Exam 16: Job Order Costing

A manufacturing company applies factory overhead based on direct labor hours.At the beginning of the year,it estimated that factory overhead costs would be $360,000 and direct labor hours would be 30,000.Actual factory overhead costs incurred were $377,200,and actual direct labor hours were 36,000.What is the amount of overapplied or underapplied manufacturing overhead at the end of the year?

Define and discuss the two main types of cost accounting systems for manufacturing operations.What are their similarities and differences?

Period costs are costs that are incurred for the production requirements of a certain period.

The recording of the jobs completed would include a debit to

The controlling account for the cost ledger is

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 were 54,300 hours.The actual factory overhead for the year was $1,375,000. ​ (a)Determine the total factory overhead amount applied. (b)Calculate the over- or underapplied amount for the year. (c)Prepare the journal entry to close Factory Overhead into Cost of Goods Sold.

Which of the following entries would not be found on the books of a service provider?

Recording jobs shipped and customers billed would include a debit to

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.

In a factory with several processing departments,a single factory overhead rate may not provide accurate product costs and effective cost control.

Bar code scanners are now being used to track incoming materials and to electronically transmit this data.Scanners have replaced which of the following?

All of the following are examples of activity bases except

Six selected transactions for the current month are indicated by letters in the following T accounts in a job order cost accounting system: ​ Describe each of the six transactions.

Which of the following costs are not included in finished goods inventory?

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

Job order costing and process costing are

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

Which of the following would most likely use a job order costing system?

In a job order cost accounting system,the entry to record the flow of direct materials into production is to

A process cost accounting system provides for a separate record of the cost of each particular quantity of product that passes through the factory.