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Exam 27: Job Order Cost Accounting

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Question 1

True/False

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The cost of a unit produced in a process cost system is the sum of the costs incurred in each department divided by the number of output units.

A) True
B) False

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True

Question 2

Multiple Choice

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

A) Materials Request Form
B) Materials Requisition Form
C) Raw Materials Ledger Card
D) Production Order Form

E) A) and D)
F) A) and C)

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Question 3

Multiple Choice

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At the end of the year the Manufacturing Overhead account is closed into what account?

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.

Direct labor costs of $10,000 and indirect labor costs of $1,500 associated with a job are recorded on the job cost sheet with a corresponding debit to Work in Process for $11,500.

The overhead application rate for the current year is 0.8 times direct labor cost.($352,000/$440,000) 2.

Adams Manufacturing has three jobs in process in October of the current year,B2-19,C3-19,and D4-4.All three were begun during the first week of October.Job C3-19 was completed on October 10^th with total labor costs of $14,750 and total material costs of $8,855.No other jobs were completed in October.The total balance in Job D4-4 is $8,250 ($4,275 in materials and $3,975 in labor)and in Job B2-19 is $17,850 ($10,425 in materials and $7,425 in labor)before overhead is applied.Overhead is applied based on total direct labor dollars.Estimated total direct labor dollars for the year is $440,000 and total estimated manufacturing overhead is $352,000. Based on the information given,complete the Job Order Cost Sheet for Job C3-19.

Under a job order cost system,unit costs are determined for products manufactured under each ___________________.

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

Job order cost accounting is appropriate

Actual overhead costs are

Process cost accounting is appropriate

If manufacturing overhead is applied at a rate of $1.50 per direct labor dollar and the Department B worker had worked 200 hours at $12 an hour on Job L1147,then the applied overhead would be

When indirect materials are requisitioned from the materials storeroom and placed in production,an entry is made crediting Raw Materials Inventory and debiting

The cost data for the Omega Manufacturing Company for the month of April 2016 is given below. (a. )Raw materials and supplies costing $34,000 were purchased. (b. )The summary of materials requisitions shows that materials and supplies costing $30,900 were issued for use in jobs.Direct materials accounted for $28,000,and the balance consisted of indirect materials and supplies. (c. )The payroll summary shows that direct labor costs were $15,000 and indirect labor costs were $3,000.Social security tax withheld was $1,116,Medicare tax withheld was $261,and income tax deductions were $1,550. (d. )Manufacturing overhead of $6,200 was incurred in addition to indirect materials and indirect labor (credit Accounts Payable). (e. )The predetermined overhead application rate is 75 percent of direct labor costs. (f. )The summary of completed jobs shows that the cost of these jobs amounted to $39,600. (g. )The summary of sales invoices shows that goods costing $32,000 were sold on credit for $51,000. Record the necessary entries on page 8 of a general journal.Omit descriptions.

Manufacturing costs for each unit produced is calculated by dividing job order costs by ___________________.

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

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

At the end of the fiscal year,any immaterial overapplied or underapplied overhead is

A firm purchased 25 units of materials with a unit price of $2.00 on May 5.On May 15,the firm purchased 25 units with a unit price of $2.10.If the firm uses the FIFO method of inventory pricing,the total cost of 30 units issued on May 20 would be