Exam 18: Costing Systems: Job Order Costing

Under a job order costing system,the dollar amount of the entry to record the transfer of goods from Work in Process Inventory to Finished Goods Inventory is the total of the costs charged to all jobs

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

In cost-plus contracts,a predetermined amount of profit is added to the cost of the contract.

Explain the similarities and differences between job order costing and process costing.Focus on the characteristics of each system.

In a job order costing system,the purchase of materials on account should be recorded as follows:

Which of the following represents the product costs on the income statement?

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

The ending balance of Work in Process account is compared with the total costs shown on the job order cost cards to ensure correctness.

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

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.

A job order costing system measures costs of each processes using an inventory account for each.

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 ending balance in the Work in Process Inventory account equals the ending Overhead balance.

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

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

In a job order costing system,when the goods are sold,the Cost of Goods Sold account is increased,and the Finished Goods Inventory account is decreased for the selling price of the goods sold.

Identical products are produced in a continuous flow production process.

Unit costs for each job are computed by dividing

Ad-on International is an advertising company.It estimated the overhead costs for March,2014,to be $950,000 and direct labor hours to be 5,000 hours.In March,it incurred overhead costs of $1,150,000 and 5,100 labor hours. -The amount of overhead costs applied by the company in March,2014,is:

When a job has been completed,all of the costs assigned to that job are moved to the Cost of Goods Sold account.