Exam 16: Costing Systems: Job Order Costing

Delaware Inc.incurred the following costs in October,2014,for producing 5,000 good units of personalized photo frames. The company sold 4,500 units.Determine the product unit cost of photo frames.

Process costing is applicable to production operations that

Which of the following is related to performing in the management process?

Predetermined overhead rate is calculated by dividing actual overhead costs by actual cost driver activity.

The balance in the Work in Process Inventory account on October 1 was $14,000,and the balance on October 31 was $85,400.Costs incurred during the month were as follows: direct materials,$55,820;direct labor,$58,420;and overhead,$40,000.What amount was transferred to the Finished Goods Inventory account during October?

The purchasing process begins with a request for indirect materials,whereas the manufacturing process begins with a request for direct materials.

A company using the periodic inventory system records cost of goods sold when products are sold.

Which of the following is a document prepared every period for each process?

An advertising company would probably use a process costing system.

Taylor Company manufactures guitars and uses a job order costing system with a predetermined overhead rate of 110 percent per direct labor dollar. On September 11,2014,Those Guys ordered 200 beginner guitars which were completed on October 13,2014.The Job Order number is 1031.Complete the job order cost card based on the following information:

The following information is available at the end of the period for the completed Job 73: What is the unit cost for Job 73?

Which of the following is not a characteristic of a process costing system?

Job costs in a service organization end up in the Finished Goods Inventory account when a job is completed.

In a job order costing system,when overhead costs are applied,they decrease the Work in Process Inventory account.

Cardsheet Company The following partially completed T accounts summarize the transactions of Cardsheet Company for last year: -The cost of direct materials used in production is

Which of the following firms would most likely use a process costing system?

Teddy's To Hug,produces Teddy Bears for heart patients.Last month the company produced 500 bears.Using job order costing,determine the product unit cost for one bear based on the following costs: production facility utilities,$600;depreciation on production equipment,$550;indirect materials,$450;direct materials,$1,300;indirect labor,$900;direct labor,$2,500;sales commissions,$3,000;president's salary,$5,000;insurance on production facility,$700;advertising expense,$600;rent on production facility,$5,000;rent on sales office,$3,000;and legal expense,$300.Round your answer to two decimal places.

If the difference between overhead applied and actual overhead is insignificant,it is usually written off to

Which of the following is a characteristic of a job order costing system?

Which of the following characteristics applies to process costing,but does not apply to job order costing?