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Exam 27: Job Order Cost Accounting

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Question 21

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A job order cost sheet summarizes:

A) the direct labor, direct materials used, and actual overhead costs incurred on a specific job.
B) the estimated costs that will be required to complete a specific job.
C) the direct labor, direct materials used, and applied overhead association with a specific job.
D) the direct labor and direct materials used only.

E) All of the above
F) B) and D)

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Question 22

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On June 1, a firm purchased 40 units of materials at a unit price of $1.42. On June 15, the firm purchased 45 units with a unit price of $1.18. If the firm uses the FIFO method of inventory pricing, the total cost of 65 units issued on June 20 would be:

A) $92.30.
B) $86.30.
C) $84.50.
D) $81.50.

E) A) and D)
F) B) and D)

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Question 23

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--------and--------- are the two principal cost accounting systems for capturing and reporting manufacturing costs.

On June 1, a firm purchased 40 units of materials at a unit price of $1.42. On June 15, the firm purchased 45 units with a unit price of $1.18. If the firm uses the LIFO method of inventory pricing, the total cost of 65 units issued on June 20 would be:

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 $316,000 and actual overhead costs were $254,000. At the end of the year, manufacturing overhead was:

Ridley Company estimates that overhead costs for the next year will be $6,870,000 for indirect labor and $450,000 for factory utilities. The company uses direct labor hours as its overhead allocation base. If 160,000 direct labor hours are budgeted for next year, what is the company's overhead rate per direct labor hour?

Jacson Corp. was undecided whether to use labor hours or labor cost in establishing the annual overhead rate. Labor costs are prone to fluctuate based on new hires, raises, retirements, and resignations. They decided to compute both rates for comparison. The overhead costs for the year were estimated at $525,000 with expected direct labor hours of 35,000 and indirect labor hours of 15,000. Direct and indirect labor costs are estimated to be $420,000 and $210,000 respectively. The overhead application rate for both bases (labor hours, labor cost) would be:

Match the following definitions with the correct term from the list provided.

Job Z2 requires $1,350 of material, $100 of which is indirect material. If manufacturing overhead is applied at a rate of 150% of direct labor cost and there were 232 labor hours charged to Job Z2 at $13 an hour, the total cost of Job Z2 would be:

Utilizing standard costing systems enables management to evaluate manufacturing efficiencies.

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 was the amount of overapplied or underapplied overhead for the month of August? Prepare the journal entry to close the related overhead accounts.

A(n)----------accounting system allows a firm to compare its budgeted costs with its actual costs in order to evaluate efficiency.

List the four manufacturing operations and define each. For the second operation, Production, summarize the flow of costs through a job order cost accounting system.

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 units manufactured.

In a perpetual inventory system, each inventory account is supported by a(n)----------ledger.

How often are direct labor costs entered on the Job Order Cost Sheets?

Based on the information given, complete the Job Order Cost Sheet for Job A1-13.

At the end of each year, the underapplied or overapplied overhead is closed out to the Cost of Goods Sold account.

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

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?