Exam 17: Job Order Costing

Selected accounts with some debits and credits omitted are presented as follows: If the balance of Work in Process at August 31 is $220,000, what was the amount debited to Work in Process for factory overhead in August, assuming a factory overhead rate of 30% of direct labor costs?

The direct labor and overhead costs of providing services to clients are accumulated in a work-in-process account.

Generally, period costs are classified as either

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

The Cavy 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 40,000 hours. The machine hours for the month of April for all of the jobs was 4,780. What is the amount that will be applied to all of the jobs for the month of April?

At the end of April, Cavy Company had completed Job 766 and 765. According to the individual job cost sheets the information is as follows: Job 765 produced 152 units, and Job 766 consisted of 250 units.

Which of the following is the correct formula to calculate the predetermined factory overhead rate?

On January 2nd, Newsprint Manufacturing purchases 5 rolls of paper on account at $125.00 per roll for use within the production process. On January 5th 4 rolls of this paper are issued to Job 010507A in the Printing Department. The Printing Department records $675.00 in direct labor and $1,150.00 of factory overhead to Job 010507A. On January 8th Printing transfers Job 010507A to the Folding Department. The folding department applies $450.00 in direct labor and $655.00 in factory overhead to Job 010507A. Job 010507A is transferred to Finished Goods Inventory on January 9th.

Which of the following would most likely be a product cost?

The Cavy Company estimates that the factory overhead for the following year will be $1,470,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 40,000 hours. Calculate the predetermined overhead rate to apply factory overhead.

The job order costing system is not used by service organizations.

The Cavy 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 40,000 hours. The machine hours for the month of April for all of the jobs was 4,780. If the actual factory overhead totaled $141,800, determine the over or under applied amount for the month.

Zeke Company is a manufacturing company that has worked on several production jobs during the 1st quarter of the year. Below is a list of all the jobs for the quarter: Job 356, 357, 358 & 359 were completed. Jobs 356 & 357 were sold at a profit of $500 on each job. What is the ending balance of Work in Process for Zeke Company as of the end of the 1st quarter?

The entries to record cost and sale of a finished good on account is:

The recording of the jobs shipped and customers billed would include a debit to:

For the manufacturing business, inventory which is in the process of being manufactured is referred to as:

Which of the following would record the labor costs to an individual job?

If factory overhead applied exceeds the actual costs, the factory overhead account will have a credit balance.

A difference in quantity of materials used on two comparable jobs may be caused by:

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