & & \text { Job No. 103 } & \\ \hline \text { Materials } & & \text { Materials } & & \text { Materials } & \\ \hline \text { Labor } & & \text { Labor } & & \text { Labor } & \\ \hline \text { Overhead } & & \text { Overhead } & & \text { Overhead } & \\ \hline \text { Total Cost } & & \text { Total Cost } & & \text { Total Cost } & \\ \hline \text { Status } & \text { In Process } & \text { Status } & \text { Sold } & \text { Status } & \text { Finithed } \end{array}\] \[\begin{array} { l | l | l | l } \hline \text { Job No. 104 } & & \text { Job No. 105 } & \\ \hline \text { Materials } & & \text { Materials } & \\ \hline \text { Labor } & & \text { Labor } & \\ \hline \text { Overhead } & & \text { Overhead } & \\ \hline \text { Total Cost } & & \text { Total Cost } & \\ \hline \text { Status } & \text { Sold } & \text { Status } & \text { Firished } \end{array}\] Part 2-Identify the amounts of each of the following accounts at the end of the period a. Work in Process________ b. Finished Goods________ c. Cost of Goods Sold________

Part 1 \[\begin{array} { l | l | l | l

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. \[\begin{array} { | l | l | l | l | l | } \hline \text { Date } & \text { Explanation } & \text { Debit } & \text { Credit } & \text { Balance } \\ \hline \text { Dec. 31 } & \text { Direct materials cost } & 980,000 & & 980,000 \\ \hline 31 & \text { Direct labor cost } & 320,000 & & 1,300,000 \\ \hline 31 & \text { Overhead costs } & 637,000 & & 1,937,000 \\ \hline 31 & \text { To finished goods } & & 1,818,000 & 119,000 \\ \hline \end{array}\] a. Determine the overhead rate used (based on direct material cost). b. Only one job remained in the Work in Process inventory at December 31. Its direct materials cost is $60,000. How much direct labor cost and overhead cost are assigned to it?

a. Rate = $637,000/$980,000 = 65% \[\be

Exam 19: Job Order Costing

The job order cost sheets used by Greene Company revealed the following: Job. No. Bal., May 1 May Production Costs 134 \ 1,700 \0 135 1,200 300 136 0 900 Job No. 135 was completed during May and Jobs No. 134 and 135 were shipped to customers in May. What was the company's cost of goods sold for May and the Work in Process inventory on May 31?

(Multiple Choice)

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Question 21

Chung Corporation uses a job order costing system. Five jobs were worked on during the current year. The predetermined overhead rate is 20% of direct labor costs. The following cost information is available (all materials and time ticket information applies to direct costs): Job Materials Requistions Time Tickets 101 \ 66,000 \ 32,000 102 \ 63,000 \ 74,000 103 \ 39,000 \ 50,000 104 \ 32,000 \ 36,000 105 \ 53,000 \ 68,000 Part 1-Complete the job cost sheets for each job. Job No. 101 Job No. 102 Job No. 103 Materials Materials Materials Labor Labor Labor Overhead Overhead Overhead Total Cost Total Cost Total Cost Status In Process Status Sold Status Finithed Job No. 104 Job No. 105 Materials Materials Labor Labor Overhead Overhead Total Cost Total Cost Status Sold Status Firished Part 2-Identify the amounts of each of the following accounts at the end of the period a. Work in Process b. Finished Goods c. Cost of Goods Sold

(Essay)

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Question 22

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. Date Explanation Debit Credit Balance Dec. 31 Direct materials cost 980,000 980,000 31 Direct labor cost 320,000 1,300,000 31 Overhead costs 637,000 1,937,000 31 To finished goods 1,818,000 119,000 a. Determine the overhead rate used (based on direct material cost). b. Only one job remained in the Work in Process inventory at December 31. Its direct materials cost is $60,000. How much direct labor cost and overhead cost are assigned to it?

(Essay)

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Question 23

Predetermined overhead rates are necessary because cost accountants use periodic inventory systems.

(True/False)

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Question 24

If overhead is underapplied, it means that individual jobs have been charged too much during the year and the cost of goods sold reported is too high.

(True/False)

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Question 25

Immaterial amounts of overapplied overhead should be to the account when closed.

(Short Answer)

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Question 26

Manufacturing costs incurred for jobs completed during an accounting period can bypass the inventory accounts on the balance sheet and be recorded directly in expense accounts.

(True/False)

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Question 27

A job order costing system would be appropriate for a manufacturer of automobile tires.

(True/False)

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Question 28

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 the month, 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 total cost of the job when it is completed in October?

(Multiple Choice)

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Question 29

A job order costing system would best fit the needs of a company that makes:

(Multiple Choice)

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Question 30

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

(True/False)

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Question 31

Andrew Industries purchased $165,000 of raw materials on account during the month of March. The beginning Raw Materials Inventory balance was $22,000, and the materials used to complete jobs during the month were $141,000 of direct materials and $13,000 of indirect materials. -What is the ending Raw Materials Inventory balance for March?

