Exam 16: Costing Systems: Job Order Costing

As related to a job order costing system,answer the following questions: a.What is a job order costing system? Identify three kinds of companies that would use such as system. b.What is a job order? c.What is the purpose of a job order cost card? Identify the kinds of information recorded in it.

Costs assigned to the building of a ship should appear on the income statement when

The type of product costing system used by a company is dictated by the

After a job is completed,the product's unit cost can be determined from the job order cost card.

Job order cost cards and cost flows through the inventory accounts form the core of a job order costing system.

The process of assigning a collection of indirect costs is termed as cost pooling.

In a job order costing system,costs are traced to a specific job order.

If there is a credit balance in the Payroll Payable at the end of the accounting period,it represents

In a job order costing system,the transfer of overhead costs to the Work in Process Inventory account must take place before product unit costs can be computed.

Johnson Technology specializes in graphic design and video production.In October 2014,the company incurred the following costs for providing services to one of its clients. Johnson Technology's contract with the client discloses a 20% profit margin on the cost incurred. -Determine the profit earned by the company by providing services.

The Work in Process Inventory account in a job order costing system consists of

Which of the following products would probably be produced by a company using a process costing system?

Which of the following is not an objective of product costing systems?

The computations for costs to be transferred out of Work in Process Inventory differ if the production process involves multiple departments rather than a single department.

Applied overhead of a company exceeds actual overhead when the

The production process determines the product costing system needed.

Cardsheet Company The following partially completed T accounts summarize the transactions of Cardsheet Company for last year: -The cost of goods sold (after adjusting for under- or overapplied overhead)is

Companies that produce custom-made products usually use a process costing system.

The applied overhead of a job is more than the actual overhead and it is considered immaterial by the company.An entry to record this would involve a

Pretty Pillows,Mfg. ,manufactures silk throw pillows.Last month the company produced 3,890 pillows.Using job order costing,determine the product unit cost for one pillow based on the following costs: production facility utilities,$1,600;depreciation on production equipment,$650;indirect materials,$400;direct materials,$5,300;indirect labor,$1,000;direct labor,$3,500;sales commissions,$4,000;president's salary,$8,000;insurance on production facility,$1,000;advertising expense,$900;rent on production facility,$6,000;rent on sales office,$4,000;and legal expense,$600.Round your answer to two decimal places.