Exam 27: Job Order Cost Accounting

There is no need to take a physical count of inventory periodically when the perpetual inventory system is used.

Under a perpetual inventory system, when goods are sold the Cost of Goods Sold account is ___________________.

During the year, a firm's direct labor costs were $95,000. The firm applies overhead at the rate of 75 percent of direct labor costs. The firm's actual overhead costs for the year were $72,315. 1. What was the amount of overhead applied? 2. Did the firm have overapplied or underapplied overhead for the year? 3. What amount was overapplied or underapplied?

The ______ is a record of all manufacturing costs charged to a specific job.

Wilson Enterprises applies overhead based on direct labor cost. The company estimates that their overhead for the year will be $240,000, and direct labor cost to be $300,000. Actual direct labor cost for Martinez Manufacturing was $280,000. The journal entry to record manufacturing overhead would include a:

The entry to charge work in process inventory with the appropriate amount of applied overhead consists of a debit to Work in Process Inventory and a credit to Manufacturing Overhead Applied.

What is the subsidiary ledger that contains a record for each overhead item called?

Record the necessary entries on page 8 of a general journal. Omit descriptions.

If actual overhead costs exceed the overhead applied during the year, the difference represents ____________________ overhead.

What are the two principle cost accounting systems and give an example of a type of business which would use this system?

What form is presented at the storeroom to obtain materials or supplies?

If the manufacturing overhead was overapplied, then

In a just-in-time inventory system, the _________________________ account is debited when goods arrive.

A standard cost system may be used

What form is used to keep track of inventory of raw materials? What additional information does the form provide if a perpetual inventory system is utilized?

Millenium Manufacturing is considering two methods for applying overhead. Estimated data for the next year, 2013, follows. Estimated direct labor costs $\quad \$ 871,875$ Estimated direct labor hours $\quad 90,000$ Estimated overhead costs $\quad \$ 558,000$ 1. What would be the overhead application rate based on direct labor costs? 2. What would be the overhead application rate based on direct labor hours? 3. If a job requires 650 hours of direct labor, what would be the amount of overhead applied to the job using the rate based on direct labor hours?

The entry to record the application of overhead to jobs consists of

A(n) ____________________ cost accounting system permits a firm to compare what its costs should be with its actual costs in order to evaluate efficiency.

Materials may be withdrawn from the storeroom only on completion of a materials ___________________.

The Manufacturing Overhead Applied account for Djos Domal Company had activity of $567 in indirect materials and supplies, $785 in indirect labor, and $3,455 in other overhead costs recorded in the account at August 31 of the current year. The Manufacturing Overhead Applied account had a total of $4,600 in overhead applied during August. What is the over-or underapplied overhead for August? Prepare the journal entry to close the related overhead accounts.