Exam 2: Job Order Costing

Reynolds Manufacturers Inc.has estimated total factory overhead costs of $95,000 and expected direct labor hours of 9,500 for the current fiscal year.If job number 117 incurred 2,300 direct labor hours, Work in Process will be debited and Factory Overhead will be credited for

The Thomlin Company forecasts that total overhead for the current year will be $15,500,000 with 250,000 total machine hours.Year to date, the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours.The predetermined overhead rate based on machine hours is

Technics Inc., a manufacturing company, utilizes job order costing.Each division establishes its own estimates regarding overhead, which are as follows: Required: If Division A allocates overhead on the basis of machine hours, and Division B allocates overhead as a percentage of direct labor costs, what would the predetermined overhead rate be for each division?

The materials requisition serves as the source document for debiting the accounts in the materials ledger.

A process cost accounting system provides product costs for each of the departments or processes within the factory.

Which of the following systems provides for a separate record of the cost of each particular quantity of product that passes through the factory?

A receiving report is prepared when purchased materials are first received by the manufacturing department.

Using the job order cost system, service organizations are able to bill customers on a weekly or monthly basis, even when the job has not been completed.

The finished goods account is the controlling account for the

Period costs are classified as either

When the goods are sold, their costs are transferred from Work in Process to Finished Goods.

The recording of the factory labor incurred for general factory use would include a debit to

In a job order cost accounting system, when goods that have been ordered are received, the receiving department personnel count, inspect the goods, and complete a

Which of the following would be most likely to use process costing?

National Survey Company uses a job order cost system. a Indicate the source of the data for debiting Work in Process for each of the following: 1 Direct materials requisitioned 2 Direct labor used b Indicate the source of the data for crediting Work in Process for jobs completed. c Present a list of the three controlling accounts used in the general ledger to record the inventories and, in each case, indicate the related subsidiary ledger.

The debit to factory overhead for the cost of indirect materials is obtained from the summary of the materials requisitions.

Which of the following represents the factory overhead applied to a product?

At the end of the period, Carson Company had the following balances in selected accounts: Required: a.The factory overhead balance is relatively small, prepare the journal entry to close the Factory Overhead account assuming a debit balance.What does a debit balance mean? b.The factory overhead balance is relatively small, prepare the journal entry to close the Factory Overhead account assuming a credit balance.What does a credit balance mean?

Put the following in the order of the flow of manufacturing costs for a company. a.Closing under/over applied factory overhead to Cost of Goods Sold b.Materials purchased c.Factory labor used and factory overhead incurred in production d.Completed jobs moved to finished goods e.Factory overhead applied to jobs according to the predetermined overhead rate f.Materials requisitioned to jobs g.Selling of finished product h.Preparation of financial statements to determine gross profit

Discuss the use of job order costing for professional services businesses.What are the similarities and differences between service and manufacturing business job order costing?