Exam 2: Job Order Costing

Recording jobs shipped and customers billed would include a debit to

The cost of production of completed and transferred goods during the period amounted to $540,000, and the finished products shipped to customers had production costs of $375,000.The entry to record the transfer of costs from finished goods to cost of goods sold is

As product costs are incurred in the manufacturing process, they are accounted for as assets and reported on the balance sheet as inventory.

Selected accounts with some amounts omitted are as follows If the balance of Work in Process at October 31 is $21,000, what was the amount of factory overhead applied in October?

For a manufacturing business, products that are in the process of being manufactured are referred to as

Direct labor cost is an example of a period cost.

Selected accounts with some amounts omitted are as follows If the balance of Work in Process at August 31 is $220,000, what was the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs?

A service organization will not use the job order costing method because it has no direct materials.

Discuss how job order cost information is used in decision making.What are some possible reasons that actual cost of materials would exceed expected costs for a job?

A manufacturing business reports just two types of inventory on its balance sheet: work in process inventory and finished goods inventory.

Job order cost accounting systems can be used only for companies that manufacture a product.

Cavy Company completed 26,000 units during the year at a cost of $2,139,800.The beginning finished goods inventory was 5,000 units valued at $405,000.Assuming a FIFO cost flow, determine the cost of goods sold for 20,000 units.

A process cost accounting system is best used by manufacturers of like units of product that are not distinguishable from each other during a continuous production process.

Each document in the cost ledger is called a

Materials are transferred from the storeroom to the factory in response to materials requisitions.

The current year's advertising costs are normally considered period costs.

The Winston Company estimates that the factory overhead for the following year will be $1,250,000.The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 50,000 hours.The total machine hours for the year was 54,300.The actual factory overhead for the year was $1,348,800. a Determine the total factory overhead amount applied. b Calculate the over- or under applied amount for the year. c Prepare the journal entry to close Factory Overhead into Cost of Goods Sold.

During August, the receipts and distributions of Material No.B4G9 are as follows: Received Aug.3 1,100 units at $15 16 1,700 units at $17 29 900 units at $18 Issued Aug.11 700 units for Job No.116 18 1,900 units for Job No.117 30 800 units for Job No.118 a Determine the cost of each of the three issues under a perpetual system, using the first-in, first-out method. b Present the journal entry to record the issuance of the materials for the month, assuming that the cost of issuances is determined by the first-in, first-out method.

During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 for general factory use.Factory overhead applied to production was $23,000.The entry to record the factory overhead applied to production is

Match each of the following phrases with the term a-g that it most closely describes. -a subsidiary ledger that maintains a separate account for each type of material