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Exam 2: Job Order Costing

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Question 51

Multiple Choice

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In a job order cost accounting system, when goods that have been ordered are received, the receiving department personnel count, inspect the goods, and complete a

A) purchase order
B) sales invoice
C) receiving report
D) purchase requisition

E) None of the above
F) All of the above

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Question 52

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

A) True
B) False

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Question 53

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The period costs of a textbook printer would include

The Winston 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 50,000 hours. The total machine hours for the year were 54,300. The actual factory overhead for the year were $1,348,800. (a) Determine the total factory overhead amount applied. (b) Calculate the over- or underapplied amount for the year. (c) Prepare the journal entry to close Factory Overhead into Cost of Goods Sold.

Record the journal entries for the following transactions: 1. March 10: 500 units of raw materials were purchased on account at $4.00 per unit. 2. March 15: 250 units of raw materials were requisitioned at $4.50 per unit for production, Job 872. 3. March 25: 215 units of raw materials were requisitioned at $5.00 per unit for production, Job 879.

The Winston 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 50,000 hours. The total machine hours for the year were 54,300. The actual factory overhead for the year were $1,375,000.  Determine the over- or underapplied amount for the year.

A process cost accounting system provides product costs for each of the departments or processes within the factory.

All of the following are examples of activity bases except

Cavy Company completed 26,000 units during the year at a cost of $2,139,800. The beginning finished goods inventory was 5,000 units valued at $405,000. Assuming a FIFO cost flow, determine the cost of goods sold for 20,000 units.

Job order cost accounting systems may be used for planning and controlling a service business.

The details concerning the costs incurred on each job order are accumulated in a work in process account and supported by a

The source document for the data for debiting Work in Process for direct materials is a

When the goods are sold, their costs are transferred from Work in Process to Finished Goods.

Costs that are incurred in generating revenues during the period, but are not involved in the manufacturing process are referred to as

During the period, labor costs incurred on account amounted to $175,000, including $150,000 for production orders and $25,000 for general factory use. In addition, factory overhead charged to production was $32,000. The entry to record the direct labor costs is

A widely used activity base for developing factory overhead rates in highly automated settings is

The inventory accounts generally maintained by a manufacturing firm are only finished goods and materials.

All of the following are true regarding product costs except

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 $1,470,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 40,000 hours. The machine hours for the month of April for all of the jobs were 4,780. Prepare the journal entry to apply factory overhead.