(Multiple Choice)

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Question 32

Andrew Industries purchased $165,000 of raw materials on account during the month of March. The beginning Raw Materials Inventory balance was $22,000, and the materials used to complete jobs during the month were $141,000 direct materials and $13,000 indirect materials. - How should Andrews journalize the purchase of raw materials for March?

(Multiple Choice)

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Question 33

In a job order costing system, any immaterial underapplied overhead at the end of the period can be charged entirely to Cost of Goods Sold.

(True/False)

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Question 34

A company charged the following amounts of overhead to jobs during the current year: $12,000 to jobs still in process, $42,000 to jobs completed but not sold, and $66,000 to jobs finished and sold. At year-end, the company's Factory Overhead account has a credit balance of $9,000, which is not a material amount. What entry (if any) should the company make at year-end related to this overhead balance?

(Essay)

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Question 35

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

(True/False)

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Question 36

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 purchase of materials is:

(Multiple Choice)

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Question 37

Match the following definitions with the appropriate term

The production of products in response to special orders; also called customized production.

Cost accounting system

Records manufacturing activities using a perpetual inventory system.

Time ticket

The amount by which the overhead applied to jobs in a period with the predetermined overhead rate exceeds the actual overhead incurred in a period.

Finished Goods Inventory

Correct Answer:

Verified

The production of products in response to special orders; also called customized production.

Records manufacturing activities using a perpetual inventory system.

The amount by which the overhead applied to jobs in a period with the predetermined overhead rate exceeds the actual overhead incurred in a period.

An asset account where costs are accumulated while jobs are being produced.

The rate established prior to the beginning of a period that relates estimated overhead to an allocation factor such as estimated direct labor and is used to assign overhead cost to a job.

An asset account where costs of completed jobs reside until the jobs are delivered to customers.

A source document that production managers use to request materials needed for manufacturing and that is used to assign materials costs to specific jobs or to overhead.

A perpetual record that is updated each time units of raw material are purchased and issued for use in production.

A source document that is used to report how much time an employee spent working on a job or on overhead activities and the labor costs to assign to jobs or overhead.

The amount by which actual overhead incurred in a period exceeds the overhead applied to jobs with the predetermined overhead rate.

A separate record maintained for each job in a job order costing system; it shows the costs of direct materials, direct labor, and overhead for each job.

(Matching)

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Question 38

The predetermined overhead rate based on direct labor cost is the ratio of estimated overhead cost to estimated direct labor cost for the period.

(True/False)

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Question 39

A manufacturing company uses an overhead rate based on direct labor cost. The company's Work in Process Inventory account has a $15,000 debit balance after all posting is completed, and the cost sheet of the one job still in process shows direct material costs of $6,600 and direct labor costs of $3,000. What is the company's overhead application rate?

(Short Answer)

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Question 40

Predetermined overhead rates are necessary because cost accountants use periodic inventory systems.

If overhead is underapplied, it means that individual jobs have been charged too much during the year and the cost of goods sold reported is too high.

Immaterial amounts of overapplied overhead should be to the account when closed.

Manufacturing costs incurred for jobs completed during an accounting period can bypass the inventory accounts on the balance sheet and be recorded directly in expense accounts.

A job order costing system would be appropriate for a manufacturer of automobile tires.

A job order costing system would best fit the needs of a company that makes:

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

In a job order costing system, any immaterial underapplied overhead at the end of the period can be charged entirely to Cost of Goods Sold.

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

The predetermined overhead rate based on direct labor cost is the ratio of estimated overhead cost to estimated direct labor cost for the period.

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets Natural Resoures and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments

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

Present and Future Values in Accounting

Activity-Based Costing

Filters

Exam 19: Job Order Costing

Predetermined overhead rates are necessary because cost accountants use periodic inventory systems.

If overhead is underapplied, it means that individual jobs have been charged too much during the year and the cost of goods sold reported is too high.

Immaterial amounts of overapplied overhead should be ________ to the ________ account when closed.

Manufacturing costs incurred for jobs completed during an accounting period can bypass the inventory accounts on the balance sheet and be recorded directly in expense accounts.

A job order costing system would be appropriate for a manufacturer of automobile tires.

A job order costing system would best fit the needs of a company that makes:

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

In a job order costing system, any immaterial underapplied overhead at the end of the period can be charged entirely to Cost of Goods Sold.

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

The predetermined overhead rate based on direct labor cost is the ratio of estimated overhead cost to estimated direct labor cost for the period.

Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories and Cost of Sales

Accounting Information Systems

Cash and Internal Controls

Accounting for Receivables

Plant Assets Natural Resoures and Intangibles

Current Liabilities and Payroll Accounting

Accounting for Partnerships

Accounting for Corporations

Long-Term Liabilities

Investments

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

Present and Future Values in Accounting

Activity-Based Costing

Filters

Immaterial amounts of overapplied overhead should be to the account when closed.