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Exam 2: Job Order Costing

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Question 51

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The amount of time spent by an employee in the factory is usually recorded on:

A) time tickets
B) job order cost sheets
C) employees' earnings records
D) statement of owners' equity

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

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Question 52

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The cost of production of completed and finished goods during the period amounted to $450,000, and the finished products shipped to customers had total production costs of $357,000. From the following, select the entry to record the transfer of costs from finished goods to cost of goods sold.

A) Finished Goods 450,000 Cost of Goods Sold 450,000
B) Finished Goods 357,000 Cost of Goods Sold 357,000
C) Cost of Goods Sold 357,000 Finished Goods 357,000
D) Cost of Goods Sold 450,000 Finished Goods 450,000

E) B) and D)
F) None of the above

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Question 53

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Match each of the following terms with the phrase that most closely describes it. Each answer may be used only once.

Which of the following are the two main types of cost accounting systems for manufacturing operations?

If the underapplied factory overhead amount is material, it is transferred to Cost of Goods Sold at the end of the fiscal year.

A process cost accounting system is best used by manufacturers of like units of product that are not distinguishable from each other during a continuous production process.

At the end of April, Cavy Company had completed Job 766 and 765. According to the individual job cost sheets the information is as follows:

The controlling account for the cost ledger is:

Which of the following is not a characteristic of a job order costing system?

When a job is completed in a service organization, the job costs are transferred to the

The recording of the jobs completed would include a debit to:

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. Calculate the predetermined overhead rate to apply factory overhead.

Materials purchased on account during the month amounted to $180,000. Materials requisitioned and placed in production totaled $165,000. From the following, select the entry to record the transaction on the day the materials were requisitioned by the production department.

The job order costing system is used by service firms to determine revenues, expenses, and ultimately profit.

Factory overhead is applied to production using a predetermined overhead rate.

Scooby Company has applied $567,988 of overhead into production on Jobs in the Work in Process account. Actual overhead at the end of the year is $575,000. What is the adjustment for over or underapplied overhead?

The finished goods account is the controlling account for the:

The Stamping Department accepted Job 051507A on May 15th to make 1,000 funnels. To complete the job they requisitioned 1,100 sheets at $1.20 per sheet and 1,150 grommets at $0.15 per set. The cost driver that the Stamping Department uses is drop-forge strokes which are counted on a machine mounted counter. $2.25 is applied as overhead for each drop-forge stroke. Additionally $375.00 of overhead is applied to each job due to setup and teardown. Direct labor is applied at $22.50 per hour for the machine operator and $11.10 for the machine loader. The job required 6 1/2 hours of labor by the team. When the job was complete Job 051507A was transferred to Semi-finished Goods Inventory (SFGI). When the job was transferred, 20 sheets were returned unused to raw material inventory, 75 grommet sets were returned, and there were 1,115 strokes on the counter. Journalize all events depicted as of May 15th.

The materials requisition serves as the source document for debiting the accounts in the materials ledger.

The document that serves as the basis for recording direct labor on a job cost sheet is the time ticket.