FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 2: Job Order Costing and Analysis

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

Multiple Choice

Review LaterAdd Note

Review Later

Kayak Company uses a job order costing system and allocates its overhead on the basis of direct labor costs. Kayak Company's production costs for the year were: direct labor, $30,000; direct materials, $50,000; and factory overhead applied $6,000. The predetermined overhead rate was:

A) 5.0%.
B) 12.0%.
C) 20.0%.
D) 500.0%.
E) 16.7%.

F) D) and E)
G) B) and D)

Correct Answer

verified

Show Answer

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

Mango Company applies overhead based on direct labor costs. For the current year, Mango Company estimated total overhead costs to be $300,000, and direct labor costs to be $150,000. Actual overhead costs for the year totaled $330,000, and actual direct labor costs totaled $170,000. At year-end, Factory Overhead account is:

A) Overapplied by $10,000.
B) Overapplied by $170,000.
C) Underapplied by $10,000.
D) Overapplied by $20,000.
E) Neither overapplied nor underapplied.

F) B) and C)
G) A) and D)

Correct Answer

verified

Show Answer

Question 3

True/False

Review LaterAdd Note

The schedule of cost of goods manufactured for a job costing system includes total actual factory overhead.

When direct labor costs are recorded, the journal entry is a debit to Factory Wages Payable and a credit to Work in Process Inventory.

Actual factory overhead incurred in a job costing system is debited to a Factory Overhead general ledger account and credited to various other accounts.

In a job order costing system, indirect labor costs are debited to the Factory Overhead account.

What is a cost accounting system? What are the two basic types of cost accounting systems?

When actual overhead cost exceeds the overhead applied, overhead is said to be underapplied.

When a job involves producing more than one unit of a custom product, it is often called a job lot.

Chen Service applied overhead on the basis of direct labor costs during the current year. Overhead applied was $16,500. Actual overhead incurred was $17,200. Prepare the adjusting journal entry for over- or underapplied overhead .

Oxford Company uses a job order costing system. In the last month, the system accumulated labor time tickets total $24,600 for direct labor and $4,300 for indirect labor. How are these costs recorded?

A company that uses a cost accounting system normally has only two inventory accounts: Finished Goods Inventory and Work in Process Inventory.

Portside Watercraft uses a job order costing system. During one month Portside purchased $173,000 of raw materials on credit; issued materials to production of $164,000, of which $24,000 were indirect. Portside incurred a factory payroll cost of $95,000, of which $25,000 was indirect labor. Portside uses a predetermined overhead rate of 170% of direct labor cost. The journal entry to record the allocation of factory wages to production is:

Heintz Company's job order costing system applies overhead based on direct labor costs. The company's manufacturing costs for the current year were: direct materials, $108,000; direct labor, $144,000; and factory overhead, $36,000. At year-end, the total cost of Work in Process is $38,000, which includes $12,000 of direct labor cost. What amount of direct material cost is included in the ending Work in Process inventory?

Cost accounting systems accumulate production costs and then assign them to products and services.

Describe the flow of the employee labor, both direct and indirect, through the inventory accounts.

Production of one unit of Product BJM used $27.50 of direct materials and $21.00 of direct labor. The unit sold for $76.00 and was assigned overhead at a rate of 30% of direct labor costs. What is the gross profit on the sale of one unit of Product BJM?

If one unit of Product Z2 used $2.50 of direct materials and $3.00 of direct labor, sold for $8.00, and was assigned overhead at the rate of 30% of direct labor costs, how much gross profit was realized from this sale?

Oddley Corp. uses a job order costing system. The following information pertains to costs applied to jobs during the current year: Jobs still in process at the end of the year: $167,000, which includes $65,000 direct labor costs. Jobs finished and sold during the year: $395,000, which includes $172,000 direct labor costs. Jobs finished but unsold during the year: $103,000, which includes $38,000 direct labor costs. Oddley Corp.'s predetermined overhead rate is 60% of direct labor cost. At the end of the year, the company's records show that $189,000 of actual factory overhead has been incurred. (a) Determine the amount of overapplied or underapplied overhead. (b) Prepare the necessary journal entry to close the Factory Overhead account assuming that any remaining balance is not material.

Match the following terms to the appropriate definition.